Document:

Exhibit 10.2

 

EXECUTION VERSION

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

Dated as of November 5, 2018

 

among

 

ANGI HOMESERVICES INC., 
 as Borrower,

 

THE LENDERS PARTY HERETO,

 

and

 

JPMORGAN CHASE BANK, N.A., 
 as Administrative Agent

 

 

JPMORGAN CHASE BANK, N.A., BMO CAPITAL MARKETS CORP., BNP PARIBAS SECURITIES CORP., CITIGROUP GLOBAL MARKETS INC., MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED and PNC CAPITAL MARKETS LLC
 as Joint Lead Arrangers and Joint Bookrunners,

 

 BANK OF AMERICA, N.A.,
 as Syndication Agent,

 

and

 

 BMO HARRIS BANK N.A., BNP PARIBAS SECURITIES CORP., CITIGROUP GLOBAL MARKETS INC. and PNC CAPITAL MARKETS LLC,
 as Co-Documentation Agents

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE I
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Definitions
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 1.01
    	
Defined Terms
    	
1
    
	
SECTION 1.02
    	
Classification of Loans   and Borrowings
    	
43
    
	
SECTION 1.03
    	
Terms Generally
    	
43
    
	
SECTION 1.04
    	
Accounting Terms; GAAP
    	
43
    
	
SECTION 1.05
    	
Change of Currency
    	
43
    
	
SECTION 1.06
    	
Currency Equivalents   Generally
    	
43
    
	
SECTION 1.07
    	
Certain Determinations
    	
44
    
	
SECTION 1.08
    	
Limited Condition   Transactions
    	
44
    
	
SECTION 1.09
    	
Interest Rates; LIBOR Notification
    	
45
    
	
SECTION 1.10
    	
Effect of this   Agreement on the Original Credit Agreement and the Other Existing Loan   Documents
    	
46
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE II
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
The Credits
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 2.01
    	
Commitments
    	
46
    
	
SECTION 2.02
    	
Incremental Revolving   Commitments and Incremental Term Loans
    	
47
    
	
SECTION 2.03
    	
Procedure for Borrowing
    	
49
    
	
SECTION 2.04
    	
Funding of Borrowings
    	
49
    
	
SECTION 2.05
    	
Interest Elections
    	
50
    
	
SECTION 2.06
    	
Termination and   Reduction of Commitments
    	
51
    
	
SECTION 2.07
    	
Repayment of Loans;   Evidence of Debt
    	
51
    
	
SECTION 2.08
    	
Prepayments
    	
51
    
	
SECTION 2.09
    	
Fees
    	
53
    
	
SECTION 2.10
    	
Interest
    	
54
    
	
SECTION 2.11
    	
Alternate Rate of   Interest
    	
55
    
	
SECTION 2.12
    	
Increased Costs
    	
56
    
	
SECTION 2.13
    	
Break Funding Payments
    	
57
    
	
SECTION 2.14
    	
Taxes
    	
57
    
	
SECTION 2.15
    	
Pro Rata Treatment and Payments
    	
60
    
	
SECTION 2.16
    	
Mitigation Obligations;   Replacement of Lenders
    	
61
    
	
SECTION 2.17
    	
Letters of Credit
    	
62
    
	
SECTION 2.18
    	
Defaulting Lenders
    	
66
    
	
SECTION 2.19
    	
Extensions of   Commitments
    	
68
    
	
SECTION 2.20
    	
Refinancing Amendments
    	
70
    
	
SECTION 2.21
    	
Illegality
    	
73
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE III
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Representations   and Warranties
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 3.01
    	
Organization; Powers
    	
74
    
	
SECTION 3.02
    	
Authorization;   Enforceability
    	
74
    
	
SECTION 3.03
    	
Governmental Approvals;   No Conflicts
    	
74
    
	
SECTION 3.04
    	
Financial Position
    	
75
    
	
SECTION 3.05
    	
Properties
    	
75
    
	
SECTION 3.06
    	
Litigation and   Environmental Matters
    	
75
    

 

i

 

	
SECTION 3.07
    	
Compliance with Laws   and Agreements
    	
75
    
	
SECTION 3.08
    	
Investment Company   Status
    	
75
    
	
SECTION 3.09
    	
Taxes
    	
75
    
	
SECTION 3.10
    	
ERISA
    	
76
    
	
SECTION 3.11
    	
Disclosure
    	
76
    
	
SECTION 3.12
    	
Collateral Documents
    	
76
    
	
SECTION 3.13
    	
No Change
    	
77
    
	
SECTION 3.14
    	
Guarantors
    	
77
    
	
SECTION 3.15
    	
Solvency
    	
77
    
	
SECTION 3.16
    	
No Default
    	
77
    
	
SECTION 3.17
    	
Anti-Corruption Laws   and Sanctions
    	
77
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE IV
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Conditions
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 4.01
    	
Closing Date
    	
77
    
	
SECTION 4.02
    	
Each Credit Event
    	
79
    
	
SECTION 4.03
    	
Amendment Effective   Date
    	
79
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE V
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Affirmative   Covenants
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 5.01
    	
Financial Statements;   Other Information
    	
81
    
	
SECTION 5.02
    	
Notices of Material   Events
    	
83
    
	
SECTION 5.03
    	
Existence; Conduct of   Business
    	
83
    
	
SECTION 5.04
    	
Payment of Obligations
    	
83
    
	
SECTION 5.05
    	
Maintenance of   Properties; Insurance
    	
84
    
	
SECTION 5.06
    	
Books and Records;   Inspection Rights
    	
85
    
	
SECTION 5.07
    	
Compliance with Laws
    	
85
    
	
SECTION 5.08
    	
Use of Proceeds
    	
85
    
	
SECTION 5.09
    	
Subsidiary Guarantors   and Collateral
    	
85
    
	
SECTION 5.10
    	
[Reserved]
    	
87
    
	
SECTION 5.11
    	
Further Assurances
    	
87
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE VI
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Negative   Covenants
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 6.01
    	
Indebtedness
    	
87
    
	
SECTION 6.02
    	
Liens
    	
90
    
	
SECTION 6.03
    	
Fundamental Changes
    	
92
    
	
SECTION 6.04
    	
Disposition of Property
    	
94
    
	
SECTION 6.05
    	
Restricted Payments
    	
95
    
	
SECTION 6.06
    	
Transactions with   Affiliates
    	
96
    
	
SECTION 6.07
    	
Changes in Fiscal   Periods
    	
97
    
	
SECTION 6.08
    	
Sales and Leasebacks
    	
98
    
	
SECTION 6.09
    	
Clauses Restricting   Subsidiary Distributions
    	
98
    
	
SECTION 6.10
    	
Consolidated Net   Leverage Ratio; Interest Coverage Ratio
    	
99
    
	
SECTION 6.11
    	
Investments
    	
99
    

 

ii

 

	
 
    	
ARTICLE VII
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Events of   Default
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 7.01
    	
Events of Default
    	
101
    
	
 
    	
ARTICLE VIII
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
The   Administrative Agent
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 8.01
    	
Appointment and   Authorization
    	
103
    
	
SECTION 8.02
    	
Administrative Agent   and Affiliates
    	
103
    
	
SECTION 8.03
    	
Action by Administrative   Agent
    	
103
    
	
SECTION 8.04
    	
Consultation with   Experts
    	
103
    
	
SECTION 8.05
    	
Delegation of Duties
    	
104
    
	
SECTION 8.06
    	
Successor   Administrative Agent
    	
104
    
	
SECTION 8.07
    	
Credit Decision
    	
104
    
	
SECTION 8.08
    	
Lead Arrangers;   Syndication Agent; Co-Documentation Agents
    	
104
    
	
SECTION 8.09
    	
Tax Indemnification by   the Lenders
    	
104
    
	
SECTION 8.10
    	
Certain ERISA Matters
    	
105
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE IX
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Miscellaneous
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 9.01
    	
Notices
    	
105
    
	
SECTION 9.02
    	
Waivers; Amendments
    	
107
    
	
SECTION 9.03
    	
Waivers; Amendments to   Other Loan Documents
    	
108
    
	
SECTION 9.04
    	
Expenses; Indemnity;   Damage Waiver
    	
108
    
	
SECTION 9.05
    	
Successors and Assigns
    	
110
    
	
SECTION 9.06
    	
Survival
    	
112
    
	
SECTION 9.07
    	
Counterparts;   Integration; Effectiveness
    	
113
    
	
SECTION 9.08
    	
Severability
    	
113
    
	
SECTION 9.09
    	
Right of Setoff
    	
113
    
	
SECTION 9.10
    	
Governing Law;   Jurisdiction; Consent to Service of Process
    	
113
    
	
SECTION 9.11
    	
WAIVER OF JURY TRIAL
    	
114
    
	
SECTION 9.12
    	
Headings
    	
114
    
	
SECTION 9.13
    	
Confidentiality
    	
114
    
	
SECTION 9.14
    	
Judgment Currency
    	
115
    
	
SECTION 9.15
    	
USA PATRIOT Act and   Beneficial Ownership Regulation
    	
115
    
	
SECTION 9.16
    	
Collateral and   Guarantee Matters
    	
115
    
	
SECTION 9.17
    	
No Advisory or   Fiduciary Relationship
    	
116
    
	
SECTION 9.18
    	
Platform; Borrower   Materials
    	
117
    
	
SECTION 9.19
    	
Acknowledgement and   Consent to Bail-In of EEA Financial Institutions
    	
117
    

 

iii

 

	
SCHEDULES:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Schedule 1.01A
    	
—
    	
Commitments
    
	
Schedule 1.01B
    	
—
    	
Unrestricted   Subsidiaries on Amendment Effective Date
    
	
Schedule 3.14
    	
—
    	
Guarantors
    
	
Schedule 6.01
    	
—
    	
Existing Indebtedness
    
	
Schedule 6.02
    	
—
    	
Existing Liens
    
	
Schedule 6.09
    	
—
    	
Existing Restrictions
    
	
 
    	
 
    	
 
    
	
EXHIBITS:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit A
    	
—
    	
Form of Assignment   and Assumption
    
	
Exhibit B
    	
—
    	
[Reserved]
    
	
Exhibit C
    	
—
    	
[Reserved]
    
	
Exhibit D
    	
—
    	
[Reserved]
    
	
Exhibit E
    	
—
    	
Form of Secretary   Certificate
    
	
Exhibit F
    	
—
    	
[Reserved]
    
	
Exhibit G-1
    	
—
    	
Form U.S. Tax   Certificate (For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal   Income Tax Purposes)
    
	
Exhibit G-2
    	
—
    	
Form U.S. Tax   Certificate (For Non-U.S. Participants That Are Partnerships For U.S. Federal   Income Tax Purposes)
    
	
Exhibit G-3
    	
—
    	
Form U.S. Tax   Certificate (For Non-U.S. Participants That Are Not Partnerships For U.S.   Federal Income Tax Purposes)
    
	
Exhibit G-4
    	
—
    	
Form U.S. Tax   Certificate (For Non-U.S. Lenders That Are Partnerships For U.S. Federal   Income Tax Purposes)
    
	
Exhibit H
    	
—
    	
Form of Perfection   Certificate
    
	
Exhibit I
    	
—
    	
Form of Solvency   Certificate
    
	
Exhibit J
    	
—
    	
Form of Joinder   and Reaffirmation Agreement
    

 

 

AMENDED AND RESTATED CREDIT AGREEMENT, dated as of November 5, 2018 (as further amended, restated, extended, supplemented or otherwise modified from time to time, this “Agreement”), among ANGI HOMESERVICES INC., a Delaware corporation, the LENDERS party hereto from time to time, JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined herein) (in such capacities, the “Administrative Agent”) and as an Issuing Bank.

 

WHEREAS, the Loan Parties, the Administrative Agent and the lenders party thereto are party to a credit agreement dated as of November 1, 2017 (the “Original Credit Agreement”);

 

WHEREAS, the parties have agreed to amend and restate the Original Credit Agreement in its entirety as follows;

 

NOW, THEREFORE, the parties hereto agree as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.01              Defined Terms.  As used in this Agreement, the following terms have the meanings specified below:

 

“ABR” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.

 

“Accepting Term Lender” has the meaning assigned to such term in Section 2.08(f).

 

“Act” has the meaning assigned to such term in Section 9.15.

 

“Additional Mortgage” has the meaning assigned to such term in Section 5.09(c).

 

“Adjusted Eurocurrency Rate” means, with respect to any Eurocurrency Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to (a) the Eurocurrency Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

 

“Adjustment Date” has the meaning assigned to such term in the definition of “Pricing Grid.”

 

“Administrative Agent” means JPMorgan Chase Bank, N.A. (including its branches and affiliates), in its capacity as administrative agent for the Lenders hereunder and, as applicable (including, for the avoidance of doubt, each reference to the Administrative Agent in Article VIII), as Collateral Agent, together with any successors in such capacities.

 

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

 

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

 

“Affiliated Persons” means, with respect to any specified Person, (a) such specified Person’s parents, spouse, siblings, descendants, step children, step grandchildren, nieces and nephews and their respective spouses, (b) the estate, legatees and devisees of such specified Person and each of the Persons referred to in clause (a), and (c) any company, partnership, trust or other entity or investment vehicle Controlled by any of the Persons referred to in clause (a) or (b) or the holdings of which are for the primary benefit of any of such Persons.

 

“Agent Party” means the Administrative Agent, the Issuing Bank or any other Lender.

 

 

“Aggregate Exposure” means, with respect to any Lender at any time, the sum of (a) the aggregate then outstanding principal amount of such Lender’s Term Loans and (b) the amount of such Lender’s Revolving Commitment then in effect or, if such Revolving Commitment has been terminated, such Lender’s Outstanding Revolving Credit.

 

“Agreement” has the meaning assigned to such term in the preamble to this Agreement.

 

“Agreement Currency” has the meaning assigned to such term in Section 9.14.

 

“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (c) the Adjusted Eurocurrency Rate for a one month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that, for the purpose of this definition, the Adjusted Eurocurrency Rate for any day shall be based on the LIBOR Screen Rate (or if the LIBOR Screen Rate is not available for such one month Interest Period, the Interpolated Rate)  at approximately 11:00 a.m. London time on such day.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted Eurocurrency Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted Eurocurrency Rate, respectively. If the Alternate Base Rate is being used as an alternate rate of interest pursuant to Section 2.11 hereof, then the Alternate Base Rate shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above.  If the Alternate Base Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Amendment Effective Date” the date on which the conditions precedent set forth in Section 4.03 shall have been satisfied (or waived in accordance with Section 9.02).

 

“ANGI Campus” means the properties, either individually or in the aggregate, that are bordered by E. Market Street, N. Highland Avenue, E. Washington Street and Cruse Street in Indianapolis, Indiana.

 

“Alternative Currency” means Sterling, Yen, Euro, Australian Dollar or Canadian Dollar.

 

“Alternative Currency Revolving Sublimit” means, with respect to all Alternative Currencies, the Dollar Amount of $100,000,000.

 

“Anti-Corruption Laws” means the United States Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder and the Bribery Act 2010 of the United Kingdom, as amended.

 

“Applicable Amortization Rate” means the rate set forth in the chart below:

 

	
Period Ended
    	
 
    	
Rate per annum
    	
 
    
	
March 31,   2018 to and including December 31, 2021
    	
 
    	
5.00
    	
%
    
	
March 31,   2022 to and including December 31, 2022
    	
 
    	
10.00
    	
%
    
	
March 31,   2023 to and including September 30, 2023
    	
 
    	
15.00
    	
%
    

 

“Applicable Rate” means (a) for each Initial Term Loan, (i) prior to the first Adjustment Date occurring after the Amendment Effective Date, 1.50% for Eurocurrency Loans and 0.50% for ABR Loans and (ii) on and after the first Adjustment Date occurring after the Amendment Effective Date, a percentage determined in accordance with the Pricing Grid, (b) for each Revolving Loan, prior to the first Adjustment Date occurring after the Amendment Effective Date, 1.50% for Eurocurrency Loans and 0.50% for ABR Loans and (ii) on and after the first Adjustment Date occurring after the Amendment Effective Date, a percentage determined in accordance with the Pricing Grid, and (c) for each Type of Incremental Term Loan, such per annum rates as shall be agreed to by the Borrower and the applicable Incremental Term Lenders as shown in the applicable Incremental Assumption Agreement.

 

2

 

“Applicable Time” means, with respect to any Borrowings and payments in any Alternative Currency the local time in the place of settlement for such Alternative Currency, as may be reasonably determined by the Administrative Agent to be necessary for timely settlement on the relevant date in accordance with normal banking procedures in the place of payment and notified to the relevant parties hereto.

 

“Approved Fund” has the meaning assigned to such term in Section 9.05(b).

 

“Asset Acquisition” means:

 

(1)                                 an Investment by the Borrower or any Restricted Subsidiary in any other Person if, as a result of such Investment, such Person shall become a Restricted Subsidiary, or shall be merged with or into the Borrower or any Restricted Subsidiary, or

 

(2)                                 the acquisition by the Borrower or any Restricted Subsidiary of all or substantially all of the assets of any other Person or any division or line of business of any other Person.

 

“Asset Sale” means any sale, issuance, conveyance, transfer, lease, assignment or other disposition by the Borrower or any Restricted Subsidiary to any Person other than the Borrower or any Restricted Subsidiary or any Person that becomes a Restricted Subsidiary in connection with such disposition (including by means of a sale and leaseback transaction or a merger or consolidation) (collectively, for purposes of this definition, a “transfer”), in one transaction or a series of related transactions, of any assets of the Borrower or any of its Restricted Subsidiaries other than in the ordinary course of business. For purposes of this definition, the term “Asset Sale” shall not include:

 

(1)                                 transfers of cash or Cash Equivalents;

 

(2)                                 transfers of assets (including Equity Interests) that are governed by, and made in accordance with, Section 6.03;

 

(3)                                 Restricted Payments not prohibited under the covenant described under Section 6.05 and Investments not prohibited by Section 6.11;

 

(4)                                 the creation of any Lien not prohibited under this Agreement;

 

(5)                                 transfers of assets that are (i) damaged, worn out, uneconomic, obsolete or otherwise deemed to be no longer necessary or useful in the current or anticipated business of the Borrower or its Restricted Subsidiaries or (ii) replaced by assets of similar suitability and value;

 

(6)                                 sales or grants of licenses or sublicenses to use the patents, trade secrets, know-how and other intellectual property, and licenses, leases or subleases of other assets, of the Borrower or any Restricted Subsidiary to the extent not materially interfering with the business of the Borrower and the Restricted Subsidiaries;

 

(7)                                 any transfer or series of related transfers that, but for this clause, would be Asset Sales, if the aggregate Fair Market Value of the assets transferred in such transaction or any such series of related transactions does not exceed $30,000,000; and

 

(8)                                 any transfer of the ANGI Campus.

 

“Asset Swap” means any exchange of assets of the Borrower or any Restricted Subsidiary (including Equity Interests of a Restricted Subsidiary) for assets of another Person (including Equity Interests of a Person whose primary business is a Related Business) that are intended to be used by the Borrower or any Restricted Subsidiary in a Related Business, including, to the extent necessary to equalize the value of the assets being exchanged, cash or Cash Equivalents of any party to such asset swap.

 

3

 

“assignee” has the meaning assigned to such term in Section 9.05(b).

 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.05), and accepted by the Administrative Agent, in substantially the form of Exhibit A or any other form approved by the Administrative Agent.

 

“Australian Dollar” means the lawful currency of Australia.

 

“Australian Dollar Bank Bill Reference Rate” means for any Loans in Australian Dollars, the Australian Dollar Screen Rate or, if applicable pursuant to the terms of Section 2.11(a), the applicable Reference Bank Rate.

 

“Australian Dollar Screen Rate” means, with respect to any Interest Period, the average bid reference rate as administered by the Australian Financial Markets Association (or any other Person that takes over the administration of that rate) for Australian Dollar bills of exchange with a tenor equal in length to such Interest Period, as displayed on page BBSY of the Reuters screen or, in the event such rate does not appear on such Reuters page, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate as selected by the Administrative Agent from time to time in its reasonable discretion.

 

“Auto-Extension Letter of Credit” has the meaning assigned to such term in Section 2.17(b).

 

“Available Revolving Commitment” means, as to any Revolving Lender at any time, an amount equal to the excess, if any, of (a) such Lender’s Revolving Commitment then in effect at such time over (b) such Lender’s Outstanding Revolving Credit.

 

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

 

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

 

“Bankruptcy Event” means, with respect to any Lender, such Lender or any other Person as to which such Lender is a subsidiary (a “Parent Company”) (i) is adjudicated as, or determined by any Governmental Authority having regulatory authority over it or its assets to be, insolvent, (ii) becomes the subject of a bankruptcy or insolvency proceeding, or the Administrative Agent has given written notice to such Lender and the Borrower of its good faith determination that such Lender or its Parent Company has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or (iii) has 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 the Administrative Agent has given written notice to such Lender and the Borrower of its good faith determination that such Lender or its Parent Company has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such appointment; provided that a Bankruptcy Event shall not result solely by virtue of any control of or ownership interest in, or the acquisition of any control of or ownership interest in, such Lender or its Parent Company by a Governmental Authority as long as such control or ownership interest does not result in or provide such Lender or its Parent Company with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender or its Parent Company (or such Governmental Authority) to reject, repudiate, disavow or disaffirm such Lender’s obligations under this Agreement.

 

“Basel III” means, collectively, those certain agreements on capital requirements, leverage ratios and liquidity standards contained in “Basel III:  A Global Regulatory Framework for More Resilient Banks and Banking Systems,” “Basel III:  International Framework for Liquidity Risk Measurement, Standards and Monitoring,” and “Guidance for National Authorities Operating the Countercyclical Capital Buffer,” each as published by the Basel Committee on Banking Supervision in December 2010 (as revised from time to time), and as implemented by a

 

4

 

Lender’s primary U.S. federal banking regulatory authority or primary non-U.S. financial regulatory authority, as applicable.

 

“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.

 

“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.

 

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

 

“Board of Directors” means the Board of Directors of the Borrower or, other than for the purposes of the definition of “Change of Control,” any committee thereof duly authorized to act on behalf of such Board of Directors.

 

“Borrower” means ANGI Homeservices Inc., a Delaware corporation.

 

“Borrower Materials” has the meaning assigned to such term in Section 9.18.

 

“Borrowing” means a group of Loans of the same Type, made, converted or continued on the same date and, in the case of Eurocurrency Loans, as to which a single Interest Period is in effect.

 

“Borrowing Date” means any Business Day specified by the Borrower as a date on which the Borrower requests the relevant Lenders to make Loans hereunder.

 

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed; provided that when used in connection with (a) a Eurocurrency Loan denominated in Dollars, the term “Business Day” shall also exclude any day on which banks are not open for dealings in Dollar deposits in the London interbank market, (b) any Borrowings or LC Disbursements that are the subject of a borrowing, drawing, payment, reimbursement or rate selection denominated in Euro, the term “Business Day” shall also exclude any day on which the Trans-European Real-time Gross Settlement Operating System (or any successor operating system) is not open for the settlement of payments in Euro and (c) a Eurocurrency Loan denominated in an Alternative Currency, the term “Business Day” shall also exclude any day on which banks are not open for dealings in such Alternative Currency deposits in the interbank market in the principal financial center of the country whose lawful currency is such Alternative Currency.

 

“Canadian Dollar” means the lawful currency of Canada.

 

“Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP; provided, however, that any obligations relating to a lease that would have been accounted by such Person as an operating lease in accordance with GAAP as of the Amendment Effective Date shall be accounted for as an operating lease and not a Capital Lease Obligation for all purposes under this Agreement.

 

“Cash Capped Amount” has the meaning assigned to such term in the definition of “Incremental Amount.”

 

“Cash Equivalents” means (1) marketable direct obligations issued by, or unconditionally guaranteed by, the United States government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition; (2) certificates of deposit, time deposits, eurodollar time deposits or overnight bank deposits having maturities of one year or less from the date of acquisition issued by any commercial bank organized under the laws of the United States or any state thereof or any Lender or

 

5

 

any Affiliate of any Lender; (3) commercial paper of an issuer rated at least A-1 by Standard & Poor’s or P-1 by Moody’s, or carrying an equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of commercial paper issuers generally, and maturing within one year from the date of acquisition; (4) repurchase obligations of any commercial bank satisfying the requirements of clause (2) of this definition with respect to securities issued or fully guaranteed or insured by the United States government; (5) securities with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least A by Standard & Poor’s or A by Moody’s; (6) securities with maturities of one year or less from the date of acquisition backed by standby letters of credit issued by any commercial bank satisfying the requirements of clause (2) of this definition; (7) money market mutual or similar funds that invest exclusively in assets satisfying the requirements of clauses (1) through (6) of this definition; (8) money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, as amended, (ii) are rated AAA by Standard & Poor’s or Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000; and (9) in the case of any Foreign Subsidiary, investments substantially comparable to any of the foregoing investments with respect to the country in which such Foreign Subsidiary is organized.

 

“Cash Management Agreement” means any agreement entered into from time to time by the Borrower or any Restricted Subsidiary in connection with Cash Management Services for collections, other Cash Management Services or for operating, payroll and trust accounts of such Person, including automatic clearing house services, controlled disbursement services, electronic funds transfer services, information reporting services, lockbox services, stop payment services and wire transfer services, unless, when entered into, such agreement is designated in writing by the Borrower and the relevant Cash Management Bank to the Administrative Agent to not be included as a Cash Management Agreement.

 

“Cash Management Bank” means any Person that (i) at the time it enters into a Cash Management Agreement or provides any Cash Management Services, is a Lender or an Agent Party or an Affiliate of a Lender or an Agent Party or (ii) in the case of any Cash Management Agreement in effect or any Cash Management Services provided, on or prior to the Closing Date, is, as of the Closing Date, a Lender or an Agent Party or an Affiliate of a Lender or an Agent Party and a party to a Cash Management Agreement or provider of Cash Management Services.

 

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

 

“Cash Management Services” means (a) commercial credit cards, merchant card services, purchase or debit cards, including non-card e-payables services, (b) treasury management services (including controlled disbursement, overdraft automatic clearing house fund transfer services, return items and interstate depository network services) and (c) any other demand deposit or operating account relationships or other cash management services, including under any Cash Management Agreements.

 

“CDOR Rate” means for any Loans in Canadian Dollars, the CDOR Screen Rate or, if applicable pursuant to the terms of Section 2.11(a), the applicable Reference Bank Rate.

 

“CDOR Screen Rate” means, with respect to any Interest Period, the average rate for bankers acceptances as administered by the Investment Industry Regulatory Organization of Canada (or any other Person that takes over the administration of that rate) with a tenor equal in length to such Interest Period, as displayed on CDOR page of the Reuters screen or, in the event such rate does not appear on such Reuters page, on any successor or substitute page on such screen or service that displays such rate, or on the appropriate page of such other information service that publishes such rate as shall be selected from time to time by the Administrative Agent in its reasonable discretion.

 

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

 

6

 

“Change in Law” means (a) the adoption of any law, rule, regulation or treaty after the Amendment Effective Date , (b) any change in any law, rule, regulation or treaty or in the interpretation or application thereof by any Governmental Authority after the Amendment Effective Date or (c) compliance by any Lender (or, for purposes of Section 2.12(b), by any lending office of such Lender or by such Lender’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the Amendment Effective Date; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law,” but only to the extent it is the general policy of a Lender to impose applicable increased costs or costs in connection with capital adequacy requirements similar to those described in clauses (a) and (b) of Section 2.12 generally on other similarly situated borrowers under similar circumstances under agreements permitting such impositions.

 

“Change of Control” means any of the following events:

 

(a)                                 the sale, lease or transfer, in one or a series of related transactions, of all or substantially all of the assets of the Borrower and its subsidiaries, taken as a whole, to any Person other than a Permitted Holder;

 

(b)                                 the acquisition of beneficial ownership by any person or group (excluding any one or more Permitted Holders or group Controlled by any one or more Permitted Holders) of more than 35% of the aggregate voting power of all outstanding classes or series of the Borrower’s Voting Stock and such aggregate voting power exceeds the aggregate voting power of all outstanding classes or series of the Borrower’s Voting Stock beneficially owned by the Permitted Holders collectively;

 

(c)                                  during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of the Borrower (together with any new directors whose election by the Board of Directors or whose nomination for election by the equityholders of the Borrower was approved by a vote of the majority of the directors of the Borrower then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Borrower’s Board of Directors then in office; or

 

(d)                                 the Borrower shall adopt a plan of liquidation or dissolution or any such plan shall be approved by the stockholders of the Borrower.

 

Notwithstanding the foregoing, a transaction in which the Borrower becomes a subsidiary of another Person (other than a Person that is an individual or a Permitted Holder) shall not constitute a Change of Control if the shareholders of the Borrower immediately prior to such transaction beneficially own, directly or indirectly through one or more intermediaries, the same proportion of voting power of the outstanding classes or series of the Borrower’s voting stock as such shareholders beneficially own immediately following the consummation of such transaction.

 

For purposes of this definition, a Person shall not be deemed to have beneficial ownership of securities subject to a stock purchase agreement, merger agreement or similar agreement until the consummation of the transactions contemplated by such agreement.

 

“Class” (a) when used in reference to any Loans or Borrowing, refers to whether such Loans or the Loans comprising such Borrowing, are Initial Term Loans, Revolving Loans or Incremental Loans established pursuant to any Incremental Assumption Agreement, Extended Term Loans or Extended Revolving Loans established pursuant to any Extension Amendment or Refinancing Term Loans or Replacement Revolving Loans established pursuant to any Refinancing Amendment or (b) when used in reference to any Commitments, refers to whether such Commitment is in respect of a commitment to make Initial Term Loans, Revolving Loans or Incremental Loans

 

7

 

established pursuant to any Incremental Assumption Agreement, Extended Term Loans or Extended Revolving Loans established pursuant to any Extension Amendment or Refinancing Term Loans or Replacement Revolving Loans established pursuant to any Refinancing Amendment.

 

“Closing Date” means November 1, 2017.

 

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

“Co-Documentation Agents” means BMO Harris Bank N.A., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and PNC Capital Markets LLC.

 

“Collateral” has the meaning assigned to such term or a similar term in each of the Collateral Documents and shall include all property pledged or granted (or purported to be pledged or granted) as collateral pursuant to the Collateral Documents on the Closing Date or thereafter pursuant to Section 5.09 or 5.11.

 

“Collateral Agent” means JPMorgan Chase Bank, N.A. in its capacity as collateral agent under the Guarantee Agreement and the Collateral Documents for the Secured Parties.

 

“Collateral and Guarantee Requirement” shall mean the requirement that:

 

(a)                                 on the Closing Date, the Collateral Agent shall have received from the Borrower and each Subsidiary Guarantor, (i) a counterpart of the Security Agreement and (ii) from each Subsidiary Guarantor,  a counterpart of the Guarantee Agreement, in each case duly executed and delivered on behalf of such person;

 

(b)                               on the Closing Date, (i)(x) all outstanding Equity Interests directly owned by the Loan Parties as of the Closing Date, other than Excluded Securities, and (y) all Indebtedness owing to any Loan Party, other than Excluded Securities, shall have been pledged or assigned for security purposes pursuant to the Collateral Documents and (ii) the Collateral Agent shall have received certificates, and any notes or other instruments required to be delivered pursuant to the applicable Collateral Documents, together with stock powers, note powers or other instruments of transfer with respect thereto (as applicable) endorsed in blank;

 

(c)                                in the case of any person that becomes a Subsidiary Guarantor after the Closing Date, the Collateral Agent shall have received (i) a supplement to the Guarantee Agreement and (ii) supplements to the Security Agreement and any other Collateral Documents, if applicable, in the form specified therefor or otherwise reasonably acceptable to the Administrative Agent, in each case, duly executed and delivered on behalf of such Subsidiary Guarantor;

 

(d)                                 after the Closing Date (x) all outstanding Equity Interests of any person that becomes a Subsidiary Guarantor after the Closing Date and that are held by a Loan Party and (y) all Equity Interests directly acquired by a Loan Party after the Closing Date, in each case other than Excluded Securities, shall have been pledged pursuant to the Collateral Documents, together with stock powers or other instruments of transfer with respect thereto (as applicable) endorsed in blank;

 

(e)                                except as otherwise contemplated by this Agreement or any Collateral Document, all documents and instruments, including Uniform Commercial Code financing statements, and filings with the United States Copyright Office and the United States Patent and Trademark Office, and all other actions reasonably requested by the Collateral Agent (including those required by applicable Requirements of Law) to be delivered, filed, registered or recorded to create the Liens intended to be created by the Collateral Documents (in each case, including any supplements thereto) and perfect such Liens to the extent required by the Collateral Documents, shall have been delivered, filed, registered or recorded or delivered to the Collateral Agent for filing, registration or the recording substantially concurrently with, or promptly following, the execution and delivery of each such Collateral Document;

 

8

 

(f)                                   evidence of the insurance (if any) required by the terms of Section 5.05 hereof shall have been received by the Collateral Agent;

 

(g)                                  after the Closing Date, the Collateral Agent shall have received (i) such other Collateral Documents as may be required to be delivered pursuant to Section 5.09 or Section 5.11 or the Collateral Documents, and (ii) upon reasonable request by the Collateral Agent, evidence of compliance with any other requirements of Section 5.09 or Section 5.11;

 

(h)                                 within the time periods set forth in Section 5.09 with respect to Mortgaged Properties encumbered pursuant to said Section 5.09, the Collateral Agent (on behalf of, and for distribution to, the Lenders) shall have received (i) counterparts of each Mortgage to be entered into with respect to each such Mortgaged Property duly executed and delivered by the record owner of such Mortgaged Property and suitable for recording or filing in all filing or recording offices that the Collateral Agent may reasonably deem necessary or desirable in order to create a valid and enforceable Lien subject to no other Liens except Permitted Liens, at the time of recordation thereof, (ii) with respect to the Mortgage encumbering each such Mortgaged Property, opinions of local counsel regarding the due authorization, execution and delivery, the enforceability and perfection of the Mortgages and such other matters customarily covered in real estate mortgage counsel opinions as the Collateral Agent may reasonably request, if and to the extent, and in such form, as local counsel customarily provides such opinions as to such other matters, (iii) with respect to each Mortgaged Property, information reasonably required by the Collateral Agent to comply with the Flood Insurance Laws and (iv) such other documents as the Collateral Agent may reasonably request that are available to the Borrower without material expense with respect to any such Mortgage or Mortgaged Property; and

 

(i)                                     within the time periods set forth in Section 5.09 with respect to Mortgaged Properties encumbered pursuant to said Section 5.09, the Collateral Agent shall have received (i) a policy or policies or marked up unconditional binder of title insurance with respect to properties located in the United States of America, or a date-down and modification endorsement, if available, paid for by the Borrower, in the amount of the Fair Market Value of the respective Mortgaged Property, issued by a nationally recognized title insurance company (“Title Insurer”) insuring the Lien of each Mortgage as a valid Lien on the Mortgaged Property described therein, free of any other Liens except Permitted Liens, together with such customary endorsements, coinsurance and reinsurance as the Collateral Agent may reasonably request and which are available at commercially reasonable rates in the jurisdiction where the applicable Mortgaged Property is located (provided, however, that in lieu of a zoning endorsement, Collateral Agent shall accept a zoning report from a nationally recognized zoning report provider) and (ii) a survey of each Mortgaged Property (including all improvements, easements and other customary matters thereon reasonably required by the Collateral Agent), as applicable, for which all necessary fees (where applicable) have been paid with respect to properties located in the United States of America, which is (A) complying in all material respects with the minimum detail requirements of the American Land Title Association and American Congress of Surveying and Mapping as such requirements are in effect on the date of preparation of such survey and (B) sufficient for such Title Insurer to remove all standard survey exceptions from the title insurance policy relating to such Mortgaged Property or otherwise reasonably acceptable to the Collateral Agent; provided, however, that so long as the Title Insurer shall accept the same to eliminate the survey exception from such policy or policies, in lieu of a new or revised survey Borrower may provide a “no material change” affidavit with respect to any prior survey for the respective Mortgaged Property (which prior survey otherwise substantially complies with the foregoing survey requirements).

 

“Collateral Documents” means the Security Agreement and each other security document, Mortgage, pledge agreement or collateral agreement executed and delivered in connection with this Agreement and/or the other Loan Documents to grant a security interest in any property as Collateral to secure the Obligations.

 

“Commitment” means, with respect to each Lender (to the extent applicable), such Lender’s Incremental Commitment, Revolving Commitment, Term Loan Commitment or Extended Revolving Commitment, as applicable.

 

9

 

“Commitment Fee Rate” means (a) prior to the first Adjustment Date occurring after the Amendment Effective Date, 0.25% and (b) on and after the first Adjustment Date occurring after the Amendment Effective Date, a rate determined in accordance with the Pricing Grid.

 

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

 

“Consolidated Amortization Expense” for any Test Period means the amortization expense of the Borrower and its Restricted Subsidiaries for such Test Period, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Contingent Consideration Fair Value Remeasurement Adjustments” for any period means the contingent consideration fair value remeasurement adjustments, of the Borrower and its Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Depreciation Expense” for any Test Period means the depreciation expense of the Borrower and its Restricted Subsidiaries for such Test Period, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated EBITDA” for any Test Period means, without duplication, the sum of the amounts for such Test Period of

 

(1)                                 Consolidated Net Income, plus

 

(2)                                 in each case only to the extent (and in the same proportion) deducted in determining Consolidated Net Income,

 

(a)                                 Consolidated Income Tax Expense,

 

(b)                                 Consolidated Amortization Expense,

 

(c)                                  Consolidated Depreciation Expense,

 

(d)                                 Consolidated Interest Expense,

 

(e)                                  all non-cash compensation, as reported in the Borrower’s financial statements,

 

(f)                                   any non-cash charges or losses or realized losses related to the write-offs, write-downs or mark-to-market adjustments or sales or exchanges of any investments in debt or equity securities by the Borrower or any Restricted Subsidiary,

 

(g)                                  the aggregate amount of all other non-cash charges, expenses or losses reducing such Consolidated Net Income, including any impairment (including any impairment of intangibles and goodwill) (excluding any non-cash charge, expense or loss that results in an accrual of a reserve for cash charges in any future period and any non-cash charge, expense or loss relating to write-offs, write downs or reserves with respect to accounts receivable or inventory), for such Test Period,

 

(h)                                 the amount of any restructuring charges or reserves, including any one-time costs incurred in connection with acquisitions or divestitures, and

 

(i)                                     notwithstanding any classification under GAAP as discontinued operations of any Person, property, business or asset in respect of which a definitive agreement for the sale, transfer or other disposition thereof has been entered into, the earnings and income (or loss) attributable to any such Person, business, assets or operations for any period until such sale, transfer or other disposition shall have been consummated, minus

 

10

 

(3)                                 in each case only to the extent (and in the same proportion) included in determining Consolidated Net Income, any non-cash or realized gains related to mark-to-market adjustments or sales or exchanges of any investments in debt or equity securities by the Borrower or any Restricted Subsidiary, in each case determined on a consolidated basis in accordance with GAAP; provided that (a) the aggregate amount of all non-cash items, determined on a consolidated basis, to the extent such items increased Consolidated Net Income for such period will be excluded from Consolidated Net Income  and (b) the aggregate amount of all corporate overhead costs and expenses and fees incurred at any parent of the Borrower and any salary, bonus and other benefits payable to, and indemnities provided on behalf of, officers and employees of any parent of the Borrower in each case that, directly or indirectly, holds all of the Equity Interests of the Borrower, that are directly attributable to the Borrower and its Restricted Subsidiaries will be deducted from Consolidated EBITDA.

 

For purposes of this definition, whenever pro forma effect is to be given, the pro forma calculations shall be factually supportable, reasonably identifiable and made in good faith by a Financial Officer.  Any such pro forma calculation may include adjustments appropriate, in the reasonable good faith determination of the Borrower as set forth in an Officer’s Certificate, to reflect cost savings, cost synergies, operating expense reductions, restructurings, cost savings initiatives, or other initiatives reasonably expected to be realized within 24 months from the applicable event to be given pro forma effect; provided that the aggregate amount of all items added back to Consolidated EBITDA pursuant to this paragraph and clause (A)(2) of the definitions of “Consolidated Net Leverage Ratio,” “Interest Coverage Ratio” or “Secured Net Leverage Ratio”, as applicable, shall not exceed 25.0% of Consolidated EBITDA (after giving effect to such adjustment) for any Test Period.

 

“Consolidated Income Tax Expense” for any Test Period means the provision for taxes of the Borrower and its Restricted Subsidiaries for such Test Period, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Interest Expense” for any Test Period means the sum, without duplication, of the total interest expense of the Borrower and its Restricted Subsidiaries for such Test Period, determined on a consolidated basis in accordance with GAAP, minus consolidated interest income of the Borrower and its Restricted Subsidiaries, and including, without duplication,

 

(1)                                 imputed interest on Capital Lease Obligations,

 

(2)                                 commissions, discounts and other fees and charges owed with respect to letters of credit securing financial obligations, bankers’ acceptance financing and receivables financings,

 

(3)                                 the net costs associated with Hedging Obligations related to interest rates,

 

(4)                                 amortization of debt issuance costs, debt discount or premium and other financing fees and expenses,

 

(5)                                 the interest portion of any deferred payment obligations,

 

(6)                                 all other non-cash interest expense,

 

(7)                                 capitalized interest,

 

(8)                                 all dividend payments on any series of Disqualified Equity Interests of the Borrower or any Preferred Stock of any Restricted Subsidiary (other than any such Disqualified Equity Interests or any Preferred Stock held by the Borrower or a Restricted Subsidiary of the Borrower that is a Wholly Owned Subsidiary or to the extent paid in Qualified Equity Interests),

 

(9)                                 all interest payable with respect to discontinued operations, and

 

(10)                          all interest on any Indebtedness described in clause (6) or (7) of the definition of “Indebtedness.”

 

11

 

“Consolidated Net Income” for any Test Period means the net income (or loss) of the Borrower and the Restricted Subsidiaries for such Test Period determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded from such net income (to the extent otherwise included therein), without duplication:

 

(1)                                 the net income (or loss) of any Person that is not a Restricted Subsidiary, except to the extent that cash in an amount equal to any such income has actually been received by the Borrower or any Restricted Subsidiary during such period;

 

(2)                                 gains and losses due solely to fluctuations in currency values and the related tax effects according to GAAP;

 

(3)                                 gains and losses with respect to Hedging Obligations;

 

(4)                                 the cumulative effect of any change in accounting principles;

 

(5)                                 any extraordinary or nonrecurring gain (or extraordinary or nonrecurring loss), together with any related provision for taxes on any such extraordinary or nonrecurring gain (or the tax effect of any such extraordinary or nonrecurring loss), realized by the Borrower or any Restricted Subsidiary during such period;

 

(6)                               Consolidated Contingent Consideration Fair Value Remeasurement Adjustments;

 

(7)                               any net after-tax income or loss from discontinued operations and any net after-tax gains or losses on disposal of discontinued operations; and

 

(8)                                 any gain (or loss), together with any related provisions for taxes on any such gain (or the tax effect of any such loss), realized during such period by the Borrower or any Restricted Subsidiary upon (a) the acquisition of any securities, or the extinguishment of any Indebtedness, of the Borrower or any Restricted Subsidiary or (b) the sale of any financial or equity investment by the Borrower or any Restricted Subsidiary;

 

provided, further, that the effects of any adjustments in the inventory, property and equipment, software, goodwill, other intangible assets, in-process research and development, deferred revenue, debt line items, any earn-out obligations and any other non-cash charges (other than the amortization of unfavorable operating leases) in the Borrower’s consolidated financial statements pursuant to GAAP in each case resulting from the application of purchase accounting in relation to any consummated acquisition or the amortization or write-off of any such amounts shall be excluded when determining Consolidated Net Income.

 

“Consolidated Net Leverage Ratio” means, as of any date of determination, the ratio of (a) Indebtedness of the Borrower and its Restricted Subsidiaries as of the last day of the Test Period most recently ended on or prior to such date of determination (as set forth on the balance sheet and determined on a consolidated basis in accordance with GAAP) minus the amount of unrestricted cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries on such date in an amount not to exceed $50,000,000 to (b) Consolidated EBITDA for such Test Period.

 

(A)                               The Consolidated Net Leverage Ratio shall be calculated for any period after giving effect on a pro forma basis (as if they had occurred on the first day of the applicable Test Period) to:

 

(1)                                 the incurrence of any Indebtedness of the Borrower or any Restricted Subsidiary (and the application of the proceeds thereof) and any repayment, repurchase, defeasance or other discharge of Indebtedness (and the application of the proceeds therefrom) (other than the incurrence or repayment of Indebtedness in the ordinary course of business for working capital purposes pursuant to any revolving credit arrangement) occurring during the applicable Test Period  or (except when calculating the Consolidated Net Leverage Ratio for purposes of determining the Applicable Rate or determining actual compliance (and not pro forma compliance or compliance on a pro forma basis) with Section 6.10) at any

 

12

 

time subsequent to the last day of such Test Period and on or prior to the date of determination, as if such incurrence, repayment, issuance or redemption, as the case may be (and the application of the proceeds thereof), occurred on the first day of the Test Period; and

 

(2)                                 any (w) Asset Sale, (x) asset sale if the Fair Market Value of the assets sold in such transaction or series of related transactions exceeds $2,000,000, which is solely excluded from the definition of Asset Sale pursuant to clause (7) of such definition, (y) Asset Acquisition (including, without limitation, any Asset Acquisition giving rise to the need to make such calculation as a result of the Borrower or any Restricted Subsidiary (including any Person who becomes a Restricted Subsidiary as a result of such Asset Acquisition or as a result of a Revocation) incurring Indebtedness pursuant to Section 6.01(j) and also including any Consolidated EBITDA associated with any such Asset Acquisition) or (z) operational restructuring (each a “pro forma event”) occurring during the Test Period or at any time subsequent to the last day of the Test Period and on or prior to the date of determination as if such pro forma event occurred on the first day of the Test Period, including any cost savings and cost synergies resulting from head count reduction, closure of facilities and similar operational and other cost savings, cost synergies, operating expense reductions, restructurings, cost savings initiatives or other initiatives relating to such pro forma event occurring within 24 months (or expected, in the good faith determination of the Borrower, to result from actions that have been taken or initiated or expected to be taken within 24 months) of such pro forma event and during such period or (except when calculating the Consolidated Net Leverage Ratio for purposes of determining the Applicable Rate or determining actual compliance (and not pro forma compliance or compliance on a pro forma basis) with Section 6.10) subsequent to such period and on or prior to the date of such calculation, in each case that are expected to have a continuing impact and are factually supportable, and which adjustments the Borrower determines are reasonable as set forth in an Officer’s Certificate; provided that the aggregate amount of all such cost savings and cost synergies pursuant to this clause (A)(2) and the second paragraph of the definition of “Consolidated EBITDA” shall in no event exceed 25% of Consolidated EBITDA (after giving effect to such adjustment) for any Test Period; provided, further that asset sales described in clause (A)(2)(x) in an aggregate amount not to exceed $30,000,000 in any Test Period shall not be required to be given pro forma effect; and

 

(B)                               in calculating Consolidated Interest Expense for purposes of the Consolidated Net Leverage Ratio with respect to any Indebtedness being given pro forma effect:

 

(1)                                 interest on outstanding Indebtedness determined on a fluctuating basis as of the date of determination and which will continue to be so determined thereafter shall be deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness in effect on the date of determination;

 

(2)                                 if interest on any Indebtedness actually incurred on the date of determination may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on the date of determination will be deemed to have been in effect during the Test Period;

 

(3)                                 notwithstanding clause (1) or (2) above, interest on Indebtedness determined on a fluctuating basis, to the extent such interest is covered by agreements relating to Hedging Obligations, shall be deemed to accrue at the rate per annum resulting after giving effect to the operation of the agreements governing such Hedging Obligations;

 

(4)                                 interest on any Indebtedness under a revolving credit facility shall be computed based upon the average daily balance of such Indebtedness during the Test Period; and

 

(5)                                 interest on a Capital Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or accounting Officer of the Borrower to be the rate of interest implicit in such Capital Lease Obligation in accordance with GAAP.

 

13

 

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

 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlled” has the meaning correlative thereto.

 

“Declined Prepayment Amount” has the meaning assigned to such term in Section 2.08(f).

 

“Declining Term Lender” has the meaning assigned to such term in Section 2.08(f).

 

“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

 

“Defaulting Lender” means 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 (iii) pay over to any Agent Party any amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to such funding or payment has not been satisfied, or, in the case of clause (ii) or clause (iii) above, such Lender notifies the Administrative Agent in writing that such failure is the result of a good faith dispute regarding its obligation to make such funding or payment; (b) has notified the Borrower or any Agent Party in writing, or has made a public statement to the effect, that it does not intend to comply with any of its funding or payment 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 to such funding or payment under this Agreement cannot be satisfied); (c) has failed, within three Business Days after request by the Administrative Agent or Issuing Bank, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Agent Party’s receipt of such certification; (d) has become the subject of a Bankruptcy Event; or (e) has become the subject of a Bail-In Action.

 

“Designated Noncash Consideration” means the Fair Market Value of noncash consideration received by the Borrower or a Restricted Subsidiary in connection with an Asset Sale that is so designated as Designated Noncash Consideration pursuant to an Officer’s Certificate, setting forth the basis of such valuation, less the amount of cash or Cash Equivalents received in connection with a subsequent sale of such Designated Noncash Consideration.

 

“Designation” has the meaning assigned to such term in the definition of “Unrestricted Subsidiary.”

 

“Designation Amount” has the meaning assigned to such term in the definition of “Unrestricted Subsidiary.”

 

“Disposition” means, with respect to any property, any sale, lease, license, sale and leaseback, assignment, conveyance, transfer or other disposition thereof (including pursuant to a Division).  The terms “Dispose” and “Disposed of” shall have correlative meanings.

 

“Disqualified Equity Interests” of any Person means any class of Equity Interests of such Person that, by its terms, or by the terms of any related agreement or of any security into which it is convertible, puttable or exchangeable, is, or upon the happening of any event or the passage of time would be, required to be redeemed by such Person, whether or not at the option of the holder thereof, or matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, in whole or in part, in each case on or prior to the date that is 91 days after the Latest Maturity Date; provided, however, that any class of Equity Interests of such Person that, by its terms, authorizes such Person to satisfy in full its obligations with respect to the payment of dividends or upon maturity, redemption (pursuant to a sinking fund or otherwise) or repurchase thereof or otherwise by the delivery of Equity

 

14

 

Interests that are not Disqualified Equity Interests, and that is not convertible, puttable or exchangeable for Disqualified Equity Interests or Indebtedness, will not be deemed to be Disqualified Equity Interests so long as such Person satisfies its obligations with respect thereto solely by the delivery of Equity Interests that are not Disqualified Equity Interests; provided, further, however, that any Equity Interests that would not constitute Disqualified Equity Interests but for provisions thereof giving holders thereof (or the holders of any security into or for which such Equity Interests are convertible, exchangeable or exercisable) the right to require the Borrower to redeem such Equity Interests upon the occurrence of a change of control occurring prior to the 91st day after the Latest Maturity Date shall not constitute Disqualified Equity Interests if such Equity Interests specifically provide that the Borrower will not redeem any such Equity Interests pursuant to such provisions prior to the Obligations (other than (x) (i) Cash Management Obligations and (ii) Obligations under Specified Swap Agreements not yet due and payable, and (y) contingent obligations not yet accrued and payable) having been paid in full, all Letters of Credit having been cash collateralized or otherwise back-stopped or having been terminated, and the Total Revolving Commitments having been terminated.

 

“Dividing Person” has the meaning assigned to such term in the definition of “Division”.

 

“Division” means the division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive.

 

“Dollar Amount” means, at any date, (a) with respect to any amount denominated in Dollars, such amount and (b) with respect to any amount denominated in amount other than Dollars, such amount converted to Dollars by the Administrative Agent at the Exchange Rate on such date.

 

“Dollars” or “$” refers to lawful money of the United States of America.

 

“Domestic Subsidiary” means any Restricted Subsidiary of the Borrower that is not a Foreign Subsidiary.

 

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

 

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

 

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

 

“EMU” means the economic and monetary union in accordance with the Treaty of Rome 1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam Treaty of 1998.

 

“EMU Legislation” means the legislative measures of the European Council for the introduction of, changeover to or operation of a single or unified European currency.

 

“Environmental Law” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of any Hazardous Material.

 

“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Restricted Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use,

 

15

 

handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“Equity Interests” means, of any Person, (1) any and all shares or other equity interests (including common stock, preferred stock, limited liability company interests and partnership interests) in such Person and (2) all rights to purchase, warrants or options (whether or not currently exercisable), participations or other equivalents of or interests in (however designated) such shares or other interests in such Person, but excluding any debt securities convertible into such shares or other interests.

 

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

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

 

“ERISA Event” means (a) any “reportable event” (as defined in Section 4043(c) of ERISA or the regulations issued thereunder) with respect to a Plan other than an event for which the 30-day notice period is waived; (b) any failure by any Plan to satisfy the minimum funding standards (within the meaning of Sections 412 or 430 of the Code or Section 302 of ERISA) applicable to such Plan, whether or not waived; (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the failure to make by its due date a required installment under Section 430(j) of the Code with respect to any Plan or the failure by the Borrower or any of its ERISA Affiliates to make any required contribution to a Multiemployer Plan; (e) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan, including the imposition of any Lien in favor of the PBGC or any Plan; (f) a determination that any Plan is, or is expected to be, in “at risk” status (within the meaning of Section 430 of the Code or Title IV of ERISA); (g) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or to appoint a trustee to administer any Plan; (h) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan (or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA) or Multiemployer Plan; or (i) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, Insolvent, in Reorganization or in endangered or critical status, within the meaning of Section 432 of the Code or Section 305 of ERISA.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

 

“Euro” and “EUR” mean the lawful currency of the Participating Member Sates introduced in accordance with EMU Legislation.

 

“Eurocurrency” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted Eurocurrency Rate.

 

“Eurocurrency Rate” means, with respect to (A) any Eurocurrency Borrowing in any LIBOR Quoted Currency and for any applicable Interest Period, the LIBOR Screen Rate as of the Specified Time on the Quotation Day for such currency and Interest Period and (B) any Eurocurrency Borrowing in any Non-Quoted Currency and for any applicable Interest Period, the applicable Local Screen Rate for such Non-Quoted Currency as of the Applicable Time and on the Quotation Day for such currency and Interest Period; provided, that, if a LIBOR Screen Rate or a Local Screen Rate, as applicable, shall not be available at the applicable time for the applicable Interest Period  (an “Impacted Interest Period”), then the Eurocurrency Rate for such currency and Interest Period shall be the Interpolated  Rate; provided, further, that if the applicable Screen Rate shall not be available for such Interest

 

16

 

Period and/or for the applicable currency with respect to such Eurocurrency Borrowing for any reason and the Administrative Agent shall determine that it is not possible to determine the Interpolated Rate (which conclusion shall be conclusive and binding absent manifest error), then the applicable Reference Bank Rate shall be the Eurocurrency Rate for such Interest Period for such Eurocurrency Borrowing; subject to Section 2.11; provided that, if any Eurocurrency Rate shall be less than zero, such rate shall be deemed to be zero for  purposes of this Agreement.

 

“Events of Default” has the meaning assigned to such term in Section 7.01.

 

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

 

“Exchange Rate” means, on any day, with respect to Dollars in relation to any Alternative Currency, the rate of exchange for the purchase of Dollars with the Alternative Currency last provided (either by publication or otherwise provided to the Administrative Agent) by the applicable Thomson Reuters Corp. (“Reuters”) source on the Business Day (New York City time)  immediately preceding the date of determination or if such service ceases to be available or ceases to provide a rate of exchange for the purchase of Dollars with the Alternative Currency, as provided by such other publicly available information service which provides that rate of exchange at such time in place of Reuters reasonably chosen by the Administrative Agent in its sole discretion after consultation with the Borrower (or if such service ceases to be available or ceases to provide such rate of exchange, the equivalent of such amount in dollars as determined by the Administrative Agent using any reasonable method of determination it deems appropriate in its sole discretion after consultation with the Borrower).

 

“Excluded Indebtedness” means all Indebtedness not incurred in violation of Section 6.01.

 

“Excluded Securities” means any of the following:

 

(a)                                 any Equity Interests or Indebtedness with respect to which the Collateral Agent and the Borrower reasonably agree that the cost or other consequences of pledging such Equity Interests or Indebtedness in favor of the Secured Parties under the Collateral Documents (including Tax consequences) are likely to be excessive in relation to the value to be afforded thereby;

 

(b)                                 any Equity Interests or Indebtedness to the extent, and for so long as, the pledge thereof is prohibited by any Requirement of Law (in each case, except to the extent such prohibition is unenforceable after giving effect to applicable provisions of the Uniform Commercial Code or other applicable law);

 

(c)                                  any Equity Interests of any person that is not a Wholly Owned Subsidiary to the extent (A) that a pledge thereof to secure the Obligations is prohibited by (i) any applicable organizational documents, constitutional documents, joint venture agreement, shareholder agreement, or similar agreement or (ii) any other contractual obligation with an unaffiliated third party not in violation of Section 6.09 that was existing on the Closing Date (and not created in contemplation of the consummation of the Transactions) or at the time of the acquisition of such subsidiary (and was not created in contemplation of such acquisition), (B) any organizational documents, constitutional documents, joint venture agreement, shareholder agreement, or similar agreement (or other contractual obligation referred to in subclause (A)(ii) above) prohibits such a pledge without the consent of any other party; provided that this clause (B) shall not apply if (1) such other party is a Loan Party or a Wholly Owned Subsidiary or (2) consent has been obtained to consummate such pledge (it being understood that the foregoing shall not be deemed to obligate the Borrower or any subsidiary to obtain any such consent) and for so long as such organizational documents, constitutional documents, joint venture agreement, shareholder agreement or similar agreement (or other contractual obligation referred to in subclause (A)(ii) above) or replacement or renewal thereof is in effect, or (C) a pledge thereof to secure the Obligations would give any other party (other than a Loan Party or a Wholly Owned Subsidiary) to any organizational documents, constitutional documents, joint venture agreement, shareholder agreement or similar agreement governing such Equity Interests the right to terminate its obligations thereunder, in each case, after giving effect to the anti-assignment provisions of the Uniform Commercial Code or other applicable law;

 

17

 

(d)                                 any Equity Interests of (i) any Unrestricted Subsidiary and (ii) any subsidiary that is not a Material Subsidiary;

 

(e)                                  any Margin Stock; and

 

(f)                                   voting Equity Interests (and any other interests constituting “stock entitled to vote” within the meaning of U.S. Treasury Regulation Section 1.956-2(c)(2)) in excess of 65% of all voting Equity Interests in (A) any Foreign Subsidiary or (B) any FSHCO.

 

“Excluded Subsidiary” means (a) any subsidiary that is not a Wholly Owned Subsidiary, (b) any subsidiary that is prohibited by applicable law or by Contractual Obligations existing on the Closing Date (or, in the case of any newly acquired subsidiary, in existence at the time of acquisition but not entered into in contemplation thereof) from guaranteeing the Obligations or if guaranteeing the Obligations would require governmental (including regulatory) consent, approval, license or authorization, (c) any subsidiary that is not a Material Domestic Subsidiary, (d) any Unrestricted Subsidiary, (e) any FSHCO and (f) any Domestic Subsidiary that is a subsidiary of a Foreign Subsidiary that is a CFC.

 

“Excluded Swap Obligation” means, with respect to any Subsidiary Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Subsidiary Guarantor of, or the grant by such Subsidiary Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of (a) such Subsidiary Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder or (b) in the case of a Swap Obligation subject to a clearing requirement pursuant to Section 2(h) of the Commodity Exchange Act (or any successor provision thereto), because such Subsidiary Guarantor is a “financial entity,” as defined in Section 2(h)(7)(C)(i) of the Commodity Exchange Act (or any successor provision thereto), in each case at the time the Guarantee of such Subsidiary Guarantor or the grant of such security interest becomes effective with respect to such Swap Obligation, unless otherwise agreed between the Administrative Agent and the Borrower.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.

 

“Excluded Taxes” means (a) in the case of each Recipient, Taxes imposed on its overall net income, and franchise Taxes imposed on it in lieu of net income Taxes by a jurisdiction (including any political subdivision thereof) as a result of (i) such Recipient being organized under the laws of or having a principal office in such jurisdiction or, in the case of a Lender, having an applicable lending office in such jurisdiction or (ii) any other present or former connection between such Recipient and the jurisdiction (other than any connection 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 and/or enforced any Loan Document); (b) any Taxes in the nature of branch profits Taxes imposed by any jurisdiction described in clause (a); (c) in the case of a Non-U.S. Lender, United States federal withholding Tax imposed pursuant to laws in effect on the date on which (i) such Non-U.S. Lender becomes a Lender or (ii) such Non-U.S. Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.14, additional amounts with respect to such Taxes were payable either to such Non-U.S. Lender’s assignor immediately before such Non-U.S. Lender became a party hereto or to such Non-U.S. Lender immediately before it changed its lending office; (d) any Taxes attributable to such Recipient’s failure to comply with Section 2.14(e); and (e) any United States federal withholding Taxes imposed under FATCA.

 

“Existing Term Loans” means the Initial Term Loans outstanding under the Original Credit Agreement immediately prior to the Amendment Effective Date.

 

“Extended Revolving Commitment” shall have the meaning assigned to such term in Section 2.19(a).

 

“Extended Revolving Loan” shall have the meaning assigned to such term in Section 2.19(a).

 

18

 

“Extended Term Loan” shall have the meaning assigned to such term in Section 2.19(a).

 

“Extending Lender” shall have the meaning assigned to such term in Section 2.19(a).

 

“Extension” shall have the meaning assigned to such term in Section 2.19(a).

 

“Extension Amendment” shall have the meaning assigned to that term in Section 2.19(b).

 

“Facility” means any of (a) the Revolving Facility and (b) the Term Facility.

 

“Fair Market Value” means, with respect to any asset, as determined by the Borrower, the price (after taking into account any liabilities relating to such assets) that would be negotiated in an arm’s-length transaction for cash between a willing seller and a willing and able buyer, neither of which is under any compulsion to complete the transaction.

 

“FATCA” means 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 promulgated thereunder or official interpretations thereof and any agreements entered into pursuant to current Section 1471(b)(1) of the Code (or any amended or successor version described above) and any intergovernmental agreements implementing the foregoing.

 

“Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate; provided that if the Federal Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to zero for the purposes of this Agreement.

 

“Fixed Amounts” has the meaning assigned to such term in Section 1.07(a).

 

“Financial Officer” means the chief financial officer, principal accounting officer, treasurer or controller of the Borrower.

 

“Flood Insurance Laws” means, collectively, (i) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (iii) the National Flood Insurance Reform Act of 1994 as now or hereafter in effect or any successor statute thereto, (iv) the Flood Insurance Reform Act of 2004 as now or hereafter in effect or any successor statute thereto and (v) the Biggert-Waters Flood Insurance Reform Act of 2012 as now or hereafter in effect or any successor statute thereto.

 

“Foreign Subsidiary” means any Restricted Subsidiary of the Borrower that is organized under the laws of any jurisdiction other than the United States, any State thereof or the District of Columbia.

 

“FSHCO” means any subsidiary of the Borrower that owns no material assets other than Equity Interests of one or more Foreign Subsidiaries that are CFCs or Equity Interests of one or more other FSHCOs.

 

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession of the United States, consistently applied.

 

“Governmental Authority” means the government of the United States of America, any other nation or any political subdivision thereof, whether state, local, provincial or otherwise, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

19

 

“Guarantee” of or by any Person (the “guarantor”) means a direct or indirect guarantee by any Person of any Indebtedness of any other Person and includes any obligation, direct or indirect, contingent or otherwise, of such Person (1) to purchase or pay (or advance or supply funds for the purchase or payment of) Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by agreements to keep well, to purchase assets, goods, securities or services (unless such purchase arrangements are on arm’s length terms and are entered into in the ordinary course of business), to take-or-pay, or to maintain financial statement conditions or otherwise); or (2) entered into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); “Guarantee,” when used as a verb, and “Guaranteed” have correlative meanings.

 

“Guarantee Agreement” means the Guarantee Agreement dated as of November 1, 2017 among the Subsidiary Guarantors and JPMorgan Chase Bank, N.A. as the collateral agent.

 

“guarantor” has the meaning assigned to such term in the definition of “Guarantee.”

 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

 

“Hedging Obligations” of any Person means the obligations of such Person under swap, cap, collar, forward purchase or similar agreements or arrangements dealing with interest rates, currency exchange rates or commodity prices, either generally or under specific contingencies.

 

“IAC” means IAC/InterActiveCorp, a Delaware corporation.

 

“IAC Credit Agreement” means the Second Amended and Restated Credit Agreement dated as of the date hereof among IAC Group, LLC, a Delaware limited liability company, the Lenders party thereto from time to time and the Administrative Agent.

 

“IAC Debt Facility” shall have the meaning assigned to such term in Section 6.01(z).

 

“IAC Dividend Amount” means the excess of (x) the aggregate net proceeds of the Initial Term Loan Facility less (y) the aggregate principal amount of indebtedness owed by the Borrower or any of its Restricted Subsidiaries to IAC or any of its subsidiaries (other than the Borrower and its subsidiaries) immediately prior to the Closing Date.

 

“IAC Group” means IAC and its subsidiaries (other than the Borrower and its subsidiaries).

 

“Impacted Interest Period” has the meaning assigned to such term in the definition of “Eurocurrency Rate.”

 

“Incremental Amount” means, at any time, the sum of (a) the excess (if any) of (i) $100,000,000 over (ii) the aggregate amount of all Incremental Term Loan Commitments and Incremental Revolving Commitments, in each case, established after the Amendment Effective Date and prior to such time and outstanding pursuant to Section 2.02 in reliance on this clause (a) (amounts incurred pursuant to this clause (a), the “Cash Capped Amount”), plus (b) any amounts so long as immediately after giving pro forma effect to the establishment of the commitments in respect thereof, any Asset Acquisition consummated concurrently therewith and the use of proceeds of the loans thereunder, both (x) the Secured Net Leverage Ratio is equal to or less than 3.50 to 1.00 and (y) the Consolidated Net Leverage Ratio is equal to or less than 4.25 to 1.00, in each case, only on the date of the initial incurrence of (or commitment in respect of) the applicable Incremental Facility (except as set forth in Section 1.08) and calculated (x) as if any commitments in respect of Permitted Ratio Debt and Incremental Revolving Commitments were fully drawn on the effective date thereof and (y) excluding any cash constituting proceeds of any such Incremental Facility or any simultaneous incurrence of Permitted Ratio Debt in reliance on this clause (b) (amounts incurred pursuant to this clause (b), the “Ratio Incremental Amount”), plus (c) the amount of any voluntary repayment of Term Loans and voluntary reductions in Revolving Commitments after the Amendment

 

20

 

Effective Date, in each case, other than prepayments and reductions funded with the proceeds of long-term Indebtedness (amounts incurred pursuant to this clause (c), the “Repayment Amount”) (provided that (x) at the Borrower’s option, capacity under the Ratio Incremental Amount shall be deemed to be used before capacity under the Cash Capped Amount and the Repayment Amount and (y) any portion of any Incremental Facility incurred under the Cash Capped Amount or the Repayment Amount may be reclassified, as the Borrower may elect from time to time, as having been incurred under the Ratio Incremental Amount if the Borrower meets the ratios under the Ratio Incremental Amount at such time, on a pro forma basis).

 

“Incremental Assumption Agreement” means an Incremental Assumption Agreement in form and substance reasonably satisfactory to the Administrative Agent, among the Borrower, the Administrative Agent and, if applicable, one or more Incremental Term Lenders and/or Incremental Revolving Lenders.

 

“Incremental Commitment” means an Incremental Term Loan Commitment or an Incremental Revolving Commitment.

 

“Incremental Facility” means the Incremental Commitments and the Incremental Loans made thereunder.

 

“Incremental Lenders” has the meaning assigned to such term in Section 2.02(e).

 

“Incremental Loan” means an Incremental Term Loan or an Incremental Revolving Loan.

 

“Incremental Revolving Commitment” means the commitment of any Lender, established pursuant to Section 2.02, to make Incremental Revolving Loans to the Borrower.

 

“Incremental Revolving Lender” means a Lender with an Incremental Revolving Commitment or an outstanding Incremental Revolving Loan.

 

“Incremental Revolving Loan” means Revolving Loans made by one or more Revolving Lenders to the Borrower pursuant to an Incremental Revolving Commitment to make additional Revolving Loans.

 

“Incremental Term Facility” means the Incremental Term Loan Commitments and the Incremental Term Loans made thereunder.

 

“Incremental Term Lender” means a Lender with an Incremental Term Loan Commitment or an outstanding Incremental Term Loan.

 

“Incremental Term Loan Commitment” means the commitment of any Lender, established pursuant to Section 2.02, to make Incremental Term Loans to the Borrower.

 

“Incremental Term Loans” means any term loans borrowed in connection with an Incremental Assumption Agreement.

 

“Incurrence Based Amounts” has the meaning assigned to such term in Section 1.07(a).

 

“Indebtedness” of any Person at any date means, without duplication:

 

(1)                                 all liabilities, contingent or otherwise, of such Person for borrowed money;

 

(2)                                 all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

 

(3)                                 all reimbursement obligations of such Person in respect of letters of credit, letters of guaranty, bankers’ acceptances and similar credit transactions;

 

21

 

(4)                                 all obligations of such Person to pay the deferred and unpaid purchase price of property or services, except (i) trade payables and accrued expenses incurred by such Person in the ordinary course of business and (ii) amounts accrued associated with contingent consideration arrangements;

 

(5)                                 all Capital Lease Obligations of such Person;

 

(6)                                 all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person;

 

(7)                                 all Indebtedness of others Guaranteed by such Person to the extent of such Guarantee; provided that Indebtedness of the Borrower or its subsidiaries that is Guaranteed by the Borrower or the Borrower’s subsidiaries shall only be counted once in the calculation of the amount of Indebtedness of the Borrower and its subsidiaries on a consolidated basis; and

 

(8)                                 all obligations of such Person under conditional sale or other title retention agreements relating to assets purchased by such Person (excluding obligations arising from inventory transactions in the ordinary course of business).

 

The amount of any Indebtedness which is incurred at a discount to the principal amount at maturity thereof as of any date shall be deemed to have been incurred at the accreted value thereof as of such date.  The amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional obligations as described above, the maximum liability of such Person for any such contingent obligations at such date and, in the case of clause (6), the lesser of (a) the Fair Market Value of any asset subject to a Lien securing the Indebtedness of others on the date that the Lien attaches and (b) the amount of the Indebtedness secured.

 

“Indemnified Taxes” means all Taxes other than Excluded Taxes.

 

“Indemnitee” has the meaning assigned to such term in Section 9.04(b).

 

“Information” has the meaning assigned to such term in Section 9.13.

 

“Initial Term Lender” means each Lender that has an Initial Term Loan Commitment or that holds Initial Term Loans.

 

“Initial Term Loan Commitment” means, as to any Initial Term Lender, the obligation of such Initial Term  Lender to make Initial Term Loans in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule 1.01A to the Original Credit Agreement or in the Assignment and Assumption pursuant to which such Initial Term Lender became a party hereto as the same may be changed from time to time pursuant to the terms of this Agreement (including as increased, extended or replaced as provided in Sections 2.02, 2.19 and 2.20).  The original aggregate amount of all Initial Term Loan Commitments on the Closing Date was $275,000,000.

 

“Initial Term Loan Facility” means the credit facility constituted by the Initial Term Loan Commitments and the Initial Term Loans thereunder.

 

“Initial Term Loan Maturity Date” means the date that is five years from the Amendment Effective Date.

 

“Initial Term Loans” means the Term Loans made pursuant to the Initial Term Loan Commitment.

 

“Insolvent” with respect to any Multiemployer Plan means the condition that such Multiemployer Plan is insolvent within the meaning of Section 4245 of ERISA.

 

“Intellectual Property” means the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including

 

22

 

copyrights, patents, trademarks, service marks, trade dress, internet domain names, software, data, databases, technology, know-how, trade secrets, processes and other confidential or proprietary information, together with all registrations and applications for registration thereof, all licenses thereof or pertaining thereto, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom.

 

“Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBITDA of the Borrower and its Restricted Subsidiaries for the Test Period most recently ended on or prior to such date of determination to (b) Consolidated Interest Expense for such Test Period.

 

(A)                               The Interest Coverage Ratio shall be calculated for any period after giving effect on a pro forma basis (as if they had occurred on the first day of the applicable Test Period) to:

 

(1)                                 the incurrence of any Indebtedness of the Borrower or any Restricted Subsidiary (and the application of the proceeds thereof) and any repayment, repurchase, defeasance or other discharge of Indebtedness (and the application of the proceeds therefrom) (other than the incurrence or repayment of Indebtedness in the ordinary course of business for working capital purposes pursuant to any revolving credit arrangement) occurring during the applicable Test Period or (except when calculating the Interest Coverage Ratio for purposes of determining actual compliance (and not pro  forma compliance or compliance on a pro forma basis) with Section 6.10) at any time subsequent to the last day of such Test Period and on or prior to the date of determination, as if such incurrence, repayment, issuance or redemption, as the case may be (and the application of the proceeds thereof), occurred on the first day of the Test Period; and

 

(2)                                 any (w) Asset Sale, (x) asset sale if the Fair Market Value of the assets sold in such transaction or series of related transactions exceeds $2,000,000 individually, which is solely excluded from the definition of Asset Sale pursuant to clause (7) of such definition, (y) Asset Acquisition (including, without limitation, any Asset Acquisition giving rise to the need to make such calculation as a result of the Borrower or any Restricted Subsidiary (including any Person who becomes a Restricted Subsidiary as a result of such Asset Acquisition or as a result of a Revocation) incurring Indebtedness pursuant to Section 6.01(j) and also including any Consolidated EBITDA associated with any such Asset Acquisition) or (z) operational restructuring (each a “pro forma event”) occurring during the Test Period or at any time subsequent to the last day of the Test Period and on or prior to the date of determination as if such pro forma event occurred on the first day of the Test Period, including any cost savings and cost synergies resulting from head count reduction, closure of facilities and similar operational and other cost savings, cost synergies, operating expense reductions, restructurings, costs savings initiatives or other initiatives relating to such pro  forma event occurring within 24 months (or expected, in the good faith determination of the Borrower, to result from actions that have been taken or initiated or expected to be taken within 24 months) of such pro  forma event and during such period or (except when calculating the Interest Coverage Ratio for purposes of determining actual compliance (and not pro  forma compliance or compliance on a pro  forma basis) with Section 6.10) subsequent to such period and on or prior to the date of such calculation, in each case that are expected to have a continuing impact and are factually supportable, and which adjustments the Borrower determines are reasonable as set forth in an Officer’s Certificate; provided that the aggregate amount of all such cost savings and cost synergies pursuant to this clause (A)(2) and the second paragraph of the definition of “Consolidated EBITDA” shall in no event exceed 25.0% of Consolidated EBITDA (after giving effect to such adjustment) for any Test Period;  provided, further, that asset sales described in clause (A)(2)(x) in an aggregate amount not to exceed $30,000,000 in any Test Period shall not be required to be given pro  forma effect; and

 

(B)                               in calculating Consolidated Interest Expense for purposes of the Interest Coverage Ratio with respect to any Indebtedness being given pro  forma effect:

 

(1)                                 interest on outstanding Indebtedness determined on a fluctuating basis as of the date of determination and which will continue to be so determined thereafter shall be deemed to have accrued at a

 

23

 

fixed rate per annum equal to the rate of interest on such Indebtedness in effect on the date of determination;

 

(2)                                 if interest on any Indebtedness actually incurred on the date of determination may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on the date of determination will be deemed to have been in effect during the Test Period;

 

(3)                                 notwithstanding clause (1) or (2) above, interest on Indebtedness determined on a fluctuating basis, to the extent such interest is covered by agreements relating to Hedging Obligations, shall be deemed to accrue at the rate per annum resulting after giving effect to the operation of the agreements governing such Hedging Obligations;

 

(4)                                 interest on any Indebtedness under a revolving credit facility shall be computed based upon the average daily balance of such Indebtedness during the Test Period; and

 

(5)                                 interest on a Capital Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or accounting officer of the Borrower to be the rate of interest implicit in such Capital Lease Obligation in accordance with GAAP.

 

“Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.05.

 

“Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each March, June, September and December and (b) with respect to any Eurocurrency Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurocurrency Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period.

 

“Interest Period” means, as to any Eurocurrency Loan, (a) initially, the period commencing on the borrowing or conversion date, as the case may be, with respect to such Eurocurrency Loan and ending one week, one month, two months, three months or six months (or, if available to all Lenders under the applicable Facility, twelve months) thereafter, as selected by the Borrower in its notice of borrowing or notice of conversion, as the case may be, given with respect thereto, and (b) thereafter, each period commencing on the last day of the next preceding Interest Period applicable to such Eurocurrency Loan and ending one week, one month, two months, three months or six months (or, if agreed to by all Lenders under the applicable Facility, twelve months or such other, shorter period) thereafter, as selected by the Borrower by irrevocable notice to the Administrative Agent not later than 12:00 noon, New York City time (or in the case of an Alternative Currency, 11:00 a.m., London time), on the date that is three Business Days prior to the last day of the then current Interest Period with respect thereto; provided that all of the foregoing provisions relating to Interest Periods are subject to the following:

 

(i)                                      if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Business Day;

 

(ii)                                      the Borrower may not select an Interest Period for a Revolving Loan that would extend beyond the Revolving Termination Date or an Interest Period for a Term Loan that would extend beyond the date the final payment is due on such Term Loan; and

 

(iii)                                       any Interest Period of at least one month’s duration that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month.

 

24

 

“Interpolated Rate” means, at any time, for any Interest Period, the rate per  annum (rounded to the same number of  decimal places as the relevant Screen Rates) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between:  (a) the applicable Screen Rate (for the longest period for which the applicable Screen Rate is available for the applicable currency) that is shorter than the Impacted Interest Period and (b) the applicable Screen Rate for the shortest period (for which such Screen Rate is available for the applicable currency) that exceeds the Impacted Interest Period, in each case, as of the Specified Time on the Quotation Day for such Interest Period. When determining the rate for a period which is less than the shortest period for which the relevant  Screen Rate is available, the applicable  Screen Rate for purposes of paragraph (a) above shall be deemed to be the overnight screen rate where “overnight screen rate” means, in relation to any currency, the overnight rate for such currency determined by the Administrative Agent from such service as the Administrative Agent may select.

 

“Investments” has the meaning assigned to such term in Section 6.11.

 

“ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance).

 

“Issuing Bank” means JPMorgan Chase Bank, N.A., Bank of America, N.A., Citibank, N.A. and each other Issuing Bank designated pursuant to Section 2.17(j), each in its capacity as an issuer of Letters of Credit, and its successors in such capacity as provided in Section 2.17(i).

 

“Joinder and Reaffirmation Agreement” means an agreement in substantially the form of Exhibit J or otherwise in form and substance reasonably satisfactory to the Administrative Agent.

 

“Judgment Currency” has the meaning assigned to such term in Section 9.14.

 

“Junior Debt” means Indebtedness for borrowed money that is by its terms subordinated or junior in right of payment or security to the Obligations, in each case with an aggregate outstanding principal amount in excess of $25,000,000.

 

“Junior Debt Restricted Payment” means any payment or other distribution (whether in cash, securities or other property), directly or indirectly made by the Borrower or any if its Restricted Subsidiaries, of or in respect of principal of or interest on any Junior Debt (or any Indebtedness incurred as Refinancing Indebtedness in respect thereof); provided that the following shall not constitute a Junior Debt Restricted Payment:

 

(a)                                 refinancings with any Refinancing Indebtedness permitted to be incurred under Section 6.01;

 

(b)                                 payments of regularly-scheduled interest and fees due thereunder, other non-principal payments thereunder, any mandatory prepayments of principal, interest and fees thereunder, scheduled payments thereon necessary to avoid the Junior Debt from constituting “applicable high yield discount obligations” within the meaning of Section 163(i)(l) of the Code, and principal on the scheduled maturity date of any Junior Debt;

 

(c)                                  payments or distributions in respect of all or any portion of the Junior Debt with the proceeds from the issuance, sale or exchange by the Borrower of Qualified Equity Interests within eighteen months prior thereto; or

 

(d)                                 the conversion of any Junior Debt to Qualified Equity Interests of the Borrower.

 

“Latest Maturity Date” means, at any date of determination, the latest of the latest Revolving Termination Date and the latest maturity date in respect of any Class of Term Loans or Extended Revolving Commitments, in each case then in effect on such date of determination.

 

25

 

“LC Commitment Amount” means, as to each Issuing Bank as of the Amendment Effective Date, an amount not to exceed the amount set forth under the heading “LC Commitment Amount” opposite such Issuing Bank’s name on Schedule 1.01A, and as to any other Revolving Lender that may become an Issuing Bank under Section 2.17(j), the amount agreed in writing between such Issuing Bank and the Borrower, in each case as such amount may be increased as agreed in writing between the applicable Issuing Bank and the Borrower.

 

“LC Disbursement” means a payment made by the Issuing Bank pursuant to a demand for payment or drawing under a Letter of Credit.

 

“LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Lender at any time shall be its Revolving Commitment Percentage of the total LC Exposure at such time. For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.

 

“LC Participation Calculation Date” means, with respect to any LC Disbursement made by the Issuing Bank or any refund of a reimbursement payment made by the Issuing Bank to the Borrower, in each case in a currency other than Dollars, (a) the date on which such Issuing Bank shall advise the Administrative Agent that it purchased with Dollars the currency used to make such LC Disbursement or refund or (b) if such Issuing Bank shall not advise the Administrative Agent that it made such a purchase, the date on which such LC Disbursement or refund is made.

 

“LCT Election” has the meaning assigned to such term Section 1.08(b).

 

“LCT Test Date” has the meaning assigned to such term Section 1.08(b).

 

“Lead Arrangers” means, collectively, JPMorgan Chase Bank, N.A., BMO Capital Markets Corp., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and PNC Capital Markets LLC, as joint lead arrangers and joint bookrunners.

 

“Lender Presentation” means the Lender Presentation made available to the Lenders in connection with the Lender meeting held on October 15, 2018 with respect to this Agreement.

 

“Lenders” means the Persons listed on Schedule 1.01A to the Original Credit Agreement or Schedule 1.01A to this Agreement and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption or any Incremental Assumption Agreement, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

 

“Letter of Credit” means any letter of credit issued pursuant to Section 2.17.

 

“LIBOR Quoted Currency” means Dollars, Euros, Sterling and Yen.

 

“LIBOR Screen Rate” means the London interbank offered rate administered by the ICE Benchmark Association (or any other Person that takes over the administration of such rate) for such LIBOR Quoted Currency for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen or, in the event such rate does not appear on either of such Reuters pages, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate as shall be selected by the Administrative Agent from time to time in its reasonable discretion.

 

“Lien” means, with respect to any asset, any mortgage, deed of trust, lien (statutory or other), pledge, easement, charge, security interest or other encumbrance of any kind or nature in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including the interest of a vendor or a lessor under

 

26

 

any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset.  “Lien” shall not, however, include any interest of a vendor in any inventory of the Borrower or any of its Restricted Subsidiaries arising out of such inventory being subject to a “sale or return” arrangement with such vendor or any consignment by any third party of any inventory to the Borrower or any of its Restricted Subsidiaries.

 

“Limited Condition Transaction” means (x) any acquisition or Investment, including by way of merger, amalgamation, consolidation or other business combination or the acquisition of Equity Interests or otherwise, by one or more of the Borrower and its Restricted Subsidiaries of or in any assets, business or Person, in each case, whose consummation is not conditioned on the availability of, or on obtaining, third party financing or (y) any redemption, purchase, repurchase, defeasance, satisfaction and discharge or repayment of Indebtedness, Disqualified Equity Interests or Preferred Stock by one or more of the Borrower and its Restricted Subsidiaries requiring irrevocable notice in advance of such redemption, purchase, repurchase, defeasance, satisfaction and discharge or prepayment.

 

“Loan Documents” means the collective reference to this Agreement, the Guarantee Agreement, the Collateral Documents, any Incremental Assumption Agreement, any promissory note issued pursuant to Section 2.07(a), the Letters of Credit and any amendments or waivers to any of the foregoing.

 

“Loan Parties” means the collective reference to the Borrower and the Subsidiary Guarantors.

 

“Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement.

 

“Local Screen Rates” means the Australian Dollar Screen Rate and the CDOR Screen Rate; provided, that, if any Local Screen Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Margin Stock” has the meaning assigned to such term in Regulation U of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, property or condition, financial or otherwise, of the Borrower and its Restricted Subsidiaries taken as a whole that results in a material impairment of the ability of the Borrower to perform any payment obligations hereunder or (b) the validity or enforceability of this Agreement or the other Loan Documents or the rights or remedies of the Administrative Agent (including in its capacity as Collateral Agent) or the Lenders hereunder or thereunder.

 

“Material Domestic Subsidiary” means any Wholly Owned Subsidiary that is a Domestic Subsidiary of the Borrower, as of the last day of the fiscal quarter of the Borrower most recently ended for which financial statements have been or are required to have been delivered, that has assets or revenues (including third party revenues but not including intercompany revenues) with a value in excess of 2.50% of the consolidated assets of the Borrower and its Wholly Owned Subsidiaries that are Domestic Subsidiaries or 2.50% of the consolidated revenues of the Borrower and its Wholly Owned Subsidiaries that are Domestic Subsidiaries; provided that in the event Wholly Owned Subsidiaries that are Domestic Subsidiaries that would otherwise not be Material Domestic Subsidiaries shall in the aggregate account for a percentage in excess of 7.50% of the consolidated assets of the Borrower and its Wholly Owned Subsidiaries that are Domestic Subsidiaries or 7.50% of the consolidated revenues of the Borrower and its Wholly Owned Subsidiaries that are Domestic Subsidiaries as of the end of and for the most recently completed fiscal quarter, then one or more of such Domestic Subsidiaries designated by the Borrower (or, if the Borrower shall make no designation, one or more of such Domestic Subsidiaries in descending order based on their respective contributions to the consolidated assets of the Borrower), shall be included as Material Domestic Subsidiaries to the extent necessary to eliminate such excess.

 

“Material Indebtedness” means Indebtedness (other than the Loans), or obligations in respect of a Swap Agreement, of any one or more of the Borrower and its Restricted Subsidiaries in an aggregate principal amount exceeding $50,000,000.  For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Restricted Subsidiary in respect of any Swap Agreement at any time shall be the

 

27

 

maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Restricted Subsidiary would be required to pay if such Swap Agreement were terminated at such time.

 

“Material Real Property” shall mean any parcel of Real Property (a) located in the United States and (b) having a Fair Market Value (on a per-property basis) greater than $15,000,000 as of (x) the Closing Date, for Real Property then owned or (y) the date of acquisition, for owned Real Property acquired after the Closing Date, in each case as determined by the Borrower in good faith; provided that “Material Real Property” shall exclude (i) all leasehold interests and (ii) the ANGI Campus as well as any future improvements, alterations, construction, developments, expansions, replacements or additions thereto.

 

“Material Subsidiary” means any Restricted Subsidiary of the Borrower, as of the last day of the fiscal quarter of the Borrower most recently ended for which financial statements have been, or were required to be, delivered pursuant to Section 5.01, that has assets or revenues (including third party revenues but not including intercompany revenues) with a value in excess of 1.0% of the consolidated assets of the Borrower or 1.0% of the consolidated revenues of the Borrower; provided that in the event Restricted Subsidiaries that would otherwise not be Material Subsidiaries shall in the aggregate account for a percentage in excess of 7.5% of the consolidated assets of the Borrower or 7.5% of the consolidated revenues of the Borrower as of the end of and for the most recently completed fiscal quarter for which financial statements have been, or were required to be, delivered pursuant to Section 5.01, then one or more of such Restricted Subsidiaries designated by the Borrower (or, if the Borrower shall make no designation, one or more of such Restricted Subsidiaries in descending order based on their respective contributions to the consolidated assets of the Borrower), shall be included as Material Subsidiaries to the extent necessary to eliminate such excess.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Mortgaged Properties” shall mean each Material Real Property encumbered by a Mortgage pursuant to Section 5.09.

 

“Mortgages” shall mean, collectively, the mortgages, trust deeds, deeds of trust, deeds to secure debt, assignments of leases and rents, and other security documents (including amendments to any of the foregoing) delivered with respect to Mortgaged Properties, each substantially in such form as is reasonably satisfactory to the Collateral Agent and the Borrower, in each case, as amended, supplemented or otherwise modified from time to time.

 

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

“Net Proceeds” means:

 

(a)                                 100% of the cash proceeds actually received by the Borrower or any subsidiary (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but only as and when received) from any Asset Sale, net of (i) attorneys’ fees, accountants’ fees, investment banking fees, survey costs, title insurance premiums, and related search and recording charges, transfer Taxes, deed or mortgage recording Taxes, other customary expenses and brokerage, consultant and other customary fees actually incurred in connection therewith, (ii) required payments of Indebtedness (other than Indebtedness incurred under the Loan Documents or Other First Lien Debt) and required payments of other obligations relating to the applicable asset to the extent such Indebtedness or other obligations are secured by a Lien permitted hereunder (other than pursuant to the Loan Documents, Other First Lien Debt or obligations secured by a Lien that is junior to the Liens securing the Obligations), (iii) repayments of Other First Lien Debt (limited to its proportionate share of such prepayment, based on the amount of such then outstanding debt as a percentage of all then outstanding Indebtedness incurred under the Loan Documents and Other First Lien Debt), (iv) Taxes paid or payable (in the good faith determination of the Borrower) as a direct result thereof, and (v) the amount of any reasonable reserve established in accordance with GAAP against any adjustment to the sale price or any liabilities (other than any Taxes deducted pursuant to clause (i) or (iv) above) (x) related to any of the applicable assets and (y) retained by the Borrower or any of the Subsidiaries including, without limitation, pension and other post-employment benefit liabilities and liabilities related to environmental matters or against any indemnification

 

28

 

obligations (provided that (1) the amount of any reduction of such reserve (other than in connection with a payment in respect of any such liability), prior to the date occurring 18 months after the date of the respective Asset Sale, shall be deemed to be cash proceeds of such Asset Sale occurring on the date of such reduction and (2) the amount of any such reserve that is maintained as of the date occurring 18 months after the date of the applicable Asset Sale shall be deemed to be Net Proceeds from such Asset Sale as of such date); provided that, if the Borrower shall deliver an Officer’s Certificate to the Administrative Agent promptly following receipt of any such proceeds setting forth the Borrower’s intention to use any portion of such proceeds, within 12 months of such receipt, to acquire, maintain, develop, construct, improve, upgrade or repair assets useful in the business of the Borrower and the Subsidiaries or to make Asset Acquisitions and other Investments permitted hereunder (excluding Cash Equivalents or intercompany Investments in Subsidiaries) or to reimburse the cost of any of the foregoing incurred on or after the date on which the Asset Sale giving rise to such proceeds was contractually committed (other than inventory), such portion of such proceeds shall not constitute Net Proceeds except to the extent not, within 365 days of such receipt, so used or contractually committed to be so used (it being understood that if any portion of such proceeds are not so used within such 365 day period but within such 365 day period are contractually committed to be used, then such remaining portion if not so used within 180 days following the end of such 365 day period shall constitute Net Proceeds as of such date without giving effect to this proviso); provided, further, that no net cash proceeds calculated in accordance with the foregoing realized in a single transaction or series of related transactions shall constitute Net Proceeds unless such net cash proceeds shall exceed $30,000,000 (and in each case thereafter only net cash proceeds in excess of such amount shall constitute Net Proceeds);

 

(b)                                 100% of the cash proceeds actually received by the Borrower or any Subsidiary (including casualty insurance settlements and condemnation awards, but only as and when received) from any Recovery Event, net of (i) attorneys’ fees, accountants’ fees, transfer Taxes, deed or mortgage recording Taxes on such asset, other customary expenses and brokerage, consultant and other customary fees actually incurred in connection therewith, (ii) required payments of Indebtedness (other than Indebtedness incurred under the Loan Documents or Other First Lien Debt) and required payments of other obligations relating to the applicable asset to the extent such Indebtedness or other obligations are secured by a Lien permitted hereunder (other than pursuant to the Loan Documents, Other First Lien Debt or obligations secured by a Lien that is junior to the Liens securing the Obligations), (iii) repayments of Other First Lien Debt (limited to its proportionate share of such prepayment, based on the amount of such then outstanding debt as a percentage of all then outstanding Indebtedness incurred under the Loan Documents and Other First Lien Debt, and (iv) Taxes paid or payable (in the good faith determination of the Borrower) as a direct result thereof; provided that, if the Borrower shall deliver an  Officer’s Certificate to the Administrative Agent promptly following receipt of any such proceeds setting forth the Borrower’s intention to use any portion of such proceeds, within 365 days of such receipt, to acquire, maintain, develop, construct, improve, upgrade or repair assets useful in the business of the Borrower and the Subsidiaries or to make Asset Acquisitions and other Investments permitted hereunder (excluding Cash Equivalents or intercompany Investments in Subsidiaries) or to reimburse the cost of any of the foregoing incurred on or after the date on which the Recovery Event giving rise to such proceeds was contractually committed (other than inventory, except to the extent the proceeds of such Recovery Event are received in respect of inventory), such portion of such proceeds shall not constitute Net Proceeds except to the extent not, within 365 days of such receipt, so used or contractually committed to be so used (it being understood that if any portion of such proceeds are not so used within such 365 day period but within such 365 day period are contractually committed to be used, then such remaining portion if not so used within 180 days following the end of such 365 day period shall constitute Net Proceeds as of such date without giving effect to this proviso); provided, further, that no net cash proceeds calculated in accordance with the foregoing realized in a single transaction or series of related transactions shall constitute Net Proceeds unless such net cash proceeds shall exceed $30,000,000 (and in each case thereafter only net cash proceeds in excess of such amount shall constitute Net Proceeds); and

 

(c)                                100% of the cash proceeds from the incurrence, issuance or sale by the Borrower or any Subsidiary of any Indebtedness (other than Excluded Indebtedness, except for Refinancing Term Loans), net of all fees (including investment banking fees), commissions, costs and other expenses, in each case incurred in connection with such issuance or sale.

 

“Non-Consenting Lender” has the meaning assigned to such term in Section 2.16(c).

 

29

 

“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.

 

“Non-Defaulting Revolving Lender” means, at any time, each Revolving Lender that is not a Defaulting Lender at such time.

 

“Non-Extension Notice Date” has the meaning assigned to such term in Section 2.17(b).

 

“Non-Loan Party” means any Restricted Subsidiary other than a Loan Party.

 

“Non-Quoted Currency” means each of Australian Dollars and Canadian Dollars.

 

“Non-U.S. Lender” means any Lender that is not a U.S. Lender.

 

“NYFRB” means the Federal Reserve Bank of New York.

 

“NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if none of such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Administrative Agent from a Federal funds broker of recognized standing selected by it; provided,  further, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Obligations” means the unpaid principal of and interest on (including interest, fees and expenses accruing after the maturity of the Loans and interest, fees and expenses accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest, fees and expenses is allowed in such proceeding) the Loans, the obligations of the Loan Parties to reimburse the Issuing Bank for demands for payment or drawings under a Letter of Credit, and all other obligations and liabilities of the Borrower to the Administrative Agent or to any Secured Party, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this Agreement, any other Loan Document, any Specified Swap Agreement, any Cash Management Agreement or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest, fees, indemnities, costs, expenses or otherwise (including all fees, charges and disbursements of counsel to the Administrative Agent, the Lead Arrangers or to any Lender that are required to be paid by the Borrower pursuant hereto).  Notwithstanding the foregoing, the Obligations shall not include any Excluded Swap Obligations.

 

“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.

 

“Officer’s Certificate” means a certificate of a Financial Officer in form and substance reasonably acceptable to the Administrative Agent.

 

“Original Credit Agreement” has the meaning assigned to such term in the recitals hereto.

 

“Other First Lien Debt” means obligations secured by Liens on the Collateral that are equal and ratable with the Liens thereon securing the Initial Term Loans pursuant to an intercreditor agreement reasonably satisfactory to the Administrative Agent.

 

“Other Taxes” means all present or future stamp, documentary, recording or similar Taxes or any other excise or property Taxes, charges or similar levies arising from any payment made under any Loan Document or from the execution, delivery or enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document.

 

30

 

“Outstanding Revolving Credit” means, with respect to any Revolving Lender at any time, an amount equal to the sum of (a) the aggregate then outstanding principal amount of such Revolving Lender’s Revolving Loans and (b) such Revolving Lender’s LC Exposure.

 

“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight eurodollar borrowings by U.S.-managed banking offices of depository institutions (as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time), and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

 

“parent” has the meaning assigned to such term in the definition of “subsidiary.”

 

“Parent Company” has the meaning assigned to such term in the definition of “Bankruptcy Event.”

 

“Participant” has the meaning assigned to such term in Section 9.05(c).

 

“Participant Register” has the meaning assigned to such term in Section 9.05(c).

 

“Participating Member State” means any member state of the EMU which has the Euro as its lawful currency.

 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

 

“Perfection Certificate” means a certificate substantially in the form of Exhibit H or any other form approved by the Administrative Agent (acting reasonably), as the same shall be supplemented from time to time by any supplement thereto or otherwise.

 

“Permitted Encumbrances” means:

 

(a)                                 Liens imposed by law for Taxes, assessments or governmental charges that are not yet due or are being contested in compliance with Section 5.04;

 

(b)                                 landlord’s, carriers’, warehousemen’s, mechanics’, supplier’s, materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with Section 5.04;

 

(c)                                  pledges and deposits made in the ordinary course of business in compliance with workers’ compensation (or pursuant to letters of credit issued in connection with such workers’ compensation compliance), unemployment insurance and other social security laws or regulations;

 

(d)                                 deposits to secure the performance of tenders, bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds, leases, subleases, government contracts and return-of-money bonds, letters of credit and other obligations of a like nature, in each case in the ordinary course of business (exclusive of the obligation for the payment of borrowed money);

 

(e)                                  judgment liens in respect of judgments that do not constitute an Event of Default under Section 7.01(j);

 

(f)                                   easements, zoning restrictions, rights-of-way, survey exception, minor encumbrances, reservation of, licenses, electric lines, telegraph and telephone lines and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of the Borrower or any Restricted Subsidiary;

 

31

 

(g)                                  Liens securing obligations in respect of trade-related letters of credit and covering the goods (or the documents of title in respect of such goods) financed or the purchase of which is supported by such letters of credit and the proceeds and products thereof;

 

(h)                                 Liens upon specific items of inventory or other goods and proceeds of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods; and

 

(i)                                     Liens securing obligations in respect of letters of credit, bank guarantees, warehouse receipts or similar instruments issued to support performance obligations (other than Obligations in respect of Indebtedness) and trade-related letters of credit, in each case, outstanding on the Amendment Effective Date or issued thereafter in and covering the goods (or the documents of title in respect of such goods) financed by such letters of credit, banker’s acceptances or bank guarantees and the proceeds and products thereof.

 

“Permitted Holders” means any one or more of (a) IAC and its wholly owned subsidiaries, (b) Barry Diller, (c) each of the respective Affiliated Persons of the Person referred to in clause (b) and (d) any Person a majority of the aggregate voting power of all the outstanding classes or series of the equity securities of which are beneficially owned by any one or more of the Persons referred to in clauses (a), (b) or (c).

 

“Permitted Liens” means Liens permitted by Section 6.02.

 

“Permitted Mandatory Prepayments” means, with respect to any Indebtedness, any requirement to prepay such Indebtedness (i) in connection with any asset sale or event of loss (with associated reinvestment rights), (ii) in respect of Refinancing Indebtedness, (iii) in respect of Indebtedness not permitted to be incurred by the terms of such Indebtedness, (iv) in connection with any cash sweep provisions customary in the determination of the Borrower for term loan B facilities or (v) in connection with any change of control.

 

“Permitted Ratio Debt” means Permitted Secured Ratio Debt and Permitted Unsecured Ratio Debt.

 

“Permitted Secured Ratio Debt” means Indebtedness of the Borrower so long as, (I) on a pro  forma basis after giving effect thereto and the use of proceeds thereof (calculated (x) as if any outstanding commitments for all such Indebtedness, Permitted Unsecured Ratio Debt and Incremental Commitments were fully drawn on the effective date thereof and (y) excluding any cash constituting proceeds of any such Indebtedness or any simultaneous incurrence of Permitted Unsecured Ratio Debt and/or Incremental Facilities), the Consolidated Net Leverage Ratio is equal to or less than 4.25 to 1.00 and the Secured Net Leverage Ratio is equal to or less than 3.50 to 1.00, in each case, only on the date of the initial incurrence of (or commitment in respect of) such Indebtedness, (II) no Default shall have occurred and be continuing after giving effect thereto, (III) the Borrower shall be in compliance with Section 6.10 (whether or not the Testing Condition is satisfied) as of the last day of the most recent Test Period on a pro  forma basis after giving effect to the incurrence of any such Indebtedness and the use of proceeds thereof, (IV) the maturity date of such Indebtedness shall be no earlier than 90 days following the Latest Maturity Date then in effect and such Indebtedness shall not require any mandatory prepayments other than Permitted Mandatory Prepayments, (V) such Indebtedness (x) shall not have a Weighted Average Life to Maturity that is shorter than the then longest remaining Weighted Average Life to Maturity of any then outstanding Term Loans, (y) shall have no financial maintenance covenants of a different type than those set forth in Section 6.10, and no financial maintenance covenants that are more restrictive than those set forth in Section 6.10, and (z) does not have negative covenants and/or default provisions that, taken as a whole, are materially more restrictive than those applicable to this Agreement as determined in good faith by the Borrower unless, in each case of clauses (y) and (z) such terms become applicable only after the Revolving Facility shall have matured or been terminated and any Term Loans existing on the date of the initial incurrence of (or commitment in respect of) such Indebtedness have been paid in full, (VI) such Indebtedness is not guaranteed by any subsidiaries of the Borrower that do not guarantee the Obligations and is secured on an equal and ratable or junior lien basis by the same Collateral (and no additional Collateral) securing the Obligations pursuant to an intercreditor agreement reasonably satisfactory to the Administrative Agent and (VII) if such Indebtedness is in the form of term loans, such Indebtedness shall be subject to the “most-favored nations” provision of Section 2.02(b)(v) as if such Indebtedness was incurred as an Incremental

 

32

 

Term Loan under this Agreement (and with pricing increases with respect to the Initial Term Loans to occur as, and to the extent provided in the “most favored nations” provision of Section 2.02(b)(v) as if such Indebtedness was incurred as an Incremental Term Loan hereunder).

 

“Permitted Unsecured Ratio Debt” means unsecured Indebtedness of the Borrower so long as, (I) on a pro forma basis after giving effect thereto and the use of proceeds thereof (calculated (x) as if any outstanding commitments for all such Indebtedness, Permitted Secured Ratio Debt and Incremental Commitments were fully drawn on the effective date thereof and (y) excluding any cash constituting proceeds of such Indebtedness or any simultaneous incurrence of Permitted Secured Ratio Debt and/or Incremental Facilities), the Consolidated Net Leverage Ratio is equal to or less than 4.25 to 1.00 only on the date of the initial incurrence of (or commitment in respect of) such Indebtedness, (II) no Default shall have occurred and be continuing after giving effect thereto, (III) the Borrower shall be in compliance with Section 6.10 (whether or not the Testing Condition is satisfied) on a pro forma basis as of the last day of the most recently completed Test Period after giving effect to the incurrence of any such Indebtedness and the use of proceeds thereof, (IV) other than with respect to Indebtedness the aggregate principal amount of which does not exceed $50,000,000, the maturity date of such Indebtedness shall be no earlier than 90 days following the Latest Maturity Date then in effect and such Indebtedness shall not require any mandatory prepayments other than Permitted Mandatory Prepayments, (V) such Indebtedness (x) other than with respect to either Indebtedness the aggregate principal amount of which does not exceed $50,000,000, shall not have a Weighted Average Life to Maturity that is shorter than the then longest remaining Weighted Average Life to Maturity of any then outstanding Term Loans, (y) shall have no financial maintenance covenants of a different type than those set forth in Section 6.10, and no financial maintenance covenants that are more restrictive than those set forth in Section 6.10, and (z) does not have negative covenants and/or default provisions that, taken as a whole, are materially more restrictive than those applicable to this Agreement as determined in good faith by the Borrower unless, in each case of clauses (y) and (z) such terms become applicable only after the Revolving Facility shall have matured or been terminated and any Term Loans existing on the date of the initial incurrence of (or commitment in respect of) such Indebtedness have been paid in full and (VI) such Indebtedness shall not be guaranteed by any subsidiaries of the Borrower other than Guarantees by the Subsidiary Guarantors that by their terms are subordinated in right of payment to the Obligations.

 

“person” and “group” have the meanings given to them for purposes of Section 13(d) and 14(d) of the Exchange Act or any successor provisions, and the term “group” includes any group acting for the purpose of acquiring, holding or disposing of securities within the meaning of rule 13d-5(b)(1) under the Exchange Act, or any successor provision.

 

“Person” means any individual, corporation, partnership, limited liability company, joint venture, incorporated or unincorporated association, joint-stock company, trust, unincorporated organization or government or other agency or political subdivision thereof or other entity of any kind.

 

“Plan” means an “employee pension benefit plan” as defined in Section 3(2) of ERISA (other than a Multiemployer Plan), subject to the provisions of Section 302 and Title IV of ERISA or Section 412 of the Code, and in respect of which the Borrower or any ERISA Affiliate is (or if such plan were terminated, would under Section 4062 or 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Platform” has the meaning assigned to such term in Section 9.18.

 

“Preferred Stock” means, with respect to any Person, any and all preferred or preference stock or other equity interests (however designated) of such Person whether now outstanding or issued after the Closing Date.

 

“Pricing Grid” means the table below:

 

	
Consolidated Net Leverage Ratio
    	
 
    	
Commitment Fee Rate
    	
 
    	
Applicable Rate for
   Eurocurrency Loans
    	
 
    	
Applicable Rate for
   ABR Loans
    	
 
    
	
>3.50:1.00
    	
 
    	
0.40%
    	
 
    	
2.25%
    	
 
    	
1.25%
    	
 
    
	
<3.50:1.00 but >2.50:1.00
    	
 
    	
0.35%
    	
 
    	
2.00%
    	
 
    	
1.00%
    	
 
    
	
<2.50:1.00 but >1.50:1.00
    	
 
    	
0.30%
    	
 
    	
1.75%
    	
 
    	
0.75%
    	
 
    
	
<1.50:1.00
    	
 
    	
0.25%
    	
 
    	
1.50%
    	
 
    	
0.50%
    	
 
    

 

33

 

For the purposes of the Pricing Grid, changes in the Applicable Rate and Commitment Fee Rate resulting from changes in the Consolidated Net Leverage Ratio shall become effective on the date (the “Adjustment Date”) on which financial statements are delivered to the Lenders pursuant to Section 5.01 and shall remain in effect until the next change to be effected pursuant to this paragraph. Notwithstanding the foregoing, if any financial statements referred to above are not delivered within the time periods specified in Section 5.01, then, until the date on which such financial statements are delivered, the highest rate set forth in each column of the Pricing Grid shall apply.  In addition, at all times while an Event of Default shall have occurred and be continuing, the highest rate set forth in each column of the Pricing Grid shall apply.  Each determination of the Consolidated Net Leverage Ratio pursuant to the Pricing Grid shall be made in a manner consistent with the determination thereof pursuant to Section 6.10.

 

“Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.

 

“Pro Rata Extension Offer” has the meaning assigned to such term in Section 2.19(a).

 

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

 

“Public Lender” has the meaning assigned to such term in Section 9.18.

 

“Qualified Equity Interests” of any Person means Equity Interests of such Person other than Disqualified Equity Interests. Unless otherwise specified, Qualified Equity Interests refer to Qualified Equity Interests of the Borrower.

 

“Quotation Day” means, with respect to any Eurocurrency Borrowing for any Interest Period, (i) if the currency is Sterling, Australian Dollars or Canadian Dollars, the first day of such Interest Period, (ii) if the currency is Euro, two TARGET2 Days before the first day of such Interest Period, (iii) for any other currency, two Business Days prior to the commencement of such Interest Period (unless, in each case, market practice differs in the relevant market where the Eurocurrency Rate for such currency is to be determined, in which case the Quotation Day will be determined by the Administrative Agent in accordance with market practice in such market (and if quotations would normally be given on more than one day, then the Quotation Day will be the last of those days)).

 

“Ratio Incremental Amount” has the meaning assigned to such term in the definition of “Incremental Amount.”

 

“Reaffirmation Agreement” means the Reaffirmation and Amendment Agreement dated as of the Amendment Effective Date, by and among the Loan Parties, the Administrative Agent and the Collateral Agent.

 

“Real Property” shall mean, collectively, all right, title and interest in and to any and all parcels of or interests in real property owned in fee or leased by any Loan Party, whether by lease, license or other means, together with, in each case, all easements, hereditaments and appurtenances relating thereto, all improvements and appurtenant fixtures and equipment, incidental to the ownership, lease or operation thereof.

 

“Recipient” means (a) the Administrative Agent, (b) any Lender or (c) any Issuing Bank, as applicable.

 

“Reconciliation” has the meaning assigned to such term in Section 5.01.

 

34

 

“Recovery Event” means any event that gives rise to the receipt by the Borrower or any of its Subsidiaries of any insurance proceeds or condemnation awards in respect of any equipment, fixed assets or real property (including any improvements thereon).

 

“Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places) supplied to the Administrative Agent at its request by the Reference Banks (as the case may be) as of the Specified Time on the Quotation Day for Loans in the applicable currency and the applicable Interest Period:

 

(a)                                 in relation to Loans in Australian Dollars, as the bid rate observed by the relevant Reference Bank for Australian Dollars denominated bank accepted bills and negotiable certificates of deposit issued by banks which are for the time being designated “Prime Banks” by the Australian Financial Markets Association that have a remaining maturity equal to the relevant Interest Period;

 

(b)                                 in relation to Loans in Canadian Dollars, as the rate at which the relevant Reference Bank is willing to extend credit by the purchase of bankers acceptances which have been accepted by banks which are for the time being customarily regarded as being of appropriate credit standing for such purpose with a term to maturity equal to the relevant period; and

 

(c)                                  in relation to Loans in any currency other than AUD, CAD and Euros, as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period, were it to do so by asking for and then accepting interbank offers in reasonable market size in that currency and for that period;

 

provided, that if any Reference Bank Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Reference Banks” means such banks as may be selected by the Administrative Agent (subject to consent by each such Reference Bank) and are reasonably acceptable to the Borrower.

 

“refinance” means, in respect of any Indebtedness, to refinance, extend, renew, refund, repay, prepay, or to issue other Indebtedness in exchange or replacement for, such Indebtedness.

 

“Refinanced Indebtedness” has the meaning assigned to such term in the definition of “Refinancing Indebtedness.”

 

“Refinancing Amendment” has the meaning assigned to such term in Section 2.20(e).

 

“Refinancing Effective Date” has the meaning assigned to such term in Section 2.20(a).

 

“Refinancing Indebtedness” means Indebtedness of the Borrower or a Restricted Subsidiary incurred in exchange for, or the proceeds of which are used to redeem or refinance in whole or in part, any Indebtedness of the Borrower or any Restricted Subsidiary (the “Refinanced Indebtedness”); provided that:

 

(a)                                 the principal amount (and accreted value, in the case of Indebtedness issued at a discount) of the Refinancing Indebtedness does not exceed the principal amount (and accreted value, as the case may be) of the Refinanced Indebtedness plus the amount of accrued and unpaid interest on the Refinanced Indebtedness, any premium paid to the holders of the Refinanced Indebtedness and expenses incurred in connection with the incurrence of the Refinancing Indebtedness;

 

(b)                                 the obligor of Refinancing Indebtedness does not include any Person (other than the Borrower or any Restricted Subsidiary) that is not an obligor of the Refinanced Indebtedness;

 

(c)                                  if the Refinanced Indebtedness was by its terms subordinated in right of payment to the Loans or the Guarantee Agreement, as the case may be, then such Refinancing Indebtedness, by its terms,

 

35

 

is subordinate in right of payment to the Loans or the Guarantee Agreement, as the case may be, at least to the same extent as the Refinanced Indebtedness;

 

(d)                                 the Refinancing Indebtedness has a final stated maturity either (a) no earlier than the Refinanced Indebtedness being redeemed or refinanced or (b) after the date that is 90 days after the last maturity date applicable to the Loans at the time the Refinancing Indebtedness is incurred; and

 

(e)                                  the portion, if any, of the Refinancing Indebtedness that is scheduled to mature on or prior to the last maturity date applicable to the Loans at the time the Refinancing Indebtedness is incurred has a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is incurred that is equal to or greater than the Weighted Average Life to Maturity of the portion of the Refinanced Indebtedness being redeemed or refinanced that is scheduled to mature on or prior to the last maturity date applicable to the Loans at the time the Refinancing Indebtedness is incurred (provided that Refinancing Indebtedness in respect of Refinanced Indebtedness that has no amortization may provide for amortization installments, sinking fund payments, senior maturity dates or other required payments of principal of up to 1% of the aggregate principal amount per  annum).

 

“Refinancing Term Loans” has the meaning assigned to such term in Section 2.20(a).

 

“Register” has the meaning assigned to such term in Section 9.05(b)(iv).

 

“Related Business” means any business in which ANGI Homeservices Inc. or any Restricted Subsidiary was engaged on the Amendment Effective Date or any reasonable extension of such business and any business related, ancillary or complementary to any business of the Borrower or any Restricted Subsidiary in which the Borrower or any Restricted Subsidiary was engaged on the Amendment Effective Date or any reasonable extension of such business.

 

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates.

 

“Reorganization” means, with respect to any Multiemployer Plan, the condition that such plan is in reorganization within the meaning of Section 4241 of ERISA.

 

“Repayment Amount” has the meaning assigned to such term in the definition of “Incremental Amount.”

 

“Replacement Lender” has the meaning assigned to such term in Section 2.16(c).

 

“Replacement Revolving Facilities” has the meaning assigned to such term in Section 2.20(c).

 

“Replacement Revolving Facility Commitments” has the meaning assigned to such term in Section 2.20(c).

 

“Replacement Revolving Facility Effective Date” has the meaning assigned to such term in Section 2.20(c).

 

“Replacement Revolving Loans” has the meaning assigned to such term in Section 2.20(c).

 

“Required Class Lenders” means, as of any date of determination, Lenders of a Class having more than 50% of (x) in the case of any Class of Term Loans, such Class of Term Loans at such date or (y) in the case of any Class of Revolving Loans, all Revolving Commitments (or, if the Revolving Commitments have terminated, Total Revolving Exposure outstanding) of such Class at such date; provided that the Term Loans, Revolving Commitments and Total Revolving Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

 

“Required Lenders” means, at any time, Lenders having Term Loans and Revolving Commitments (or, if the Revolving Commitments have terminated, Total Revolving Exposure outstanding) that, taken together, represent more than 50% of the sum of (x) all Term Loans and (y) all Revolving Commitments (or, if the Revolving

 

36

 

Commitments have terminated, Total Revolving Exposure outstanding) at such time; provided, that the Term Loans, Revolving Commitments and Total Revolving Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

 

“Requirements of Law” means, as to any Person, the Certificate of Incorporation and By-Laws or other organizational or governing documents of such Person, and any law, treaty, rule, regulation or official administrative pronouncement or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Restricted Payment” means (a) any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests in the Borrower or any Restricted Subsidiary, (b) any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests of the Borrower or any option, warrant or other right to acquire any such Equity Interests or (c) any Junior Debt Restricted Payment.

 

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

 

“Revocation” has the meaning assigned to such term in the definition of “Unrestricted Subsidiary.”

 

“Revolving Commitment” means, as to any Revolving Lender, the obligation of such Revolving Lender to make Revolving Loans and purchase participation interests in Letters of Credit in an aggregate principal amount not to exceed the amount set forth under the heading “Revolving Commitment” opposite such Lender’s name on Schedule 1.01A or in the Assignment and Assumption or Incremental Assumption Agreement pursuant to which such Revolving Lender became a party hereto, as the same may be changed from time to time pursuant to the terms of this Agreement (including as increased, extended or replaced as provided in Section 2.02, 2.19 and 2.20).  The aggregate Dollar Amount of all Revolving Commitments on the Amendment Effective Date is $250,000,000.

 

“Revolving Commitment Percentage” means, with respect to any Lender at any time, the ratio (expressed as a percentage) of such Lender’s Revolving Commitment at such time to the Total Revolving Commitments at such time.

 

“Revolving Commitment Period” means the period from and including the Amendment Effective Date to the Revolving Termination Date.

 

“Revolving Facility” means the credit facility constituted by the Revolving Commitments and the extensions of credit thereunder.

 

“Revolving Fee Payment Date” means (a) the third Business Day following the last day of each March, June, September and December during the Revolving Commitment Period and (b) the last day of the Revolving Commitment Period.

 

“Revolving Lender” means each Lender that has a Revolving Commitment or that holds Revolving Loans.

 

“Revolving Loans” has the meaning assigned to such term in Section 2.01(a).

 

“Revolving Termination Date” means the fifth anniversary of the Amendment Effective Date.

 

“Sanctioned Country” means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Crimea, Cuba, Iran, North Korea, Sudan and Syria).

 

“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, the European Union or Her Majesty’s Treasury, (b) any

 

37

 

Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b).

 

“Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.

 

“Screen Rate” means the LIBOR Screen Rate and the Local Screen Rates collectively and individually as the context may require.

 

“SEC” means the Securities and Exchange Commission or any successor thereto.

 

“Secured Net Leverage Ratio” means, as of any date of determination, the ratio of (i) Indebtedness of the Borrower and its Restricted Subsidiaries secured by a Lien on any assets of the Borrower and its Restricted Subsidiaries as of the last day of the Test Period most recently ended on or prior to such date of determination (as set forth on the balance sheet and determined on a consolidated basis in accordance with GAAP) minus the amount of unrestricted cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries on such date in an amount not to exceed $50,000,000 to (ii) Consolidated EBITDA for such Test Period.  (A)  The Secured Net Leverage Ratio shall be calculated for any period after giving effect on a pro  forma basis (as if they had occurred on the first day of the applicable Test Period) to:

 

(1)                                 the incurrence of any Indebtedness of the Borrower or any Restricted Subsidiary (and the application of the proceeds thereof) and any repayment, repurchase, defeasance or other discharge of Indebtedness (and the application of the proceeds therefrom) (other than the incurrence or repayment of Indebtedness in the ordinary course of business for working capital purposes pursuant to any revolving credit arrangement) occurring during the applicable Test Period or at any time subsequent to the last day of such Test Period and on or prior to the date of determination, as if such incurrence, repayment, issuance or redemption, as the case may be (and the application of the proceeds thereof), occurred on the first day of the Test Period;

 

(2)                                 any (w) Asset Sale, (x) asset sale if the Fair Market Value of the assets sold in such transaction or series of related transactions exceeds $2,000,000, which is solely excluded from the definition of Asset Sale pursuant to clause (7) of such definition, (y) Asset Acquisition (including, without limitation, any Asset Acquisition giving rise to the need to make such calculation as a result of the Borrower or any Restricted Subsidiary (including any Person who becomes a Restricted Subsidiary as a result of such Asset Acquisition or as a result of a Revocation)) incurring Indebtedness pursuant to Section 6.01(j) and also including any Consolidated EBITDA associated with any such Asset Acquisition) or (z) operational restructuring (each a “pro  forma  event”) occurring during the Test Period or at any time subsequent to the last day of the Test Period and on or prior to the date of determination as if such pro forma event occurred on the first day of the Test Period, including any cost savings and cost synergies resulting from head count reduction, closure of facilities and similar operational and other cost savings, cost synergies, operating expense reductions, restructurings, cost savings initiatives or other initiatives relating to such pro forma event occurring within 24 months (or expected, in the good faith determination of the Borrower, to result from actions that have been taken or initiated or expected to be taken within 24 months) of such pro forma event and during such period or  subsequent to such period and on or prior to the date of such calculation, in each case that are expected to have a continuing impact and are factually supportable, and which adjustments the Borrower determines are reasonable as set forth in an Officer’s Certificate; provided that the aggregate amount of all such cost savings and cost synergies pursuant to this clause (A)(2) and the second paragraph of the definition of “Consolidated EBITDA” shall in no event exceed 25.0% of Consolidated EBITDA (after giving effect to such adjustment) for any Test Period; provided, further, that asset sales described in clause (A)(2)(x) in an aggregate amount not to exceed $30,000,000 in any Test Period shall not be required to be given pro forma effect; and

 

38

 

(B)                               in calculating Consolidated Interest Expense for purposes of the Secured Net Leverage Ratio with respect to any Indebtedness being given pro forma effect:

 

(1)                                 interest on outstanding Indebtedness determined on a fluctuating basis as of the date of determination and which will continue to be so determined thereafter shall be deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness in effect on the date of determination;

 

(2)                                 if interest on any Indebtedness actually incurred on the date of determination may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on the date of determination will be deemed to have been in effect during the Test Period;

 

(3)                                 notwithstanding clause (1) or (2) above, interest on Indebtedness determined on a fluctuating basis, to the extent such interest is covered by agreements relating to Hedging Obligations, shall be deemed to accrue at the rate per annum resulting after giving effect to the operation of the agreements governing such Hedging Obligations;

 

(4)                                 interest on any Indebtedness under a revolving credit facility shall be computed based upon the average daily balance of such Indebtedness during the Test Period; and

 

(5)                                 interest on a Capital Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or accounting Officer of the Borrower to be the rate of interest implicit in such Capital Lease Obligation in accordance with GAAP.

 

“Secured Parties” has the meaning assigned to such term in the Security Agreement.

 

“Security Agreement” means the Security Agreement among ANGI Homeservices Inc., the Subsidiary Guarantors and JPMorgan Chase Bank, N.A., as collateral agent, dated as of November 1, 2017.

 

“Specified Swap Agreement” means any Swap Agreement in respect of interest rates or currency exchange rates entered into by the Borrower or any Restricted Subsidiary and any Person that (i) at the time such Swap Agreement is entered into is a Lender or an Agent Party or an Affiliate of a Lender or an Agent Party or (ii) in the case of any such Swap Agreement in effect on or prior to the Closing Date, is, as of the Closing Date, a Lender or an Agent Party or an Affiliate of a Lender or an Agent Party, unless, when entered into, such Swap Agreement is designated in writing by the Borrower and such Lender or Agent Party or Affiliate of a Lender or Agent Party to the Administrative Agent to not be included as a Specified Swap Agreement.

 

“Specified Time” means approximately 11:00 a.m., London time.

 

“Standard & Poor’s” means Standard & Poor’s Financial Services LLC.

 

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

 

“Sterling” and “£” mean the lawful currency of the United Kingdom.

 

39

 

“subsidiary” means, with respect to any Person (the “parent”):

 

(1)                                 any corporation, limited liability company, association or other business entity of which more than 50% of the total voting power of the Equity Interests entitled (without regard to the occurrence of any contingency) to vote in the election of the board of directors thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other subsidiaries of such Person (or a combination thereof); and

 

(2)                                 any partnership (a) the sole general partner or the managing general partner of which is such Person or a subsidiary of such Person or (b) the only general partners of which are such Person or one or more subsidiaries of such Person (or any combination thereof).

 

“Subsidiary Guarantor” means each Domestic Subsidiary that is a party to the Guarantee Agreement; provided that, notwithstanding anything to the contrary, no Excluded Subsidiary shall be required to be a Subsidiary Guarantor of any obligations under this Agreement.

 

“Successor Borrower” has the meaning assigned to such term in Section 6.03(vi).

 

“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or the Restricted Subsidiaries shall be a Swap Agreement.

 

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

 

“Syndication Agent” means Bank of America, N.A..

 

“TARGET2 Day” means any day on which the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET2) payment system (or, if such payment system ceases to be operative, such other payment system reasonably determined by the Administrative Agent to be a suitable replacement) is open for the settlement of payments in Euro.

 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Term Facility” means a credit facility in respect of Term Loans hereunder including the Initial Term Loan Facility.

 

“Term Lender” means each Lender that holds Term Loans, including the Initial Term Lender.

 

“Term Loan Commitment” means any Commitment in respect of Term Loans including the Initial Term Loan Commitments.

 

“Term Loans” means the Initial Term Loans, any Incremental Term Loan, Extended Term Loan or Refinancing Term Loans incurred hereunder.

 

“Test Period” means the four consecutive fiscal quarter period most recently ended for which financial statements have been delivered pursuant to Section 5.01(a) or (b); provided that, (x) prior to the first date that financial statements shall have been delivered pursuant to Section 5.01 of the Original Credit Agreement, the Test Period in effect shall be the period of four consecutive fiscal quarters of the Borrower ended June 30, 2017 and (y)

 

40

 

on and after the Amendment Effective Date and prior to the first date after the Amendment Effective Date that financial statements shall have been delivered pursuant to Section 5.01 of this Agreement, the Test Period in effect shall be the period of the four consecutive fiscal quarters of the Borrower ended June 30, 2018.  A Test Period may be designated by reference to the last day thereof (i.e. the June 30, 2017 Test Period refers to the period of four consecutive fiscal quarters of the Borrower ended June 30, 2017), and a Test Period shall be deemed to end on the last day thereof.

 

“Testing Condition” shall be satisfied if either (x) $1.00 or more of Revolving Loans or Initial Term Loans are outstanding or (y) the outstanding face amount of undrawn Letters of Credit (excluding Letters of Credit that have been cash collateralized at 102.0% of the face value thereof) exceeds an amount equal to $15,000,000.

 

“Title Insurer” has the meaning assigned to such term in the definition of “Collateral and Guarantee Requirement.”

 

“Total Assets” means, as of any date of determination, the total assets of the Borrower and its Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP, as set forth on the most recent consolidated balance sheet of the Borrower as of such date (which calculation shall give pro  forma effect to any acquisition or asset sale by the Borrower or any of its Restricted Subsidiaries, in each case involving the payment or receipt by the Borrower or any of its Restricted Subsidiaries of consideration (whether in the form of cash or non-cash consideration) in excess of $30,000,000 that has occurred since the date of such consolidated balance sheet, as if such acquisition or asset sale had occurred on the last day of the fiscal period covered by such balance sheet).

 

“Total Percentage” means, with respect to any Lender at any time, the ratio (expressed as a percentage) of such Lender’s Aggregate Exposure at such time to the Aggregate Exposure of all Lenders at such time.

 

“Total Revolving Commitments” means, at any time, the aggregate principal amount of the Revolving Commitments then in effect.

 

“Total Revolving Exposure” means, at any time, the sum of the Total Revolving Loans and LC Exposure outstanding at such time.

 

“Total Revolving Loans” means, at any time, the aggregate principal amount of the Revolving Loans of the Revolving Lenders outstanding at such time.

 

“Transactions” means (i) the execution, delivery and performance by the Loan Parties of this Agreement and the other Loan Documents, (ii) the borrowing of Loans and (iii) the use of proceeds thereof.

 

“Type” means, as to any Loan, its nature as an ABR Loan or a Eurocurrency Loan.

 

“Unrestricted Subsidiary” means (a) any subsidiary of the Borrower listed on Schedule 1.01B, (b) any subsidiary of the Borrower that is designated as an Unrestricted Subsidiary by the Borrower after the Amendment Effective Date in a written notice to the Administrative Agent and (c) any subsidiary of any subsidiary described in clause (a) or (b) above; provided that (i) no Default shall have occurred and be continuing at the time of or after giving effect to the designation of a subsidiary as an Unrestricted Subsidiary (a “Designation”) and (ii) at the time of and immediately after giving effect to such Designation, the Borrower shall be in compliance with Section 6.10 (whether or not the Testing Condition is satisfied); provided, further, that no subsidiary shall be designated as an Unrestricted Subsidiary unless (w) no creditor of such subsidiary shall have any claim (whether pursuant to a Guarantee or otherwise) against the Borrower or any of its Restricted Subsidiaries in respect of any Indebtedness or other obligation (except for obligations arising by operation of law, including joint and several liability for taxes, ERISA and similar items) of such subsidiary (collectively, “Unrestricted Subsidiary Support Obligations”), except pursuant to Investments which are made in accordance with Section 6.11; (x) such subsidiary is not party to any transaction with the Borrower or any Restricted Subsidiary unless the terms of such transaction complies with Section 6.06 and (y) no Investments may be made in any such subsidiary by the Borrower or any Restricted Subsidiary except to the extent permitted under Section 6.11 (it being understood that, if a subsidiary is designated as an Unrestricted Subsidiary after the Amendment Effective Date, the aggregate Fair Market Value of all

 

41

 

outstanding Investments owned by the Borrower and its Restricted Subsidiaries in the subsidiary so designated shall be deemed to be an Investment made as of the time of such designation and shall be subject to the limits set forth in Section 6.11)).  It is understood that Unrestricted Subsidiaries shall be disregarded for the purposes of any calculation pursuant to this Agreement relating to financial matters with respect to the Borrower.

 

The Borrower may revoke the designation of a subsidiary as an Unrestricted Subsidiary pursuant to a written notice to the Administrative Agent so long as, after giving pro  forma effect to such revocation, (i) (x) the Consolidated Net Leverage Ratio shall be less than or equal to the Consolidated Net Leverage Ratio and (y) the Interest Coverage Ratio shall be equal to or higher than the Interest Coverage Ratio, in each case, then required to be maintained by the Borrower pursuant to Section 6.10 (whether or not the Testing Condition is satisfied) and (ii) no Default shall be in existence (a “Revocation”).  Upon any Revocation, such Unrestricted Subsidiary shall constitute a Restricted Subsidiary for all purposes of this Agreement and the Borrower shall comply with Section 5.09 if such subsidiary is a Material Domestic Subsidiary.  In the case of any Revocation, if the designation of such subsidiary as an Unrestricted Subsidiary caused the available basket amount referred to in Section 6.11) to be utilized by an amount equal to the aggregate Fair Market Value of all outstanding Investments owned by the Borrower and its Restricted Subsidiaries in the subsidiary so designated (the amount so utilized, the “Designation Amount”), then, effective upon such Revocation, such available basket amount shall be increased by the lesser of (i) the Designation Amount and (ii) the aggregate Fair Market Value of all outstanding Investments owned by the Borrower and its Restricted Subsidiaries in such subsidiary at the time of such Revocation.

 

“Unrestricted Subsidiary Support Obligations” has the meaning assigned to such term in the definition of “Unrestricted Subsidiary.”

 

“U.S. Lender” means any Lender that is a “United States person” within the meaning of Section 7701(a)(30) of the Code.

 

“U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 2.14(e)(ii)(B)(3).

 

“Voting Stock” means the stock of the class or classes pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the Board of Directors of the Borrower (irrespective of whether or not at the time stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency).

 

“Weighted Average Life to Maturity” when applied to any Indebtedness at any date, means the number of years obtained by dividing (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payment of principal, including payment at final maturity, in respect thereof by (ii) the number of years (calculated to the nearest one-twelfth) that shall elapse between such date and the making of such payment by (b) the then outstanding principal amount of such Indebtedness.

 

“Wholly Owned Subsidiary” means a subsidiary of which 100% of the Equity Interests (except for directors’ qualifying shares or certain minority interests owned by other Persons solely due to local law requirements that there be more than one stockholder, but which interest is not in excess of what is required for such purpose) are owned directly by the Borrower or through one or more Wholly Owned Subsidiaries and, solely for the purpose of the definition of “Material Domestic Subsidiary,” excluding any subsidiary whose sole assets are Equity Interests in one or more subsidiaries that are not Wholly Owned Subsidiaries.

 

“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

 

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

 

42

 

“Yen” and “¥” mean the lawful currency of Japan.

 

SECTION 1.02              Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Term Loan”) or by Type (e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency Term Loan”).  Borrowings also may be classified and referred to by Class (e.g., a “Term Borrowing”) or by Type (e.g., a “Eurocurrency Borrowing”) or by Class and Type (e.g., a “Eurocurrency Term Borrowing”).

 

SECTION 1.03              Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented, restated, amended and restated, extended or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) 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.  The foregoing standards shall also apply to the other Loan Documents.

 

SECTION 1.04              Accounting Terms; GAAP.  Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that for purposes of any determinations associated with leases, including, without limitation, determinations of whether such leases are capital leases, whether obligations under such leases are Capital Lease Obligations, the amount of any Capital Lease Obligations associated with such leases, and the amount of operating expenses associated with such leases, Consolidated EBITDA, Consolidated Interest Expense, Indebtedness, the Consolidated Net Leverage Ratio, the Secured Net Leverage Ratio and the Interest Coverage Ratio shall be determined based on generally accepted accounting principles in the United States of America in effect on the Amendment Effective Date; provided, further, that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the Amendment Effective Date in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.

 

SECTION 1.05              Change of Currency.  Each provision of this Agreement also shall be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify after consultation with the Borrower to be appropriate to the extent necessary to reflect a change in currency of any country and any relevant market conventions or practices relating to such change in currency.

 

SECTION 1.06              Currency Equivalents Generally.

 

(a)                                 Unless the context otherwise requires, any amount specified in this Agreement to be in Dollars shall also include the Dollar Amount of any Alternative Currency.  The maximum amount of Indebtedness and other threshold amounts that the Borrower and its Restricted Subsidiaries may incur under Article VI shall not be deemed to be exceeded, with respect to any outstanding Indebtedness and other threshold amounts solely as a result of fluctuations in the exchange rate of currencies.  When calculating capacity for the incurrence of additional Indebtedness and other threshold amounts by the Borrower and any Restricted Subsidiary, the exchange rate of currencies shall be measured as of the date of such calculation.

 

43

 

(b)                                 (i) The Administrative Agent shall determine the Dollar Amount of any Letter of Credit denominated in an Alternative Currency as of the date of the issuance thereof and on the first Business Day of each calendar month on which such Letter of Credit is outstanding, in each case using the Exchange Rate in effect on the date of determination, and each such amount shall be the Dollar Amount of such Letter of Credit until the next required calculation thereof pursuant to this Section.  The Administrative Agent shall in addition determine the Dollar Amount of any Letter of Credit denominated in an Alternative Currency as provided in Sections 2.17(e) and 2.17(l).

 

(ii)                                  The Administrative Agent shall determine the Dollar Amount of any Borrowing denominated in an Alternative Currency on or about the date of the commencement of the initial Interest Period therefor and as of the date of the commencement of each subsequent Interest Period therefor, in each case using the Exchange Rate in effect on the date of determination, and each such amount shall, except as provided in the next sentence, be the Dollar Amount of such Borrowing until the next required calculation thereof pursuant to this Section.

 

(iii)                               The Administrative Agent may also determine the Dollar Amount of any Borrowing or Letters of Credit denominated in an Alternative Currency as of such other dates as the Administrative Agent shall determine, in each case using the Exchange Rate in effect on the date of determination, and each such amount shall be the Dollar Amount of such Borrowing or Letter of Credit until the next calculation thereof pursuant to this Section.

 

(iv)                              The Administrative Agent shall notify the Borrower, the applicable Lenders and the Issuing Bank of each determination of the Dollar Amount of each Letter of Credit, Borrowing and LC Disbursement.

 

(c)                                  Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any other document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such times.

 

SECTION 1.07              Certain Determinations.

 

(a)                                 Notwithstanding anything to the contrary herein, with respect to any amounts incurred or transactions entered into (or consummated) in reliance on a provision of any covenant in this Agreement that does not require compliance with a financial ratio or test (including the Consolidated Net Leverage Ratio, any Secured Net Leverage Ratio or any Interest Coverage Ratio) (any such amounts, the “Fixed Amounts”) substantially concurrently or in a series of related transactions with any amounts incurred or transactions entered into (or consummated) in reliance on a provision in such covenant that requires compliance with any such financial ratio or test (any such amounts, the “Incurrence Based Amounts”), it is understood and agreed that the Fixed Amounts (and any cash proceeds thereof) in such covenant shall be disregarded in the calculation of the financial ratio or test applicable to the Incurrence Based Amounts in such covenant in connection with such incurrence, but full pro forma effect shall be given to all applicable and related transactions (including the use of proceeds of all Indebtedness to be incurred and any repayments, repurchases and redemptions of Indebtedness) and all other permitted pro forma adjustments.

 

(b)                                 The Borrower may elect, pursuant to an Officer’s Certificate delivered to the Administrative Agent to treat all or any portion of any revolving commitment or undrawn commitment under any Indebtedness as being incurred and outstanding at such time and for so long as such commitments remain outstanding (regardless of whether then drawn), in which case any subsequent incurrence of Indebtedness under such commitment shall not be deemed, for purposes of this calculation, to be an incurrence at such subsequent time.

 

SECTION 1.08              Limited Condition Transactions.

 

(a)                                 In connection with any action being taken in connection with a Limited Condition Transaction (other than a Borrowing of Revolving Loans or an issuance of a Letter of Credit), for purposes of determining compliance with any provision of this Agreement which requires that no Default or Event of Default, as applicable,

 

44

 

has occurred, is continuing or would result from any such action, as applicable, such condition shall, at the option of the Borrower, be deemed satisfied, so long as no Default or Event of Default, as applicable, exists on the date the definitive agreement for such Limited Condition Transaction is entered into or irrevocable notice of redemption, purchase, repurchase, defeasance, satisfaction and discharge or repayment of Indebtedness, Disqualified Equity Interests or Preferred Stock is given. For the avoidance of doubt, if the Borrower has exercised its option under the first sentence of this clause (a), and any Default or Event of Default, as applicable, occurs following the date the definitive agreement for the applicable Limited Condition Transaction is entered into or irrevocable notice of redemption, purchase, repurchase, defeasance, satisfaction and discharge or repayment of Indebtedness, Disqualified Equity Interests or Preferred Stock is given and prior to the consummation of such Limited Condition Transaction, any such Default or Event of Default, as applicable, shall be deemed to not have occurred or be continuing for purposes of determining whether any action being taken in connection with such Limited Condition Transaction is permitted hereunder.

 

(b)                                 In connection with any action being taken in connection with a Limited Condition Transaction, for purposes of:

 

(i)                                determining compliance with any provision of this Agreement which requires the calculation of the Consolidated Net Leverage Ratio, the Secured Net Leverage Ratio or the Interest Coverage Ratio; or

 

(ii)                                testing baskets set forth in this Agreement (including baskets measured as a percentage of Total Assets or Consolidated EBITDA);

 

in each case, at the option of the Borrower (the Borrower’s election to exercise such option in connection with any Limited Condition Transaction, an “LCT Election”), the date of determination of whether any such action is permitted hereunder, shall be deemed to be the date the definitive agreement for such Limited Condition Transaction is entered into or irrevocable notice of redemption, purchase, repurchase, defeasance, satisfaction and discharge or repayment of Indebtedness, Disqualified Equity Interests or Preferred Stock is given, as applicable (the “LCT Test Date”), and if, after giving pro forma effect to the Limited Condition Transaction and the other transactions to be entered into in connection therewith (including any incurrence or discharge of Indebtedness and the use of proceeds of such incurrence) as if they had occurred at the beginning of the most recent four consecutive fiscal quarters ending prior to the LCT Test Date for which consolidated financial statements of the Borrower are available, the Borrower could have taken such action on the relevant LCT Test Date in compliance with such ratio, basket or amount, such ratio, basket or amount shall be deemed to have been complied with. For the avoidance of doubt, if the Borrower has made an LCT Election and any of the ratios, baskets or amounts for which compliance was determined or tested as of the LCT Test Date are exceeded as a result of fluctuations in any such ratio, basket or amount, including due to fluctuations in Consolidated EBITDA or Total Assets of the Borrower or the Person subject to such Limited Condition Transaction or any applicable currency exchange rate, at or prior to the consummation of the relevant transaction or action, such baskets, ratios or amounts will not be deemed to have been exceeded as a result of such fluctuations. If the Borrower has made an LCT Election for any Limited Condition Transaction, then in connection with any subsequent calculation of any ratio, basket or amount (other than the testing of any ratio for purposes of Section 6.10 and the definition of “Pricing Grid”) on or following the relevant LCT Test Date and prior to the earlier of the date on which such Limited Condition Transaction is consummated or the definitive agreement for such Limited Condition Transaction is terminated or expires without consummation of such Limited Condition Transaction, any such ratio, basket or amount shall be calculated on a pro forma basis assuming such Limited Condition Transaction and other transactions in connection therewith (including any incurrence or discharge of Indebtedness and the use of proceeds thereof) have been consummated.

 

SECTION 1.09              Interest Rates; LIBOR Notification.  The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the London interbank offered rate or other rates in the definition of “Eurocurrency Rate” or with respect to any alternative or successor rate thereto, or replacement rate thereof, including without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate, as it may or may not be adjusted pursuant to Section 2.11(c), will be similar to, or produce the same value or economic

 

45

 

equivalence of, the Eurocurrency Rate or have the same volume or liquidity as did the London interbank offered rate prior to its discontinuance or unavailability.

 

SECTION 1.10              Effect of this Agreement on the Original Credit Agreement and the Other Existing Loan Documents.  Upon satisfaction of the conditions set forth in Section 4.03, this Agreement shall become effective and binding on the Borrower, the Lenders and the other parties hereto and the provisions of the Original Credit Agreement shall be replaced by the provisions of this Agreement; provided that (a) the Obligations (as defined in the Original Credit Agreement) of the Borrower and the other Loan Parties under the Original Credit Agreement that remain unpaid and outstanding as of and after giving effect to the Amendment Effective Date shall continue to exist under and be evidenced by this Agreement and the other Loan Documents, (b) all Loans under and as defined in the Original Credit Agreement shall continue as Loans under this Agreement, (c) subject to Section 9.16, the Collateral and the Loan Documents shall continue to secure, guarantee, support and otherwise benefit the Obligations of the Borrower and the other Loan Parties under this Agreement and the other Loan Documents on the same terms as prior to the effectiveness hereof and (d) any Person entitled to the benefits of Section 2.12, 2.13, 2.14 or 9.04 of the Original Credit Agreement shall continue to be entitled to the benefits of the corresponding provisions of this Agreement. Each Loan Document that was in effect immediately prior to the Amendment Effective Date (other than the Original Credit Agreement) shall continue to be effective and, unless the context otherwise requires, any reference to the Original Credit Agreement contained therein shall be deemed to refer to this Agreement.

 

ARTICLE II

 

The Credits

 

SECTION 2.01              Commitments.

 

(a)                                 Subject to the terms and conditions hereof, from time to time during the Revolving Commitment Period, each Revolving Lender severally agrees to make to the Borrower revolving credit loans denominated in Dollars or an Alternative Currency (“Revolving Loans”) in an aggregate principal amount that will not result at the time of such Borrowing in (A) the Dollar Amount of such Lender’s Outstanding Revolving Credit under the Revolving Commitments exceeding such Lender’s Revolving Commitment or (B) the Dollar Amount of such Lender’s Revolving Loans in Alternative Currencies exceeding such Lender’s Revolving Commitment Percentage of the Alternative Currency Revolving Sublimit.  During the Revolving Commitment Period the Borrower may use the Revolving Commitments by borrowing, prepaying the Revolving Loans in whole or in part, and reborrowing, all in accordance with the terms and conditions hereof.  The Revolving Loans may from time to time be Eurocurrency Loans or, in the case of Revolving Loans in Dollars, ABR Loans, as determined by the Borrower and notified to the Administrative Agent in accordance with Sections 2.03 and 2.05. Each Revolving Loan under the Revolving Commitments shall be made as part of a Borrowing consisting of Revolving Loans made by the Revolving Lenders thereunder ratably in accordance with their respective Revolving Commitments.  The failure of any Revolving Lender to make any Revolving Loan required to be made by it shall not relieve any other Revolving Lender of its obligations hereunder; provided that the Revolving Commitments of the Revolving Lenders are several and no Revolving Lender shall be responsible for any other Revolving Lender’s failure to make Revolving Loans as required.  When more than one Class of Revolving Loans exists, each Borrowing of Revolving Loans shall be made pro rata across each Class.

 

(b)                                 Subject to the terms and conditions hereof, each Initial Term Lender agrees to continue all of its Existing Term Loans (or such lesser amount as the Administrative Agent may allocate, as agreed by the Borrower) as Initial Term Loans under this Agreement as amended and restated on the Amendment Effective Date.  Initial Term Loans that are repaid or prepaid may not be reborrowed.

 

(c)                                  At the commencement of each Interest Period for any Eurocurrency Borrowing, such Borrowing shall be in an aggregate principal amount that is an integral multiple of $1,000,000 and not less than $5,000,000 (or comparable amounts determined by the Administrative Agent in the case of Alternative Currency).  At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000; provided that an ABR Borrowing may be in an aggregate principal amount that is equal to the entire unused balance of the applicable outstanding Commitments.  Borrowings of more than one

 

46

 

Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of 15 Eurocurrency Borrowings outstanding.

 

SECTION 2.02              Incremental Revolving Commitments and Incremental Term Loans.

 

(a)                                 The Borrower may, by written notice to the Administrative Agent from time to time, request Incremental Term Loan Commitments and/or Incremental Revolving Commitments, as applicable, in an amount not to exceed the Incremental Amount available at the time such Incremental Term Loans are funded or established (if commitments in respect of such Incremental Term Loans are established on a date prior to funding) or Incremental Revolving Commitments are established (except, in each case, as set forth in Section 1.08) from one or more Incremental Term Lenders and/or Incremental Revolving Lenders (which, in each case, may include any existing Lender (but no such Lender shall be required to participate in any such Incremental Facility without its consent), but shall be required to be persons which would qualify as assignees of a Lender in accordance with Section 9.05) willing to provide such Incremental Term Loans and/or Incremental Revolving Commitments, as the case may be, in their sole discretion; provided that each Incremental Revolving Lender providing a commitment to make revolving loans shall be subject to the approval of the Administrative Agent and, to the extent the same would be required for an assignment under Section 9.05, the Issuing Bank (which approvals shall not be unreasonably withheld, conditioned or delayed).  Such notice shall set forth (i) the amount of the Incremental Term Loan Commitments and/or Incremental Revolving Commitments being requested (which shall be in minimum increments of $5,000,000 and a minimum amount of $10,000,000, or equal to the remaining Incremental Amount or, in each case, such lesser amount approved by the Administrative Agent) and (ii) the date on which such Incremental Term Loan Commitments and/or Incremental Revolving Commitments are requested to become effective.

 

(b)                                 The Borrower and each Incremental Term Lender and/or Incremental Revolving Lender shall execute and deliver to the Administrative Agent an Incremental Assumption Agreement and such other documentation (including, without limitation, amendments to this Agreement) as the Administrative Agent shall reasonably specify to evidence the Incremental Term Loan Commitment of such Incremental Term Lender and/or Incremental Revolving Commitment of such Incremental Revolving Lender.  Each Incremental Assumption Agreement shall specify the terms of the applicable Incremental Term Loans and/or Incremental Revolving Commitments; provided that:

 

(i)                                any Incremental Revolving Commitments shall have the same terms as the Revolving Commitments, shall require no scheduled amortization or mandatory commitment reduction prior to the Revolving Termination Date and shall be on the same terms and pursuant to the same documentation applicable to the Revolving Commitments,

 

(ii)                                the Incremental Revolving Commitments and Incremental Term Loans shall not be guaranteed by any subsidiaries of the Borrower that do not guarantee the Obligations and shall be secured on a pari passu basis by the same Collateral (and no additional Collateral) securing the Obligations,

 

(iii)                                 the scheduled final maturity date of any Incremental Facility shall be no earlier than the Initial Term Loan Maturity Date (other than an earlier maturity date for customary bridge financings, which, subject to customary conditions, would be automatically converted into or required to be exchanged for permanent financing which does not provide for an earlier maturity date than the dates specified above),

 

(iv)                               the Weighted Average Life to maturity of any Incremental Term Facility shall be no shorter than the weighted average life to maturity of the Initial Term Loan Facility (other than a shorter weighted life to maturity for customary bridge financings, which, subject to customary conditions, would be automatically converted into or required to be exchanged for permanent financing which does not provide for shorter weighted average life to maturity of the Initial Term Loan Facility); and

 

(v)                               any Incremental Term Facility shall be on terms (other than pricing, amortization, maturity, prepayment premiums and mandatory prepayments) and pursuant to documentation substantially similar to the Initial Term Loan Facility or otherwise reasonably acceptable to the Administrative Agent; provided that such Incremental Facilities (x) shall have no financial maintenance covenants of a different

 

47

 

type than the financial covenants set forth in Section 6.10, and no financial maintenance covenants that are more restrictive than the financial covenants set forth in Section 6.10, as determined in good faith by the Borrower and (y) shall not have negative covenants and/or default provisions that, taken as a whole, are materially more restrictive than those applicable to the Initial Term Loan Facility as determined in good faith by the Borrower unless, in each case of clauses (x) and (y) such terms (I) (if favorable to all then existing Lenders) are in consultation with the Administrative Agent, incorporated into this Agreement for the benefit of all then existing Lenders (unless such terms are of the type customarily applicable only to term loans in which case they will be incorporated for the benefit of existing Term Lenders only) (without further amendment requirements) or (II) become applicable only after the Revolving Facility shall have matured or been terminated and any Loans existing on the date of the initial incurrence of (or commitment in respect of) such Incremental Term Facility have been paid in full.

 

(c)                                  Each party hereto hereby agrees that, upon the effectiveness of any Incremental Assumption Agreement, this Agreement and any other Loan Document (including any Collateral Document) shall be amended or amended and restated  to the extent (but only to the extent) necessary to reflect the existence and terms of the Incremental Term Loan Commitments and/or Incremental Revolving Commitments evidenced thereby as provided for in Section 9.02.  Any amendment or amendment and restatement to this Agreement or any other Loan Document that is necessary to effect the provisions of this Section 2.02 (including, without limitation, to provide for the establishment of Incremental Loans) and any such collateral and other documentation shall be deemed “Loan Documents” hereunder and may be memorialized in writing between the Administrative Agent and the Borrower and furnished to the other parties hereto.

 

(d)                                 [Reserved].

 

(e)                                  Notwithstanding the foregoing, no Incremental Term Loan Commitment or Incremental Revolving Commitment shall become effective under this Section 2.02 unless (i) no Default or Event of Default shall exist after giving pro forma effect to such Incremental Term Loan Commitment or Incremental Revolving Commitment and the incurrence of Indebtedness thereunder and use of proceeds therefrom; provided that in the event that any tranche of Incremental Facilities that are used to finance an acquisition permitted hereunder, to the extent the Lenders participating in such Incremental Facility (the “Incremental Lenders”) agree, the foregoing clause (i) shall be tested at the time of the execution of the acquisition agreement related to such acquisition (provided that such Incremental Lenders shall not be permitted to waive any Default or Event of Default then existing or existing after giving effect to such Incremental Facility); (ii) the conditions set forth in Section 4.02 have been complied with whether or not a Borrowing is made under the Incremental Facility on such date (other than clause (c) thereof which shall only be required to be complied with if a Borrowing is made on such date); (iii) after giving pro forma effect to such Incremental Term Loan Commitment or Incremental Revolving Commitment and the incurrence of Indebtedness thereunder (assuming such commitments are fully drawn on such date) and use of proceeds therefrom the Borrower would be in compliance with Section 6.10 (whether or not the Testing Condition is satisfied) as of the last day of the most recently ended Test Period only on the date of the initial incurrence of (or commitment in respect of) such Indebtedness; and (iv) the Administrative Agent shall have received documents and legal opinions consistent with those delivered on the Closing Date as to such matters as are reasonably requested by the Administrative Agent.  The Administrative Agent shall promptly notify each Lender as to the effectiveness of each Incremental Assumption Agreement.

 

(f)                                   Upon each increase in the establishment of any Incremental Revolving Commitments pursuant to this Section 2.02, each Lender immediately prior to such increase will automatically and without further act be deemed to have assigned to each Incremental Revolving Lender providing a portion of the Incremental Revolving Commitments in respect of such increase, and each such Incremental Revolving Lender will automatically and without further act be deemed to have assumed, a portion of such Lender’s participations hereunder in outstanding Letters of Credit such that, after giving effect to each such deemed assignment and assumption of participations, the percentage of the aggregate outstanding participations hereunder in Letters of Credit held by each Lender (including each such Incremental Revolving Lender) will equal such Lender’s Revolving Commitment Percentage and if, on the date of such increase, there are any Revolving Loans outstanding, such Revolving Loans shall on or prior to the effectiveness of such Incremental Revolving Commitments either be prepaid from the proceeds of additional Revolving Loans made hereunder or assigned to an Incremental Revolving Lender (in each case, reflecting such

 

48

 

Incremental Revolving Commitments, such that Revolving Loans are held ratably in accordance with each Lender’s pro  rata share, after giving effect to such increase), which prepayment or assignment shall be accompanied by accrued interest on the Revolving Loans being prepaid.  The Administrative Agent and the Lenders hereby agree that the minimum borrowing, pro  rata borrowing and pro  rata payment requirements contained elsewhere in this Agreement shall not apply to the transactions effected pursuant to the immediately preceding sentence.  If there is a new Revolving Borrowing on such Incremental Revolving Commitment closing date, the Revolving Lenders after giving effect to such Incremental Revolving Commitments shall make such Revolving Loans in accordance with Section 2.01.

 

SECTION 2.03              Procedure for Borrowing.

 

(a)                                 To request a Borrowing on any Business Day, the Borrower shall notify the Administrative Agent of such request (x) in the case of ABR Loans, by telephone or electronic means (which notice must be received by the Administrative Agent prior to 12:00 noon, New York City time on the requested Borrowing Date) or (y) in the case of Eurocurrency Loans, in writing (which notice must be received by the Administrative Agent prior to 12:00 noon, New York City time not less than (A) three Business Days prior to the requested Borrowing Date for Dollar Borrowing requests and (B) four Business Days prior to the requested Borrowing Date for Alternative Currency Revolving Borrowing requests).  Any borrowing request shall be irrevocable (but may be conditioned on the occurrence of any event if the borrowing request includes a description of such event; provided that the relevant Lenders shall still be entitled to the benefits of Section 2.13)  and any telephonic borrowing request shall be confirmed promptly in writing.  Each such telephonic and written borrowing request shall specify the amount, currency and Type of Borrowing to be borrowed and the requested Borrowing Date.  Upon receipt of such notice, the Administrative Agent shall promptly notify each relevant Lender thereof.  For the avoidance of doubt, subject to Section 2.11, each Borrowing shall be comprised entirely of ABR Loans or Eurocurrency Loans as the Borrower may request in accordance herewith and all Revolving Loans made in Alternative Currencies shall be Eurocurrency Loans.

 

(b)                                 If no election as to the Type of Borrowing is specified for a Borrowing in Dollars, then the requested Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with respect to any requested Eurocurrency Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.  If no currency is specified for a Revolving Borrowing, the requested Borrowing shall be in Dollars.  In making any determination of the Dollar Amount for purposes of calculating the amount of Revolving Loans to be borrowed from the respective Lenders on any date, the Administrative Agent shall use the relevant Exchange Rate in effect on the date on which the Borrower delivers a borrowing request for such Revolving Loans pursuant to the provisions of Section 2.03(a).

 

SECTION 2.04              Funding of Borrowings.

 

(a)                                 Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds (x) in the case of any Loan denominated in Dollars, by 3:00 p.m. New York City time and (y) in the case of any Loan denominated in an Alternative Currency, by 12:00 noon local time in the place of settlement for such Alternative Currency, in each case to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders.  The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent in New York City or to any other account as shall have been designated by the Borrower in writing to the Administrative Agent in the applicable borrowing request.  Each Lender at its option may make any Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms.

 

(b)                                 Unless the Administrative Agent shall have received notice from a Lender prior to the proposed time of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section 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

 

49

 

Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation in the relevant currency or (ii) in the case of the Borrower, the interest rate applicable to such Loans in the case of a Loan in Dollars or the applicable Eurocurrency Rate in the case of a Revolving Loan in an Alternative Currency.  If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.

 

(c)                                  The obligations of the Lenders hereunder to make Loans, to fund participations in Letters of Credit and to make payments pursuant to Sections 8.09 and 9.04(c) are several and not joint.  The failure of any Lender to make any Loan or to fund any such participation or to make any payment under Section 8.09 or 9.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and, other than pursuant to Section 2.18, no Lender shall be responsible for the failure of any other Lender to so make its Loan or, to fund its participation or to make its payment under Section 8.09 or 9.04(c).

 

SECTION 2.05              Interest Elections.

 

(a)                                 Each Borrowing denominated in Dollars initially shall be of the Type specified in the applicable borrowing request, and each Eurocurrency Borrowing in Dollars or an Alternative Currency shall have an initial Interest Period as specified in such borrowing request.  Thereafter, the Borrower may elect to convert any Borrowing denominated in Dollars to a different Type or to continue such Borrowing as the same Type and may elect successive Interest Periods for any Eurocurrency Borrowing in Dollars or, in the case of Revolving Loans, an Alternative Currency, all as provided in this Section.  The Borrower may elect different Types or Interest Periods, as applicable, with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the relevant Lenders holding the Loans comprising the relevant portion of such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.

 

(b)                                 To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone by the time that a request for a Borrowing would be required under Section 2.03, if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election.  Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly in writing.

 

(c)                                  Each telephonic and written Interest Election Request shall specify (i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing), (ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day, (iii) in the case of a Borrowing denominated in Dollars, whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing, and (iv) if the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period.”  If any such Interest Election Request requests a Eurocurrency Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.

 

(d)                                 Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each relevant Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

 

(e)                                  If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurocurrency Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be continued as such for an Interest Period of one month.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing in Dollars may be converted to or continued as a

 

50

 

Eurocurrency Borrowing and (ii) unless repaid, each Eurocurrency Borrowing denominated in Dollars shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto and (iii) each Eurocurrency Borrowing in an Alternative Currency shall be continued as such for an Interest Period of not more than one month.

 

SECTION 2.06              Termination and Reduction of Commitments.  The Borrower shall have the right, upon not less than three Business Days’ notice to the Administrative Agent, to terminate the Commitments of any Class or, from time to time, to reduce the amount of the Commitments of any Class; provided that no such termination or reduction of Revolving Commitments shall be permitted if, after giving effect thereto and to any prepayments of the Revolving Loans made on the effective date thereof, the Outstanding Revolving Credits would exceed the Total Revolving Commitments.  Any such reduction shall be in an amount equal to an integral multiple of $1,000,000 and not less than $5,000,000 and shall reduce permanently the Commitments of such Class then in effect.

 

SECTION 2.07              Repayment of Loans; Evidence of Debt.

 

(a)                                 Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to such Lender or its registered assigns and in a form approved by the Administrative Agent.  Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.05) be represented by one or more promissory notes in such form payable to such payee or its registered assigns.

 

(b)                                 The Borrower unconditionally promises to pay the then unpaid principal amount of each Revolving Loan on the Revolving Termination Date.

 

(c)                                  The Borrower shall repay principal of outstanding Initial Term Loans on the last Business Day of each March, June, September and December of each year (commencing on the applicable day of the first full fiscal quarter of the Borrower after the Closing Date) and on the Initial Term Loan Maturity Date, in an aggregate principal amount of such Initial Term Loans equal to (A) in the case of quarterly payments due prior to the Initial Term Loan Maturity Date, an amount equal to a percentage determined in accordance with the then Applicable Amortization Rate of the aggregate principal amount of such Initial Term Loans incurred on the Closing Date, and (B) in the case of such payment due on the Initial Term Loan Maturity Date, an amount equal to the then unpaid principal amount of such Initial Term Loans outstanding.

 

(d)                                 Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

 

(e)                                  The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the currency and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the relevant Lenders and each relevant Lender’s share thereof.

 

(f)                                   The entries made in the accounts maintained pursuant to paragraph (c) or (d) of this Section shall be conclusive absent manifest error of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement.

 

SECTION 2.08              Prepayments.

 

(a)                                 The Borrower may at any time and from time to time prepay Loans, in whole or in part, without premium or penalty, upon notice delivered to the Administrative Agent no later than 12:00 noon, New York City time (or in the case of an Alternative Currency, 11:00 a.m., London time), not less than three Business Days prior thereto, in the case of Eurocurrency Loans, no later than 12:00 noon, New York City time, on the date of such notice, in the case of ABR Loans, which notice shall specify the date and amount of prepayment and the Loans to be prepaid; provided that, if a Eurocurrency Loan is prepaid on any day other than the last day of the Interest Period

 

51

 

applicable thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.13.  Each such notice may be conditioned on the occurrence of one or more events (it being understood that the Administrative Agent and Lenders shall be entitled to assume that the Loans contemplated by such notice are to be made unless the Administrative Agent shall have received written notice revoking such notice of prepayment on or prior to the date of such prepayment).  Upon receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender thereof.  If any such notice is given, the amount specified in such notice shall be due and payable on the date specified therein, together with accrued interest to such date on the amount prepaid.  Partial prepayments of Loans shall be in an aggregate principal amount that is an integral multiple of $1,000,000 and not less than $5,000,000 (or comparable amounts determined by the Administrative Agent in the case of Alternative Currency); provided that, notwithstanding anything herein to the contrary, the Borrower may make a prepayment of any Term Loans in an amount equal to the next succeeding quarterly amortization payment related to such Term Loans.  In the case of each prepayment of Loans pursuant to this Section 2.08(a), the Borrower may in its sole discretion select the Loans (of any Class) to be repaid, and such prepayment shall be paid to the appropriate Lenders in accordance with their respective pro rata share of such Loans.

 

(b)                                 If at any time for any reason the sum of the Dollar Amount of Outstanding Revolving Credit exceeds the Total Revolving Commitments, the Borrower shall upon learning thereof, or upon the request of the Administrative Agent, immediately prepay the Revolving Loans in an aggregate principal amount at least equal to the amount of such excess; provided that solely with respect to any excess resulting from currency exchange rate fluctuations, this Section 2.08(b) shall not apply unless, on the last day of any fiscal quarter of the Borrower, the Dollar Amount of Outstanding Revolving Credit exceeds the Total Revolving Commitments by more than 2.5% as a result of such fluctuations.

 

(c)                                   The Borrower shall apply (1) all Net Proceeds (other than Net Proceeds of the kind described in the following clause (2)) within five (5) Business Days after receipt thereof to prepay Term Loans in accordance with clauses (e) and (f) below; provided that no such prepayment shall be required if, on a pro forma basis after giving effect to such Asset Sale or Recovery Event, the Secured Net Leverage Ratio is less than 4.00 to 1.00 and (2) all Net Proceeds from any issuance or incurrence of Refinancing Term Loans, no later than three (3) Business Days after the date on which such Refinancing Term Loans are incurred, to prepay Term Loans in accordance with Section 2.20.  Notwithstanding anything to the contrary herein, mandatory prepayments with respect to Net Proceeds received by a Foreign Subsidiary of the Borrower pursuant to the preceding clause (c) shall be (x) net of any additional Taxes paid, or estimated by the Borrower in good faith to be payable, as a result of the repatriation of such proceeds and (y) not required to the extent that the Borrower determines in good faith that such repatriation would result in adverse Tax consequences that are not de minimis or would be prohibited or restricted by applicable Requirements of Law; provided that, (i) the Borrower shall use commercially reasonable efforts to eliminate such Tax effects in respect of such repatriation and (ii) once the repatriation of any such funds is permitted under the applicable Requirements of Law and no longer results in adverse Tax consequences that are not de minimis, an amount equal to such Net Proceeds will be promptly applied (net of additional Taxes payable or reserved against as a result thereof) to the prepayment of the Term Loans in accordance with this Section 2.08.

 

(d)                                 [Reserved].

 

(e)                                  Amounts to be applied in connection with prepayments of Term Loans pursuant to this Section 2.08 shall be applied to the prepayment of the Term Loans in accordance with Section 2.15(b) until paid in full.  In connection with any mandatory prepayments by the Borrower of the Term Loans pursuant to this Section 2.08, such prepayments shall be applied on a pro rata basis to the then outstanding Term Loans being prepaid irrespective of whether such outstanding Term Loans are ABR Loans or Eurocurrency Loans; provided that with respect to such mandatory prepayment, the amount of such mandatory prepayment shall be applied (i) first to Term Loans that are ABR Loans to the full extent thereof before application to Term Loans that are Eurocurrency Loans in a manner that minimizes the amount of any payments required to be made by the Borrower pursuant to Section 2.13 and (ii) on a pro rata basis with respect to each Class of Term Loans except to the extent any Incremental Assumption Agreement, Extension Amendment or Refinancing Amendment provides that the Class of Term Loans incurred thereunder is to receive less than its pro rata share, in which case such prepayment shall be allocated to such Class of Term Loans as set forth in such Incremental Assumption Agreement, Extension Amendment or Refinancing

 

52

 

Amendment and to the other Classes of Term Loans on a pro rata basis.  Each prepayment of the Term Loans under this Section 2.08 shall be accompanied by accrued interest to the date of such prepayment on the amount prepaid.

 

(f)                                   The Borrower shall notify the Administrative Agent in writing of any mandatory prepayment of Term Loans required to be made pursuant to Section 2.08(c)(1) at least four (4) Business Days prior to the date of such prepayment.  Each such notice shall specify the date of such prepayment and provide a reasonably detailed calculation of the amount of such prepayment.  The Administrative Agent will promptly provide a copy to each Term Lender of any such prepayment notice and written notice of such Term Lender’s ratable portion of such prepayment (based on such Lender’s pro  rata share of each relevant Class of the Term Loans). Any Term Lender (a “Declining Term Lender,” and any Term Lender which is not a Declining Term Lender, an “Accepting Term Lender”) may elect, by delivering written notice to the Administrative Agent and the Borrower no later than 5:00 p.m. one (1) Business Day after the date of such Term Lender’s receipt of notice from the Administrative Agent regarding such prepayment, that the full amount of any mandatory prepayment otherwise required to be made with respect to the Term Loans held by such Term Lender pursuant to Section 2.08(c)(1) not be made (the aggregate amount of such prepayments declined by the Declining Term Lenders, the “Declined Prepayment Amount”). If a Term Lender fails to deliver notice setting forth such rejection of a prepayment to the Administrative Agent within the time frame specified above or such notice fails to specify the principal amount of the Term Loans to be rejected, any such failure will be deemed an acceptance of the total amount of such mandatory prepayment of Term Loans.  In the event that the Declined Prepayment Amount is greater than $0, the Administrative Agent will promptly notify each Accepting Term Lender of the amount of such Declined Prepayment Amount and of any such Accepting Term Lender’s ratable portion of such Declined Prepayment Amount (based on such Lender’s pro  rata share of the Term Loans (excluding the pro  rata share of Declining Term Lenders)). Any such Accepting Term Lender may elect, by delivering, no later than 5:00 p.m. one (1) Business Day after the date of such Accepting Term Lender’s receipt of notice from the Administrative Agent regarding such additional prepayment, a written notice, that such Accepting Term Lender’s ratable portion of such Declined Prepayment Amount not be applied to repay such Accepting Term Lender’s Term Loans, in which case the portion of such Declined Prepayment Amount which would otherwise have been applied to such Term Loans of the Declining Term Lenders shall instead be retained by the Borrower.  Each Term Lender’s ratable portion of such Declined Prepayment Amount (unless declined by the respective Term Lender as described in the preceding sentence) shall be applied to the respective Term Loans of such Lenders.  For the avoidance of doubt, the Borrower may, at its option, apply any amounts retained in accordance with the immediately preceding sentence to prepay loans in accordance with Section 2.08(a).

 

(g)                                  Any prepayment of Term Loans of any Class shall be applied (i) in the case of prepayments made pursuant to Section 2.08(a), to reduce the subsequent scheduled repayments of the Term Loans of such Class to be made pursuant to Section 2.07 as directed by the Borrower, or as otherwise provided in any Extension Amendment, any Incremental Assumption Agreement or Refinancing Amendment, and (ii) in the case of prepayments made pursuant to Section 2.08(c), to reduce the subsequent scheduled repayments of the Term Loans of such Class to be made pursuant to this Section in direct order of maturity, or as otherwise provided in any Extension Amendment, any Incremental Assumption Agreement or Refinancing Amendment.

 

SECTION 2.09              Fees.

 

(a)                                 The Borrower agrees to pay to the Administrative Agent for the account of each Revolving Lender a commitment fee in Dollars for the period from and including the Amendment Effective Date to the last day of the Revolving Commitment Period, computed at the applicable Commitment Fee Rate on the average daily Dollar Amount of the Available Revolving Commitment of such Revolving Lender during the period for which payment is made, payable quarterly in arrears on each Revolving Fee Payment Date, commencing on December 31, 2018.

 

(b)                                 The Borrower agrees to pay (i) to the Administrative Agent for the account of each Revolving Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurocurrency Loans on the average daily Dollar Amount of such Revolving Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Amendment Effective Date to but excluding the later of the date on which such Revolving Lender’s Revolving Commitment terminates and the date on which such Revolving Lender ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at

 

53

 

the rate of 0.125% per annum on the average daily Dollar Amount of the LC Exposure of the Letters of Credit issued by it (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Amendment Effective Date to but excluding the later of the date of termination of the Revolving Commitments and the date on which there ceases to be any such LC Exposure, as well as the fees agreed by the Issuing Bank and the Borrower with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder.  Participation fees and fronting fees will be payable in Dollars quarterly in arrears on each Revolving Fee Payment Date, commencing on December 31, 2018; provided that any such fees accruing after the date on which the Revolving Commitments terminate shall be payable on demand.  Any other fees payable to the Issuing Bank pursuant to this paragraph shall be payable within 10 days after demand.  All participation fees and fronting fees shall be computed on the basis of a year of 365/366 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

(c)                                  The Borrower agrees to pay to the Administrative Agent the fees in the amounts and on the dates as set forth in any fee agreements with the Administrative Agent and to perform any other obligations contained therein.

 

(d)                                 All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent for distribution to the applicable Lenders.  Fees paid shall not be refundable under any circumstances.  All per  annum fees shall be computed on the basis of a year of 365/366 days for actual days elapsed; provided that commitment fees shall be computed on the basis of a year of 360 days.

 

SECTION 2.10              Interest.

 

(a)                                 The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Rate.

 

(b)                                 The Loans comprising each Eurocurrency Borrowing in any currency shall bear interest at the Adjusted Eurocurrency Rate for such currency for the Interest Period in effect for such Borrowing plus the Applicable Rate.

 

(c)                                  Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per  annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section (in the case of such other amount in Dollars) or 2% plus the daily weighted average rate of all Loans in the relevant Alternative Currency (in the case of any such other amount in such Alternative Currency).

 

(d)                                 Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and, in addition, in the case of Revolving Loans, upon termination of the Revolving Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurocurrency Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.

 

(e)                                  All interest hereunder shall be computed on the basis of a year of 360 days, except that (i)(A) interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate and (B) interest computed by reference to the Australian Dollar Bank Bill Reference Rate and the CDOR Rate shall be computed on the basis of a year of 365 days (or366 days in a leap year) and (ii) interest in respect of Borrowings in Sterling shall be computed on the basis of 365 days, and in each case of the foregoing clauses (i) and (ii) shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  The applicable Alternate Base Rate or Adjusted Eurocurrency Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.

 

54

 

SECTION 2.11              Alternate Rate of Interest.

 

(a)                                 If at the time that the Administrative Agent shall seek to determine the Reference Bank Rate less than two Reference Banks shall supply a rate to the Administrative Agent for purposes of determining the Eurocurrency Rate for such Eurocurrency Borrowing, then (a) the Borrower and the Administrative Agent may mutually agree in their reasonable discretion to appoint one or more additional Reference Banks (subject to consent by such Reference Bank(s)) for purposes of establishing the Reference Bank Rate that shall be the Adjusted Eurocurrency Rate for such Interest Period for such Eurocurrency Borrowing, or (b) if no additional Reference Banks are so appointed or if additional Reference Banks are so appointed and less than two Reference Banks supply such a rate, then the Administrative Agent shall be deemed to have determined that adequate and reasonable means do not exist for ascertaining the Eurocurrency Rate for such Eurocurrency Borrowing and Section 2.11(b)(i) shall apply.

 

(b)                                 If prior to the commencement of any Interest Period for a Eurocurrency Borrowing:

 

(i)                                the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted Eurocurrency Rate for a Loan in the applicable currency or for the applicable Interest Period; or

 

(ii)                                the Administrative Agent is advised by the Required Lenders that the Adjusted Eurocurrency Rate or the Eurocurrency Rate, as applicable, for a Loan in the applicable currency or for the applicable Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period;

 

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone, telecopy or electronic means as soon as practicable thereafter. If such notice is given, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (A) any Eurocurrency Borrowing denominated in Dollars to be made the rate of interest applicable to which is based on the Eurocurrency Rate requested to be made on the first date of such Interest Period shall be converted to an ABR Borrowing,  (B) any Loans denominated in Dollars that were to have been converted on the first day of such Interest Period to or continued as Eurocurrency Loans shall be converted to or continued as ABR Loans and (C) if any borrowing request requests a Eurocurrency Borrowing, such Borrowing, if denominated in Dollars, shall be made as an ABR Borrowing, and if such borrowing request requests a Borrowing denominated in an Alternative Currency or if any Interest Election Request requests the continuation of a Eurocurrency Borrowing in an Alternative Currency, such Borrowing or continuation shall be made or continued as a Borrowing bearing interest at an interest rate reasonably determined by the Administrative Agent, after consultation with the Borrower and the applicable Lenders, to compensate the applicable Lenders for such Borrowing in such currency for the applicable period plus the Applicable Rate; provided that if the circumstances giving rise to such notice affect only Borrowings in one currency, then Borrowings in other currencies will not be affected by the provisions of this Section.

 

(c)                                  If at any time the Administrative Agent determines (which determination shall be conclusive absent manifest error) that (i) the circumstances set forth in clause (b)(i) have arisen and such circumstances are unlikely to be temporary or (ii) the circumstances set forth in clause (b)(i) have not arisen but either (w) the supervisor for the administrator of the LIBOR Screen Rate has made a public statement that the administrator of the LIBOR Screen Rate is insolvent (and there is no successor administrator that will continue publication of the LIBOR Screen Rate), (x) the administrator of the LIBOR Screen Rate has made a public statement identifying a specific date after which the LIBOR Screen Rate will permanently or indefinitely cease to be published by it (and there is no successor administrator that will continue publication of the LIBOR Screen Rate), (y) the supervisor for the administrator of the LIBOR Screen Rate has made a public statement identifying a specific date after which the LIBOR Screen Rate will permanently or indefinitely cease to be published or (z) the supervisor for the administrator of the LIBOR Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which the LIBOR Screen Rate may no longer be used for determining interest rates for loans, then the Administrative Agent and the Borrower shall endeavor to establish an alternate rate of interest to the Eurocurrency Rate that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and shall enter

 

55

 

into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable (but for the avoidance of doubt, such related changes shall not include a reduction of the Applicable Rate); provided that, if such alternate rate of interest as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement. Notwithstanding anything to the contrary in Section 9.02, such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Administrative Agent shall not have received, within five Business Days of the date notice of such alternate rate of interest is provided to the Lenders, a written notice from the Required Lenders stating that such Required Lenders object in good faith to such amendment. Until an alternate rate of interest shall be determined in accordance with this clause (c) (but, in the case of the circumstances described in clause (ii) of the first sentence of this clause(c), only to the extent the LIBOR Screen Rate for such Interest Period is not available or published at such time on a current basis), (x) any  Eurocurrency Borrowing denominated in Dollars to be made the rate of interest applicable to which is based on the Eurocurrency Rate requested to be made on the first date of such Interest Period shall be converted to an ABR Borrowing, (y) any Loans denominated in Dollars that were to have been converted on the first day of such Interest Period to or continued as Eurocurrency Loans shall be converted to or continued as ABR Loans and (z) if any borrowing request requests a Eurocurrency Borrowing, such Borrowing, if denominated in Dollars,  shall be made as an ABR Borrowing, and if such borrowing request requests a Borrowing denominated in an Alternative Currency or if any Interest Election Request requests the continuation of a Eurocurrency Borrowing in an Alternative Currency, such Borrowing or continuation shall be made or continued as a Borrowing bearing interest at an interest rate reasonably determined by the Administrative Agent, after consultation with the Borrower and the applicable Lenders, to compensate the applicable Lenders for such Borrowing in such currency for the applicable period plus the Applicable Rate; provided that if the circumstances giving rise to such notice affect only Borrowings in one currency, then Borrowings in other currencies will not be affected by the provisions of this Section.

 

SECTION 2.12              Increased Costs.

 

(a)                                 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 by, any Lender (including any reserve for eurocurrency funding that may be established or reestablished under Regulation D of the Board);

 

(ii)                                impose on any Lender any Taxes other than (A) Indemnified Taxes or Other Taxes indemnified under Section 2.14 or (B) Excluded Taxes; or

 

(iii)                                 impose on any Lender or the London interbank market any other condition affecting this Agreement or Eurocurrency Loans made by such Lender;

 

and the result of any of the foregoing shall be to increase the cost to such Lender of making, continuing, converting into or maintaining any Eurocurrency Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender or Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.

 

(b)                                 If any Lender determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans made by such Lender to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.

 

56

 

(c)                                  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(d)                                 Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs or reductions incurred more than 180 days prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor; provided, further, that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

 

SECTION 2.13              Break Funding Payments.  In the event of (a) the payment of any principal of any Eurocurrency Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurocurrency Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurocurrency Loan on the date specified in any notice delivered pursuant hereto or (d) the assignment of any Eurocurrency Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.16, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  In the case of a Eurocurrency Loan, such loss, cost or expense to any Lender shall be deemed to be an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted Eurocurrency Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for deposits in the relevant currency of a comparable amount and period from other banks in the eurocurrency market (but not less than the available Adjusted Eurocurrency Rate quoted for the Eurocurrency interest period equal to the period from the date of such event to the last day of the then current Interest Period, or if there is no such Eurocurrency interest period, the lower of the Eurocurrency rates quoted for the closest Eurocurrency interest periods that are longer and shorter than such period).  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

 

SECTION 2.14              Taxes.

 

(a)                                 All payments by or on account of any obligation of any Loan Party hereunder or under any other Loan Document shall be made free and clear of and without deduction for any Taxes unless required by applicable Requirements of Law; provided that if any applicable withholding agent shall be required by applicable Requirements of Law to deduct any Taxes in respect of any such payments, then (i) if such Tax is an Indemnified Tax or Other Tax, the sum payable shall be increased by the applicable Loan Party as necessary so that after all required deductions (including deductions applicable to additional sums payable under this Section 2.14) have been made the applicable Lender (or, in the case of a payment made to the Administrative Agent for its own account, the Administrative Agent) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the applicable withholding agent shall make such deductions and (iii) the applicable withholding agent shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable Requirements of Law.

 

(b)                                 In addition, without duplication of any obligation set forth in subsection (a), the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable Requirements of Law.

 

(c)                                  Without duplication of any obligation set forth in subsection (a) or (b), the Loan Parties shall indemnify the Administrative Agent and each Lender, within 10 days after written demand therefor, for the full

 

57

 

amount of any Indemnified Taxes paid by the Administrative Agent or such Lender, as the case may be, on or with respect to any payment by or on account of any obligation of any Loan Party hereunder or under any other Loan Document and any Other Taxes paid by the Administrative Agent or such Lender (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.14) and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender, or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.  If the Borrower determines that there is a reasonable basis to contest any Indemnified Tax or Other Tax for which it is responsible hereunder, without limiting Borrower’s indemnification obligations hereunder,  such Administrative Agent or Lender (as applicable) shall reasonably cooperate in pursuing such contest (at Borrower’s expense) so long as pursuing such contest would not, in the sole reasonable determination of such Administrative Agent or Lender, result in any additional unreimbursed costs or expenses or be otherwise disadvantageous to the Administrative Agent or such Lender.  This Section shall not be construed to require the Administrative Agent or Lender to make available its tax returns (or any other information relating to its Taxes which it deems confidential) to the Borrower or any other Person.

 

(d)                                 As soon as practicable after any payment of Indemnified Taxes or Other Taxes by any Loan Party to a Governmental Authority, the Borrower shall deliver to the Administrative Agent a copy, or if reasonably available to the Borrower a certified copy, of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

 

(e)                                  (i)  Each Lender shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding Tax or at a reduced rate of withholding.

 

(ii)                                  Without limiting the generality of the foregoing,

 

(A)                               any U.S. Lender shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), two properly executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding Tax;

 

(B)                               any Non-U.S. Lender shall, to the extent it is legally eligible to do so, deliver to the Borrower and the Administrative Agent on or prior to the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable to establish such Non-U.S. Lender’s entitlement to a reduced rate of, or exemption from, withholding:

 

(1)                                 two properly executed originals of IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to an income tax treaty to which the United States is a party;

 

(2)                                 two properly executed originals of IRS Form W-8ECI;

 

(3)                                 (x) two properly executed originals of a certificate substantially in the form of Exhibit G-1 to the effect that such Non-U.S. Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the 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, and that no payments to be received by such Lender will be effectively connected income (a “U.S. Tax Compliance Certificate”) and (y) two properly executed originals of IRS Form W-8BEN or W-8BEN-E; or

 

58

 

(4)                                 to the extent a Lender is not the beneficial owner (for example, where the Lender is a partnership, or has sold a participation), two properly executed originals of IRS Form W-8IMY, accompanied by properly executed IRS Form W-8ECI, IRS Form W-8BEN or W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-2 or Exhibit G-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Non-U.S. Lender is a partnership (and not a participating Lender), and one or more direct or indirect partners of such Non-U.S. Lender are claiming the portfolio interest exemption, such Non-U.S. Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-4 on behalf of such direct and indirect partner(s); and

 

(5)                                 any Non-U.S. Lender shall, to the extent it is legally eligible to do so, deliver to the Borrower 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 Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable Requirements of 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 Requirements of Law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made.

 

(iii)                               If a payment made to a Lender under this Agreement or the other Loan Documents would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower or Administrative Agent, at the time or times prescribed by applicable Requirements of Law and at such time or times reasonably requested by the Borrower or the Administrative Agent, such documentation prescribed by applicable Requirements of Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent  as may be necessary for the Borrower or the Administrative Agent to comply with its obligations under FATCA, to determine whether such Lender has or has not complied with such Lender’s obligations under FATCA and, as necessary, to determine the amount, if any, to deduct and withhold from such payment.  Solely for purposes of this Section 2.14(e)(iii), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

(iv)                              Each Lender agrees that if any documentation it previously delivered pursuant to this Section 2.14(e) expires or becomes obsolete or inaccurate in any respect, it shall update such documentation or promptly notify the Borrower and the Administrative Agent in writing of its legal ineligibility to do so. Notwithstanding any other provision of this Section 2.14(e), a Lender shall not be required to deliver any documentation under this Section 2.14(e) that such Lender is not legally eligible to deliver.

 

(v)                                 Each Lender hereby authorizes the Administrative Agent to deliver to the Loan Parties and to any successor Administrative Agent any documentation provided by such Lender to the Administrative Agent pursuant to this Section 2.14(e).

 

(f)                                   If the Administrative Agent or a Lender determines, in its reasonable discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by a Loan Party or with respect to which the Loan Party has paid additional amounts pursuant to this Section 2.14, it shall pay over such refund to the Loan Party (but only to the extent of indemnity payments made, or additional amounts paid, by the Loan Party under this Section 2.14 with respect to the Taxes or Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses (including any Taxes) of the Administrative Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Loan Party agrees to repay the amount paid over to the Loan Party (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority.  This Section shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its Taxes which it deems confidential) to the Borrower or any other Person.

 

59

 

(g)                                  For the avoidance of doubt, the term “Lender” shall, for purposes of this Section 2.14, include any Issuing Bank.

 

SECTION 2.15              Pro Rata Treatment and Payments.

 

(a)                                 Each borrowing of Revolving Loans by the Borrower from the Revolving Lenders and any reduction of the Revolving Commitments of the Revolving Lenders shall be made pro rata according to the respective Revolving Commitments then held by the Revolving Lenders.  Each payment by the Borrower on account of any commitment fee or any letter of credit fee shall be paid ratably to the Revolving Lenders entitled thereto.

 

(b)                                 Each prepayment by the Borrower (other than any prepayment pursuant to Section 2.21) on account of principal of any Loans of any Class shall be made pro  rata according to the respective outstanding principal amounts of Loans of such Class then held by the Lenders entitled to such payment (subject in the case of Term Loans to Section 2.08(f)).  All repayments of principal of any Loans at stated maturity or upon acceleration shall be allocated pro  rata according to the respective outstanding principal amounts of the matured or accelerated Loans then held by the relevant Lenders.  All payments of interest in respect of any Loans shall be allocated pro  rata according to the outstanding interest payable then owed to the relevant Lenders.  Notwithstanding the foregoing, (A) any amount payable to a Defaulting Lender under this Agreement (whether on account of principal, interest, fees or otherwise but excluding any amount that would otherwise be payable to such Defaulting Lender pursuant to Section 2.16 and Section 9.05) shall, in lieu of being distributed to such Defaulting Lender, be retained by the Administrative Agent in a segregated interest-bearing account and, subject to any applicable Requirements of Law, be applied at such time or times as may be determined by the Administrative Agent:  (1) first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent and the Issuing Bank hereunder (including amounts owed under Section 2.09(b) or 9.04(c)), (2) second, to the funding of any Loan or LC Disbursement required by this Agreement, as determined by the Administrative Agent, (3) third, if so determined by the Administrative Agent and Borrower, held in such account as cash collateral for future funding obligations of the Defaulting Lender under this Agreement, (4) fourth, pro rata, to the payment of any amounts owing to the Borrower or the Lenders as a result of such Defaulting Lender’s breach of its obligations under this Agreement and (5) fifth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction, and (B) if such payment is a prepayment of the principal amount of Loans, such payment shall be applied solely to prepay the Loans of all Non-Defaulting Lenders pro rata (based on the amounts owing to each) prior to being applied to the prepayment of any Loan of any Defaulting Lender.

 

(c)                                  All payments (including prepayments) to be made by the Borrower hereunder, whether on account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and shall be made prior to 2:00 p.m., New York City time (or as specified in the next sentence in the case of Loans in an Alternative Currency), on the date when due.  Except as otherwise expressly provided herein, all payments by the Borrower hereunder with respect to principal and interest on Loans in an Alternative Currency shall be made on the dates specified herein for the pro rata account of the relevant Lenders to which such payment is owed, in such Alternative Currency and in immediately available funds not later than the Applicable Time specified by the Administrative Agent to the Borrower by the same time at least one Business Day prior to,  the date when due.  All payments received by the Administrative Agent (i) after 2:00 p.m., New York City time, in the case of payments in Dollars, or (ii) after the Applicable Time specified by the Administrative Agent in the case of payments in an Alternative Currency, may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest and fees thereon.  All such payments shall be made to the Administrative Agent at its offices at 500 Stanton Christiana Road, NCC5, 1st Floor, Newark, Delaware except that payments pursuant to Sections 2.12, 2.13, 2.14 and 9.04 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute such payments to the relevant Lenders promptly upon receipt in like funds as received.  If any payment hereunder becomes due and payable on a day other than a Business Day, such payment shall be extended to the next succeeding Business Day.  In the case of any extension of any payment of principal, interest thereon shall be payable at the then Applicable Rate during such extension.

 

(d)                                 If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall be applied (subject to the rights of the Administrative Agent to hold and apply amounts to be paid to a Defaulting Lender in accordance with Section

 

60

 

2.15(b)) (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal then due to such parties.  To the extent necessary, the Administrative Agent shall enter into foreign currency exchange transactions on customary terms to effect any such ratable payment and the payments made by the Administrative Agent following such transactions shall be deemed to be payments made by or on behalf of the Borrower hereunder.

 

(e)                                  If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements of a given Class resulting in such Lender receiving payment of a greater proportion of the aggregate principal amount of its Loans and participations in LC Disbursements of such Class and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements of such Class of other Lenders to the extent necessary 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 participations in LC Disbursements of such Class; 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, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower or any other Loan Party pursuant to and in accordance with the express terms of this Agreement and the other Loan Documents or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant.

 

SECTION 2.16              Mitigation Obligations; Replacement of Lenders.

 

(a)                                 If any Lender requests compensation under Section 2.12, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14 or mitigate the applicability of Section 2.21 or any event that gives rise to the operation of Section 2.21, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.12 or 2.14, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. Each Lender may designate a different lending office for funding or booking its Loans hereunder or assign its rights and obligations hereunder to another of its offices, branches or affiliates; provided that the exercise of this option shall not affect the obligations of the Borrower to repay the Loan in accordance with the terms of this Agreement.

 

(b)                                 If any Lender requests compensation under Section 2.12 or gives notice under Section 2.21, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, or if any Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.05), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the Administrative Agent (and if a Revolving Commitment is being assigned, the Issuing Bank), which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in unreimbursed LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.14, such assignment will result in a reduction in such compensation or payments.  A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

 

61

 

(c)                                  If any Lender (such Lender, a “Non-Consenting Lender”) has failed to consent to a proposed amendment, waiver, discharge or termination which pursuant to the terms of Section 9.02 requires the consent of all of the Lenders affected and with respect to which the Required Lenders shall have granted their consent, then the Borrower shall have the right (unless such Non-Consenting Lender grants such consent) to replace such Non-Consenting Lender by requiring such Non-Consenting Lender to assign its Loans, and its Revolving Commitments hereunder to one or more assignees reasonably acceptable to the Administrative Agent, provided that:  (a) all amounts owing to such Non-Consenting Lender being replaced (other than principal and interest) shall be paid in full to such Non-Consenting Lender concurrently with such assignment, and (b) the replacement Lender (each such Lender, a “Replacement Lender”) shall purchase the foregoing by paying to such Non-Consenting Lender a price equal to the principal amount thereof plus accrued and unpaid interest thereon. In connection with any such assignment the Borrower, Administrative Agent, such Non-Consenting Lender and the Replacement Lender shall otherwise comply with Section 9.05.

 

(d)                                 Notwithstanding anything herein to the contrary, each party hereto agrees that any assignment pursuant to the terms of Section 2.16(c) may be effected pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee and that the Lender making such assignment need not be a party thereto.

 

SECTION 2.17              Letters of Credit.

 

(a)                                 General.  Subject to the terms and conditions set forth herein, the Borrower may request that standby letters of credit denominated in Dollars or an Alternative Currency be issued under this Agreement for its own account or the account of any Restricted Subsidiary, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time during the Revolving Commitment Period.  In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

 

(b)                                 Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.  To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension, but in any event no later than two Business Days prior to such date unless otherwise agreed by the Issuing Bank and the Administrative Agent) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount and currency of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit.  If requested by the Issuing Bank, the Borrower also shall submit a letter of credit application on the Issuing Bank’s standard form in connection with any request for a Letter of Credit.  A Letter of Credit shall be issued, amended, renewed or extended only if, after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed 30,000,000, (ii) the Dollar Amount of the total Outstanding Revolving Credits shall not exceed the Total Revolving Commitments, (iii) the Dollar Amount of the total Outstanding Revolving Credits denominated in an Alternative Currency shall not exceed the Alternative Currency Revolving Sublimit, (iv) with respect to such Issuing Bank, the sum of the aggregate face amount of Letters of Credit issued by such Issuing Bank, when aggregated with the outstanding Revolving Loans funded by such Issuing Bank, shall not exceed its Revolving Commitment and (v) with respect to such Issuing Bank, the sum of the aggregate face amount of Letters of Credit issued by such Issuing Bank, when aggregated with the outstanding and unreimbursed LC Disbursements funded by such Issuing Bank, shall not exceed its LC Commitment Amount (unless in the case of this clause (iii) such Issuing Bank agrees to do so in its sole discretion); provided that no Issuing Bank shall be obligated to issue any trade or commercial Letters of Credit unless such Issuing Bank agrees to do so in its sole discretion.  If the Borrower so requests in any applicable letter of credit application, the Issuing Bank may, in its sole discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit the Issuing Bank to prevent any such extension at least once in each twelve-month period

 

62

 

(commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by the Issuing Bank, the Borrower shall not be required to make a specific request to the Issuing Bank for any such extension.  Once an Auto-Extension Letter of Credit has been issued, the Revolving Lenders shall be deemed to have authorized (but may not require) the Issuing Bank to permit the extension of such Letter of Credit at any time to an expiry date not later than the Letter of Credit expiration date referenced in clause (c) below; provided, however, that the Issuing Bank shall not permit any such extension if (A) the Issuing Bank has determined that it would not be permitted, or would have no obligation, at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof, or (B) it has received notice (which may be by telephone or in writing) on or before the day that is seven Business Days before the Non-Extension Notice Date (1) from the Administrative Agent that the Required Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Revolving Lender or the Borrower that one or more of the applicable conditions specified in Section 4.02 is not then satisfied, and in each such case directing the Issuing Bank not to permit such extension. The Issuing Bank shall not be under any obligation to issue any Letter of Credit if:  (A) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Bank from issuing the Letter of Credit, or any law applicable to the Issuing Bank or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the Issuing Bank shall prohibit, or request that the Issuing Bank refrain from, the issuance of letters of credit generally or the Letter of Credit in particular or shall impose upon the Issuing Bank with respect to the Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise compensated hereunder) not in effect on the Amendment Effective Date, or shall impose upon the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Amendment Effective Date and which the Issuing Bank in good faith deems material to it or (B) the issuance of the Letter of Credit would violate one or more policies of the Issuing Bank applicable to letters of credit generally.

 

(c)                                  Expiration Date.  Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five Business Days prior to the Revolving Termination Date.

 

(d)                                 Participations.  By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank or the Revolving Lenders, the Issuing Bank hereby grants to each Revolving Lender, and each Revolving Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Revolving Lender’s Revolving Commitment Percentage of the aggregate amount available to be drawn under such Letter of Credit.  In consideration and in furtherance of the foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Revolving Lender’s Revolving Commitment Percentage of each LC Disbursement made by the Issuing Bank and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrower for any reason.  Such payment by the Revolving Lenders shall be made (i) if the currency of the applicable LC Disbursement or reimbursement payment shall be Dollars, then in the currency of such LC Disbursement and (ii) subject to clause (l) of this Section, if the currency of the applicable LC Disbursement or reimbursement payment shall be an Alternative Currency, in Dollars in an amount equal to the Dollar Amount of such LC Disbursement or reimbursement payment, calculated by the Administrative Agent using the Exchange Rate on the applicable LC Participation Calculation Date.  Each Revolving Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Revolving Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

 

(e)                                  Reimbursement.  If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent in the currency of such LC Disbursement an amount equal to such LC Disbursement not later than 12:00 noon, New York City time, on the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement

 

63

 

prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then not later than 12:00 noon, New York City time, on the Business Day immediately following the day that the Borrower receives such notice; provided that if such LC Disbursement is denominated in Dollars and is not less than $1,000,000, the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 that such payment be financed with an ABR Revolving Borrowing in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting ABR Revolving Borrowing.  If the Borrower fails to make such payment when due, (A) if such payment relates to a Letter of Credit denominated in an Alternative Currency, automatically and no further action required, the obligations of the Borrower to reimburse the applicable LC Disbursement shall be permanently converted into an obligation to reimburse the Dollar Amount, calculated using the Exchange Rate on the applicable LC Participation Calculation Date, of such LC Disbursement and (B) in the case of each LC Disbursement, the Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such Revolving Lender’s Revolving Commitment Percentage thereof.  Promptly following receipt of such notice, each Revolving Lender shall pay to the Administrative Agent its Revolving Commitment Percentage of the payment then due from the Borrower, in the same manner as provided in Section 2.04 with respect to Loans made by such Revolving Lender (and Section 2.04 shall apply, mutatis  mutandis, to such payment obligations of the Revolving Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it from the Revolving Lenders.  Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent that Revolving Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Revolving Lenders and the Issuing Bank as their interests may appear.  Any payment made by a Revolving Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR Loans as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement. If the Borrower’s reimbursement of, or obligation to reimburse, any amounts in any Alternative Currency would subject the Administrative Agent, the Issuing Bank or any Revolving Lender to any stamp duty, ad valorem charge or similar Tax that would not be payable if such reimbursement were made or required to be made in Dollars, such Borrower shall pay the amount of any such Tax requested by the Administrative Agent, the Issuing Bank or such Revolving Lender.

 

(f)                                   Obligations Absolute.  The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder; provided that, subject to the penultimate sentence of this clause (f), reimbursement obligations of the Borrower with respect to a Letter of Credit may be subject to avoidance by the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower or any Restricted Subsidiary that are caused by the Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.  Neither the Administrative Agent, the Revolving Lenders nor the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank; provided that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s failure to exercise care when determining whether drafts and other documents

 

64

 

presented under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in the absence of gross negligence, bad faith or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such determination.  In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 

(g)                                  Disbursement Procedures.  The Issuing Bank shall, within the period stipulated by the terms and conditions of the Letter of Credit, following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit.  After such examination, the Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy) of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided that any delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the Revolving Lenders with respect to any such LC Disbursement.

 

(h)                                 Interim Interest.  If the Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in full on the date set forth in paragraph (e) of this Section 2.17, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is required to be reimbursed to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum set forth in Section 2.10(c)(ii).  Interest accrued pursuant to this paragraph shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any Revolving Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be for the account of such Revolving Lender to the extent of such payment.

 

(i)                                     Replacement of the Issuing Bank.  The Issuing Bank may be replaced at any time by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank.  The Administrative Agent shall notify the Revolving Lenders of any such replacement of the Issuing Bank.  At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.09(b).  From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to include such successor and any previous Issuing Bank, or such successor and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.

 

(j)                                    Additional Issuing Banks.  From time to time, the Borrower may by notice to the Administrative Agent designate any Revolving Lender (in addition to the initial Issuing Bank) which agrees (in its sole discretion) to act in such capacity and is reasonably satisfactory to the Administrative Agent as an Issuing Bank.  Each such additional Issuing Bank shall execute a counterpart of this Agreement upon the approval of the Administrative Agent (which approval shall not be unreasonably withheld) and shall thereafter be an Issuing Bank hereunder for all purposes.

 

(k)                                 Cash Collateralization.  If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice from the Administrative Agent or Revolving Lenders with LC Exposure representing greater than 50% of the total LC Exposure demanding the deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Revolving Lenders, an amount in Dollars equal to 102% of the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that (i) the amount payable in respect of any Letter of Credit or LC Disbursement shall be payable in the currency of such Letter of Credit or LC Disbursement, except that LC Disbursements in an Alternative Currency in respect of which the Borrower’s

 

65

 

reimbursement obligations have been converted in Dollars as provided in paragraph (e) or (l) of this Section and interest accrued thereon shall be payable in Dollars, and (ii) the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in clause (h) or (i) of Section 7.01.  Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of the Borrower under this Agreement with respect to the Revolving Facility.  The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account.  Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.  Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Lenders with LC Exposure representing greater than 50% of the total LC Exposure), be applied to satisfy other obligations of the Borrower under this Agreement with respect to the Revolving Facility.  If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default have been cured or waived.

 

(l)                                     Conversion. In the event that the Loans become immediately due and payable on any date pursuant to Section 7.01, all amounts (i) that the Borrower are at the time or become thereafter required to reimburse or otherwise pay to the Administrative Agent in respect of LC Disbursements made under any Letter of Credit denominated in an Alternative Currency, (ii) that the Revolving Lenders are at the time or become thereafter required to pay to the Administrative Agent (and the Administrative Agent is at the time or becomes thereafter required to distribute to the Issuing Bank) pursuant to paragraph (e) of this Section in respect of unreimbursed LC Disbursements made under any Letter of Credit denominated in an Alternative Currency and (iii) of each Revolving Lender’s participation in any Letter of Credit denominated in an Alternative Currency under which an LC Disbursement has been made shall, automatically and with no further action required, be converted into the Dollar Amount, calculated using the Exchange Rate on such date (or in the case of any LC Disbursement made after such date, on the date such LC Disbursement is made), of such amounts. On and after such conversion, all amounts accruing and owed to the Administrative Agent, the Issuing Bank or any Revolving Lender in respect of the obligations described in this paragraph shall accrue and be payable in Dollars at the rates otherwise applicable hereunder.

 

(m)                             Applicability of ISP; Limitation of Liability.  Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to each standby Letter of Credit.  Notwithstanding the foregoing, the Issuing Bank shall not be responsible to the Borrower for, and the Issuing Bank’s rights and remedies against the Borrower shall not be impaired by, any action or inaction of the Issuing Bank required or permitted under any law, order, or practice that is required or permitted to be applied to any Letter of Credit or this Agreement, including the Law or any order of a jurisdiction where the Issuing Bank or the beneficiary is located, the practice stated in the ISP, or in the decisions, opinions, practice statements, or official commentary of the ICC Banking Commission, the Bankers Association for Finance and Trade - International Financial Services Association (BAFT-IFSA), or the Institute of International Banking Law & Practice, whether or not any Letter of Credit chooses such law or practice.

 

(n)                                 Conflict with Issuer Documents.  In the event of any conflict between the terms hereof and the terms of any Letter of Credit or related document, the terms hereof shall control.

 

SECTION 2.18              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:

 

(a)                                 Fees shall cease to accrue on the Available Revolving Commitment of such Defaulting Lender pursuant to Section 2.09(a).

 

66

 

(b)                                 The Commitments, Loans and Outstanding Revolving Credit 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 9.02 or Section 9.03); provided that this Section 2.18(b) shall not apply to the vote of a Defaulting Lender in the case of an amendment, waiver or other modification effecting (i) an increase or extension of such Defaulting Lender’s Revolving Commitment or (ii) the reduction or excuse of principal amount of, or interest or fees payable on, such Defaulting Lender’s Loans or the postponement of the scheduled date of payment of such principal amount, interest or fees to such Defaulting Lender.

 

(c)                                  If any Letters of Credit exist at the time such Lender becomes a Defaulting Lender then:

 

(i)                              Such Defaulting Lender’s LC Exposure shall be reallocated among the Non-Defaulting Revolving Lenders in accordance with their respective Revolving Commitment Percentages (but excluding the Revolving Commitments of all the Defaulting Lenders from both the numerator and the denominator) but only to the extent (x) the sum of all the Outstanding Revolving Credits owed to all Non-Defaulting Lenders does not exceed the total of all Non-Defaulting Lenders’ Available Revolving Commitments, (y) the representations and warranties of each Loan Party set forth in the Loan Documents to which it is a party are true and correct at such time, except to the extent that any such representation and warranty relates to an earlier date (in which case such representation and warranty shall be true and correct as of such earlier date), and (z) no Default shall have occurred and be continuing at such time;

 

(ii)                               If the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall, within two Business Days following notice by the Administrative Agent, cash collateralize for the benefit of the Issuing Bank such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) for so long as any Letters of Credit are outstanding;

 

(iii)                                If the Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant clause (ii) above, the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.09(b) with respect to such Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized by the Borrower;

 

(iv)                              If LC Exposures of the Non-Defaulting Lenders are reallocated pursuant to clause (i) above, then the fees payable to the Revolving Lenders pursuant to Section 2.09(a) and Section 2.09(b) shall be adjusted to reflect such Non-Defaulting Lenders’ LC Exposure as reallocated; and

 

(v)                             If any Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated pursuant to clauses (i) or (ii) above, then, without prejudice to any rights or remedies of the Issuing Bank or any Revolving Lender hereunder, all letter of credit fees payable under Section 2.09(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the Issuing Bank until such LC Exposure is cash collateralized and/or reallocated.

 

(d)                                 So long as such Defaulting Lender is a Defaulting Lender, the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related LC Exposure will be 100% covered by the Available Revolving Commitments of the Non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 2.18(c)(ii), and the participating interests in any such newly issued or increased Letter of Credit shall be allocated among Non-Defaulting Lenders in a manner consistent with Section 2.18(c)(i) (and such Defaulting Lender shall not participate therein).

 

The rights and remedies against a Defaulting Lender under this Agreement are in addition to other rights and remedies that Borrower may have against such Defaulting Lender with respect to any funding default and that

 

67

 

the Administrative Agent or any Lender may have against such Defaulting Lender with respect to any funding default.  In the event that the Administrative Agent, the Borrower and the Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Total Revolving Exposure shall be readjusted to reflect the inclusion of such Lender’s Available Revolving Commitment and on such date such Lender shall purchase at par such of the Revolving Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause such outstanding Revolving Loans and funded and unfunded participations in Letters of Credit to be held on a pro  rata basis by the Revolving Lenders (including such Lender) in accordance with their applicable percentages, whereupon such Lender will cease to be a Defaulting Lender and will be a Non-Defaulting Lender and any applicable cash collateral shall be promptly returned to the Borrower and any LC Exposure of such Lender reallocated pursuant to the requirements above shall be reallocated back to such Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender.  Except to the extent otherwise expressly agreed by the affected parties, and subject to Section 9.19, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

 

SECTION 2.19              Extensions of Commitments.

 

(a)                                 Notwithstanding anything to the contrary in this Agreement, pursuant to one or more offers made from time to time by the Borrower to all Lenders of any Class of Term Loans and/or Revolving Commitments on a pro rata basis (based, in the case of an offer to the Lenders under any Class of Term Loans, on the aggregate outstanding Term Loans of such Class and, in the case of an offer to the Lenders under any Revolving Facility, on the aggregate outstanding Revolving Commitments under such Revolving Facility, as applicable), and on the same terms to each such Lender (“Pro Rata Extension Offers”), the Borrower is hereby permitted to consummate transactions with individual Lenders that agree to such transactions from time to time to extend the maturity date of such Lender’s Loans and/or Commitments of such Class and to otherwise modify the terms of such Lender’s Loans and/or Commitments of such Class pursuant to the terms of the relevant Pro Rata Extension Offer (including, without limitation, increasing the interest rate or fees payable in respect of such Lender’s Loans and/or Commitments and/or modifying the amortization schedule in respect of such Lender’s Loans).  For the avoidance of doubt, the reference to “on the same terms” in the preceding sentence shall mean, (i) in the case of an offer to the Lenders under any Class of Term Loans, that all of the Term Loans of such Class are offered to be extended for the same amount of time and that the interest rate changes and fees payable with respect to such extension are the same and (ii) in the case of an offer to the Lenders under any Revolving Facility, that all of the Revolving Commitments of such Facility are offered to be extended for the same amount of time and that the interest rate changes and fees payable with respect to such extension are the same.  Any such extension (an “Extension”) agreed to between the Borrower and any such Lender (an “Extending Lender”) will be established under this Agreement by implementing a Term Loan for such Lender if such Lender is extending an existing Term Loan (such extended Term Loan, an “Extended Term Loan”) or an Extended Revolving Commitment for such Lender if such Lender is extending an existing Revolving Commitment (such extended Revolving Commitment, an “Extended Revolving Commitment,” and any Revolving Loan made pursuant to such Extended Revolving Commitment, an “Extended Revolving Loan”).  Each Pro Rata Extension Offer shall specify the date on which the Borrower proposes that the Extended Term Loan shall be made or the proposed Extended Revolving Commitment shall become effective, which shall be a date not earlier than five (5) Business Days after the date on which the Pro Rata Extension Offer is delivered to the Administrative Agent (or such shorter period agreed to by the Administrative Agent in its reasonable discretion).

 

(b)                                 The Borrower and each Extending Lender shall execute and deliver to the Administrative Agent an amendment to this Agreement (an “Extension Amendment”) and such other documentation as the Administrative Agent shall reasonably specify to evidence the Extended Term Loans and/or Extended Revolving Commitments of such Extending Lender.  Each Extension Amendment shall specify the terms of the applicable Extended Term Loans and/or Extended Revolving Commitments; provided that (i) except as to interest rates, fees and any other pricing terms, and amortization, final maturity date and participation in prepayments and commitment reductions (which shall be determined by the Borrower and set forth in the Pro Rata Extension Offer), the Extended Term Loans shall, subject to clauses (ii) and (iii) of this proviso, have (x) the same terms as the existing Class of Term Loans from which they are extended or (y) such other terms as shall be reasonably satisfactory to the Administrative Agent,

 

68

 

(ii) the final maturity date of any Extended Term Loans shall be no earlier than the Latest Maturity Date in effect on the date of incurrence, (iii) the Weighted Average Life to Maturity of any Extended Term Loans shall be no shorter than the remaining Weighted Average Life to Maturity of the Class of Term Loans to which such offer relates, (iv) except as to interest rates, fees, any other pricing terms and final maturity (which shall be determined by the Borrower and set forth in the Pro Rata Extension Offer), any Extended Revolving Commitment shall have (x) the same terms as the existing Class of Revolving Commitments from which they are extended or (y) have such other terms as shall be reasonably satisfactory to the Administrative Agent and, in respect of any other terms that would affect the rights or duties of any Issuing Bank, such terms as shall be reasonably satisfactory to such Issuing Bank, (v) any Extended Term Loans may participate on a pro rata basis or a less than pro rata basis (but not a greater than pro rata basis) than the Term Loans in any mandatory prepayment thereunder and (vi) such Extended Term Loans shall not have at any time (x) any financial maintenance covenants of a different type than the financial covenants set forth in Section 6.10, or any financial maintenance covenants that are more restrictive than the financial covenants set forth in Section 6.10 or (y) negative covenants and/or default provisions that, taken as a whole, are materially more restrictive than those applicable to the Initial Term Loan Facility as determined in good faith by the Borrower unless, in each case of clauses (x) and (y) such terms (I) (if favorable to all then existing Lenders) are in consultation with the Administrative Agent, incorporated into this Agreement for the benefit of all then existing Lenders (without further amendment requirements) for so long as any such Extended Term Loans are outstanding or (II) become applicable only after the Revolving Facility shall have matured or been terminated and any Loans existing on the date of the initial incurrence of  (or commitment in respect of ) such Extended Term Loans have been paid in full.  Upon the effectiveness of any Extension Amendment, this Agreement shall be amended to the extent (but only to the extent) necessary to reflect the existence and terms of the Extended Term Loans and/or Extended Revolving Commitments evidenced thereby as provided for in Section 9.02(c).  Any such deemed amendment may be memorialized in writing by the Administrative Agent with the Borrower’s consent (not to be unreasonably withheld) and furnished to the other parties hereto.  If provided in any Extension Amendment with respect to any Extended Revolving Commitments, and with the consent of each Issuing Bank, participations in Letters of Credit shall be reallocated to lenders holding such Extended Revolving Commitments in the manner specified in such Extension Amendment, including upon effectiveness of such Extended Revolving Commitment or upon or prior to the maturity date for any Class of Revolving Commitments.

 

(c)                                  Upon the effectiveness of any such Extension, the applicable Extending Lender’s Term Loan will be automatically designated an Extended Term Loan and/or such Extending Lender’s Revolving Commitment will be automatically designated an Extended Revolving Commitment.  For purposes of this Agreement and the other Loan Documents, (i) if such Extending Lender is extending a Term Loan, such Extending Lender will be deemed to have a Term Loan having the terms of such Extended Term Loan and (ii) if such Extending Lender is extending a Revolving Commitment, such Extending Lender will be deemed to have a Revolving Commitment having the terms of such Extended Revolving Commitment.

 

(d)                                 Notwithstanding anything to the contrary set forth in this Agreement or any other Loan Document (including without limitation this Section 2.19), (i) the aggregate amount of Extended Term Loans and Extended Revolving Commitments will not be included in the calculation of clause (a) of the definition of Incremental Amount, (ii) no Extended Term Loan or Extended Revolving Commitment is required to be in any minimum amount or any minimum increment, (iii) any Extending Lender may extend all or any portion of its Term Loans and/or Revolving Commitment pursuant to one or more Pro Rata Extension Offers (subject to applicable proration in the case of over participation) (including the extension of any Extended Term Loan and/or Extended Revolving Commitment), (iv) there shall be no condition to any Extension of any Loan or Commitment at any time or from time to time other than notice to the Administrative Agent of such Extension and the terms of the Extended Term Loan or Extended Revolving Commitment implemented thereby, (v) all Extended Term Loans, Extended Revolving Commitments and all obligations in respect thereof shall be Obligations of the relevant Loan Parties under this Agreement and the other Loan Documents that rank equally and ratably in right of security with all other Obligations of the Class being extended, (vi) no Issuing Bank shall be obligated to issue Letters of Credit under such Extended Revolving Commitments unless it shall have consented thereto and (vii) there shall be no borrower (other than the Borrower) and no guarantors (other than the Subsidiary Guarantors) in respect of any such Extended Term Loans or Extended Revolving Commitments.

 

69

 

(e)                                  Each Extension shall be consummated pursuant to procedures set forth in the associated Pro Rata Extension Offer; provided that the Borrower shall cooperate with the Administrative Agent prior to making any Pro Rata Extension Offer to establish reasonable procedures with respect to mechanical provisions relating to such Extension, including, without limitation, timing, rounding and other adjustments.

 

SECTION 2.20              Refinancing Amendments.

 

(a)                                 Notwithstanding anything to the contrary in this Agreement, the Borrower may by written notice to the Administrative Agent establish one or more additional tranches of term loans under this Agreement (such loans, “Refinancing Term Loans”) to refinance in whole or in part any Class of Term Loans.  Each such notice shall specify the date (each, a “Refinancing Effective Date”) on which the Borrower proposes that the Refinancing Term Loans shall be made, which shall be a date not earlier than five (5) Business Days after the date on which such notice is delivered to the Administrative Agent (or such shorter period agreed to by the Administrative Agent in its sole discretion); provided that:

 

(i)                                before and after giving effect to the Borrowing of such Refinancing Term Loans on the Refinancing Effective Date each of the conditions set forth in Section 4.02 shall be satisfied;

 

(ii)                                the final maturity date of the Refinancing Term Loans shall be no earlier than the maturity date of the refinanced Term Loans;

 

(iii)                                 the Weighted Average Life to Maturity of such Refinancing Term Loans shall be no shorter than the then-remaining Weighted Average Life to Maturity of the refinanced Term Loans;

 

(iv)                               the aggregate principal amount of the Refinancing Term Loans shall not exceed the outstanding principal amount of the refinanced Term Loans plus amounts used to pay fees, premiums, costs and expenses (including original issue discount) and accrued interest associated therewith;

 

(v)                               all other terms applicable to such Refinancing Term Loans (other than provisions relating to original issue discount, upfront fees, interest rates and any other pricing terms (optional prepayment or mandatory prepayment or redemption terms shall be as agreed between the Borrower and the Lenders providing such Refinancing Term Loans) taken as a whole shall (as determined by the Borrower in good faith) be substantially similar to, or no more restrictive to the Borrower and its Restricted Subsidiaries than, the terms, taken as a whole, applicable to the Term Loans being refinanced (except to the extent such covenants and other terms apply solely to any period after the Latest Maturity Date or are otherwise reasonably acceptable to the Administrative Agent);

 

(vi)                               there shall be no borrower (other than the Borrower) and no guarantors (other than the Subsidiary Guarantors) in respect of such Refinancing Term Loans;

 

(vii)                                Refinancing Term Loans shall not be secured by any asset of the Borrower and its subsidiaries other than the Collateral;

 

(viii)                                 Refinancing Term Loans may participate on a pro  rata basis or on a less than pro  rata basis (but not on a greater than pro  rata basis) in any mandatory prepayments (other than as provided otherwise in the case of such prepayments pursuant to Section 2.08(c)) hereunder, as specified in the applicable Refinancing Amendment;

 

(ix)                               Refinancing Term Loans shall not at any time have (x) any financial maintenance covenants of a different type than the financial covenants set forth in Section 6.10, or any financial maintenance covenants that are more restrictive than the financial covenants set forth in Section 6.10 or (y) negative covenants and/or default provisions that, taken as a whole, are materially more restrictive than those applicable to the Initial Term Loan Facility as determined in good faith by the Borrower unless, in each case of clauses (x) and (y) such terms (I) (if favorable to all then existing Lenders) are in consultation with the Administrative Agent, incorporated into this Agreement for the benefit of all then existing Lenders

 

70

 

(without further amendment requirements) for so long as any such Refinancing Term Loans are outstanding or (II) become applicable only after the Revolving Facility shall have matured or been terminated and any Loans existing on the date of the initial incurrence of (or commitment in respect of) such Refinancing Term Loans have been paid in full; and

 

(x)                               the Net Proceeds, if any, of such Refinancing Term Loans shall be applied in accordance with Section 2.08(c).

 

(b)                                 The Borrower may approach any Lender or any other person that would be a permitted assignee pursuant to Section 9.05 to provide all or a portion of the Refinancing Term Loans; provided that any Lender offered or approached to provide all or a portion of the Refinancing Term Loans may elect or decline, in its sole discretion, to provide a Refinancing Term Loan.  Any Refinancing Term Loans made on any Refinancing Effective Date shall be designated an additional Class of Term Loans for all purposes of this Agreement; provided, further, that any Refinancing Term Loans may, to the extent provided in the applicable Refinancing Amendment governing such Refinancing Term Loans, be designated as an increase in any previously established Class of Term Loans made to the Borrower.

 

(c)                                  Notwithstanding anything to the contrary in this Agreement, the Borrower may by written notice to the Administrative Agent establish one or more additional Facilities (“Replacement Revolving Facilities”) providing for revolving commitments (“Replacement Revolving Facility Commitments” and the revolving loans thereunder, “Replacement Revolving Loans”), which replace in whole or in part any Class of Revolving Commitments under this Agreement.  Each such notice shall specify the date (each, a “Replacement Revolving Facility Effective Date”) on which the Borrower proposes that the Replacement Revolving Facility Commitments shall become effective, which shall be a date not less than five (5) Business Days after the date on which such notice is delivered to the Administrative Agent (or such shorter period agreed to by the Administrative Agent in its reasonable discretion); provided that:

 

(i)                                before and after giving effect to the establishment of such Replacement Revolving Facility Commitments on the Replacement Revolving Facility Effective Date, each of the conditions set forth in Section 4.02 shall be satisfied;

 

(ii)                                after giving effect to the establishment of any Replacement Revolving Facility Commitments and any concurrent reduction in the aggregate amount of any other Revolving Commitments, the aggregate amount of Revolving Commitments shall not exceed the aggregate amount of the Revolving Commitments outstanding immediately prior to the applicable Replacement Revolving Facility Effective Date plus amounts used to pay fees, premiums, costs and expenses (including original issue discount) and accrued interest associated therewith;

 

(iii)                                 no Replacement Revolving Facility Commitments shall have a final maturity date (or require commitment reductions or amortizations) prior to the Revolving Termination Date for the Revolving Commitments being replaced;

 

(iv)                               all other terms applicable to such Replacement Revolving Facility (other than provisions relating to (x) fees, interest rates and other pricing terms and prepayment and commitment reduction and optional redemption terms which shall be as agreed between the Borrower and the Lenders providing such Replacement Revolving Facility Commitments and (y) the amount of any letter of credit sublimit under such Replacement Revolving Facility, which shall be as agreed between the Borrower, the Lenders providing such Replacement Revolving Facility Commitments, the Administrative Agent and the replacement issuing bank, if any, under such Replacement Revolving Facility Commitments) taken as a whole shall (as determined by the Borrower in good faith) be substantially similar to, or no more restrictive to the Borrower and its Restricted Subsidiaries than, those, taken as a whole, applicable to the Revolving Commitments so replaced (except to the extent such covenants and other terms apply solely to any period after the Revolving Termination Date or are otherwise reasonably acceptable to the Administrative Agent);

 

71

 

(v)                               there shall be no borrower (other than the Borrower) and no guarantors (other than the Subsidiary Guarantors) in respect of such Replacement Revolving Facility; and

 

(vi)                               Replacement Revolving Facility Commitments and extensions of credit thereunder shall not be secured by any asset of the Borrower and its subsidiaries other than the Collateral.

 

In addition, the Borrower may establish Replacement Revolving Facility Commitments to refinance and/or replace all or any portion of a Term Loan hereunder (regardless of whether such Term Loan is repaid with the proceeds of Replacement Revolving Loans or otherwise), so long as the aggregate amount of such Replacement Revolving Facility Commitments does not exceed the aggregate amount of Term Loans repaid at the time of establishment thereof plus amounts used to pay fees, premiums, costs and expenses (including original issue discount) and accrued interest associated therewith (it being understood that such Replacement Revolving Facility Commitment may be provided by the Lenders holding the Term Loans being repaid and/or by any other person that would be a permitted assignee hereunder) so long as:

 

(i)                                      before and after giving effect to the establishment of such Replacement Revolving Facility Commitments on the Replacement Revolving Facility Effective Date each of the conditions set forth in Section 4.02 shall be satisfied to the extent required by the relevant agreement governing such Replacement Revolving Facility Commitments,

 

(ii)                                      the remaining life to termination of such Replacement Revolving Facility Commitments shall be no shorter than the Weighted Average Life to Maturity then applicable to the refinanced Term Loans,

 

(iii)                                       the final termination date of the Replacement Revolving Facility Commitments shall be no earlier than the scheduled final maturity date of the refinanced Term Loans,

 

(iv)                                     there shall be no borrower (other than the Borrower) and no guarantors (other than the Subsidiary Guarantors) in respect of such Replacement Revolving Facility; and

 

(v)                                     all other terms applicable to such Replacement Revolving Facility (other than provisions relating to (x) fees, interest rates and other pricing terms and prepayment and commitment reduction and optional redemption terms which shall be as agreed between the Borrower and the Lenders providing such Replacement Revolving Facility Commitments and (y) the amount of any letter of credit sublimit and swingline commitment under such Replacement Revolving Facility, which shall be as agreed between the Borrower, the Lenders providing such Replacement Revolving Facility Commitments, the Administrative Agent and the replacement issuing bank, if any, under such Replacement Revolving Facility Commitments) taken as a whole shall (as determined by the Borrower in good faith) be substantially similar to, or no more restrictive to the Borrower and its Restricted Subsidiaries than, those, taken as a whole, applicable to the Term Loans being refinanced (except to the extent such covenants and other terms apply solely to any period after the latest scheduled final maturity date of any Loans then outstanding or are otherwise reasonably acceptable to the Administrative Agent).

 

Solely to the extent that an Issuing Bank is not a replacement issuing bank, as the case may be, under a Replacement Revolving Facility, it is understood and agreed that such Issuing Bank shall not be required to issue any letters of credit under such Replacement Revolving Facility and, to the extent it is necessary for such Issuing Bank to withdraw as an Issuing Bank, as the case may be, at the time of the establishment of such Replacement Revolving Facility, such withdrawal shall be on terms and conditions reasonably satisfactory to such Issuing Bank, as the case may be, in its sole discretion.  The Borrower agrees to reimburse each Issuing Bank, as the case may be, in full upon demand, for any reasonable and documented out-of-pocket cost or expense attributable to such withdrawal.

 

(d)                                 The Borrower may approach any Lender or any other person that would be a permitted assignee of a Revolving Commitment pursuant to Section 9.05 to provide all or a portion of the Replacement Revolving Facility Commitments; provided that any Lender offered or approached to provide all or a portion of the Replacement Revolving Facility Commitments may elect or decline, in its sole discretion, to provide a Replacement Revolving

 

72

 

Facility Commitment. Any Replacement Revolving Facility Commitment made on any Replacement Revolving Facility Effective Date shall be designated an additional Class of Revolving Commitments for all purposes of this Agreement; provided that any Replacement Revolving Facility Commitments may, to the extent provided in the applicable Refinancing Amendment, be designated as an increase in any previously established Class of Revolving Commitments.

 

(e)                                  The Borrower and each Lender providing the applicable Refinancing Term Loans or Replacement Revolving Facility Commitments, as applicable, shall execute and deliver to the Administrative Agent an amendment to this Agreement (a “Refinancing Amendment”) and such other documentation as the Administrative Agent shall reasonably specify to evidence such Refinancing Term Loans and/or Replacement Revolving Facility Commitments.  For purposes of this Agreement and the other Loan Documents, (A) if a Lender is providing a Refinancing Term Loan, such Lender will be deemed to have a Term Loan having the terms of such Refinancing Term Loan and (B) if a Lender is providing a Replacement Revolving Facility Commitment, such Lender will be deemed to have a Revolving Commitment having the terms of such Replacement Revolving Facility Commitment.  Notwithstanding anything to the contrary set forth in this Agreement or any other Loan Document (including without limitation this Section 2.20), (i) the aggregate amount of Refinancing Term Loans and Replacement Revolving Facility Commitments will not be included in the calculation of clause (a) of the definition of Incremental Amount, (ii) no Refinancing Term Loan or Replacement Revolving Facility Commitment is required to be in any minimum amount or any minimum increment, (iii) there shall be no condition to any incurrence of any Refinancing Term Loan or Replacement Revolving Facility Commitment at any time or from time to time other than those set forth in clause (a) or (c) above, as applicable and (iv) all Refinancing Term Loans, Replacement Revolving Facility Commitments and all obligations in respect thereof shall be Obligations under this Agreement and the other Loan Documents that rank equally and ratably in right of security with the Term Loans and other Obligations.

 

(f)                                   Each party hereto hereby agrees that, upon the Refinancing Effective Date of any Refinancing Term Loans or Replacement Revolving Facility Commitments, this Agreement shall be amended to the extent (but only to the extent) necessary to reflect the existence and terms of the Refinancing Term Loans or Replacement Revolving Facility Commitments evidenced thereby as provided for in Section 9.02.  Any amendment to this Agreement or any other Loan Document that is necessary to effect the provisions of this Section 2.20 (including, without limitation, to provide for the establishment of Incremental Term Loans) and any such collateral and other documentation shall be deemed “Loan Documents” hereunder and may be memorialized in writing between the Administrative Agent and the Borrower and furnished to the other parties hereto.

 

(g)                                  No term loan established and outstanding under this Agreement pursuant to (i) any of Section 2.02, 2.19 or 2.20 or (ii) an agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders shall at any time have (x) any financial maintenance covenants of a different type than the financial covenants set forth in Section 6.10, or any financial maintenance covenants that are more restrictive than the financial covenants set forth in Section 6.10 or (y) have negative covenants and/or default provisions that, taken as a whole, are materially more restrictive than those applicable to the Initial Term Loan Facility as determined in good faith by the Borrower unless, in each case of clauses (x) and (y) such terms (I) (if favorable to all then existing Lenders) are in consultation with the Administrative Agent, incorporated into this Agreement for the benefit of all then existing Lenders (without further amendment requirements) for so long as any such term loans are outstanding or (II) become applicable only after the Revolving Facility shall have matured or been terminated and any Loans existing on the date of the initial incurrence of (or commitment in respect of) such term loan have been paid in full. This Section 2.20(g) shall not be waived, amended, amended and restated or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders.

 

SECTION 2.21              Illegality.  If any Lender reasonably determines that any Change in Law has made it unlawful, or that any Governmental Authority has asserted after the Amendment Effective Date that it is unlawful, for any Lender or its applicable lending office to make, maintain or fund any Eurocurrency Loans, or to determine or charge interest rates based upon the Eurocurrency Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market then, on notice thereof by such Lender to the Borrower through the Administrative Agent, (i) any

 

73

 

obligations of such Lender to make or continue Eurocurrency Loans or to convert ABR Borrowings to Eurocurrency Borrowings shall be suspended and (ii) if such notice asserts the illegality of such Lender making or maintaining ABR Loans the interest rate on which is determined by reference to the Eurocurrency Rate component of the ABR, the interest rate on which ABR Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurocurrency Rate component of the ABR, in each case until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, (x) the Borrower shall upon demand from such Lender (with a copy to the Administrative Agent), at the Borrower’s determination, either (a) prepay all Eurocurrency Borrowings of such Lender or (b) convert all Eurocurrency Borrowings of such Lender to ABR Borrowings (the interest rate on such ABR Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurocurrency Rate component of the ABR), in each case, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurocurrency Borrowings to such day, or immediately, if such Lender may not lawfully continue to maintain such Loans and (y) if such notice asserts the illegality of such Lender determining or charging interest rates based upon the Eurocurrency Rate, the Administrative Agent shall during the period of such suspension compute the ABR applicable to such Lender without reference to the Eurocurrency Rate component thereof until the Administrative Agent is advised in writing by such Lender that it is no longer illegal for such Lender to determine or charge interest rates based upon the Eurocurrency Rate.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.

 

ARTICLE III

 

Representations and Warranties

 

The Borrower represents and warrants to the Lenders that:

 

SECTION 3.01              Organization; Powers.  Each of the Borrower and its Material Subsidiaries is duly organized, validly existing and, if applicable, in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required, except, in each case, where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

 

SECTION 3.02              Authorization; Enforceability.  The Transactions (excluding use of proceeds) are within the corporate or other organizational powers of the Loan Parties and have been duly authorized by all necessary corporate or other organizational action.  This Agreement has been and each other Loan Document will be duly executed and delivered by each Loan Party party thereto.  This Agreement constitutes, and each other Loan Document when executed and delivered will constitute a legal, valid and binding obligation of each Loan Party party thereto, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights or remedies generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

SECTION 3.03              Governmental Approvals; No Conflicts.  The Transactions (excluding use of proceeds) (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (i) such as have been obtained or made and are in full force and effect or those which the failure to obtain would not be reasonably expected to result in a Material Adverse Effect, (ii) the filing of Uniform Commercial Code financing statements, (iii) filings with the United States Patent and Trademark Office and the United States Copyright Office, (iv) recordation of the Mortgages and (v) any other filings or registrations required to perfect Liens created by the Collateral Documents, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Borrower or any other Loan Party or any order of any Governmental Authority except where any such violation would not reasonably expected to result in a Material Adverse Effect, (c) will not violate or result in a default under any indenture, agreement or other instrument binding upon the Borrower or any other Loan Party or its assets except as would not reasonably expected to result in a Material Adverse Effect, and (d) will not result in the creation or imposition of any Lien on any asset of the Borrower or any of its Material Subsidiaries (other than any Permitted Lien).

 

74

 

SECTION 3.04              Financial Position.  The Borrower has heretofore furnished to the Lenders its (a) consolidated and combined balance sheet and statements of operations, shareholders’ equity and cash flows as of and for the fiscal years ended December 31, 2017 and 2016 reported on by Ernst & Young LLP, independent public accountants and (b) consolidated balance sheet, consolidated and combined statement of operations, consolidated statement of shareholders’ equity and consolidated and combined statement of cash flows for the six months ended June 30, 2018.  Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its consolidated subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the statements referred to in clause (b) above.

 

SECTION 3.05              Properties.

 

(a)                                 Each of the Borrower and its Material Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property material to its business, except for minor defects in title and Permitted Liens that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes or as, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

 

(b)                                 Each of the Borrower and its Material Subsidiaries owns, or is validly licensed to use, all Intellectual Property used or held for use by such entities or necessary to operate their respective businesses as currently conducted and contemplated to be conducted, and the operation of their respective businesses by the Borrower and its Material Subsidiaries does not infringe upon or otherwise violate the rights of any other Person, except for any such Intellectual Property or infringements or violations that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

 

SECTION 3.06              Litigation and Environmental Matters.

 

(a)                                 There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened in writing against or affecting the Borrower or any of its Restricted Subsidiaries (i) that would reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) on the Amendment Effective Date, that involve this Agreement or the Transactions (excluding use of proceeds).

 

(b)                                 Except with respect to any matters that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of its Restricted Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received written notice of any claim with respect to any Environmental Liability or (iv) knows of any basis reasonably likely to result in Environmental Liability.

 

SECTION 3.07              Compliance with Laws and Agreements.  Each of the Borrower and its Material Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.  No Default has occurred and is continuing.

 

SECTION 3.08              Investment Company Status.  No Loan Party is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.  No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.

 

SECTION 3.09              Taxes.  Each of the Borrower and its Material Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Borrower or such Material Subsidiary, as applicable, has set aside on its books adequate reserves in

 

75

 

accordance with GAAP or (b) to the extent that the failure to do so would not reasonably be expected to, individually or in the aggregate, result in a Material Adverse Effect.

 

SECTION 3.10              ERISA.  No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, would reasonably be expected to result in a Material Adverse Effect.  The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Accounting Standards Codification Topic 715) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of such Plan by an amount which, if it were to become due, would cause a Material Adverse Effect.

 

SECTION 3.11              Disclosure.  As of the Amendment Effective Date, to the best of the Borrower’s knowledge, neither the Lender Presentation nor any of the other reports, financial statements, certificates or other written information furnished by or on behalf of the Borrower to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished), taken as a whole, contained any material misstatement of fact or omitted to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading as of the date furnished; provided that with respect to projected financial information and other forward looking information and information of a general economic nature, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

 

SECTION 3.12              Collateral Documents.

 

(a)                                 Each Collateral Document is effective to create in favor of the Collateral Agent (for the benefit of the Secured Parties) a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof.  As of the Amendment Effective Date, in the case of the Pledged Collateral described in the Security Agreement, when certificates or promissory notes, as applicable, representing such Pledged Collateral and required to be delivered under the Security Agreement are delivered to the Collateral Agent, and in the case of the other Collateral described in the Security Agreement (other than the Intellectual Property), when financing statements and other filings specified in the Perfection Certificate are filed in the offices specified in the Perfection Certificate, the Collateral Agent (for the benefit of the Secured Parties) shall have a fully perfected Lien (subject to all Permitted Liens) on, and security interest in, all right, title and interest of the Loan Parties in such Collateral and, subject to Section 9-315 of the New York Uniform Commercial Code, the proceeds thereof, as security for the Obligations to the extent perfection can be obtained by filing Uniform Commercial Code financing statements or possession.

 

(b)                                 When the Security Agreement or an ancillary document thereunder is properly filed and recorded in the United States Patent and Trademark Office and the United States Copyright Office, and, with respect to Collateral in which a security interest cannot be perfected by such filings, upon the proper filing of the financing statements referred to in clause (a) above, the Collateral Agent (for the benefit of the Secured Parties) shall have a fully perfected Lien on, and security interest in, all right, title and interest of the Loan Parties thereunder in the material United States Intellectual Property included in the Collateral listed in such ancillary document (it being understood that subsequent recordings in the United States Patent and Trademark Office and the United States Copyright Office may be necessary to perfect a Lien on registered trademarks and patents, trademark and patent applications and registered copyrights acquired by the Loan Parties after the Closing Date).

 

(c)                                  The Mortgages executed and delivered after the Closing Date pursuant to Section 5.09, shall be effective to create in favor of the Collateral Agent (for the benefit of the Secured Parties) or, if so contemplated by the respective Mortgage, the Collateral Agent and the other Secured Parties, legal, valid and enforceable Liens on all of the Loan Parties’ rights, titles and interests in and to the Mortgaged Property thereunder (excluding any improvements to Real Property described in the definition of “Excluded Collateral” in the Security Agreement, for which no representation is made) and the proceeds thereof, and when such Mortgages are filed or recorded in the proper real estate filing, registration or recording offices and any other required registrations have been validly completed by or on behalf of the Collateral Agent, and all relevant mortgage Taxes and recording and registration charges are duly paid, the Collateral Agent (for the benefit of the Secured Parties) shall have valid Liens with record or registered notice to third parties on, and security interests in, all rights, titles and interests of the Loan Parties in

 

76

 

such Mortgaged Property and, to the extent applicable, subject to Section 9-315 of the Uniform Commercial Code, the proceeds thereof.

 

(d)                                 Notwithstanding anything herein (including this Section 3.12) or in any other Loan Document to the contrary, neither the Borrower nor any other Loan Party makes any representation or warranty as to the effects of perfection or non-perfection, the priority or the enforceability of any pledge of or security interest in any Equity Interests of any Foreign Subsidiary, or as to the rights and remedies of the Administrative Agent, Collateral Agent or any Lender with respect thereto, under foreign law.

 

SECTION 3.13              No Change.  Since December 31, 2017, there has been no event that has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

SECTION 3.14              Guarantors.  Set forth on Schedule 3.14 is a list of all Subsidiary Guarantors on the Amendment Effective Date, together with the jurisdiction of organization, and ownership and ownership percentages of Equity Interests held by each such Subsidiary Guarantor in each direct subsidiary of such Subsidiary Guarantor as of the Amendment Effective Date.

 

SECTION 3.15              Solvency.  Immediately after the consummation of the Transactions to occur on the Amendment Effective Date, including the making of each Loan to be made or continued on the Amendment Effective Date and the application of the proceeds of such Loans, and after giving effect to the rights of subrogation and contribution under the Guarantee Agreement, (a) the fair value of the assets of the Borrower and its subsidiaries on a consolidated basis will exceed their debts and liabilities, subordinated, contingent or otherwise, (b) the present fair saleable value of the assets of the Borrower and its subsidiaries on a consolidated basis will be greater than the amount that will be required to pay the probable liability on their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured, (c) the Borrower and its subsidiaries on a consolidated basis will be able to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured and (d) the Borrower and its subsidiaries on a consolidated basis will not have unreasonably small capital with which to conduct the business in which they are engaged, as such business is now conducted and is proposed to be conducted following the Amendment Effective Date.

 

SECTION 3.16              No Default.  No Default or Event of Default has occurred and is continuing.

 

SECTION 3.17              Anti-Corruption Laws and Sanctions.  The Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower, its subsidiaries and their respective directors, officers and employees with Anti-Corruption Laws and applicable Sanctions, and the Borrower and its subsidiaries and to their knowledge their respective officers, directors and employees are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (a) the Borrower or any subsidiary or (b) to the knowledge of the Borrower, any director, officer or employee of the Borrower or any subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No proceeds of the Loans and no Letter of Credit shall be used by the Borrower in violation of any Anti-Corruption Law or applicable Sanctions.  No representation is made under this Section 3.17 with respect to any of the end-user individuals of the internet services provided by the Borrower or any of its subsidiaries.

 

ARTICLE IV

 

Conditions

 

SECTION 4.01              Closing Date.  The obligations of the Lenders to make the Initial Term Loans hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

 

(a)                                 The Administrative Agent (or its counsel) shall have received (including by telecopy or email transmission) from each Loan Party party to the relevant Loan Document, a counterpart of such Loan Document signed on behalf of such Loan Party.

 

77

 

(b)                                 The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders as of the Closing Date and dated the Closing Date) of (i) Wachtell, Lipton, Rosen & Katz, counsel for the Borrower and certain of the Loan Parties and (ii) local counsel in each jurisdiction in which a Loan Party is organized and the laws of which are not covered by the opinion referred to in (i) above, in each case in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

(c)                                  The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the Loan Parties, the authorization of the Transactions (excluding use of proceeds) and any other legal matters relating to the Loan Parties, this Agreement or the Transactions (excluding use of proceeds), including a certificate of each Loan Party substantially in the form of Exhibit E, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

(d)                                 The Administrative Agent shall have received a certificate, dated the Closing Date and signed by the Chief Executive Officer, a Vice President, a Financial Officer of the Borrower or any other executive officer of the Borrower who has specific knowledge of the Borrower’s financial matters and is satisfactory to the Administrative Agent, confirming that (a) the representations and warranties of each Loan Party set forth in the Loan Documents are true and correct as of the Closing Date and (b) as of the Closing Date, no Default has occurred and is continuing.

 

(e)                                  There shall have been delivered to the Administrative Agent an executed Perfection Certificate.

 

(f)                                   The Administrative Agent shall have received a solvency certificate substantially in the form of Exhibit I, dated the Closing Date and signed by the chief financial officer of the Borrower.

 

(g)                                  The Administrative Agent, the Lead Arrangers and the Lenders shall have received all fees and other amounts due and payable on or prior to the Closing Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses (including fees of legal counsel to the Administrative Agent, the Lead Arrangers and the Lenders) required to be reimbursed or paid by the Borrower hereunder.

 

(h)                                 Since December 31, 2016, there shall have been no event that has had or would reasonably be expected to have a Material Adverse Effect.

 

(i)                                     The Administrative Agent shall have received the results of a recent Lien search with respect to each Loan Party, and such search shall reveal no Liens on any of the assets of the Loan Parties except for Liens permitted by Section 6.02 or discharged on or prior to the Closing Date pursuant to documentation satisfactory to the Administrative Agent.

 

(j)                                    The Collateral Agent shall have received the certificates representing the certificated Equity Interests pledged pursuant to the Security Agreement, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the pledgor thereof.

 

(k)                                 Each Uniform Commercial Code financing statement or other filing required by the Security Agreement shall be in proper form for filing.

 

(l)                                     Each Loan Party shall have provided the documentation and other information requested by the Lenders that is required by regulatory authorities under applicable “know your customer” and anti-money-laundering rules and regulations, including without limitation, the Act, in each case as requested at least three Business Days prior to the Closing Date.

 

(m)                             The Administrative Agent shall have received an executed promissory note payable to the order of each Lender that requested such promissory note at least one Business Day prior to the Closing

 

78

 

Date (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent.

 

(n)                                 The Borrower shall have paid as of the Closing Date immediately after giving effect thereto to the Administrative Agent for the account of each of the Initial Term Lenders, an upfront fee as separately agreed.

 

(o)                                 To the extent required to be satisfied on the Closing Date, the Collateral and Guarantee Requirement shall be satisfied (or waived in accordance with Section 9.03) as of the Closing Date.

 

The Administrative Agent shall notify the Borrower and the Lenders of the Closing Date, and such notice shall be conclusive and binding. It is understood that the Closing Date has occurred.

 

SECTION 4.02              Each Credit Event.  The obligation of each Lender to make a Loan on the occasion of any Borrowing (other than a continuation or conversion of an existing Borrowing) and the obligation of the Issuing Bank to issue any Letter of Credit is subject to the satisfaction of the following conditions:

 

(a)                                 The representations and warranties of each Loan Party set forth in this Agreement shall be true and correct in all material respects (except to the extent that any such representation and warranty is qualified by materiality or Material Adverse Effect, in which case such representation and warranty shall be true and correct in all respects) on and as of the date of such Borrowing, except to the extent that any such representation and warranty relates to an earlier date (in which case such representation and warranty shall have been true and correct in all material respects (except to the extent that any such representation and warranty is qualified by materiality or Material Adverse Effect, in which case such representation and warranty shall be true and correct in all respects) as of such earlier date); provided that in the case of any Incremental Term Facility used to finance an acquisition permitted hereunder, to the extent the Lenders participating in such Incremental Term Facility agree, this Section 4.02(a) shall require only customary “specified representations” and “acquisition agreement representations” (i.e., those representations of the seller or the target (as applicable) in the applicable acquisition agreement that are material to the interests of the Lenders and only to the extent that the Borrower or its applicable subsidiary has the right to terminate its obligations under the applicable acquisition agreement as a result of the failure of such representations to be accurate) be true and correct in all material respects (except to the extent that any such representation and warranty is qualified by materiality or Material Adverse Effect, in which case such representation and warranty shall be true and correct in all respects).

 

(b)                                 At the time of and immediately after giving effect to such Borrowing, no Default or Event of Default shall have occurred and be continuing.

 

(c)                                  The Administrative Agent or Issuing Bank shall have received a borrowing notice in accordance with Section 2.03 or a Letter of Credit request in accordance with Section 2.17(b), as applicable.

 

Each Borrowing shall be deemed to constitute a representation and warranty by the Borrower or other applicable Loan Party on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.

 

SECTION 4.03              Amendment Effective Date.  The obligations of the Lenders to make the Loans hereunder on or after the Amendment Effective Date shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

 

(a)                                 Administrative Agent (or its counsel) shall have received (including by telecopy or email transmission) (i) a counterpart of this Agreement from the Borrower and each Lender under the Original Credit Agreement immediately prior to the Amendment Effective Date (or, if any such Lender is a Non-Consenting Lender, its Replacement Lender in accordance with Section 2.16(c) of the Original Credit Agreement) and (ii) from each Loan Party, a counterpart of the Reaffirmation Agreement signed on behalf of such Loan Party.

 

79

 

(b)                                 The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders as of the Amendment Effective Date and dated the Amendment Effective Date) of (i) Wachtell, Lipton, Rosen & Katz, counsel for the Borrower and certain of the Loan Parties and (ii) local counsel in each jurisdiction in which a Loan Party is organized and the laws of which are not covered by the opinion referred to in (i) above, in each case in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

(c)                                  The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the Loan Parties, the authorization of the Transactions (excluding use of proceeds) and any other legal matters relating to the Loan Parties, this Agreement or the Transactions (excluding use of proceeds), including a certificate of each Loan Party substantially in the form of Exhibit E, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

(d)                                 The Administrative Agent shall have received a certificate, dated the Amendment Effective Date and signed by the Chief Executive Officer, a Vice President, a Financial Officer of the Borrower or any other executive officer of the Borrower who has specific knowledge of the Borrower’s financial matters and is satisfactory to the Administrative Agent, confirming that (a) the representations and warranties of each Loan Party set forth in the Loan Documents are true and correct as of the Amendment Effective Date and (b) as of the Amendment Effective Date, no Default has occurred and is continuing.

 

(e)                                  The Administrative Agent shall have received a solvency certificate in substantially the form of Exhibit I, dated the Amendment Effective Date and signed by the Chief Executive Officer, a Chief Financial Officer, a Chief Accounting Officer or any other executive officer of the Borrower who has specific knowledge of the Borrower’s financial matters and is satisfactory to the Administrative Agent.

 

(f)                                   The Administrative Agent, the Lead Arrangers and the Lenders shall have received all fees and other amounts due and payable on or prior to the Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses (including fees of legal counsel to the Administrative Agent, the Lead Arrangers and the Lenders) required to be reimbursed or paid by the Borrower hereunder.

 

(g)                                  Since December 31, 2017, there shall have been no event that has had or would reasonably be expected to have a Material Adverse Effect.

 

(h)                                 The Administrative Agent shall have received the results of a recent Lien search with respect to each Loan Party, and such search shall reveal no Liens on any of the assets of the Loan Parties except for Liens permitted by Section 6.02 or discharged on or prior to the Amendment Effective Date pursuant to documentation satisfactory to the Administrative Agent.

 

(i)                                     To the extent not received prior to the Amendment Effective Date, the Collateral Agent shall have received the certificates representing the certificated Equity Interests pledged pursuant to the Security Agreement, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the pledgor thereof.

 

(j)                                    Each Loan Party shall have provided the documentation and other information requested by the Lenders that is required by regulatory authorities under applicable “know your customer” and anti-money-laundering rules and regulations, including without limitation, the Act, in each case as requested at least three Business Days prior to the Amendment Effective Date.

 

(k)                                 The Administrative Agent shall have received an executed promissory note payable to the order of each Lender that requested such promissory note at least one Business Day prior to the Amendment Effective Date (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent.

 

80

 

(l)                                     The Borrower shall have paid to the Administrative Agent (i) for the ratable account of the Lenders immediately on or prior to the Amendment Effective Date, all accrued and unpaid interest on the Initial Term Loans under the Original Credit Agreement and (ii) for its own account, all accrued and unpaid fees payable pursuant to Section 2.09(c) of the Original Credit Agreement, in each case to, but not including, the Amendment Effective Date.

 

(m)                             The Borrower shall have paid to the Administrative Agent for the account of each of the Revolving Lenders, as fee compensation for the making of such Lender’s Revolving Commitment, an amendment fee as separately agreed.

 

(n)                                 The entry into and effectiveness of the IAC Credit Agreement shall have occurred substantially concurrently with the effectiveness of this Agreement.

 

The Administrative Agent shall notify the Borrower and the Lenders of the Amendment Effective Date, and such notice shall be conclusive and binding.

 

ARTICLE V

 

Affirmative Covenants

 

Until the Revolving Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit have expired or been cash collateralized, the Borrower covenants and agrees with the Lenders that:

 

SECTION 5.01              Financial Statements; Other Information.  The Borrower will furnish to the Administrative Agent and each Lender:

 

(a)                                 within 90 days after the end of each fiscal year of the Borrower, its audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Ernst & Young LLP or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit except as to the effectiveness of internal control over financial reporting with respect to any subsidiary acquired during such fiscal year in accordance with Regulation S-X under the Exchange Act, as interpreted by the implementation guidance of the U.S. Securities Exchange Commission) to the effect that such consolidated financial statements present fairly in all material respects the financial position and results of operations of the Borrower and its consolidated subsidiaries on a consolidated basis in accordance with GAAP consistently applied (except as approved by such accountants and disclosed therein), and a schedule eliminating Unrestricted Subsidiaries and reconciling to the financial statements in reasonable detail, as determined by the Borrower if requested by the Administrative Agent (on its own behalf or at the request of any Lender);

 

(b)                                 within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, its consolidated balance sheet and related statement of operations as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year and the statement of cash flows for the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial position and results of operations of the Borrower and its consolidated subsidiaries on a consolidated basis in accordance with GAAP consistently applied (except as approved by such officer and disclosed therein), subject to normal year-end audit adjustments and the absence of footnotes, and a schedule eliminating Unrestricted Subsidiaries and reconciling to the financial statements in reasonable detail as determined by the Borrower if requested by the Administrative Agent (on its own behalf or at the request of any Lender);

 

81

 

(c)                                  within 90 days after the end of each fiscal year of the Borrower, forecasts of the cash and cash equivalents and long-term debt line items on the consolidated balance sheets and forecasts of the statements of operations and cash flows, in each case of the Borrower and the Restricted Subsidiaries on a quarterly basis for the then current fiscal year, in each case prepared by management of Borrower and substantially in the form as the forecasts delivered by the Borrower to the Lead Arrangers prior to the Amendment Effective Date;

 

(d)                                 concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with Section 6.10 (whether or not the Testing Condition is satisfied), (iii) stating whether any change in GAAP or in the application thereof that materially affects such financial statements has occurred since the date of the audited financial statements referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate, (iv) setting forth a description of any change in the jurisdiction of organization of the Borrower or any Material Domestic Subsidiary since the date of the most recent certificate delivered pursuant to this paragraph (d) (or, in the case of the first such certificate so delivered, since the Closing Date) and (v) setting forth a calculation in reasonable detail indicating which Domestic Subsidiaries are Material Domestic Subsidiaries;

 

(e)                                  concurrently with any delivery of financial statements under clause (a) above, a certificate of the accounting firm that reported on such financial statements stating whether they obtained knowledge during the course of their examination of such financial statements of any Default (which certificate may be limited to the extent required by accounting rules or guidelines and may be limited to accounting matters and disclaim responsibility for legal interpretations);

 

(f)                                   at any time the Borrower or any ERISA Affiliate participates in any Multiemployer Plan, promptly following receipt thereof, copies of any documents described in Section 101(k) or 101(l) of ERISA that the Borrower or any ERISA Affiliate may request with respect to any Multiemployer Plan; provided that if the Borrower and/or any ERISA Affiliate has not requested such documents or notices from the administrator or sponsor of the applicable Multiemployer Plan then, upon reasonable request of the Administrative Agent, the Borrower and/or its ERISA Affiliates shall promptly make a request for such documents or notices from such administrator or sponsor and the Borrower shall provide copies of such documents and notices to the Administrative Agent (on behalf of each requesting Lender) promptly after receipt thereof;

 

(g)                                  concurrently with the delivery of financial statements under clause (a) above, an updated Perfection Certificate reflecting all changes since the date of the information most recently received pursuant to this clause (g) or Section 5.09(c) (or a certificate of a manager, executive officer or Financial Officer of the Borrower or any other officer or similar official thereof responsible for the administration of the obligations of such person in respect of this Agreement, or any other duly authorized employee or signatory of the Borrower certifying as to the absence of any changes to the previously delivered update, if applicable); and

 

(h)                                 promptly following any reasonable request therefor, such other information regarding the operations, business affairs and financial position of the Borrower or any Restricted Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent (on its own behalf or at the request of any Lender) may reasonably request.

 

Notwithstanding the foregoing, the obligations in clauses (a) and (b) of this Section 5.01 may be satisfied with respect to the consolidated financial information of the Borrower by furnishing the consolidated financial information of any parent of the Borrower that, directly or indirectly, holds all of the Equity Interests of the Borrower that would be required by clauses (a) and (b) of this Section 5.01 with all references to the “Borrower” therein being deemed to refer to such parent and all references to “Financial Officer” therein being deemed to refer to a comparable officer of such parent; provided that such financial statements are accompanied by a schedule (the

 

82

 

“Reconciliation”) eliminating (A) such parent of the Borrower and any of such parent’s subsidiaries other than the Borrower and its subsidiaries and (B) Unrestricted Subsidiaries and reconciling to the financial statements in reasonable detail as determined by the Borrower if requested by the Administrative Agent (on its own behalf or at the request of any Lender).

 

Information required to be delivered pursuant to this Section 5.01 shall be deemed to have been delivered if such information (including, in the case of certifications required pursuant to clause (b) above, the certifications accompanying any such quarterly report pursuant to Section 302 of the Sarbanes-Oxley Act of 2002), or one or more annual or quarterly reports containing such information, shall have been posted by the Administrative Agent on IntraLinks or a similar site to which the Lenders have been granted access or shall be available on the website of the SEC at http://www.sec.gov; provided that the Borrower shall notify (which may be by facsimile or electronic mail) the Administrative Agent of the posting of such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e. soft copies) of such documents.  Information required to be delivered pursuant to this Section 5.01 may also be delivered by electronic communications pursuant to procedures approved by the Administrative Agent.  In the event any financial statements delivered under clause (a) or (b) above shall be restated, the Borrower shall deliver, promptly after such restated financial statements become available, revised completed certificates with respect to the periods covered thereby that give effect to such restatement, signed by a Financial Officer.

 

The Borrower acknowledges and agrees that all financial statements furnished pursuant to paragraphs (a) and (b) above (but not any Reconciliation unless it is marked “PUBLIC” by the Borrower) are hereby deemed to be Borrower Materials suitable for distribution, and to be made available, to Public Lenders as contemplated by Section 9.18 and may be treated by the Administrative Agent and the Lenders as if the same had been marked “PUBLIC” in accordance with such paragraph (unless the Borrower otherwise notifies the Administrative Agent in writing on or prior to delivery thereof).

 

SECTION 5.02              Notices of Material Events.  The Borrower will furnish to the Administrative Agent for delivery to each Lender prompt written notice of the following:

 

(a)                                 the occurrence of any Default;

 

(b)                                 the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against the Borrower or any Restricted Subsidiary thereof as to which there is a reasonable likelihood of an adverse determination that would reasonably be expected to result in a Material Adverse Effect;

 

(c)                                  the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, would reasonably be expected to result in liability of the Borrower or its Restricted Subsidiaries in an amount which would constitute a Material Adverse Effect; and

 

(d)                                 any other development that results in, or would reasonably be expected to result in, a Material Adverse Effect.

 

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

 

SECTION 5.03              Existence; Conduct of Business.  The Borrower will, and will cause each of its Restricted Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business except in each case (i) where the failure to do so would not reasonably be expected to result in a Material Adverse Effect or (ii) as such action is not prohibited under Section 6.03, 6.04 or 6.05.

 

SECTION 5.04              Payment of Obligations.  The Borrower will, and will cause each of its Restricted Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, would, individually or in the aggregate,

 

83

 

reasonably be expected to result in a Material Adverse Effect before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower or such Restricted Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest would not reasonably be expected to, individually or in the aggregate, result in a Material Adverse Effect.

 

SECTION 5.05              Maintenance of Properties; Insurance.

 

(a)                                 The Borrower will, and will cause each of its Restricted Subsidiaries to (i) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, (ii) maintain, with financially sound and reputable insurance companies insurance (subject to customary deductibles and retentions, as determined by the Borrower) in such amounts and against such risks as are customarily maintained by similarly situated companies engaged in the same or similar businesses operating in the same or similar locations, and within thirty (30) days after the Closing Date (or such later date as the Collateral Agent may agree in its reasonable discretion), cause the Collateral Agent to be listed as a co-loss payee on property policies with respect to tangible personal property and assets constituting Collateral located in the United States of America and as an additional insured on all general liability policies, and (iii) and use commercially reasonable efforts to maintain, prosecute and enforce its material Intellectual Property, in each case except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect.  Notwithstanding the foregoing, the Borrower and its Restricted Subsidiaries may (i) maintain all such insurance with any combination of primary and excess insurance, (ii) maintain any or all such insurance pursuant to master or so-called “blanket policies” insuring any or all Collateral and/or other Real Property which does not constitute Collateral (and in such event the co-payee endorsement shall be limited or otherwise modified accordingly), and/or (iii) self-insure with respect to such risks with respect to which similarly situated companies engaged in the same or similar businesses operating in the same or similar locations usually self-insure, as determined by the Borrower.

 

(b)                                 Except as the Collateral Agent may agree in its reasonable discretion, within thirty (30) days after the date on which a Mortgaged Property is required to be encumbered by a Mortgage hereunder ((or such later date (A) not to exceed an additional fifteen (15) days if reasonably required by Borrower or (B) as such period may be further extended in the sole discretion of the Collateral Agent), subject to Section 5.05(a)(ii), cause all such property and casualty insurance policies with respect to the Mortgaged Property located in the United States of America to be endorsed or otherwise amended to include a “standard” lender’s loss payable endorsement, in form and substance reasonably satisfactory to the Collateral Agent, deliver a certificate of insurance to the Collateral Agent; deliver to the Collateral Agent, prior to or concurrently with the cancellation or nonrenewal of any such policy of insurance covered by this clause (b), a copy of a renewal or replacement policy (or other evidence of renewal of a policy previously delivered to the Collateral Agent), or insurance certificate with respect thereto, together with evidence satisfactory to the Collateral Agent of payment of the premium therefor, in each case of the foregoing, to the extent customarily maintained, purchased or provided to, or at the request of, lenders by similarly situated companies in connection with credit facilities of this nature.

 

(c)                                  At the time of delivery of the applicable Mortgage, if any portion of any Mortgaged Property is located in an area identified by the Federal Emergency Management Agency (or any successor agency) as a special flood hazard area with respect to which flood insurance has been made available under the Flood Insurance Laws (i) maintain, or cause to be maintained, with a financially sound and reputable insurer, flood insurance in an amount and otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to the Flood Insurance Laws, (ii) provide information reasonably required by the Collateral Agent (or a Lender as requested through the Collateral Agent) to comply with the Flood Insurance Laws, and (iii) deliver to the Collateral Agent evidence of such compliance in form and substance reasonably acceptable to the Collateral Agent, including, without limitation, upon the request of the Collateral Agent (or a Lender as requested through the Collateral Agent), evidence of annual renewals of such insurance; provided that the Collateral Agent may not waive the Borrower’s obligation to maintain and deliver evidence of flood insurance required by the Flood Insurance Laws, as reasonably determined by the Collateral Agent; provided, further, however, that the Administrative Agent may, in its sole discretion, exclude any Material Real Property from the Collateral and Guarantee Requirement and the requirements of this Section 5.05(c) where the cost and time required to comply with the Flood Insurance Laws and the provisions of this Section 5.05(c) are deemed, in the sole discretion of the Administrative Agent, too onerous.

 

84

 

(d)                                 In connection with the covenants set forth in this Section 5.05, it is understood and agreed that:

 

(i)                                      the Administrative Agent, the Collateral Agent, the Lenders and their respective agents or employees shall not be liable for any loss or damage insured by the insurance policies required to be maintained under this Section 5.05, it being understood that (A) the Loan Parties shall look solely to their insurance companies or any other parties other than the aforesaid parties for the recovery of such loss or damage and (B) such insurance companies shall have no rights of subrogation against the Administrative Agent, the Collateral Agent, the Lenders or their agents or employees.  If, however, the insurance policies, as a matter of the internal policy of such insurer, do not provide waiver of subrogation rights against such parties, as required above, then the Borrower, on behalf of itself and behalf of each of its Subsidiaries, hereby agrees, to the extent permitted by law, to waive, and further agrees to cause each of their Subsidiaries to waive, its right of recovery, if any, against the Administrative Agent, the Collateral Agent, the Lenders and their agents and employees;

 

(ii)                                      the designation of any form, type or amount of insurance coverage by the Collateral Agent (including acting in the capacity as the Collateral Agent) under this Section 5.05 shall in no event be deemed a representation, warranty or advice by the Collateral Agent or the Lenders that such insurance is adequate for the purposes of the business of the Borrower and the Subsidiaries or the protection of their properties; and

 

(iii)                                       the amount and type of insurance that the Borrower and its Restricted Subsidiaries have in effect as of the Amendment Effective Date and the certificates listing the Collateral Agent as a co-loss payee or additional insured, as the case may be, satisfy for all purposes the requirements of this Section 5.05.

 

SECTION 5.06              Books and Records; Inspection Rights.  The Borrower will, and will cause each of its Restricted Subsidiaries to, keep proper books of record and account in which full, true and correct entries in all material respects are made of all dealings and transactions in relation to its business and activities.  The Borrower will, and will cause each of its Restricted Subsidiaries to, permit any representatives designated by the Administrative Agent or any Lender to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants all at such reasonable times and as often as reasonably requested, provided that such visits, inspections, examinations and discussions shall, so long as no Default or Event of Default has occurred and is continuing, take place no more often than one time per fiscal year on a date to be determined by, and shall be coordinated by, the Borrower and the Administrative Agent.

 

SECTION 5.07              Compliance with Laws.  The Borrower will, and will cause each of its Restricted Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

 

SECTION 5.08              Use of Proceeds.  On and after the Amendment Effective Date, the proceeds of the Loans will be used to finance the working capital needs  and for general corporate purposes of the Borrower and its subsidiaries.

 

SECTION 5.09              Subsidiary Guarantors and Collateral.

 

(a)                                 On the Amendment Effective Date (A) each Restricted Subsidiary (other than an Excluded Subsidiary) will continue to be a party to the Guarantee Agreement and (B) each Restricted Subsidiary (other than an Excluded Subsidiary) will continue to be a party to the Security Agreement and pledge all of the Equity Interests of any Restricted Subsidiary (other than Excluded Securities) directly owned by such Restricted Subsidiary and any other shares, stock certificates, options, interests or rights of any nature whatsoever in respect of the Equity Interests of any Restricted Subsidiary (other than Excluded Securities) that may be issued or granted to, or held by, such Restricted Subsidiary while this Agreement is in effect; provided that such Restricted Subsidiary shall not be required to take any action (including entry into any foreign pledge agreement or similar document) other than those

 

85

 

actions expressly set forth in this clause (B) and deliver to the Collateral Agent any and all certificates representing such Equity Interests (to the extent certificated and not previously delivered to the Collateral Agent), accompanied by undated stock powers or other appropriate instruments of transfer executed in blank.

 

(b)                                 If any asset (other than Real Property) is acquired by the Borrower or any Subsidiary Guarantor after the Closing Date or owned by an entity at the time it becomes a Subsidiary Guarantor (in each case other than (x) assets constituting Collateral under a Collateral Document that automatically become subject to the Lien of such Collateral Document upon acquisition thereof and (y) assets constituting Excluded Collateral (as defined in the Security Agreement)), the Borrower or such Subsidiary Guarantor, as applicable, will (i) notify the Collateral Agent of such acquisition or ownership and (ii) cause such asset to be subjected to a Lien (subject to any Permitted Liens) securing the Obligations by, and take, and cause the Subsidiary Guarantors to take, such actions as shall be reasonably requested by the Collateral Agent to satisfy the Collateral and Guarantee Requirement with respect to such asset, including actions described in clause (a) of this Section 5.09, all at the expense of the Loan Parties, subject to the last paragraph of this Section 5.09.

 

(c)                                  Borrower will grant and cause each of the Subsidiary Guarantors to grant to the Collateral Agent security interests in, and mortgages on, any Material Real Property of the Borrower or such Subsidiary Guarantors, as applicable, to the extent acquired after the Closing Date, within ninety (90) days after such acquisition (or such later date as the Collateral Agent may agree in its reasonable discretion) pursuant to documentation in such form as is reasonably satisfactory to the Collateral Agent and the Borrower (each, an “Additional Mortgage”), which security interest and mortgage shall constitute valid and enforceable Liens subject to no other Liens except Permitted Liens and (ii) record, register or file, and cause each such Subsidiary Guarantor to record, register or file, the Additional Mortgage or instruments related thereto in such manner and in such places as is required by law to establish, perfect, preserve and protect the Liens in favor of the Collateral Agent (for the benefit of the Secured Parties) required to be granted pursuant to the Additional Mortgages and pay, and cause each such Subsidiary to pay, in full, all Taxes, fees and other charges required to be paid in connection with such recording or filing, in each case subject to the last paragraph of this Section 5.09.  Unless otherwise waived by the Collateral Agent, with respect to each such Additional Mortgage, the Borrower shall cause the requirements set forth in clauses (h) and (i) of the definition of “Collateral and Guarantee Requirement” to be satisfied with respect to such Material Real Property.

 

(d)                                 If any additional direct or indirect Subsidiary of the Borrower is formed, acquired or ceases to constitute an Excluded Subsidiary following the Closing Date and such Subsidiary is (1) a Material Domestic Subsidiary of the Borrower that is not an Excluded Subsidiary or (2) any other Domestic Subsidiary of the Borrower that may be designated by the Borrower in its sole discretion,  within sixty (60) days after the date such Subsidiary is formed or acquired or meets such criteria (or first becomes subject to such requirement) (or such longer period as the Collateral Agent may agree in its sole discretion), Borrower shall notify the Collateral Agent thereof and, within sixty (60) days after the date such Subsidiary is formed or acquired or meets such criteria (or first becomes subject to such requirement) or such longer period as the Collateral Agent may agree in its sole discretion, cause such Subsidiary to become a Subsidiary Guarantor and cause the Collateral and Guarantee Requirement to be satisfied with respect to such Subsidiary and with respect to any Equity Interest in or Indebtedness of such Subsidiary owned by or on behalf of any Loan Party, subject to the last paragraph of this Section 5.09.  Notwithstanding anything to the contrary herein, in no circumstance shall an Excluded Subsidiary become a Subsidiary Guarantor unless designated as a Subsidiary Guarantor by the Borrower in its sole discretion.

 

(e)                                  Borrower shall furnish to the Collateral Agent prompt written notice of any change (A) in any Loan Party’s corporate or organization name, (B) in any Loan Party’s identity or organizational structure, (C) in any Loan Party’s organizational identification number (to the extent relevant in the applicable jurisdiction of organization) and (D) in any Loan Party’s jurisdiction of organization; provided that the Borrower shall not effect or permit any such change unless all filings have been made, or will have been made within sixty (60) days following such change (or such longer period as the Collateral Agent may agree in its sole discretion), under the Uniform Commercial Code (or its equivalent in any applicable jurisdiction) that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected security interest in all the Collateral in which a security interest may be perfected by such filing, for the benefit of the Secured Parties.

 

86

 

(f)                                   In addition, in no event shall (1) control agreements or control, lockbox or similar agreements or arrangements be required with respect to deposit accounts, securities accounts or commodities accounts, (2) landlord, mortgagee and bailee waivers or subordination agreements be required, (3) notices be required to be sent to account debtors or other contractual third parties unless an Event of Default has occurred and is continuing and (4) foreign-law governed security documents or perfection under foreign law be required.

 

SECTION 5.10              [Reserved].

 

SECTION 5.11              Further Assurances.  Promptly upon the reasonable request by the Administrative Agent, or any Lender through the Administrative Agent, the Borrower shall, or shall cause the Subsidiary Guarantors to (i) correct any material defect or error that may be discovered in the execution, acknowledgment, filing or recordation of any Loan Document, and (ii) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably require from time to time in order to (x) carry out the purposes of the Loan Documents, (y) satisfy the Collateral and Guarantee Requirement and to cause the Collateral and Guarantee Requirement to be and remain satisfied and (z) perfect and maintain the validity and effectiveness of the Collateral Documents and any of the Liens created thereunder.  Notwithstanding anything herein to the contrary, (A) the Collateral Agent may grant extensions of time or waiver or modification of requirement for the creation or perfection of security interests in or the obtaining of insurance (including title insurance) or surveys with respect to particular assets (including extensions beyond the Closing Date for the perfection of security interests in the assets of the Loan Parties on such date) where it reasonably determines, in consultation with the Borrower, that perfection or obtaining of such items cannot reasonably be accomplished without undue effort or expense or is otherwise impracticable by the time or times at and/or in the form or manner in which it would otherwise be required by this Agreement or the other Loan Documents, (B) Liens required to be granted from time to time pursuant to, or any other requirements of, the Collateral and Guarantee Requirement and the Collateral Documents shall be subject to exceptions and limitations set forth in the Collateral Documents and (C) to the extent any Mortgaged Property is located in a jurisdiction with mortgage recording or similar Tax, the amount secured by the Collateral Documents with respect to such Mortgaged Property shall be limited to the Fair Market Value of such Mortgaged Property as determined in good faith by the Borrower (subject to such lesser amount agreed to by the Collateral Agent).

 

ARTICLE VI

 

Negative Covenants

 

Until the Revolving Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired or have been cash collateralized, the Borrower covenants and agrees with the Lenders that:

 

SECTION 6.01              Indebtedness.  The Borrower will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except:

 

(a)                                 Indebtedness incurred under the Loan Documents;

 

(b)                                 Indebtedness in respect of Permitted Ratio Debt and any Refinancing Indebtedness thereof;

 

(c)                                  (i) Indebtedness of the Borrower or any other subsidiary incurred to finance the acquisition, construction or improvement of any fixed or capital assets, including Capital Lease Obligations, and any Indebtedness assumed in connection with the acquisition of any such assets (provided that such Indebtedness is incurred or assumed prior to or within 90 days after such acquisition or the completion of such construction or improvement and the principal amount of such Indebtedness does not exceed the cost of acquiring, constructing or improving such fixed or capital assets) in an aggregate amount under this clause (c) not to exceed the greater of $30,000,000 and 2.0% of Total Assets as of the time of incurrence; provided that (x) no Default shall have occurred and be continuing and (y) the Borrower shall

 

87

 

be in pro forma compliance with Section 6.10 (whether or not the Testing Condition is satisfied) and (ii) any Refinancing Indebtedness thereof;

 

(d)                                 (i) Indebtedness of Foreign Subsidiaries in an aggregate principal amount at any time outstanding under this clause (d) not to exceed the multiple of (x) $50,000,000 and (y) the sum of 100% plus the percentage (which shall not be less than 0%) by which Consolidated EBITDA of the Borrower for the most recently ended Test Period exceeds $157,605,000 and (ii) any Refinancing Indebtedness thereof;

 

(e)                                  (i) Indebtedness of any Non-Loan Party in an aggregate principal amount not to exceed the greater of (x) $30,000,000 and (y) 2.0 % of Total Assets as of the time of incurrence and (ii) any Refinancing Indebtedness thereof;

 

(f)                                   Guarantees of any Indebtedness permitted pursuant to this Section 6.01 and any Refinancing Indebtedness thereof, so long as in the case of clause (b), the Loans are guaranteed by such Restricted Subsidiary to at least the same extent;

 

(g)                                  [Reserved];

 

(h)                                 (x) Indebtedness of the Borrower owed to any Restricted Subsidiary or of a Restricted Subsidiary owed to any other Restricted Subsidiary or the Borrower and (y) Guarantees by any Restricted Subsidiary or the Borrower of any Indebtedness of the Borrower or any other Restricted Subsidiary; provided, however, that upon any such Indebtedness being owed to any Person other than the Borrower or a Restricted Subsidiary or any such guarantee being of Indebtedness of any Person other than the Borrower or a Restricted Subsidiary, as applicable, the Borrower or such Restricted Subsidiary, as applicable, shall be deemed to have incurred Indebtedness not permitted by this clause (h);

 

(i)                                     Indebtedness outstanding on the Amendment Effective Date and set forth on Schedule 6.01 and any Refinancing Indebtedness thereof;

 

(j)                                     (i) Indebtedness of any Person that becomes a Restricted Subsidiary after the Amendment Effective Date or is merged with or into or consolidated or amalgamated with the Borrower or any Restricted Subsidiary after the Amendment Effective Date and Indebtedness expressly assumed in connection with the acquisition of an asset or assets from any other Person; provided that (A) such Indebtedness existed at the time such Person became a Restricted Subsidiary or of such merger, consolidation, amalgamation or acquisition and was not created in anticipation thereof and (B) immediately after such Person becomes a Restricted Subsidiary or such merger, consolidation, amalgamation or acquisition, (x) no Default shall have occurred and be continuing, and (y) the Borrower shall be in pro forma compliance with Section 6.10 (whether or not the Testing Condition is satisfied) and (ii) any Refinancing Indebtedness of such Indebtedness described in clause (i);

 

(k)                                 Indebtedness constituting Investments not prohibited under Section 6.11 (other than Section 6.11(g));

 

(l)                                     Indebtedness in respect of bid, performance, surety bonds or completion bonds issued for the account of the Borrower or any Restricted Subsidiary in the ordinary course of business, including guarantees or obligations of the Borrower or any Restricted Subsidiary with respect to letters of credit supporting such bid, performance, surety or completion obligations;

 

(m)                             Indebtedness owed to any officers or employees of the Borrower or any Restricted Subsidiary; provided that the aggregate principal amount of all such Indebtedness shall not exceed $5,000,000 at any time outstanding;

 

(n)                                 Indebtedness arising or incurred as a result of or from the adjudication or settlement of any litigation or from any arbitration or mediation award or settlement, in any case involving the Borrower

 

88

 

or any Restricted Subsidiary, provided that the judgment, award(s) and/or settlements to which such Indebtedness relates would not constitute an Event of Default under Section 7.01(j);

 

(o)                                 indemnification, adjustment of purchase price, deferred purchase price, contingent consideration or other compensation or similar obligations, in each case, incurred or assumed in connection with the acquisition or disposition of any business or assets of the Borrower or any Restricted Subsidiary or Equity Interests of a Restricted Subsidiary, other than Guarantees of Indebtedness incurred by any Person acquiring all or any portion of such business, assets or Equity Interests for the purpose of financing or in contemplation of any such acquisition; provided that, in the case of a disposition, the maximum aggregate liability in respect of all such obligations incurred or assumed in connection with such disposition outstanding under this clause (o) shall at no time exceed the gross proceeds (including Fair Market Value of noncash proceeds measured at the time such noncash proceeds are received) actually received by the Borrower and the Restricted Subsidiaries in connection with such disposition;

 

(p)                                 unsecured Indebtedness in respect of obligations of the Borrower or any of its Restricted Subsidiaries to pay the deferred purchase price of goods or services or progress payments in connection with such goods and services; provided that such obligations are incurred in connection with open accounts extended by suppliers on customary trade terms (which require that all such payments be made within 60 days after the incurrence of the related obligations) in the ordinary course of business and not in connection with the borrowing of money;

 

(q)                                 letters of credit, bank guarantees, warehouse receipts or similar instruments issued to support performance obligations and trade letters of credit (other than obligations in respect of other Indebtedness) in the ordinary course of business;

 

(r)                                    Indebtedness arising (A) from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided, however, that such Indebtedness is extinguished within five Business Days of incurrence, (B) under any customary cash pooling or cash management agreement with a bank or other financial institution in the ordinary course of business or (C) from Cash Management Obligations;

 

(s)                                   Indebtedness representing deferred compensation incurred in the ordinary course of business;

 

(t)                                    Indebtedness arising in connection with endorsement of instruments for deposit in the ordinary course of business;

 

(u)                                 Indebtedness supported by a letter of credit, bank guarantee or similar instrument, in principal amount not in excess of the stated amount of such letter of credit, bank guarantee or similar instrument;

 

(v)                                 the disposition of accounts receivable in connection with receivables factoring arrangements in the ordinary course of business;

 

(w)                               (i) Indebtedness of the Borrower consisting of obligations for the payment of letters of credit in commitment amounts under this clause (w) not to exceed the greater of $30,000,000 and 2.0% of Total Assets in the aggregate at the time of incurrence, excluding any commitment amounts for letters of credit issued pursuant to Indebtedness incurred under any other clause of this Section 6.01 and (ii) any Refinancing Indebtedness thereof;

 

(x)                                 any guarantee by the Borrower or any of its Restricted Subsidiaries, in the ordinary course of business, of obligations of suppliers, customers, franchisees and licensees of the Borrower or any of its Restricted Subsidiaries;

 

(y)                                  [reserved];

 

89

 

(z)                                  unsecured intercompany Indebtedness owed by the Borrower or any of its Restricted Subsidiaries to a member of the IAC Group (the “IAC Debt Facility”), so long as, (I) in respect of each borrowing, on a pro forma basis after giving effect thereto and the use of proceeds thereof the Consolidated Net Leverage Ratio is equal to or less than 4.25 to 1.00 (excluding any cash constituting proceeds of such Indebtedness), (II) no Default or Event of Default shall have occurred and be continuing or would exist after giving effect thereto, (III) the Borrower shall be in compliance with Section 6.10 (whether or not the Testing Condition is satisfied) on a pro forma basis after giving effect to the incurrence of any such borrowing and the use of proceeds thereof, (IV) other than with respect to Indebtedness the aggregate principal amount of which does not exceed $50,000,000, (A) such Indebtedness has a scheduled final maturity date of at least 90 days after the Initial Term Loan Maturity Date and any then outstanding Incremental Facility and such Indebtedness shall not require any mandatory prepayments other than in connection with a change of control and (V) such Indebtedness (x) shall not require scheduled amortization payments, (y) shall have no financial maintenance covenants of a different type than the financial covenants set forth in Section 6.10, and no financial maintenance covenants that are more restrictive than the financial covenants set forth in Section 6.10, and (z) does not have negative covenants and/or default provisions that are, taken as a whole, materially more restrictive than those applicable to this Agreement as determined in good faith by the Borrower and (B) such Indebtedness shall not be guaranteed by any subsidiaries of the Borrower other than Guarantees by the Subsidiary Guarantors that by their terms are subordinated in right of payment to the obligations under the this Agreement; and

 

(aa)                          (i) Indebtedness of Loan Parties in an aggregate principal amount under this clause (aa) not to exceed the greater of $30,000,000 and 2.0% of Total Assets at the time of incurrence and (ii) any Refinancing Indebtedness thereof.

 

Accrual of interest, the accretion of accreted value and the payment of interest in the form of additional Indebtedness will not be deemed to be an incurrence of Indebtedness for purposes of this Section 6.01.  For purposes of determining compliance with this Section 6.01,(i) Indebtedness need not be incurred solely by reference to one category of described in this Section 6.01 but may be incurred under any combination of such categories (including in part under one such category and in part under any other such category) and (ii) in the event that Indebtedness incurred pursuant to this Section 6.01 meets the criteria of more than one of the types of Indebtedness described in  this Section 6.01, the Borrower, in its sole discretion, shall classify, or later divide, classify or reclassify (as if incurred at such later time) such item of Indebtedness and may include the amount and type of such Indebtedness in one or more of the clauses this Section 6.01 (including in part under one such clause and in part under another such clause); provided that if at any time any applicable ratio or financial test for any  category based on an Incurrence Based Amounts permits any Indebtedness outstanding under a category based on a Fixed Amount, such Indebtedness shall be deemed to have been automatically reclassified as incurred or existing under such category based on an Incurrence Based Amount.

 

SECTION 6.02              Liens.  The Borrower will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except:

 

(a)                                 Permitted Encumbrances;

 

(b)                                 any Lien on any property or asset of the Borrower or any Restricted Subsidiary (or any improvements or accession thereto or proceeds therefrom) existing on the Amendment Effective Date and set forth in Schedule 6.02; provided that (i) such Lien shall not apply to any other property or asset of the Borrower or any Restricted Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the Amendment Effective Date and any Refinancing Indebtedness in respect thereof;

 

(c)                                  any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any Restricted Subsidiary or existing on any property or asset of any Person that becomes a Restricted Subsidiary after the Closing Date prior to the time such Person becomes a Restricted Subsidiary; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Restricted Subsidiary, as the case may be, (ii) such Lien shall not apply to any other

 

90

 

property or assets of the Borrower or any Restricted Subsidiary and (iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Restricted Subsidiary, as the case may be, and any Refinancing Indebtedness in respect thereof;

 

(d)                                 Liens securing Indebtedness of the Borrower or any Restricted Subsidiary incurred pursuant to Section 6.01(c); provided that (i) such Liens are incurred prior to or within 90 days after such acquisition or the completion of such construction and improvement with the acquisition of such fixed or capital assets, and (ii) such Liens do not at any time encumber any of its existing property other than the property financed by such Indebtedness;

 

(e)                                  deposits, reserves and other Liens securing credit card operations of the Borrower and its Restricted Subsidiaries;

 

(f)                                   Liens created by the Collateral Documents or otherwise securing the Obligations;

 

(g)                                  Liens on the Collateral securing Permitted Secured Ratio Debt;

 

(h)                                  [reserved];

 

(i)                                     Liens securing Guarantees of Permitted Secured Ratio Debt and Indebtedness permitted pursuant to Section 6.01(a); provided that, with respect to any such Liens securing Guarantees of Permitted Secured Ratio Debt an intercreditor agreement reasonably satisfactory to the Administrative Agent with respect to such Liens is in effect at such time;

 

(j)                                    Liens that do not secure Indebtedness and do not interfere with the material operations of the Borrower and the Restricted Subsidiaries and do not individually or in the aggregate materially impair the value of the assets of the Borrower and the Restricted Subsidiaries;

 

(k)                                 Liens deemed to secure Capital Lease Obligations incurred in connection with any sale and leaseback transaction permitted by Section 6.08;

 

(l)                                     licenses, sublicenses, leases or subleases that do not interfere in any material respect with the business of the Borrower or any Restricted Subsidiary;

 

(m)                             any interest or title of a lessor or sublessor under, and Liens arising from Uniform Commercial Code financing statements (or equivalent filings, registrations or agreements in foreign jurisdictions) relating to, leases and subleases permitted hereunder;

 

(n)                                 normal and customary rights of setoff upon deposits of cash or other Liens originating solely by virtue of any statutory or common law provision relating to bankers liens, rights of setoff or similar rights in favor of banks or other depository institutions and not securing any Indebtedness;

 

(o)                                 Liens of a collection bank arising under Section 4-210 of the Uniform Commercial Code on items in the course of collection;

 

(p)                                 Liens solely on any cash earnest money deposits made by the Borrower or any Restricted Subsidiary in connection with any letter of intent or purchase agreement in respect of any acquisition or other investment by the Borrower or any Restricted Subsidiary;

 

(q)                                 Liens on assets of Non-Loan Parties securing Indebtedness permitted pursuant to Sections 6.01(d) and (e);

 

(r)                                    any extension, renewal or replacement (or successive renewals or replacements) in whole or in part of any Lien referred to in clause (b), (c), (d), (g), (i) or (q); provided that with respect to (b), (c), and (d), (x) the obligations secured thereby shall be limited to the obligations secured by the Lien so

 

91

 

extended, renewed or replaced (and, to the extent provided in such clauses, extensions, renewals and replacements thereof) and (y) such Lien shall be limited to all or a part of the assets that secured the Lien so extended, renewed or replaced;

 

(s)                                   Liens encumbering deposits made to secure obligations arising from common law, statutory, regulatory, contractual or warranty requirements of the Borrower or any Restricted Subsidiary, including rights of offset and setoff;

 

(t)                                    Liens securing Hedging Obligations entered into for bona  fide hedging purposes of the Borrower or any Restricted Subsidiary not for the purpose of speculation;

 

(u)                                 Liens in favor of a Loan Party;

 

(v)                                 Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods and Liens in the ordinary course of business in favor of issuers of performance and surety bonds or bid bonds or with respect to health, safety and environmental regulations (other than for borrowed money) or letters of credit or bank guarantees issued to support such bonds or requirements pursuant to the request of and for the account of such Person in the ordinary course of business;

 

(w)                               Interests of vendors in inventory arising out of such inventory being subject to a “sale or return” arrangement with such vendor or any consignment by any third party of any inventory;

 

(x)                                 Liens securing Indebtedness owed by (a) a Restricted Subsidiary to the Borrower or to any other Restricted Subsidiary that is a Subsidiary Guarantor or (b) the Borrower to a Subsidiary Guarantor;

 

(y)                                 Liens securing obligations pursuant to cash management agreements and treasury transactions; and

 

(z)                                  Liens arising under any retention of title, hire purchase or conditional sale arrangement or arrangements having similar effect in respect of goods supplied to the Borrower and its Restricted Subsidiaries in the ordinary course of trading and on the supplier’s standard or usual terms.

 

provided that, at any time, no voluntary Lien shall be created, incurred, assumed or permitted to exist on any Equity Interests of any Restricted Subsidiary required to be pledged to secure the Obligations hereunder other than (i) Permitted Encumbrances described in clauses (a), (b) and (e) of the definition of “Permitted Encumbrances,” (ii) Liens securing the Obligations and (iii) Liens securing Permitted Secured Ratio Debt (and Liens securing Guarantees thereof permitted by Section 6.01(f)).

 

For purposes of determining compliance with this Section 6.02, (i) any Lien need not be incurred solely by reference to one category of described in this Section 6.02 but may be incurred under any combination of such categories (including in part under one such category and in part under any other such category) and (ii) in the event that any Lien incurred pursuant to this Section 6.02 meets the criteria of more than one of the types of Lien described in  this Section 6.02, the Borrower, in its sole discretion, shall classify, or later divide, classify or reclassify (as if incurred at such later time), such Lien and may include the amount and type of such Lien in one or more of the clauses this Section 6.02 (including in part under one such clause and in part under another such clause); provided that if at any time any applicable ratio or financial test for any category based on an Incurrence Based Amounts permits any Indebtedness outstanding under a category based on a Fixed Amount, such Lien shall be deemed to have been automatically reclassified as incurred or existing under such category based on an Incurrence Based Amount.

 

SECTION 6.03              Fundamental Changes.  The Borrower will not, and will not permit any Restricted Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or otherwise Dispose of (in one transaction or in a series of related transactions) all or

 

92

 

substantially all of its assets, or all or substantially all of the stock of any of its Restricted Subsidiaries (in each case, whether now owned or hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing:

 

(i)                                      any Person may merge or be consolidated with or into the Borrower in a transaction in which the Borrower is the continuing or surviving Person;

 

(ii)                                      any Person (other than the Borrower) may merge or consolidate with or into any Restricted Subsidiary in a transaction in which the surviving entity is or becomes a Restricted Subsidiary; provided that, if such Person is a Subsidiary Guarantor, the surviving entity is the Borrower or is or substantially concurrently becomes a Subsidiary Guarantor;

 

(iii)                                       any merger, consolidation, Disposition, liquidation or dissolution not prohibited by Sections 6.04, 6.05 and 6.11 shall be permitted;

 

(iv)                                     any Restricted Subsidiary may Dispose of all or substantially all of its assets, or all or substantially all of the stock of its Restricted Subsidiaries, in each case to the Borrower or to another Restricted Subsidiary or to any Person who becomes a Restricted Subsidiary in connection with such Disposition, and the Borrower may Dispose of substantially all of its assets, or substantially all of the stock of its Restricted Subsidiaries, in each case to any Restricted Subsidiary or to any Person who becomes a Restricted Subsidiary in connection with such Disposition;

 

(v)                                     any Restricted Subsidiary may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders; and

 

(vi)                                     the Borrower may (x) merge into or consolidate with any other Person, or (y) Dispose of substantially all (as determined by the Borrower) of its assets, or substantially all (as determined by the Borrower) of the stock of its direct subsidiaries to, any Restricted Subsidiary; provided, in each case, that the Person formed by or surviving such consolidation or merger or to which such Disposition is made (such Person, the “Successor Borrower”) is an entity organized and existing under the laws of any State of the United States of America or the District of Columbia, and the Successor Borrower expressly assumes, by a Joinder and Reaffirmation Agreement, all of the obligations of the Borrower under this Agreement and each other Loan Document to which the Borrower is a party and takes all actions required by the Collateral Documents to perfect the Liens on the Collateral owned by the Successor Borrower; provided, further, that as of the date of such assumption pursuant this clause (vi),

 

(A)                               the Successor Borrower shall be in compliance with Section 6.10 (whether or not the Testing Condition is satisfied) on a pro forma basis after giving effect to such assumption,

 

(B)                               each other Loan Party shall have reaffirmed such Loan Party’s obligations under the Loan Documents to which it is a party by executing and delivering a Joinder and Reaffirmation Agreement,

 

(C)                               the Administrative Agent shall have received a certificate, dated the date of such assumption and signed by the Chief Executive Officer, a Vice President, a Financial Officer of the Successor Borrower or any other executive officer of the Successor Borrower who has specific knowledge of the Successor Borrower’s financial matters and is reasonably satisfactory to the Administrative Agent, confirming that (x) after giving effect to such assumption, no Default or Event of Default has occurred and is continuing, (y) after giving effect to such assumption, the representations and warranties of each Loan Party set forth in the Credit Agreement and the Collateral Documents are true and correct in all material respects (except to the extent that any such representation and warranty is qualified by materiality or Material Adverse Effect, in which case such representation and warranty shall be true and correct in all respects) as of the date of such assumption, except to the extent that any such representation and warranty relates to an

 

93

 

earlier date (in which case such representation and warranty shall have been true and correct in all material respects (except to the extent that any such representation and warranty is qualified by materiality or Material Adverse Effect, in which case such representation and warranty shall be true and correct in all respects) as of such earlier date and (z) such merger, consolidation or Disposition complies with this Agreement,

 

(D)                               the Administrative Agent shall have received (x) a certificate of the Successor Borrower substantially in the form of Exhibit E, including all annexes, exhibits and other attachments thereto and (y) if requested by the Administrative Agent, an opinion of counsel covering such matters, and in a form, substantially the same as previously provided to the Administrative Agent under Section 4.03(b) to the extent applicable,

 

(E)                                the Borrower shall have provided any documentation and other information about the Successor Borrower as shall have been reasonably requested in writing by any Lender through the Administrative Agent that such Lender shall have reasonably determined is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including Title III of the Act and the Beneficial Ownership Regulation, and.

 

(F)                                 In the case of a Disposition under clause (y) of this clause (vi), any assets of the Borrower that are not transferred to the Successor Borrower shall be deemed to be a Restricted Payment by the Successor Borrower, and such Restricted Payment shall be subject to compliance with Section 6.05.

 

This Section 6.03(vi) shall not apply to a Disposition pursuant to clause (y) above unless the Borrower notifies the Administrative Agent that it has elected to rely on this Section 6.03(vi) to transfer the obligations of the “Borrower” hereunder and the other Loan Documents to a Successor Borrower.  Upon any consolidation, merger or Disposition with respect to which this Section 6.03(vi) applies, the Successor Borrower shall succeed to, and be substituted for, and may exercise every right and power of, the Borrower under this Agreement and the other Loan Documents, with the same effect as if such Successor Borrower had been named as the Borrower herein and therein, and with respect to any such Disposition the entity succeeded as Borrower shall be released from the obligation to pay the principal of and interest on the Loans and all of the Borrower’s other obligations and covenants under this Agreement and the other Loan Documents.

 

SECTION 6.04              Disposition of Property.  The Borrower will not, and will not permit any Restricted Subsidiary to, directly or indirectly, consummate any Asset Sale unless at the time of such transaction and after giving effect thereto and to the use of proceeds thereof (i) no Default shall have occurred and be continuing and (ii) the Borrower or such Restricted Subsidiary, as the case may be, receives consideration at least equal to the Fair Market Value of the assets sold or otherwise Disposed of, and (iii) in the case of an Asset Sale other than an Asset Swap if after giving pro  forma effect to such Asset Sale the Consolidated Net Leverage Ratio is greater than 4.00 to 1.00, at least 75% of the consideration therefor received by the Borrower or such Restricted Subsidiary, as the case may be, is in the form of cash or Cash Equivalents; provided that the amount of:

 

(i)                                      any liabilities (as reflected in the Borrower’s or such Restricted Subsidiary’s most recent balance sheet or in the footnotes thereto, or if incurred or accrued subsequent to the date of such balance sheet, such liabilities that would have been shown on the Borrower’s or such Restricted Subsidiary’s balance sheet or in the footnotes thereto if such incurrence or accrual had taken place on the date of such balance sheet) of the Borrower or such Restricted Subsidiary other than liabilities that are by their terms subordinated in right of payment to the Loans, that are assumed by the transferee of any such assets and for which the Borrower and all of its Restricted Subsidiaries have been validly released by all creditors in writing,

 

(ii)                                      any securities, notes or other similar obligations received by the Borrower or such Restricted Subsidiary from such transferee that are converted by the Borrower or such Restricted Subsidiary into cash or Cash Equivalents (to the extent so converted) within 180 days following the closing of such Asset Sale, and

 

94

 

(iii)                                       any Designated Noncash Consideration received by the Borrower or any Restricted Subsidiary in such Asset Sale having an aggregate Fair Market Value, taken together with all other Designated Noncash Consideration received pursuant to this clause (iii) that is at that time outstanding, not to exceed an amount equal to the greater of $30,000,000 and 2.0% of Total Assets at the time of the receipt of such Designated Noncash Consideration, with the Fair Market Value of each item of Designated Noncash Consideration being measured at the time received and without giving effect to subsequent changes in value,

 

shall be deemed to be cash or Cash Equivalents for purposes of this provision and for no other purpose.

 

SECTION 6.05              Restricted Payments.  The Borrower will not, and will not permit any of its Restricted Subsidiaries to, declare or make, directly or indirectly, any Restricted Payment, except:

 

(i)                                      the payment by the Borrower or any Restricted Subsidiary of any dividend or the consummation of any irrevocable redemption within 60 days after the date of declaration thereof or giving the notice of the redemption, if on the date of declaration or notice the payment would have complied with the provisions of this Agreement (assuming, in the case of redemption, the giving of the notice would have been deemed to be a Restricted Payment at such time and such deemed Restricted Payment would have been permitted at such time);

 

(ii)                                      the Borrower may declare or make a Restricted Payment with respect to its Equity Interest payable solely in Qualified Equity Interests or redeem any of its Equity Interests in exchange for, or out of the proceeds of the substantially concurrent issuance and sale of, Qualified Equity Interests or through accretion or accumulation of such dividends on such Equity Interests;

 

(iii)                                       repurchase, redemption or other acquisition for value by the Borrower of, Equity Interests of the Borrower held by officers, directors or employees or former officers, directors or employees of the Borrower and any Restricted Subsidiary (or their transferees, estates or beneficiaries under their estates), upon their death, disability, retirement, severance or termination of employment or service; provided that the aggregate cash consideration paid for all such redemptions shall not exceed $10,000,000 during any twelve consecutive months (with unused amounts in any period being carried over to succeeding periods); provided, further, that cancellation of Indebtedness owing to the Borrower or any Restricted Subsidiary from any current or former officer, director or employee (or any permitted transferees thereof) of the Borrower or any of its Restricted Subsidiaries (or any direct or indirect parent company thereof), in connection with a repurchase of Equity Interests of the Borrower from such Persons will not be deemed to constitute a Restricted Payment for purposes of this covenant or any other provisions of this Agreement;

 

(iv)                                     repurchases of Equity Interests (a) deemed to occur upon the exercise of stock options, warrants, or similar rights if the Equity Interests represent all or a portion of the exercise price thereof, (b) in connection with the satisfaction of any withholding Tax obligations incurred relating to the vesting or exercise of stock options, warrants, restricted stock units or similar rights or (c) solely to offset the dilution of the IAC Group’s Equity Interests in the Borrower as a result of the exercise of stock options, warrants, restricted stock units or similar rights and for the purpose of maintaining tax consolidation with the IAC Group (as determined by the Borrower); provided that, with respect to this clause (c), immediately prior to and after giving effect to any such repurchase, the IAC Group shall own not less than 80% by vote and value and not greater than 83% by value of the Equity Interests of the Borrower that are treated as “stock” for purposes of Section 1504(a)(2) of the Code;

 

(v)                                     any Restricted Payment made out of the net cash proceeds of the substantially concurrent sale of, or made by exchange for, Qualified Equity Interests of the Borrower (other than Qualified Equity Interests issued or sold to a Restricted Subsidiary of the Borrower or an employee stock ownership plan or to a trust established by the Borrower or any of its Restricted Subsidiaries for the benefit of their employees) or a substantially concurrent cash capital contribution received by the Borrower from its stockholders;

 

95

 

(vi)                                     payments or distributions to dissenting stockholders pursuant to applicable law, pursuant to or in connection with a consolidation, merger or transfer of all or substantially all of the assets of the Borrower and its Restricted Subsidiaries that complies with the provisions of Section 6.03;

 

(vii)                                      any Restricted Subsidiary may declare or make a Restricted Payment with respect to the Equity Interests of such Restricted Subsidiary to the Borrower or any other Restricted Subsidiary (and, in the case of a Restricted Subsidiary that is not a Wholly Owned Subsidiary, to each owner of Equity Interests of such Restricted Subsidiary such that the Borrower or Restricted Subsidiary receives at least its pro rata share of such dividend or distribution);

 

(viii)                                       Restricted Payments in an aggregate amount not to exceed $50,000,000;

 

(ix)                                     Restricted Payments made prior to the Amendment Effective Date in an aggregate amount not to exceed the IAC Dividend Amount;

 

(x)                                     Restricted Payments so long as after giving effect thereto on a pro forma basis, (i) the Consolidated Net Leverage Ratio is equal to or less than 4.25 to 1.00 and (ii) no Default shall have occurred and be continuing;

 

(xi)                                     the Borrower and its Restricted Subsidiaries may make Restricted Payments to any member of the IAC Group that is a direct or indirect parent of the Borrower:

 

(A)                               the proceeds of which will be used to pay the consolidated, combined or similar income tax liability of such parent’s income tax group that is attributable to the income of the Borrower or its subsidiaries; provided that (x) no such payments with respect to any taxable year shall exceed the amount of such income tax liability that would have been imposed on the Borrower and/or the applicable subsidiaries had such entity(ies) filed on a stand-alone basis and (y) any such payments attributable to an Unrestricted Subsidiary shall be limited to the amount of any cash paid by such Unrestricted Subsidiary to the Borrower or any Restricted Subsidiary for such purpose;

 

(B)                               the proceeds of which shall be used to pay such equity holder’s operating costs and expenses, other overhead costs and expenses and fees, in each case, which are directly attributable to the ownership or operations of the Borrower and its subsidiaries; or

 

(C)                               the proceeds of which shall be used to pay customary salary, bonus and other benefits payable to, and indemnities provided on behalf of, officers and employees of any direct or indirect parent of the Borrower to the extent such salaries, bonuses, other benefits and indemnities are directly attributable to the ownership or operation of the Borrower and its Restricted Subsidiaries; and

 

(xii)                                      any Junior Debt Restricted Payments; provided that, at the time of, and after giving effect thereto on a pro forma basis (x) no Default shall have occurred and be continuing and (y) the Borrower shall be in compliance with Section 6.10 (whether or not the Testing Condition is satisfied) as of the end of the most recently ended Test Period.

 

For purposes of determining compliance with this Section 6.05, any Restricted Payment need not be made solely by reference to one category of described in this Section 6.05 but may be made under any combination of such categories (including in part under one such category and in part under any other such category).

 

SECTION 6.06              Transactions with Affiliates.  The Borrower will not, and will not permit any of its Restricted Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions (including amendments or modifications to prior or existing transactions) with, any of its Affiliates involving payment or consideration in excess of $5,000,000, except:

 

96

 

(a)                                 for transactions at prices and on terms and conditions not less favorable to the Borrower or such Restricted Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, as determined by the Borrower;

 

(b)                                 transactions between or among the Borrower and its Restricted Subsidiaries not involving any other Affiliate;

 

(c)                                  pursuant to, as determined by the Borrower, reasonable director, officer and employee compensation (including bonuses) and other benefits (including retirement, health, and stock compensation plans) and indemnification arrangements and performance of such arrangements;

 

(d)                                 any Restricted Payment permitted by Section 6.05;

 

(e)                                  ordinary course overhead arrangements in which any Restricted Subsidiary or Unrestricted Subsidiary participates;

 

(f)                                   any Investment permitted by Section 6.11;

 

(g)                                   (x) any agreement or arrangement in effect on the Amendment Effective Date and any amendment or replacement thereof that is not more disadvantageous to the Lenders in any material respect than the agreement or arrangement in effect on the Amendment Effective Date, as determined in good faith by the Borrower; (y) any agreement or arrangement between the Borrower or any of its Restricted Subsidiaries on the one hand and a member of the IAC Group on the other hand of a type that is customarily entered into by a publicly traded entity or its subsidiaries and a publicly traded parent of such entity (or a subsidiary of such publicly traded parent), as determined in good faith by the Borrower, or (z) any transaction pursuant to any agreement or arrangement referred to in the immediately preceding clause (x) or clause (y);

 

(h)                                 any transaction with a joint venture or similar entity which would be subject to this Section 6.06 solely because the Borrower or a Restricted Subsidiary owns an equity interest in or otherwise controls such joint venture or similar entity;

 

(i)                                     any transaction entered into by a Person prior to the time such Person becomes a Restricted Subsidiary or is merged or consolidated with or into the Borrower or a Restricted Subsidiary;

 

(j)                                    any transaction with an Affiliate where the only consideration paid by the Borrower or any Restricted Subsidiary is Qualified Equity Interests;

 

(k)                                 the issuance or sale of any Qualified Equity Interests;

 

(l)                                     any issuance of securities, or other payments, awards or grants in cash, securities or otherwise, in each case pursuant to, or the funding of, employment arrangements, stock options and stock ownership plans in the ordinary course of business;

 

(m)                             any employment agreements entered into by the Borrower or any of its Restricted Subsidiaries in the ordinary course of business and the transactions pursuant thereto; and

 

(n)                                 any Indebtedness and payments thereon between the Borrower or any of its Restricted Subsidiaries on the one hand and a member of the IAC Group on the other hand, on terms substantially similar to the terms governing the Indebtedness owed by ANGI Homeservices Inc. to IAC Group, LLC on the Closing Date, as determined in good faith by the Borrower.

 

SECTION 6.07              Changes in Fiscal Periods.  The Borrower will not, and will not permit any of its Restricted Subsidiaries to, change its fiscal year to end on a day other than December 31 or change its method of determining fiscal quarters.

 

97

 

SECTION 6.08              Sales and Leasebacks.  The Borrower will not, and will not permit any of its Restricted Subsidiaries to, enter into any arrangement with any Person (other than the Borrower or a Restricted Subsidiary) providing for the leasing by the Borrower or any Restricted Subsidiary of real or personal property that has been or is to be sold or transferred by the Borrower or any Restricted Subsidiary to such Person or to any other Person to whom funds have been or are to be advanced by such Person on the security of such property or rental obligations of the Borrower or any Restricted Subsidiary unless (i) the lease in such arrangement is a capital lease and such capital lease may be entered into at such time pursuant to Sections 6.01 and 6.02 or (ii) the lease in such arrangement is not a capital lease and the aggregate proceeds from such arrangement and other such arrangements since the Amendment Effective Date do not exceed the greater of $15,000,000 and 12.0% of Consolidated EBITDA after giving effect thereto on a pro forma basis for the then most recently ended Test Period.

 

SECTION 6.09              Clauses Restricting Subsidiary Distributions.  The Borrower will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to (a) pay dividends or make any other distributions on or in respect of its Equity Interests held by the Borrower or a Restricted Subsidiary, (b) make loans or advances or pay any Indebtedness or other obligation owed to the Borrower or any Subsidiary Guarantor or (c) transfer any of its assets to the Borrower or any Subsidiary Guarantor, except for such encumbrances or restrictions existing under or by reason of:

 

(i)                                   any encumbrances or restrictions existing under this Agreement and the other Loan Documents;

 

(ii)                                encumbrances or restrictions with respect to a Restricted Subsidiary imposed pursuant to an agreement that has been entered into in connection with the Disposition of all or substantially all of the capital stock or assets of such Restricted Subsidiary;

 

(iii)                                encumbrances or restrictions under any agreement governing Capital Lease Obligations secured by Liens permitted by Section 6.02, so long as such restrictions apply only to the assets subject to such Liens or relating to such Capital Lease Obligations, as the case may be;

 

(iv)                               encumbrances or restrictions under any agreement listed on Schedule 6.09 as in effect on the Amendment Effective Date;

 

(v)                               encumbrances or restrictions under any agreement of any Person that becomes a Restricted Subsidiary after the Closing Date that existed prior to the time such Person became a Restricted Subsidiary; provided that such restrictions are not created in contemplation of or in connection with such acquisition;

 

(vi)                               any other instrument or agreement entered into after the Closing Date that contains encumbrances and restrictions that, as determined by the Borrower, will not materially adversely affect the Borrower’s ability to make payments on the Loans;

 

(vii)                            encumbrances or restrictions existing under or by reason of applicable law, regulation or order;

 

(viii)                         non-assignment provisions of any contract or lease entered into in the ordinary course of business;

 

(ix)                               encumbrances or restrictions imposed under any agreement to sell assets, including Qualified Equity Interests of such Restricted Subsidiary, permitted under this Agreement to any Person pending the closing of such sale;

 

(x)                               encumbrances or restrictions relating to any Lien permitted under this Agreement imposed by the holder of such Lien that limit the right of the relevant obligor to transfer assets that are subject to such Lien;

 

98

 

(xi)                               encumbrances or restrictions relating to any Lien on any asset or property at the time of acquisition of such asset or property by the Borrower or any Restricted Subsidiary;

 

(xii)                            customary provisions in partnership agreements, limited liability company organizational governance documents, joint venture agreements, shareholder agreements and other similar agreements that restrict the transfer of ownership interests in such partnership, limited liability company, joint venture, corporation or similar Person;

 

(xiii)                                 encumbrances or restrictions on cash or other deposits or net worth imposed by suppliers, customers or landlords under contracts entered into in the ordinary course of business;

 

(xiv)                               Indebtedness incurred in compliance with Section 6.01(c) that imposes restrictions of the nature described in clause (c) above on the assets acquired;

 

(xv)                              with respect to clause (c) only, any encumbrance or restriction consisting of customary nonassignment provisions in leases governing leasehold interests, licenses, joint venture agreements and agreements similar to any of the foregoing to the extent such provisions restrict the transfer of the property subject to such leases, licenses, joint venture agreements or similar agreements;

 

(xvi)                               with respect to clause (c) only, any encumbrance or restriction contained in security agreements or mortgages securing Indebtedness of a Restricted Subsidiary to the extent such encumbrance or restriction restricts the transfer of the property subject to such security agreements or mortgages; and

 

(xvii)                                any encumbrances or restrictions imposed by any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of the contracts, agreements, instruments or obligations referred to in this Section 6.09; provided that, as determined by the Borrower, such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings (a) are not materially more restrictive with respect to such encumbrances and restrictions than those prior to such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings or (b) will not materially adversely affect the Borrower’s ability to make payments on the Loans.

 

SECTION 6.10              Consolidated Net Leverage Ratio; Interest Coverage Ratio.  As of the last day of any Test Period, if the Testing Condition is satisfied, then the Borrower will not permit (i) the Consolidated Net Leverage Ratio as of the last day of such Test Period to exceed 4.50 to 1.00 or (ii) the Interest Coverage Ratio as of the last day of such Test Period to be less than 2.00 to 1.00.

 

SECTION 6.11              Investments.  The Borrower will not, and will not permit any of its Restricted Subsidiaries to, make any advance, loan, extension of credit (by way of Guarantee or otherwise) or capital contribution to, or purchase any Equity Interests, bonds, notes, debentures or other debt securities of, or any assets constituting a business unit of, or incur any Unrestricted Subsidiary Support Obligations with respect to, any other Person (all of the foregoing, “Investments”) except:

 

(a)                                 extensions of trade credit and credit to customers in the ordinary course of business;

 

(b)                                 Investments in cash and Cash Equivalents and Investments that were Cash Equivalents when made;

 

(c)                                  loans and advances to directors, employees and officers of the Borrower or any Restricted Subsidiary in the ordinary course of business (including for travel, entertainment and relocation expenses) in an aggregate principal amount for the Borrower and its Restricted Subsidiaries not to exceed $10,000,000 at any one time outstanding;

 

99

 

(d)                                 Investments made by the Borrower or any Restricted Subsidiary in the Borrower or any Restricted Subsidiary or any Person who becomes a Restricted Subsidiary in connection with such Investment;

 

(e)                                  Investments made at any time if, after giving pro forma effect thereto, (i) the Consolidated Net Leverage Ratio is equal to or less than 4.00 to 1.00 and (ii) no Default shall have occurred and be continuing;

 

(f)                                   any Investment (x) existing on the Amendment Effective Date or (y) made pursuant to binding commitments existing on the Amendment Effective Date and, in the case of clause (y), disclosed to the Lenders in writing on the Amendment Effective Date;

 

(g)                                  Investments not prohibited by Section 6.05;

 

(h)                                 Investments in Unrestricted Subsidiaries in an aggregate amount not to exceed (I) $40,000,000 plus (II) $20,000,000 in any fiscal year (with unused amounts pursuant to clauses (I) and (II) collectively permitted to be carried over to succeeding fiscal years up to an aggregate total amount in any fiscal year not to exceed $60,000,000);  provided  that after giving pro forma effect to each such Investment, no Default shall have occurred and be continuing;

 

(i)                                     Guarantees not prohibited by Section 6.01;

 

(j)                                    Investments to the extent that payment for such Investments is made with Qualified Equity Interests of the Borrower;

 

(k)                                 accounts, chattel paper and notes receivable arising from the sale or lease of goods or the performance of services in the ordinary course of business;

 

(l)                                     Investments received in connection with the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, suppliers and customers arising in the ordinary course of business;

 

(m)                             Investments, including in joint ventures of the Borrower or any Restricted Subsidiary, in an amount not to exceed at any one time outstanding the greater of $60,000,000 or 4.0% of Total Assets;

 

(n)                                 Investments arising out of the receipt by the Borrower or a Restricted Subsidiary of noncash consideration for the sale of assets permitted under Section 6.04;

 

(o)                                 Guarantees by the Borrower or any Restricted Subsidiary of operating leases (other than Capital Lease Obligations) or of other obligations that do not constitute Indebtedness, in each case entered into by the Borrower or Restricted Subsidiary in the ordinary course of business;

 

(p)                                 lease, utility and other similar deposits in the ordinary course of business;

 

(q)                                 Investments by the Borrower and its Restricted Subsidiaries, if the Borrower or any Restricted Subsidiary would otherwise be permitted to make a Restricted Payment under Section 6.05(viii) or (ix) in such amount; provided that the amount of any such Investment shall be deemed to be a Restricted Payment under the applicable clause for all purposes under this Agreement; and

 

(r)                                    Investments in Unrestricted Subsidiaries (i) arising in the ordinary course of business related to cash management, payroll, accounts payable, insurance and other similar expenses, which in the Borrower’s good faith determination will be promptly reimbursed by such Unrestricted Subsidiaries or (ii) consisting of the Equity Interests or assets of an Unrestricted Subsidiary; provided that any such Investment made in reliance on this clause (ii) shall not increase availability under Section 6.11(h) or (m) if the original Investment in such Unrestricted Subsidiary was made in reliance on Section 6.11(h) or (m).

 

100

 

For purposes of determining compliance with this Section 6.11, any Investment need not be made solely by reference to one category of described in this Section 6.11 but may be made under any combination of such categories (including in part under one such category and in part under any other such category).  The amount of any Investment outstanding at any time shall be the original cost of such Investment, reduced (at the Borrower’s option, but not below zero) by any dividend, distribution, interest payment, return of capital, repayment or other amount or value received in respect of such Investment.

 

ARTICLE VII

 

Events of Default

 

SECTION 7.01              Events of Default.  If any of the following events (“Events of Default”) shall occur:

 

(a)                                 the Borrower shall fail to pay any principal of any Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;

 

(b)                                 the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Section 7.01) payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five Business Days;

 

(c)                                  any representation or warranty made or deemed made by or on behalf of the Borrower or any other Loan Party in this Agreement or any other Loan Document or any amendment, modification or waiver in respect thereof, or in any certificate furnished pursuant to this Agreement or any other Loan Document or any amendment, modification or waiver in respect thereof, shall prove to have been incorrect in any material respect when made or deemed made;

 

(d)                                 any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02, 5.03 (with respect to the Borrower’s existence) or 5.08 or in Article VI;

 

(e)                                  any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or any other Loan Document to which it is a party (other than those specified in clause (a), (b), (c) or (d) of this Section 7.01), and such failure shall continue unremedied for a period of 30 days after written notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender);

 

(f)                                   the Borrower or any Restricted Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable after any applicable grace period therefor;

 

(g)                                  any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness;

 

(h)                                 an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Material Subsidiary or its debts, or of a substantial part of its assets, under any  Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary or for a

 

101

 

substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered;

 

(i)                                     the Borrower or any Material Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Section 7.01, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Restricted Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

 

(j)                                    one or more judgments for the payment of money in an aggregate amount in excess of $50,000,000 (to the extent not adequately covered by insurance) shall be rendered against the Borrower, any Material Subsidiary or any combination thereof and the same shall remain undischarged for a period of 60 consecutive days during which execution shall not be effectively stayed;

 

(k)                                 an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, would reasonably be expected to result in a Material Adverse Effect;

 

(l)                                     at any time, any Collateral Document shall cease, for any reason, to be in full force and effect, or any Loan Party shall so assert in writing, or any security interest purported to be created by any Collateral Document and to extend to assets that constitute a material portion of the Collateral shall cease to be, or shall be asserted in writing by the Borrower or any other Loan Party not to be, a valid and perfected security interest (perfected as required by this Agreement or the relevant Collateral Document and subject to such limitations and restrictions as are set forth herein and therein) in the securities, assets or properties covered thereby, except to the extent that any such loss of perfection results from the limitations of foreign laws, rules and regulations as they apply to pledges of Equity Interests in Foreign Subsidiaries or the application thereof, or from failure of the Collateral Agent to maintain possession of certificates actually delivered to it representing securities pledged under the Security Agreement or to file Uniform Commercial Code continuation statements (so long as such failure does not result from the breach or non-compliance with the Loan Documents by any Loan Party), (except, in each case, as permitted under the Loan Documents); provided that, in the case of any failure of a security interest to be valid and perfected, no Event of Default shall occur under this Section 7.01(l) if (i) a valid security interest shall be perfected on such Collateral within five Business Days and (ii) following such five Business Day period, the rights, powers and privileges of the Secured Parties shall not be materially adversely affected by such failure;

 

(m)                             this Agreement or the Guarantee Agreement shall cease, for any reason, to be in full force and effect, or any Loan Party shall so assert in writing, except as permitted under the Loan Documents; or

 

(n)                                 Change of Control shall occur;

 

then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Section 7.01), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take any or all of the following actions, at the same or different times:  (i) terminate the Revolving Commitments, and thereupon the Revolving Commitments shall terminate immediately, (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable during the continuation of such event) by the Borrower, and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind (other than notice from the Administrative Agent), all of which are hereby waived by the Borrower and (iii) require all outstanding Letters of Credit to be cash collateralized in accordance with Section 2.17(k); and in case of any event with respect to the Borrower described in clause (h) or (i) of this Section 7.01, the Revolving

 

102

 

Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.

 

ARTICLE VIII

 

The Administrative Agent

 

SECTION 8.01              Appointment and Authorization.  Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent 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 and the other Loan Documents, together with such actions and powers as are reasonably incidental thereto.

 

SECTION 8.02              Administrative Agent and Affiliates.  The bank 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 such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Restricted Subsidiary or other Affiliate thereof as if it were not the Administrative Agent hereunder.

 

SECTION 8.03              Action by Administrative Agent.  The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and the other Loan Documents.  Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02 or 9.03), and (c) except as expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Restricted Subsidiaries that is communicated to or obtained by the bank serving as 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 with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02 or 9.03) or otherwise, in the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or a Lender, and 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 under or in connection with this Agreement or any other Loan Document, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or in any other Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, the other Loan Documents or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein or in any other Loan Document, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

 

SECTION 8.04              Consultation with Experts.  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 believed by it to be genuine and to have been signed or sent 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 be made by the proper Person, and shall not incur any liability for relying thereon.  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.

 

103

 

SECTION 8.05              Delegation of Duties.  The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties.  The exculpatory provisions of the preceding paragraphs 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.

 

SECTION 8.06              Successor Administrative Agent.  Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the Borrower.  Upon any such resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor.  If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank.  Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder.  The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the Administrative Agent’s resignation hereunder, the provisions of this Article VIII and Section 9.04 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 it was acting as Administrative Agent.

 

SECTION 8.07              Credit Decision.  Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent, any Lead Arranger or any other Lender or any of their respective 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 also acknowledges that it will, independently and without reliance upon the Administrative Agent, any Lead Arranger or any other Lender or any of their respective 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, any related agreement or any document furnished hereunder or thereunder. Each Lender further acknowledges and agrees that the extensions of credit made hereunder are commercial loans and letters of credit and not investments in a business enterprise or securities.

 

SECTION 8.08              Lead Arrangers; Syndication Agent; Co-Documentation Agents.  Notwithstanding anything to the contrary herein, none of the Lead Arrangers, the Syndication Agent or Co-Documentation Agents shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, if applicable, as the Administrative Agent, the Collateral Agent, a Lender or an Issuing Bank.  Each Lender acknowledges that it has not relied, and will not rely, on any of the Lead Arrangers, the Syndication Agent or the Co-Documentation Agents in deciding to enter into this Agreement or any other Loan Document or in taking or not taking any action hereunder or thereunder.

 

SECTION 8.09              Tax Indemnification by the Lenders.  To the extent required by any applicable Requirements of Law, the Administrative Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding Tax.  Without limiting or expanding the provisions of Section 2.14, each Lender shall indemnify and hold harmless the Administrative Agent against, and shall make payable in respect thereof within 10 days after demand therefor, any and all Taxes and any and all related losses, claims, liabilities and expenses (including fees, charges and disbursements of any counsel for the Administrative Agent) incurred by or asserted against the Administrative Agent by the Internal Revenue Service or any other Governmental Authority as a result of the failure of the Administrative Agent to properly withhold Tax from any amounts paid to or for the account of such Lender for any reason (including, without limitation, because the appropriate form was not delivered or not properly executed, or because such Lender failed to notify the Administrative Agent of a change in circumstance that rendered the exemption from, or reduction of withholding Tax ineffective).  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent

 

104

 

manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document against any amount due the Administrative Agent under this Section 8.09.  The agreements in this Section 8.09 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender, the termination of the commitments and the repayment, satisfaction or discharge of all other Obligations.

 

SECTION 8.10              Certain ERISA Matters.

 

(a)                                 Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true:

 

(i)                                such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments or this Agreement;

 

(ii)                                the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement;

 

(iii)                                 (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Revolving Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement; or

 

(iv)                               such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

 

(b)                                 In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

 

105

 

ARTICLE IX

 

Miscellaneous

 

SECTION 9.01              Notices.

 

(a)                                 All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy) (unless otherwise specifically permitted in this Agreement), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy or telephone notice, when received, addressed as follows in the case of the Borrower and the Administrative Agent, and as set forth in an Administrative Questionnaire delivered to the Administrative Agent in the case of the Lenders, or to such other address as may be hereafter notified by the respective parties hereto:

 

Borrower:                                                                                                                                                                                          ANGI Homeservices Inc.

 

c/o IAC/InterActiveCorp

555 West 18th Street

New York, NY  10011

Attn: Treasurer

Telephone:  (212) 314-7495

 

With a copy to:                                                                                                                                                        ANGI Homeservices Inc.

 c/o IAC/InterActiveCorp
 555 West 18th Street
 New York, NY  10011
 Attn: General Counsel
 Telephone:  (212) 314-7376

 

Administrative Agent:                                                                                                                         JPMorgan Chase Bank, N.A.
 500 Stanton Christiana Rd.
 NCC5 / 1st Floor

 

Newark, DE 19713

 Attn: Loan & Agency Services Group - Michelle Keesee
 Telephone: (302) 634-1920
 Fax: (302) 634-1920

 

Facsimile: 12012443629@tls.ldsprod.com
 Email: michelle.keesee@chase.com

 

With a copy to:                                                                                                                                                        JPMorgan Chase Bank, N.A.
 383 Madison Avenue, 24th Floor
 New York, New York  10179
 Attention:  Matthew Cheung
 Telephone:  (212) 270-5282  
 Fax:  (212) 270-3279

 

(b)                                 Notices, financial statements and similar deliveries and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent (including by posting on IntraLinks); provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender.  The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it

 

106

 

hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

 

SECTION 9.02              Waivers; Amendments.

 

(a)                                 No failure or delay by the Administrative Agent or any Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent or any Lender may have had notice or knowledge of such Default at the time.

 

(b)                                 Neither this Agreement nor any provision hereof may be waived, amended, amended and restated or modified except as provided in Sections 2.02, 2.11, 2.19 and 2.20 or pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender directly affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender directly affected thereby (it being understood that the waiver of (or amendment to the terms of) any mandatory prepayment of Term Loans shall not constitute a postponement of any date scheduled for the payment of principal or interest), (iv) change Section 2.15 in a manner that would alter the pro rata distribution or sharing of payments required thereby or any provision requiring the pro rata funding of Loans, without the written consent of each Lender, (v) except as provided in Section 9.16, release all or substantially all of the Collateral securing the Obligations or all or substantially all of the value of the Guarantees provided by the Subsidiary Guarantors taken as a whole without the written consent of each Lender, (vi) adversely affect the rights of any Class in respect of payments due to Lenders of such Class in a manner different to the effect of such amendment, waiver or consent on any other Class without the written consent of the Required Class Lenders of such Class (it being understood that the Required Lenders may waive, in whole or in part, any prepayment of Loans hereunder so long as the application, as between Classes, of any portion of such prepayment that is still required to be made is not altered), (vii) change any of the provisions of this Section or the definition of “Required Lenders,” or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the  written consent of each Lender; provided that such provisions may be amended or amended and restated  pursuant to the establishment of Incremental Term Loans pursuant to Section 2.02 in order to restrict affiliated lenders and other persons from being included in such definitions or (viii) change the definition of “Alternative Currency,” without the written consent of each Lender; provided, further, that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent or  any Issuing Bank hereunder without the prior written consent of the Administrative Agent or such Issuing Bank, as the case may be.

 

(c)                                  Notwithstanding the foregoing, modifications to the Loan Documents may be made (including by amendment and restatement) with the consent of the Borrower and the Administrative Agent (but without the consent of any Lender) to the extent necessary (A) to effectuate any Incremental Facilities, Refinancing Term Loans, Replacement Revolving Facility Commitments, Replacement Revolving Loans, Extended Revolving Commitments and Extended Revolving Loans in a manner consistent with Sections 2.02, 2.19 and 2.20 and as may be necessary to establish such Incremental Facilities, Refinancing Term Loans, Extended Revolving Commitments, Extended Term Loans, Replacement Revolving Facility Commitments, Replacement Revolving Loans or Extended Revolving Loans as a separate Class or tranche from any Existing Term Loans, Revolving Commitments or Revolving Loans, as applicable, and, in the case of Extended Term Loans, to reduce the amortization schedule of the related existing Class of Term Loans proportionately or (B) to cure any ambiguity, omission, error, defect or

 

107

 

inconsistency and, in each case under this clause (B), such amendment shall become effective without any further action or consent of any other party to any Loan Document if the same is not objected to in writing by the Required Lenders within ten Business Days following receipt of notice thereof.

 

(d)                                 Notwithstanding anything in this Agreement or the other Loan Documents to the contrary, unless otherwise set forth in any Incremental Assumption Agreement, Extension Amendment or Refinancing Amendment with respect to the Class of Loans and Commitments established thereby, only the consent of the Required Lenders shall be necessary to (1) waive or consent to a waiver of an Event of Default under Section 7.01(d) (solely with respect to Section 6.10) or (2) modify or amend Section 6.10 (including, in each case, the component definitions thereof, solely to the extent such definitions are used in such Section (but not otherwise)) or this clause (d).

 

SECTION 9.03              Waivers; Amendments to Other Loan Documents.

 

(a)                                 No failure or delay by the Administrative Agent or any Lender in exercising any right or power under the Guarantee Agreement or any Collateral Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent and the Lenders under the Guarantee Agreement and any Collateral Document are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of the Guarantee Agreement or any Collateral Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.

 

(b)                                 Neither the Guarantee Agreement, any Collateral Document nor any provision thereof may be waived, amended. amended and restated or modified except pursuant to an agreement or agreements in writing entered into by each Loan Party party thereto and, except as provided in Section 2.02, 2.19, 2.20, 9.02 or in the case of amendments to the Security Agreement described in Section 5.9 thereof, the Required Lenders or by the Loan Parties party thereto and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall (i) release all or substantially all of the Collateral (except as provided in Section 9.16), (ii) modify the “waterfall” provisions set forth in Section 4.2 of the Security Agreement, (iii) release all or substantially all of the Material Domestic Subsidiaries as Subsidiary Guarantors (except as provided in Section 9.16) or (iv) change any of the provisions of this Section, in each case without the written consent of each Lender; provided, further, that no such agreement shall amend, modify or otherwise affect the rights or duties of the Collateral Agent under the Guarantee Agreement or any Collateral Document without the prior written consent of the Collateral Agent.

 

(c)                                  Notwithstanding anything to the contrary in any Loan Document, without the consent of any Lender, the Loan Parties and the Administrative Agent and the Collateral Agent may (in their respective sole discretion, or shall, to the extent required by any Loan Document) enter into any amendment, amendment and restatement, modification, supplement or waiver of any Loan Document, or enter into any new agreement or instrument, to effect the granting, perfection, protection, expansion or enhancement of any security interest in any Collateral or additional property to become Collateral for the benefit of the Secured Parties, and to give effect to any intercreditor agreement reasonably satisfactory to the Administrative Agent associated therewith, or as required by local law to give effect to, or protect, any security interest for the benefit of the Secured Parties in any property or so that the security interests therein comply with applicable law or this Agreement or in each case to otherwise enhance the rights or benefits of any Lender under any Loan Document.

 

SECTION 9.04              Expenses; Indemnity; Damage Waiver.

 

(a)                                 The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Lead Arrangers and their respective Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent and the Lead Arrangers, in connection with the syndication of the Facilities and the preparation, execution, delivery and administration of this Agreement or any other Loan Document or any amendments, modifications or waivers of the provisions hereof or thereof and (ii) all reasonable out-of-pocket expenses incurred by the Administrative Agent and the Lenders, including the fees, charges and disbursements of one firm of counsel for the Administrative Agent and the Lenders taken as a whole (and  in the case of an actual or

 

108

 

perceived conflict of interest, one additional counsel to all such affected Persons, taken as a whole), and to the extent required, one firm of local counsel in each relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions) and one firm of regulatory counsel, in connection with the enforcement or protection of its rights in connection with the Original Credit Agreement, this Agreement or any other Loan Document, including their rights under this Section, or in connection with the Loans made hereunder, including all such out-of-pocket expenses incurred during  any workout, restructuring or negotiations in respect of such Loans.

 

(b)                                 The Borrower shall indemnify the Administrative Agent, the Lead Arrangers and each 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 reasonable and documented or invoiced out-of-pocket fees, expenses, disbursements and other charges of one firm of counsel for all Indemnitees, taken as a whole (and, in the case of an actual or perceived conflict of interest where the Indemnitee affected by such conflict notifies the Borrower of any existence of such conflict and in connection with the investigating or defending any of the foregoing has retained its own counsel, of another firm of counsel for such affected Indemnitee), and to the extent required, one firm or local counsel in each relevant jurisdiction) and one firm of regulatory counsel of any such Indemnitee, arising out of, in connection with, or as a result of (i) the execution or delivery of the Original Credit Agreement, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties to this Agreement or any other Loan Document of their respective obligations hereunder or thereunder or the consummation of the Transactions or any other transactions contemplated hereby or thereby, (ii) any Loan or the use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Restricted Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Restricted Subsidiaries, (iv) any civil penalty or fine assessed by OFAC against, and all reasonable costs and expenses (including counsel fees and disbursements) incurred in connection with defense thereof, by the Administrative Agent or any Lender as a result of conduct of the Borrower that violates a sanction enforced by OFAC or (v) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto or whether or not such action, claim, litigation or proceeding was brought by the Borrower, its equity holders, affiliates or creditors or any other third person; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (i) are determined by a court of competent jurisdiction in a  final and nonappealable judgment to have resulted from the gross negligence, willful misconduct or bad faith of such Indemnitee (or that of any of its respective subsidiaries or any of their respective officers, directors, employees or members), (ii) are determined by a court of competent jurisdiction in a final and nonappealable judgment to have resulted from a material breach of this Agreement by such Indemnitee or (iii) do not involve or arise from an act or omission by the Borrower or its subsidiaries or any of their respective affiliates, partners, directors, officers, employees, agents, advisors or other representatives and is brought by an Indemnitee solely against one or more other Indemnitees (other than claims against the Administrative Agent or any Lead Arranger in its capacity as such or in its fulfilling such role).  Each Indemnitee shall give prompt notice to the Borrower of any claim that may give rise to a claim against the Borrower hereunder and shall consult with the Borrower in the conduct of such Indemnitee’s legal defense of such claim; provided, however, than an Indemnitee’s failure to give such prompt notice to the Borrower or to seek such consultation with the Borrower shall not constitute a defense to any claim for indemnification by such Indemnitee unless, and only to the extent that, such failure materially prejudices the Borrower.

 

(c)                                  To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent such Lender’s Total Percentage (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 in its capacity as such.

 

(d)                                 To the extent permitted by applicable law, the parties shall not assert, and each hereby waives, any claim against any other party, 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 or any agreement or instrument contemplated hereby, the Transactions, any Loan or the use of the proceeds thereof;

 

109

 

provided that nothing in this clause (d) is intended to relieve the Borrower of any obligation it may otherwise have to indemnify any Indemnitee against any special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.

 

(e)                                  All amounts due under this Section shall be payable within ten (10) Business Days after written demand therefor.

 

(f)                                   This Section 9.04 shall not apply to any Taxes other than Taxes that represent losses, claims, damages, liabilities and expenses resulting from a non-Tax claim.

 

SECTION 9.05              Successors and Assigns.

 

(a)                                 The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that (i) except as set forth in Section 6.03(vi), the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.  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 paragraph (c) of this Section) 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.

 

(b)                                 (i)  Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees (“assignee” or “assignees”) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Revolving Commitments and the Loans at the time owing to it) with the prior written consent of:

 

(A)                               the Borrower (such consent not to be unreasonably withheld or delayed, except for any bona fide competitors of the Borrower and its subsidiaries); provided that no consent of the Borrower shall be required for an assignment (i) of a Term Loan Commitment or a Term Loan to a Lender, an Affiliate of a Lender, an Approved Fund, (ii) of a Revolving Commitment or Revolving Loans to a Revolving Lender, an Affiliate of a Revolving Lender or Approved Fund with respect to a Revolving Lender or (iii) if an Event of Default has occurred and is continuing, any other assignee (except for any bona fide competitor of the Borrower and its subsidiaries); provided, further, that the Borrower 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 of the proposed assignment;

 

(B)                               the Administrative Agent (such consent not to be unreasonably withheld), provided that no consent of the Administrative Agent shall be required for an assignment of any Revolving Commitment or Loan to an assignee that is a Lender, an Affiliate of a Lender or an Approved Fund; and

 

(C)                               each Issuing Bank; provided that the consent of any Issuing Bank shall not be required (i) for any assignment of all or any portion of a Term Loan or (ii) for an assignment of any Revolving Commitment or Loan to an assignee that is an Affiliate of a Lender .

 

(ii)                                  Assignments shall be subject to the following additional conditions:

 

(A)                               except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Revolving Commitment or Loans of any Class, the amount of the Revolving Commitments or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than (x) $1,000,000 in the case of Term Loans and  (y) $10,000,000 in the case of Revolving Loans or Revolving Commitments (or in the case of a Loan in an Alternative Currency, an appropriate corresponding amount as shall be consented to by

 

110

 

the Administrative Agent (such consent not be unreasonable withheld)), unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default under clause (a), (b), (h) or (i) of Section 7.01 has occurred and is continuing;

 

(B)                               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, provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of its Revolving Commitments or Revolving Loans;

 

(C)                               the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 (which fee is hereby waived for any assignment to which JPMorgan Chase Bank, N.A. or any of its Affiliates is a party);

 

(D)                               the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire;

 

(E)                                on the date of such assignment, the assignee of a Revolving Commitment must be able to fund Revolving Loans in all Alternative Currencies; and

 

(F)                                 the assignee shall not be (i) the Borrower or any of the Borrower’s Affiliates or Subsidiaries or (ii) a natural Person.

 

For the purposes of this Section 9.05(b), the term “Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its 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.

 

(iii)                                       Subject to acceptance and recording thereof pursuant to paragraph (b)(v) of this Section, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.12, 2.13, 2.14 and 9.04).  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.05 shall be null and void.

 

(iv)                                     The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amount (and related interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrower and any Lender (with respect to such Lender’s own interests only), at any reasonable time and from time to time upon reasonable prior notice.

 

(v)                                    Upon its receipt of a duly completed Assignment and Assumption with respect to a permitted assignment executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section (unless waived), and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such

 

111

 

Assignment and Assumption and record the information contained therein in the Register.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.

 

(c)                                  (i)  Any Lender may, without the consent of the Borrower or the Administrative Agent, sell participations to one or more banks, institutions or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and the other Loan Documents.  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and the other Loan Documents and to approve any amendment, modification or waiver of any provision of this Agreement and the other Loan Documents; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) or the first proviso to Section 9.03(b) that affects such Participant.  Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12, 2.13 and 2.14 (subject to the requirements and limitations of such Sections; provided that any documentation required to be provided pursuant to Section 2.14(e) shall be provided solely to the participating Lender) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and related 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 in connection with a Tax audit or other proceeding or other governmental inquiry to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and the parties hereto 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.

 

(ii)                                  A Participant shall not be entitled to receive any greater payment under Section 2.12 or 2.14 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant.

 

(d)                                 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 without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank or other applicable central bank that governs or regulates the activities of such Lender, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

SECTION 9.06              Survival.  All covenants, agreements, representations and warranties made by any Loan Parties herein, in the other Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or the other Loan Documents shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the other Loan Documents and the making of any Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid and so long as the Revolving Commitments have not expired or terminated.  The provisions of Sections 2.12, 2.13, 2.14 and 9.04 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the

 

112

 

Loans, the expiration or termination of the Commitments, any assignment of rights by or replacement of a Lender or the termination of this Agreement or any provision hereof.

 

SECTION 9.07              Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent or the Lead Arranger 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.  This Agreement shall become effective as provided in Section 4.03, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  Delivery of an executed counterpart of a signature page of this Agreement by email or telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.

 

SECTION 9.08              Severability.  Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

SECTION 9.09              Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured.  The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.  Each Lender agrees to notify 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.

 

SECTION 9.10              Governing Law; Jurisdiction; Consent to Service of Process.

 

(a)                                 This Agreement and the other Loan Documents and any claims, controversy, dispute or cause of action (whether in contract or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by and construed in accordance with the law of the State of New York.

 

(b)                                 The Borrower and each other Loan Party irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative Agent, any Lender, any Issuing Bank, or any Related Party of the foregoing in any way relating to this Agreement or any other Loan Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by 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 any other Loan Document shall affect any right that the Administrative Agent, any Lender or any Issuing Bank may otherwise have to bring any action or proceeding relating to this Agreement or the other Loan Documents against the Borrower or any other Loan Party or their respective properties in the courts of any jurisdiction.

 

(c)                                  The Borrower and each other Loan Party hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of

 

113

 

venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in any court referred to in paragraph (b) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(d)                                 Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

SECTION 9.11              WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED TO IT, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY 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 DOCUMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

SECTION 9.12              Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

 

SECTION 9.13              Confidentiality.  Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Related Parties (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), (b) to the extent requested by any regulatory or self-regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its Related Parties) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower, (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or an agreement described in clause (f) hereof or (ii) becomes available to the Administrative Agent or any Lender on a nonconfidential basis from a source other than the Borrower or (i) on a confidential basis to (x) any rating agency in connection with rating the Borrower or any of its subsidiaries or the Loans hereunder, (y) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the facilities or (z) market data collectors, similar service providers to the lending industry and service providers to the Administrative Agent in connection with the administration and management of this Agreement and the other Loan Documents.  For the purposes of this Section, “Information” means all information received from the Borrower or its Affiliates relating to the Borrower, its subsidiaries or their businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower or its Affiliates.  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 reasonably accord to its own confidential information.

 

Subject to Section 9.18, each Lender acknowledges that information furnished to it pursuant to this Agreement or the other Loan Documents may include material non-public information concerning the Borrower and its Affiliates and their related parties or their respective securities, and confirms that it has developed compliance

 

114

 

procedures regarding the use of material non-public information and that it will handle such material non-public information in accordance with those procedures and applicable law, including Federal and state securities laws.

 

Subject to Section 9.18, all information, including requests for waivers and amendments, furnished by the Borrower or the Administrative Agent pursuant to, or in the course of administering, this Agreement or the other Loan Documents will be syndicate-level information, which may contain material non-public information about the Borrower and its Affiliates and their related parties or their respective securities.  Accordingly, each Lender represents to the Borrower and the Administrative Agent that it has identified in its administrative questionnaire a credit contact who may receive information that may contain material non-public information in accordance with its compliance procedures and applicable law, including Federal and state securities laws.

 

SECTION 9.14              Judgment Currency.  If, for the purposes of obtaining judgment or filing a claim in any court, it is necessary to convert a sum due hereunder or claim in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given.  The obligation of the Borrower in respect of any such sum due from it to the Administrative Agent or the Lenders hereunder shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent that on the Business Day following receipt by the Administrative Agent of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency.  If the amount of the Agreement Currency so purchased is less than the sum originally due to the Administrative Agent from the Borrower in the Agreement Currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent or the Person to whom such obligation was owing against such loss.  If the amount of the Agreement Currency so purchased is greater than the sum originally due to the Administrative Agent in such currency, the Administrative Agent agrees to return the amount of any excess to the Borrower (or to any other Person who may be entitled thereto under applicable law).

 

SECTION 9.15              USA PATRIOT Act and Beneficial Ownership Regulation.  Each Lender subject to the Act hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) and the Beneficial Ownership Regulation, it is hereby required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act and the Beneficial Ownership Regulation and the Borrower agrees to provide to any Lender for the purposes of complying therewith such information as reasonably requested from time to time by such Lender.

 

SECTION 9.16              Collateral and Guarantee Matters.

 

(a)                                 The Lenders irrevocably authorize the Administrative Agent and the Collateral Agent to enter into any customary intercreditor agreement or arrangement in form and substance reasonably satisfactory to the Administrative Agent or Collateral Agent, as applicable, with the holders of any Permitted Secured Ratio Debt (or any agent thereof) permitted under this Agreement that in the good faith determination of the Administrative Agent or Collateral Agent, as applicable, is necessary to effectuate the incurrence of such Indebtedness.

 

(b)                                 Any Lien on any property granted to or held by the Administrative Agent or the Collateral Agent under any Loan Document shall automatically be released (i) upon all of the Obligations (other than (x) (A) Cash Management Obligations and (B) Obligations under Specified Swap Agreements not yet due and payable, and (y) contingent obligations not yet accrued and payable) having been paid in full, all Letters of Credit having been cash collateralized or otherwise back-stopped (including by “grandfathering” into any future credit facilities), in each case, on terms reasonably satisfactory to the relevant Issuing Bank in its sole discretion, or having expired or having been terminated, and the Total Revolving Commitments having expired or having been terminated, (ii) on such property that is Disposed of or to be Disposed of as part of or in connection with any Disposition (other than a lease or a license) not prohibited hereunder or under any other Loan Document to any Person other than a Loan Party, (iii) subject to Section 9.02, if approved, authorized or ratified in writing by the Required Lenders, (iv) on

 

115

 

such property owned by a Subsidiary Guarantor upon (or substantially simultaneously with) release of such Subsidiary Guarantor from its obligations under its Guarantee Agreement pursuant to clause (c) below, (v) upon such property becoming Excluded Collateral (as defined in the Security Agreement) or (vi)  as expressly provided in the Collateral Documents.

 

(c)                                  Any Subsidiary Guarantor shall automatically be released from its obligations under the Guarantee Agreement (A) in the event of dissolution of such Person, (B) if such Person is designated as an Unrestricted Subsidiary or otherwise ceases to be a Restricted Subsidiary, in each case in accordance with the provisions of this Agreement, upon (or substantially simultaneously with) effectiveness of such designation or when it first ceases to be a Restricted Subsidiary, respectively, (C) if the obligations under this Agreement are discharged in accordance with the terms of this Agreement or (D) as otherwise expressly provided in the Guarantee Agreement; provided that no such release shall occur with respect to an entity that ceases to be a Restricted Subsidiary if such Subsidiary Guarantor continues to be a guarantor in respect of any Permitted Ratio Debt unless and until such guarantor is (or is being substantially simultaneously) released from its guarantee with respect to such Permitted Ratio Debt.

 

(d)                                 The Lenders and the other Secured Parties (by virtue of their acceptance of the benefits of the Loan Documents) hereby authorize the Administrative Agent and the Collateral Agent to release any Lien on any property granted to or held by the Administrative Agent or the Collateral Agent under any Loan Document to the holder of any Lien on such property that is permitted by clauses (c), (d) or (k) of Section 6.02 in each case to the extent the contract or agreement pursuant to which such Lien is granted prohibits any other Liens on such property; and the Administrative Agent and the Collateral Agent shall do so upon request of the Borrower; provided that prior to any such request, the Borrower shall have delivered to the Administrative Agent a certificate of the Chief Executive Officer, a Vice President or a Financial Officer of the Borrower or any other executive officer of the Borrower certifying (x) that such Lien is not prohibited under this Agreement and (y) that the contract or agreement pursuant to which such Lien is granted prohibits any other Lien on such property.

 

(e)                                  Upon request by the Administrative Agent or Collateral Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s or Collateral Agent’s authority to release its interest in particular types or items of property, release any Subsidiary Guarantor from its obligations under the Guarantee Agreement, or enter into an intercreditor agreement pursuant to this Section 9.16.  In each case as specified in this Section 9.16, the Administrative Agent and/or Collateral Agent will, at the Loan Parties’ expense, execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral Documents, or to release such Subsidiary Guarantor from its obligations under the Guarantee Agreement, in each case in accordance with the terms of the Loan Documents and this Section 9.16.

 

(f)                                   The Lenders hereby authorize the Administrative Agent and  the Collateral Agent to execute the Reaffirmation Agreement.

 

SECTION 9.17              No Advisory or Fiduciary Relationship.  In connection with all aspects of each transaction contemplated hereby, the Borrower acknowledges and agrees for itself and on behalf of the Loan Parties that (i) the Facilities provided for hereunder and any related arranging or other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document) are an arm’s-length commercial transaction between the Loan Parties, on the one hand, and the Agent Parties and the Lenders, on the other hand, and the Loan Parties are capable of evaluating and understanding and understand and accept the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process leading to such transaction, each of the Agent Parties and the Lenders is and has been acting solely as a principal and is not the agent or fiduciary for the Loan Parties; (iii) the Lead Arrangers, Agent Parties and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from, and may conflict with, those of the Borrower and its Affiliates, and none of the Lead Arrangers or the Agent Parties has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (iv) the Agent Parties and the Lenders have not provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification

 

116

 

hereof or of any other Loan Document) and the Loan Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed appropriate.

 

SECTION 9.18              Platform; Borrower Materials.  The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Lead Arrangers will make available to the Lenders and the Issuing Bank materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on Intralinks or another similar electronic system (the “Platform”), and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to the Borrower or their respective Subsidiaries or any of their respective securities) (each, a “Public Lender”). The Borrower hereby agrees that it will identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (i) all such Borrower Materials shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof, (ii) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative Agent, the Lead Arrangers, the Issuing Bank and the Lenders to treat such Borrower Materials as solely containing information that is either (A) publicly available information or (B) not material (although it may be sensitive and proprietary) with respect to the Borrower or the Subsidiaries or any of their respective securities for purposes of United States Federal securities laws (provided, however, that such Borrower Materials shall be treated as set forth in Section 9.13, to the extent such Borrower Materials constitute information subject to the terms thereof), (iii) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor;” and (iv) the Administrative Agent and the Lead Arrangers shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor.”  THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”.  THE ADMINISTRATIVE AGENT, ITS RELATED PARTIES AND THE LEAD ARRANGERS DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE ADMINISTRATIVE AGENT, ANY OR ITS RELATED PARTIES OR ANY LEAD ARRANGER IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.

 

SECTION 9.19              Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Solely to the extent any Lender or Issuing Bank that is an EEA Financial Institution is a party to this Agreement and notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender or Issuing Bank that is an EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)                                 the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Lender or Issuing Bank that is an EEA Financial Institution; and

 

(b)                                 the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)                              a reduction in full or in part or cancellation of any such liability;

 

(ii)                               a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

117

 

(iii)                                the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

[Signature Pages Follow]

 

118

 

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

 

	
 
    	
ANGI HOMESERVICES INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nick Stoumpas
    
	
 
    	
 
    	
Name:
    	
Nick Stoumpas
    
	
 
    	
 
    	
Title:
    	
Vice President and Treasurer
    

 

[Signature Page to Amended & Restated Credit Agreement]

 

 

	
 
    	
JPMORGAN CHASE BANK, N.A.,
    
	
 
    	
as Administrative Agent (including as Collateral Agent), 
   Issuing Bank and a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew Cheung
    
	
 
    	
 
    	
Name:
    	
Matthew Cheung
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to ANGI Amended and Restated Credit Agreement]

 

 

	
 
    	
Bank of America, N.A.,
    
	
 
    	
 
    	
as a Lender and an Issuing Bank
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Laura L. Olson
    
	
 
    	
 
    	
Name:
    	
Laura L. Olson
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[ANGI — Signature Page to Amended and Restated Credit Agreement]

 

 

	
 
    	
BMO Harris Bank N.A.,
    
	
 
    	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joan Murphy
    
	
 
    	
 
    	
Name:
    	
Joan Murphy
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[ANGI — Signature Page to Amended and Restated Credit Agreement]

 

 

	
 
    	
BNP PARIBAS,
    
	
 
    	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David L. Berger
    
	
 
    	
 
    	
Name:
    	
David L. Berger
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sang W. Han
    
	
 
    	
 
    	
Name:
    	
Sang W. Han
    
	
 
    	
 
    	
Title:
    	
Vice President
    
					

 

[ANGI — Signature Page to Amended and Restated Credit Agreement]

 

 

	
 
    	
Citibank, N.A.,
    
	
 
    	
 
    	
as a Lender and Issuing Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Keith Lukasavich
    
	
 
    	
 
    	
Name:
    	
Keith Lukasavich
    
	
 
    	
 
    	
Title:
    	
Managing Director and Vice President
    
					

 

[ANGI — Signature Page to Amended and Restated Credit Agreement]

 

 

	
 
    	
PNC BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lauren M. Potts
    
	
 
    	
 
    	
Name:
    	
Lauren M. Potts
    
	
 
    	
 
    	
Title:
    	
Vice President
    
					

 

[ANGI — Signature Page to Amended and Restated Credit Agreement]

 

 

	
 
    	
Fifth Third Bank,
    
	
 
    	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Suzanne Rode
    
	
 
    	
 
    	
Name:
    	
Suzanne Rode
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[ANGI — Signature Page to Amended and Restated Credit Agreement]

 

 

	
 
    	
GOLDMAN SACHS BANK USA,
    
	
 
    	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Rebecca Kratz
    
	
 
    	
 
    	
Name:
    	
Rebecca Kratz
    
	
 
    	
 
    	
Title:
    	
Authorized Signatory
    

 

[ANGI — Signature Page to Amended and Restated Credit Agreement]

 

 

	
 
    	
HSBC BANK USA, NATIONAL ASSOCIATION,,
    
	
 
    	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert Moravec
    
	
 
    	
 
    	
Name:
    	
Robert Moravec
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    

 

[ANGI — Signature Page to Amended and Restated Credit Agreement]

 

 

	
 
    	
Société Générale,
    
	
 
    	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Johnman
    
	
 
    	
 
    	
Name:
    	
Andrew Johnman
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[ANGI — Signature Page to Amended and Restated Credit Agreement]

 

 

	
 
    	
SUNTRUST BANK,
    
	
 
    	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Cynthia W. Burton
    
	
 
    	
 
    	
Name:
    	
Cynthia W. Burton
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[ANGI — Signature Page to Amended and Restated Credit Agreement]

 

 

EXHIBIT A

 

FORM OF
 ASSIGNMENT AND ASSUMPTION

 

Reference is made to the Amended and Restated Credit Agreement, dated as of November 5, 2018 (as amended, restated, amended and restated, extended, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”), among ANGI Homeservices Inc., (the “Borrower”), the Lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”) and the other parties thereto.  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

The Assignor identified on Schedule 1 hereto (the “Assignor”) and the Assignee identified on Schedule 1 hereto (the “Assignee”) agree as follows:

 

1.                                      The Assignor hereby irrevocably sells and assigns to the Assignee, without recourse to the Assignor, and the Assignee hereby irrevocably purchases and assumes from such Assignor, without recourse to the Assignor, as of the Effective Date (as defined below), the interest described in Schedule 1 hereto (the “Assigned Interest”), in and to the Assignor’s rights and obligations under the Credit Agreement with respect to those credit facilities contained in the Credit Agreement as are set forth on Schedule 1 hereto (individually, an “Assigned Facility”; collectively, the “Assigned Facilities”), in a principal amount for each Assigned Facility as set forth on Schedule 1 hereto.

 

2.                                      The Assignor (a) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Credit Agreement or with respect to the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument or document furnished pursuant thereto, other than that the Assignor has not created any adverse claim upon the interest being assigned by it hereunder and that such interest is free and clear of any such adverse claim and (b) makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrower, any of its Affiliates or any other obligor or the performance or observance by the Borrower, any of its Affiliates or any other obligor of any of their respective obligations under the Credit Agreement or any other instrument or document furnished pursuant hereto or thereto.

 

3.                                      The Assignee (a) represents and warrants that it is legally authorized to enter into this Assignment and Assumption; (b) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements delivered pursuant to Section 3.04 and 5.01 thereof 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 Assumption; (c) agrees that it will, independently and without reliance upon the Assignor, the Administrative Agent or any 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 Credit Agreement or any other instrument or document furnished pursuant hereto or thereto; (d) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Administrative Agent by the terms thereof, together with such powers as are incidental thereto; and (e) agrees that it will be bound by the provisions of the Credit Agreement and will perform in accordance with its terms all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender including, it if is organized under the

 

 

laws of a jurisdiction outside the United States, its obligation pursuant to Section 2.14(e) of the Credit Agreement.

 

4.                                      The effective date of this Assignment and Assumption shall be the Effective Date of Assignment described in Schedule 1 hereto (the “Effective Date”).  Following the execution of this Assignment and Assumption, it will be delivered to the Administrative Agent for acceptance by it and recording by the Administrative Agent pursuant to the Credit Agreement, effective as of the Effective Date (which shall not, unless otherwise agreed to by the Administrative Agent, be earlier than five Business Days after the date of such acceptance and recording by the Administrative Agent).

 

5.                                      Upon such acceptance and recording, from and after the Effective Date, the Administrative Agent shall make all payments in respect of each Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to the Effective Date and to the Assignee for amounts which have accrued subsequent to the Effective Date or accrue subsequent to the Effective Date.  The Assignor and the Assignee shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Effective Date or with respect to the making of this Assignment and Assumption directly between themselves.

 

6.                                      From and after the Effective Date, (a) the Assignee shall be a party to the Credit Agreement and, to the extent provided in this Assignment and Assumption, have the rights and obligations of a Lender thereunder and shall be bound by the provisions hereof and (b) the Assignor shall, to the extent provided in this Assignment and Assumption, relinquish its rights and be released from its obligations under the Credit Agreement (but shall continue to be entitled to the benefits of Sections 2.12, 2.13, 2.14 and 9.04).

 

7.                                      This Assignment and Assumption shall be governed by and construed in accordance with the laws of the State of New York.

 

IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption to be executed as of the date first above written by their respective duly authorized officers on Schedule 1 hereto.

 

A-2

 

Schedule 1
 to Assignment and Assumption with respect to
 the Amended and Restated Credit Agreement, dated as November 5, 2018,
 among ANGI Homeservices Inc. (the “Borrower”),
 the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent,
 and the other parties thereto

 

	
Name of Assignor:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Assignee:
    	
 
    	
 
    
	
 
    	
 
    
	
Effective Date of Assignment:
    	
 
    	
 
    
				

 

Assigned Interest:

 

	
Facility Assigned1
    	
 
    	
Aggregate Amount of
   Commitments/Loans for
   all Lenders
    	
 
    	
Amount of
   Commitments/Loans Assigned
    	
 
    	
Percentage Assigned of
   Commitments/Loans2
    	
 
    
	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    

 

 

	
[Name of Assignee]
    	
[Name of Assignor]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    	
Name:
    
	
 
    	
Title:
    	
 
    	
 
    	
Title:
    

 

[Consented to and]3 Accepted for recordation in the Register:

 

	
JPMorgan Chase Bank, N.A., as   Administrative Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

1                                           Initial Term Loan Commitments, Initial Term Loans, Incremental Term Loan Commitments, Incremental Term Loans, Revolving Commitments, Revolving Loans, Incremental Revolving Commitments, Incremental Revolving Loans

 

2                                           Set forth, to at least 9 decimals, as a percentage of the Commitments/Loans of all Lenders thereunder

 

3                                           Signature block to be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement

 

A-3

 

	
[Consented to:]4
    	
 
    
	
 
    	
 
    
	
[Name of Issuing Bank], as Issuing Bank
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
[Consented to:]5
    	
 
    
	
ANGI Homeservices Inc.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

4                                           Consent of the Issuing Banks shall not be required for an assignment of all or any portion of a Term Loan.

 

5                                           Signature block to be added only if the consent of the Borrower is required by the terms of the Credit Agreement

 

A-4

 

EXHIBIT B

 

[Reserved]

 

B-1

 

EXHIBIT C

 

[Reserved]

 

C-1

 

EXHIBIT D

 

[Reserved]

 

D-1

 

EXHIBIT E

 

FORM OF
 SECRETARY CERTIFICATE

 

Pursuant to Section 4.03(c) of the Amended and Restated Credit Agreement, dated as of November 5, 2018 (the “Credit Agreement”; terms defined therein being used herein as therein defined), among ANGI Homeservices Inc., a Delaware corporation (the “Borrower”), the Lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent, and certain other parties, the undersigned [INSERT TITLE OF OFFICER] of [INSERT NAME OF CREDIT PARTY] (the “Certifying Credit Party”) hereby certifies as follows on behalf of the Certifying Credit Party:

 

1.                                                                      is the duly elected and qualified [Title] of the Certifying Credit Party and the signature set forth for such officer below is such officer’s true and genuine signature.

 

2.                                      The Certifying Credit Party is a [corporation][limited liability company] duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.

 

3.                                      Attached hereto as Annex 1 is a true and complete copy of resolutions duly adopted by the [                         ] of the Certifying Credit Party on                                ; such resolutions have not in any way been amended, modified, revoked or rescinded, have been in full force and effect since their adoption to and including the date hereof and are now in full force and effect and are the only corporate proceedings of the Certifying Credit Party now in force relating to or affecting the matters referred to therein.

 

4.                                      Attached hereto as Annex 2 is a true and complete copy of the [By-Laws][Operating Agreement] of the Certifying Credit Party as in effect on the date hereof.

 

5.                                      Attached hereto as Annex 3 is a true and complete copy of the [Certificate of Incorporation][Certificate of Formation] of the Certifying Credit Party as in effect on the date hereof.

 

6.                                      Attached hereto as Annex 4 is a good standing certificate for the Certifying Credit Party issued by the jurisdiction of its organization as of the date noted on such certificate.

 

7.                                      Attached hereto as Annex 5 is a list of duly elected and qualified officers of the Certifying Credit Party holding the offices indicated next to their respective names and the signatures appearing opposite their respective names are the true and genuine signatures of such officers, and each of such officers is duly authorized to execute and deliver on behalf of the Certifying Credit Party each of the Loan Documents to which it is a party and any certificate or other document to be delivered by the Certifying Loan Party pursuant to the Loan Documents to which it is a party:

 

[Signature page follows.]

 

E-1

 

IN WITNESS WHEREOF, the undersigned has hereunto set [his][her] name as of the date set forth below.

 

	
 
    	
[Credit Party]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

I,                       , [Title] of the Certifying Credit Party, do hereby certify for and on behalf of the Certifying Credit Party that                           is the duly appointed, qualified and acting [Title] of the Certifying Credit Party  and that the signature set forth above is [his][her] genuine signature.

 

Dated:  [       ], 20[  ]

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

E-2

 

Annex 1

 

Resolutions

 

E-3

 

Annex 2

 

[By-Laws][Operating Agreement]

 

E-4

 

Annex 3

 

[Certificate of Incorporation][Certificate of Formation]

 

E-5

 

Annex 4

 

Good Standing Certificate

 

E-6

 

Annex 5

 

Incumbency Certificate

 

	
Name
    	
 
    	
Office
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-7

 

EXHIBIT F

 

[Reserved]

 

F-1

 

EXHIBIT G-1

 

FORM OF NON-BANK TAX CERTIFICATE
  (For Non-U.S. Lenders That Are Not Treated As Partnerships For

U.S. Federal Income Tax Purposes)

 

Reference is made to the Amended and Restated Credit Agreement, dated as of November 5, 2018 (as amended, restated, extended, supplemented or otherwise modified from time to time, this “Agreement”), among ANGI HOMESERVICES INC., a Delaware corporation (the “Borrower”), the LENDERS party hereto from time to time, JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined herein) (in such capacities, the “Administrative Agent”) and as an Issuing Bank.  Terms defined in the Credit Agreement are used herein with the same meanings.

 

Pursuant to the provisions of Section 2.14(e) 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 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 the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (v) no interest payments in connection with any Loan Document are effectively connected with the undersigned’s conduct of a U.S. trade or business.

 

The undersigned has furnished the Administrative Agent with a duly completed and executed certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN or W-8BEN-E.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent in writing and (2) the undersigned shall have furnished the Borrower and the Administrative Agent a properly completed and currently effective certificate in either the calendar year in which payment is to be made to the undersigned, or in either of the two calendar years preceding each such payment.

 

[Signature Page Follows]

 

G-1-1

 

	
 
    	
[Foreign   Lender]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
[Address]
    

 

 

Dated:                                          , 20[  ]

 

G-1-2

 

EXHIBIT G-2

 

FORM OF NON-BANK TAX CERTIFICATE
 (For Non-U.S. Participants That Are Treated As Partnerships For

U.S. Federal Income Tax Purposes)

 

Reference is made to the Amended and Restated Credit Agreement, dated as of November 5, 2018 (as amended, restated, extended, supplemented or otherwise modified from time to time, this “Agreement”), among ANGI HOMESERVICES INC., a Delaware corporation (the “Borrower”), the LENDERS party hereto from time to time, JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined herein) (in such capacities, the “Administrative Agent”) and as an Issuing Bank.  Terms defined in the Credit Agreement are used herein with the same meanings.

 

Pursuant to the provisions of Section 2.14(e) 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) neither the undersigned nor any of its applicable direct or indirect partners/members is a bank within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its applicable direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (v) none of its applicable direct or indirect partners/members is a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) no interest payments in connection with any Loan Document are effectively connected with the undersigned’s or its applicable direct or indirect partners/members’ conduct of a U.S. trade or business.

 

The undersigned has furnished its participating Lender with a duly completed and executed Internal Revenue Service Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) a duly completed and executed IRS Form W-8BEN or W-8BEN-E or (ii) a duly completed and executed IRS Form W-8IMY accompanied by a duly completed and executed IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption, together with any other information required to be provided by IRS Form W-8IMY. 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 each such payment.

 

[Signature Page Follows]

 

G-2-1

 

	
 
    	
[Foreign   Participant]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
[Address]
    

 

 

Dated:                                          , 20[  ]

 

G-2-2

 

EXHIBIT G-3

 

FORM OF NON-BANK TAX CERTIFICATE
 (For Non-U.S. Participants That Are Not Treated As Partnerships For

U.S. Federal Income Tax Purposes)

 

Reference is made to the Amended and Restated Credit Agreement, dated as of November 5, 2018 (as amended, restated, extended, supplemented or otherwise modified from time to time, this “Agreement”), among ANGI HOMESERVICES INC., a Delaware corporation (the “Borrower”), the LENDERS party hereto from time to time, JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined herein) (in such capacities, the “Administrative Agent”) and as an Issuing Bank.  Terms defined in the Credit Agreement are used herein with the same meanings.

 

Pursuant to the provisions of Section 2.14(e) 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 the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (v) no interest payments in connection with any Loan Document are effectively connected with the undersigned’s conduct of a U.S. trade or business.

 

The undersigned has furnished its participating Lender with a duly completed and executed certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN or W-8BEN-E.  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 each such payment.

 

[Signature Page Follows]

 

G-3-1

 

	
 
    	
[Foreign   Participant]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
[Address]
    

 

 

Dated:                                       , 20[  ]

 

G-3-2

 

EXHIBIT G-4

 

FORM OF NON-BANK TAX CERTIFICATE
  (For Non-U.S. Lenders That Are Treated As Partnerships For

U.S. Federal Income Tax Purposes)

 

Reference is made to the Amended and Restated Credit Agreement, dated as of November 5, 2018 (as amended, restated, extended, supplemented or otherwise modified from time to time, this “Agreement”), among ANGI HOMESERVICES INC., a Delaware corporation (the “Borrower”), the LENDERS party hereto from time to time, JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders and as collateral agent for the Secured Parties (as defined herein) (in such capacities, the “Administrative Agent”) and as an Issuing Bank.  Terms defined in the Credit Agreement are used herein with the same meanings.

 

Pursuant to the provisions of Section 2.14(e) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any 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 Note(s) evidencing such Loan(s)), (iii) neither the undersigned nor any of its applicable direct or indirect partners/members is a bank within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its applicable direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (v) none of its applicable direct or indirect partners/members is a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) no interest payments in connection with any Loan Document are effectively connected with the undersigned’s or its applicable direct or indirect partners/members’ conduct of a U.S. trade or business.

 

The undersigned has furnished the Administrative Agent and the Borrower with a duly completed and executed Internal Revenue Service Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) a duly completed and executed IRS Form W-8BEN or W-8BEN-E or (ii) a duly completed and executed IRS Form W-8IMY accompanied by a duly completed and executed IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption, together with any other information required to be provided by IRS Form W-8IMY. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent in writing and (2) the undersigned shall have at all times furnished the Borrower 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 each such payment.

 

[Signature Page Follows]

 

G-4-1

 

	
 
    	
[Foreign   Lender]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
[Address]
    

 

Dated:                                 , 20[  ]

 

G-4-2

 

EXHIBIT H

 

FORM OF PERFECTION CERTIFICATE

 

[  ] [  ], 20[  ]

 

Reference is hereby made to (i) that certain Security Agreement dated as of November 1, 2017 (the “Security Agreement”), between ANGI Homeservices Inc., a Delaware corporation (“Borrower”), the Guarantors party thereto (collectively, the “Guarantors”) and the Collateral Agent (as hereinafter defined) and (ii) the Amended and Restated Credit Agreement, dated as of November 5, 2018 (as amended, restated, amended and restated, extended, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”), among the Borrower, the Lenders party thereto, JPMorgan Chase Bank, N.A., as collateral agent (in such capacity, the “Collateral Agent”) and the other parties thereto.  Capitalized terms used but not defined herein have the meanings assigned in the Credit Agreement.

 

As used herein, the term “Companies” means Borrower and each of the Subsidiary Guarantors.

 

The undersigned hereby certify to the Collateral Agent as follows:

 

1.                                      Names.

 

(a)                                 The exact legal name of each Company, as such name appears in its respective certificate of incorporation or any other organizational document, is set forth in Schedule 1(a).  Each Company is (i) the type of entity disclosed next to its name in Schedule 1(a) and (ii) a registered organization except to the extent disclosed in Schedule 1(a).  Also set forth in Schedule 1(a) is the organizational identification number, if any, of each Company that is a registered organization, the Federal Taxpayer Identification Number of each Company and the jurisdiction of formation of each Company.

 

(b)                                 Set forth in Schedule 1(b) hereto is a list of any other corporate or organizational names each Company has had in the past five years, together with the date of the relevant change.

 

(c)                                  Set forth in Schedule 1(c) is a list of all other names used by each Company, or any other business or organization to which each Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, on any filings with the Internal Revenue Service at any time within the five years preceding the date hereof.  Except as set forth in Schedule 1(c), no Company has changed its jurisdiction of organization at any time during the past four months.

 

2.                                      Current Locations.   The chief executive office of each Company is located at the address set forth in Schedule 2 hereto.

 

3.                                      Extraordinary Transactions.  Except for those purchases, acquisitions and other transactions described in Schedule 3 attached hereto, all of the Collateral within the past five (5) years has been originated by each Company in the ordinary course of business or consists of goods which have been acquired by such Company in the ordinary course of business from a person in the business of selling goods of that kind.

 

H-1

 

4.                                      [Reserved].

 

5.                                      UCC Filings.  The financing statements (duly authorized by each Company constituting the debtor therein), including the indications of the collateral, attached as Schedule 5 relating to the Security Agreement or the applicable Mortgage, are in the appropriate forms for filing in the appropriate filing offices.

 

6.                                      [Reserved].

 

7.                                      Real Property.  Attached hereto as Schedule 7(a) is a list of (i) all real property to be encumbered by a Mortgage and fixture filing, which real property includes all real property owned by each Company as of the Closing Date having a value in excess of $15,000,000 (such real property, the “Mortgaged Property”), other than the ANGI Campus, (ii) addresses and uses of each Mortgaged Property (stating improvements located thereon) and (iii) other information relating thereto required by such Schedule.  Except as described in Schedule 7(b) attached hereto, no Company has entered into any leases, subleases, tenancies, franchise agreements, licenses or other occupancy arrangements as owner, lessor, sublessor, licensor, franchisor or grantor with respect to any of the real property described in Schedule 7(a).

 

8.                                      [Reserved].

 

9.                                      Stock Ownership and Other Equity Interests.  Attached hereto as Schedule 9(a) is a true and correct list of each of all of the issued and outstanding stock, partnership interests, limited liability company membership interests or other equity interest of each Company and its direct subsidiaries and the record and beneficial owners of such stock, partnership interests, membership interests or other equity interests setting forth the percentage of such equity interests pledged under the Security Agreement.  Also set forth in Schedule 9(b) is each equity investment of each Company that represents 50% or less of the equity of the entity in which such investment was made setting forth the percentage of such equity interests pledged under the Security Agreement.

 

10.                               Instruments and Tangible Chattel Paper.  Attached hereto as Schedule 10 is a true and correct list of all promissory notes, instruments (other than checks to be deposited in the ordinary course of business), tangible chattel paper, electronic chattel paper and other evidence of indebtedness in excess of $7,500,000 (in each case other than intercompany arrangements arising in the ordinary course of business, including cash pooling and cash management arrangements), held by each Company as of the date hereof, including all intercompany notes between or among any two or more Companies or any of their subsidiaries, stating if such instruments, chattel paper or other evidence of indebtedness is pledged under the Security Agreement.

 

11.                               Intellectual Property.  (a)  Attached hereto as Schedule 11(a) is a schedule setting forth all of each Company’s Patents and Trademarks (each as defined in the Security Agreement) applied for or registered with the United States Patent and Trademark Office, and all other Patents and  Trademarks (each as defined in the Security Agreement), including the name of the registered owner or applicant and the registration, application, or publication  number, as applicable, of each Patent or Trademark owned by each Company.

 

H-2

 

(b)  Attached hereto as Schedule 11(b) is a schedule setting forth all of each Company’s United States Copyrights (each as defined in the Security Agreement), and all other Copyrights, including the name of the registered owner and the registration number of each Copyright owned by each Company.

 

(c)  Attached hereto as Schedule 11(c) is a schedule setting forth all Patent Licenses, Trademark Licenses and Copyright Licenses, whether or not recorded with the USPTO or USCO, as applicable, including, but not limited to, the relevant signatory parties to each license along with the date of execution thereof and, if applicable, a recordation number or other such evidence of recordation.

 

12.                               Commercial Tort Claims.  Attached hereto as Schedule 12 is a true and correct list of all Commercial Tort Claims (as defined in the Security Agreement)  in excess of $7,500,000 held by each Company, including a brief description thereof and stating if such commercial tort claims are required to be pledged under the Security Agreement.

 

13.                               Insurance.                                       Attached hereto as Schedule 13 is a true and correct list of all insurance policies of the Companies.

 

[The Remainder of this Page has been intentionally left blank]

 

H-3

 

IN WITNESS WHEREOF, we have hereunto signed this Perfection Certificate as of the date first set forth above.

 

	
 
    	
ANGI   HOMESERVICES INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
[HOLDINGS]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
[EACH   OF THE GUARANTORS]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

H-4

 

Schedule 1(a)

 

Legal Names, Etc.

 

	
Legal Name
    	
 
    	
Type of Entity
    	
 
    	
Registered Organization
   (Yes/No)
    	
 
    	
Organizational Number
    	
 
    	
Federal Taxpayer
   Identification Number
    	
 
    	
State of Formation
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

H-5

 

Schedule 1(b)

 

Prior Organizational Names

 

	
Company/Subsidiary
    	
 
    	
Prior Name
    	
 
    	
Date of Change
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

H-6

 

Schedule 1(c)

 

Other Names on IRS Filings; Changes in Jurisdiction

 

	
Company/Subsidiary
    	
 
    	
List of All Other Names Used
   on Any Filings with the
   Internal Revenue Service
   During Past Five Years
    	
 
    	
Prior Jurisdiction of 
   Organization
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

H-7

 

Schedule 2

 

Chief Executive Offices

 

	
Company/Subsidiary
    	
 
    	
Address
    	
 
    	
County
    	
 
    	
State
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

H-8

 

Schedule 3

 

Extraordinary Transactions

 

	
Company/Subsidiary
    	
 
    	
Description of Transaction Including
   Parties Thereto
    	
 
    	
Seller’s/Predecessor’s
   State of Formation
    	
 
    	
Date of 
   Transaction
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

H-9

 

Schedule 4

 

[Reserved]

 

H-10

 

Schedule 5

 

Copy of Financing Statements To Be Filed

 

See attached.

 

H-11

 

Schedule 6

 

[Reserved]

 

H-12

 

Schedule 7(a)

 

Real Property

 

I.  Owned Real Property (other than ANGI Campus)

 

[  ]

 

H-13

 

Schedule 7(b)

 

Required Consents; Company Held Landlord’s/ Grantor’s Interests

 

[  ]

 

H-14

 

Schedule 8(a)

 

[Reserved]

 

H-15

 

Schedule 9

 

(a) Equity Interests of Companies and subsidiaries

 

	
Current Legal Entities
   Owned
    	
 
    	
Record Owner
    	
 
    	
Certificate No.
    	
 
    	
No. Shares/Interest
    	
 
    	
Percent Pledged
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

(b) Other Equity Interests

 

[  ]

 

H-16

 

Schedule 10

 

Instruments and Tangible Chattel Paper

 

[  ]

 

H-17

 

Schedule 11(a)

 

Patents and Trademarks

 

UNITED STATES PATENTS: [  ]

 

OTHER PATENTS: [  ]

 

UNITED STATES AND OTHER TRADEMARKS: [  ]

 

H-18

 

Schedule 11(b)

 

Copyrights

 

UNITED STATES COPYRIGHTS

 

[  ]

 

OTHER COPYRIGHTS

 

[  ]

 

H-19

 

Schedule 11(c)

 

Intellectual Property Licenses

 

Patent Licenses: [  ]

 

Trademark Licenses: [  ]

 

Copyright Licenses: [  ]

 

H-20

 

Schedule 12

 

Commercial Tort Claims

 

[  ]

 

H-21

 

Schedule 13

 

Insurance

 

	
Carrier
    	
 
    	
Policy Number
    	
 
    	
Expiration
   Date
    	
 
    	
Type of Insurance
    	
 
    	
Limits
    	
 
    	
Retention/Deductible
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

H-22

 

EXHIBIT I

 

FORM OF SOLVENCY CERTIFICATE

 

I, the undersigned, the chief financial officer of ANGI HOMESERVICES INC., a Delaware corporation (the “Borrower”), DO HEREBY CERTIFY on behalf of the Borrower that:

 

1.                                      This Certificate is furnished pursuant to Section 4.03(e) of the Amended and Restated Credit Agreement, (as in effect on the date of this Certificate) (the capitalized terms defined therein being used herein as therein defined) dated as of November 5, 2018, among the Borrower, the Lenders party thereto from time to time, JPMORGAN CHASE BANK, N.A., as administrative agent and collateral agent (in such capacities, “Administrative Agent”) for the Lenders, and the other parties thereto (as amended, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”).

 

2.                                      Immediately after the consummation of the Transactions to occur on the Amendment Effective Date and after giving effect to the rights of subrogation and contribution under the Guarantee, (a) the fair value of the assets of the Borrower and its subsidiaries on a consolidated basis will exceed their debts and liabilities, subordinated, contingent or otherwise, (b) the present fair saleable value of the assets of the Borrower and its subsidiaries on a consolidated basis will be greater than the amount that will be required to pay the probable liability on their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured, (c) the Borrower and its subsidiaries on a consolidated basis will be able to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured and (d) the Borrower and its subsidiaries on a consolidated basis will not have unreasonably small capital with which to conduct the business in which they are engaged, as such business is now conducted and is proposed to be conducted following the Amendment Effective Date.

 

[Signature Page Follows]

 

I-1

 

IN WITNESS WHEREOF, I have hereunto set my hand this       day of         ,        .

 

	
 
    	
ANGI   HOMESERVICES INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    

 

I-2

 

EXHIBIT J

 

[FORM OF]
 JOINDER AND REAFFIRMATION AGREEMENT

 

JOINDER AND REAFFIRMATION AGREEMENT, dated as of [                 ] (this “Agreement”), among [                 ] (the “Existing Borrower”), [                 ] (the “Successor Borrower”), each of the subsidiaries of the Borrower set forth on Schedule 1 hereto (the “Reaffirming Parties”), and JPMORGAN CHASE BANK, N.A., as administrative agent (the “Administrative Agent”) for the Lenders under the Credit Agreement referred to below and as collateral agent (the “Collateral Agent”) for the Secured Parties.

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, reference is hereby made to that certain Amended and Restated Credit Agreement, dated as of November 5, 2018 (as may be further amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Existing Borrower, the Lenders, the Administrative Agent and the other parties thereto;

 

WHEREAS, pursuant to the [                            ]6, dated as of the date hereof, between the Existing Borrower and the Successor Borrower and attached as Exhibit A hereto, the Existing Borrower has [merged into][consolidated with][contributed to] the Successor Borrower [the [                            ]]7 (the “Contribution”);

 

WHEREAS, Section 6.03(vi) of the Credit Agreement expressly permits the Contribution, subject to the terms and conditions set forth therein;

 

WHEREAS, pursuant to Section 6.03(vi) of the Credit Agreement, in connection with the Contribution, the Successor Borrower is required to expressly assume all the obligations of the Existing Borrower under the Credit Agreement and the Loan Documents to which the Existing Borrower is a party, and the Successor Borrower will succeed to, and be substituted for, and may exercise every right and power of, the Existing Borrower under the Loan Documents; and

 

WHEREAS, pursuant to Section 6.03(vi)(B) of the Credit Agreement, in connection with the Contribution, each Loan Party is required to reaffirm all of its obligations under the Loan Documents to which it is a party.

 

6                                           Describe contribution or other operative document to which the merger or Disposition is being made.  References herein to the “Contribution Agreement” to be revised as necessary to conform to the description of such operative document.

 

7                                           Describe assets to be contributed, if applicable.  Joinder and Reaffirmation Agreement to be revised as necessary or desirable to conform to the merger, consolidation or Disposition.

 

J-1

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1.                                      Defined Terms.  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

2.                                      Assumption and Joinder of Agreements and Obligations.  Effective as of the Effective Date (as defined below), the Successor Borrower hereby becomes a party to the Credit Agreement, the Security Agreement and each other Loan Document to which the Existing Borrower is a party and expressly assumes, confirms and agrees to perform and observe all of the  obligations (including, without limitation, all obligations in respect of the Loans), covenants, agreements, terms, conditions, duties and liabilities of the “Borrower” and a “Pledgor” (as applicable) thereunder and with respect thereto, with the same force and effect as if originally named therein as the “Borrower” or a “Pledgor” (as applicable).  Without limiting the generality of the foregoing, the Successor Borrower (i) hereby grants to the Collateral Agent for the benefit of the Secured Parties a security interest in all Collateral owned by it to secure the Obligations and (ii) hereby agrees to take all actions required under the Security Agreement to perfect the Liens on the Collateral owned by the Successor Borrower.  The information set forth in Schedule 2 hereto is hereby added to the information set forth in the Schedules to the Security Agreement.

 

3.                                      Release of Existing Borrower.  The Existing Borrower is hereby released from the obligation to pay the principal of and interest on the Loans and all of the Existing Borrower’s other obligations and covenants under the Credit Agreement, the Security Agreement, and the other Loan Documents.

 

4.                                      Representations and Warranties.  The Successor Borrower represents and warrants to each of the Lenders that as of the Effective Date:

 

(a)                                 The Successor Borrower is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required, except, in each case, where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

 

(b)                                 This Agreement has been duly authorized by all necessary corporate or other organizational action by the Successor Borrower.  This Agreement has been duly executed and delivered by the Successor Borrower.

 

(c)                                  This Agreement, the Credit Agreement and each other Loan Document to which it is a party constitutes a legal, valid and binding obligation of the Successor Borrower, enforceable against the Successor Borrower in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights or remedies generally and subject to general principles

 

J-2

 

of equity, regardless of whether considered in a proceeding in equity or at law.

 

(d)                                 After giving effect to the Contribution and this Agreement, to the extent required pursuant to the terms of the Collateral Documents and the Credit Agreement, the Collateral owned by the Successor Borrower will be subject to a Lien in favor of the Collateral Agent.

 

(e)                                  The Contribution has occurred or will occur substantially concurrently with the delivery of this Agreement.

 

(f)                                   The Successor Borrower is in compliance with Section 6.10 of the Credit Agreement on a pro forma basis after giving effect to the Contribution and this Agreement.

 

(g)                                  After giving effect to the Contribution and this Agreement, no Default or Event of Default has occurred and is continuing.

 

(h)                                 After giving effect to the Contribution and this Agreement, the representations and warranties of each Loan Party set forth in the Credit Agreement and the Security Agreement are true and correct in all material respects (except to the extent that any such representation and warranty is qualified by materiality or Material Adverse Effect, in which case such representation and warranty shall be true and correct in all respects) as of the Effective Date, except to the extent that any such representation and warranty relates to an earlier date (in which case such representation and warranty shall have been true and correct in all material respects (except to the extent that any such representation and warranty is qualified by materiality or Material Adverse Effect, in which case such representation and warranty shall be true and correct in all respects) as of such earlier date.

 

(i)                                     The Contribution complies with the Credit Agreement.

 

5.                                      Effectiveness.  This Agreement shall become effective on the date (such date, if any, the “Effective Date”) that the following conditions have been satisfied:

 

(a)                                 the Administrative Agent shall have received a counterpart of this Agreement executed by the Borrower, the Successor Borrower and each of the other Loan Parties;

 

(b)                                 the Administrative Agent shall have received a certificate of the Successor Borrower substantially in the form of Exhibit E to the Credit Agreement, including all annexes, exhibits and other attachments thereto;

 

(c)                                  [the Administrative Agent shall have received an opinion of counsel covering such matters, and in a form, substantially the same as previously provided to the

 

J-3

 

Administrative Agent under Section 4.01(b) of the Credit Agreement to the extent applicable;]8 and

 

(d)                                 the Borrower shall have provided any documentation and other information about the Successor Borrower as shall have been reasonably requested in writing by any Lender through the Administrative Agent that such Lender shall have reasonably determined is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including Title III of the Act.

 

6.                                      Covenant to Deliver Share Certificates.  With respect to any stock certificates for which (i) the Existing Borrower is listed as the record owner and (ii) ownership has been transferred to the Successor Borrower in the Contribution (the “ANGI Share Certificates”), on or prior to the latest of (a) the date that is 30 days after the date of this Agreement , (b) solely in the case of the ANGI Share Certificates that are stock certificates of an entity with publicly traded shares, the date that is 30 days after the return by the Collateral Agent of the ANGI Share Certificates that are stock certificates of such entity with publicly traded shares and (c) such longer period as the Collateral Agent may agree in its reasonable discretion, the Successor Borrower will cause the issuance of new share certificates listing the Successor Borrower as the record owner of the Pledged Stock (as such term is defined in the Security Agreement) represented by such ANGI Share Certificates and deliver such new certificates and executed instruments of transfer or assignment in blank to the Collateral Agent in exchange for the ANGI Share Certificates held by the Collateral Agent.

 

7.                                      Amendment to Loan Documents.   All references to the “Borrower” in the Credit Agreement, the Security Agreement, the Guarantee Agreement, and any of the other Loan Documents shall be deemed to refer to the Successor Borrower, and are hereby amended to give effect to the terms of this Agreement, but only to the extent, necessary to give effect to the terms of this Agreement.  Except as expressly set forth herein, (i) this Agreement shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, the Administrative Agent or the Collateral Agent, in each case under the Credit Agreement or any other Loan Document, and (ii) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of either such agreement or any other Loan Document.  This Agreement shall constitute a Loan Document for purposes of the Credit Agreement and from and after the Effective Date, all references to the Credit Agreement in any Loan Document and all references in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, shall, unless expressly provided otherwise, refer to the Credit Agreement after giving effect to this Agreement.

 

8.                                      Reaffirmation of Loan Documents.  Each Reaffirming Party hereby acknowledges its receipt of a copy of this Agreement and its review of the terms and conditions hereof and

 

8                                           If requested by the Administrative Agent.

 

J-4

 

consents to the terms and conditions of this Agreement and the transactions contemplated hereby.  Each Reaffirming Party hereby (a) affirms and confirms its guarantees and other commitments under the Guarantee Agreement, as amended hereby, and (b) agrees that the Guarantee Agreement, as amended hereby, is in full force and effect and shall accrue to the benefit of the Secured Parties to guarantee the Obligations after giving effect to this Agreement. The Successor Borrower and each Reaffirming Party hereby (a) affirms and confirms its pledges, grants and other commitments under the Security Agreement, as amended hereby, and (b) agrees that the Security Agreement is in full force and effect after giving effect to this Agreement and shall accrue to the benefit of the Secured Parties to secure the Obligations after giving effect to this Agreement. This Agreement is not intended to constitute a novation of the Credit Agreement or any of the other Loan Documents as in effect prior to the Effective Date.

 

9.                                      Governing Law; Waiver of Jury Trial; Jurisdiction; Consent to Service of Process.  This Agreement and any claims, controversy, dispute or cause of action (whether in contract or otherwise) based upon, arising out of or relating to this Agreement and the transactions contemplated hereby shall be governed by and construed in accordance with the law of the State of New York.  The Borrower and each other Loan Party hereby agrees that this Agreement is a Loan Document governed by Sections 9.10 and 9.11 of the Credit Agreement relating to waiver of jury trial, jurisdiction, consent to service of process and the other matters covered therein.

 

10.                               Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or any other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

 

11.                               Section Headings.  The section headings in this Agreement are for convenience of reference only and are not to affect the construction hereof or to be taken into consideration in the interpretation hereof.

 

12.                               Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

13.                               Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

[The Remainder of This Page is Left Intentionally Blank]

 

J-5

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective proper and duly authorized officers as of the date first set forth above.

 

 

	
 
    	
[EXISTING BORROWER]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[SUCCESSOR BORROWER]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

J-6

 

	
 
    	
Acknowledged and   Accepted:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK,   N.A., as Administrative Agent and Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

J-7

 

Schedule 1

 

 

Schedule 2

 

 

Exhibit A

 

Contribution Agreement

 

[See attached.]Exhibit 10.9

      

      

         

    

    SENIOR SECURED DELAYED DRAW TERM LOAN

      CREDIT AGREEMENT

     

    among

     

    LNG HOLDINGS LLC,

      as Holdings 1,

     

    FEP GP LNG HOLDINGS LLC,

      as Holdings 2,

     

    LNG HOLDINGS (FLORIDA) LLC,

      as the Borrower,

     

    The Several Lenders

      from Time to Time Party Hereto

     

    and

     

    MORGAN STANLEY SENIOR FUNDING, INC.,

      as Administrative Agent,

     

    Dated as of November 24, 2014

     

    
      	
               

            

                

     

    MORGAN STANLEY SENIOR FUNDING, INC.,

      as Arranger and Bookrunner

     

    
      
        	
                 

              

      

      
        
          
 

      

      

    TABLE OF CONTENTS

     

    
      	 	 	 	
              Page

            
	 	 	 
	
              SECTION 1.

            	
              DEFINITIONS

            	
              1

            
	 	
              1.1

            	
              Defined Terms

            	
              1

            
	 	 	 	 
	 	
              1.2

            	
              Other Definitional Provisions

            	
              31

            
	 	 	 	 
	 	
              1.3

            	
              Timing of Payment or Performance

            	
              32

            
	 	 	 	 
	 	
              1.4

            	
              Currency Equivalents Generally

            	
              32

            
	 	 	 	 
	 	
              1.5

            	
              Other Defined Terms

            	
              33

            
	 	 	 	 
	
              SECTION 2.

            	
              LOANS

            	
              34

            
	 	
              2.1

            	
              Term Loans

            	
              34

            
	 	 	 	 
	 	
              2.2

            	
              [Reserved]

            	
              35

            
	 	 	 	 
	 	
              2.3

            	
              [Reserved]

            	
              35

            
	 	 	 	 
	 	
              2.4

            	
              [Reserved]

            	
              35

            
	 	 	 	 
	 	
              2.5

            	
              [Reserved]

            	
              35

            
	 	 	 	 
	 	
              2.6

            	
              Pro Rata Shares; Availability of Funds

            	
              35

            
	 	 	 	 
	 	
              2.7

            	
              Use of Proceeds

            	
              36

            
	 	 	 	 
	 	
              2.8

            	
              Evidence of Debt; Register; Lenders’ Books and Records; Notes

            	
              36

            
	 	 	 	 
	 	
              2.9

            	
              Interest on Term Loans

            	
              37

            
	 	 	 	 
	 	
              2.10

            	
              Conversion/Continuation

            	
              38

            
	 	 	 	 
	 	
              2.11

            	
              Default Interest

            	
              39

            
	 	 	 	 
	 	
              2.12

            	
              Fees

            	
              39

            
	 	 	 	 
	 	
              2.13

            	
              Scheduled Payments

            	
              40

            
	 	 	 	 
	 	
              2.14

            	
              Voluntary Prepayments/Commitment Reductions

            	
              40

            
	 	 	 	 
	 	
              2.15

            	
              Mandatory Prepayments

            	
              42

            
	 	 	 	 
	 	
              2.16

            	
              Application of Prepayments/Reductions

            	
              44

            
	 	 	 	 
	 	
              2.17

            	
              General Provisions Regarding Payments

            	
              45

            

    

     

     

     

    
      -i-

      
        
 

    

     

    
      	 	
              2.18

            	
              Ratable Sharing

            	
              46

            
	 	 	 	 
	 	
              2.19

            	
              Making or Maintaining Eurodollar Rate Loans

            	
              47

            
	 	 	 	 
	 	
              2.20

            	
              Increased Costs; Capital Adequacy

            	
              49

            
	 	 	 	 
	 	
              2.21

            	
              Taxes

            	
              51

            
	 	 	 	 
	 	
              2.22

            	
              Obligation to Mitigate

            	
              55

            
	 	 	 	 
	 	
              2.23

            	
              Defaulting Lenders

            	
              55

            
	 	 	 	 
	 	
              2.24

            	
              Removal or Replacement of a Lender

            	
              57

            
	 	 	 	 
	 	
              2.25

            	
              Maturity Extension Option

            	
              57

            
	 	 	 	 
	
              SECTION 3.

            	
              REPRESENTATIONS AND WARRANTIES

            	
              58

            
	 	
              3.1

            	
              Financial Condition

            	
              58

            
	 	 	 	 
	 	
              3.2

            	
              No Change

            	
              58

            
	 	 	 	 
	 	
              3.3

            	
              Corporate Existence; Compliance with Law

            	
              58

            
	 	 	 	 
	 	
              3.4

            	
              Corporate Power; Authorization; Enforceable Obligations

            	
              58

            
	 	 	 	 
	 	
              3.5

            	
              No Legal Bar

            	
              59

            
	 	 	 	 
	 	
              3.6

            	
              No Material Litigation

            	
              59

            
	 	 	 	 
	 	
              3.7

            	
              No Default

            	
              59

            
	 	 	 	 
	 	
              3.8

            	
              Ownership of Property; Liens

            	
              59

            

    

     

    
      -ii-

      
        
 

    

    
      	 	 	 	
              Page

            
	 	 	 	 
	 	
              3.9

            	
              Intellectual Property

            	
              62

            
	 	 	 	 
	 	
              3.10

            	
              Taxes

            	
              62

            
	 	 	 	 
	 	
              3.11

            	
              Federal Regulations

            	
              62

            
	 	 	 	 
	 	
              3.12

            	
              Labor Matters

            	
              62

            
	 	 	 	 
	 	
              3.13

            	
              ERISA

            	
              62

            
	 	 	 	 
	 	
              3.14

            	
              Investment Company Act

            	
              62

            
	 	 	 	 
	 	
              3.15

            	
              Subsidiaries

            	
              62

            
	 	 	 	 
	 	
              3.16

            	
              Use of Proceeds

            	
              63

            
	 	 	 	 
	 	
              3.17

            	
              Environmental Matters

            	
              63

            
	 	 	 	 
	 	
              3.18

            	
              Accuracy of Information, Etc.

            	
              64

            
	 	 	 	 
	 	
              3.19

            	
              Security Documents

            	
              64

            
	 	 	 	 
	 	
              3.20

            	
              Solvency

            	
              65

            
	 	 	 	 
	 	
              3.21

            	
              Flood Insurance

            	
              65

            
	 	 	 	 
	 	
              3.22

            	
              [Reserved]

            	
              65

            
	 	 	 	 
	 	
              3.23

            	
              PATRIOT Act; FCPA; OFAC

            	
              65

            
	 	 	 	 
	 	
              3.24

            	
              Material Construction-Related Contracts and Permits

            	
              66

            
	 	 	 	 
	 	
              3.25

            	
              Insurance

            	
              66

            
	 	 	 	 
	
              SECTION 4.

            	
              CONDITIONS PRECEDENT

            	
              66

            
	 	
              4.1

            	
              Conditions to Effectiveness

            	
              66

            
	 	 	 	 
	 	
              4.2

            	
              Conditions to the Making of any Term Loan After the Closing Date

            	
              69

            
	 	 	 	 
	
              SECTION 5.

            	
              AFFIRMATIVE COVENANTS

            	
              70

            
	 	
              5.1

            	
              Financial Statements

            	
              70

            
	 	 	 	 
	 	
              5.2

            	
              Certificates; Other Information

            	
              71

            
	 	 	 	 
	 	
              5.3

            	
              Payment of Taxes

            	
              73

            
	 	 	 	 
	 	
              5.4

            	
              Conduct of Business and Maintenance of Existence;
                  Compliance with Law

            	73

    

     

    
      -iii-

      
        
 

    

    
      	 	
              5.5

            	
              Maintenance of Property; Insurance

            	
              73

            
	 	 	 	 
	 	
              5.6

            	
              Inspection of Property; Books and Records; Discussions

            	
              74

            
	 	 	 	 
	 	
              5.7

            	
              Notices

            	
              74

            
	 	 	 	 
	 	
              5.8

            	
              Environmental Laws

            	
              75

            
	 	 	 	 
	 	
              5.9

            	
              Plan Compliance

            	
              76

            
	 	 	 	 
	 	
              5.10

            	
              Additional Collateral, etc

            	
              76

            
	 	 	 	 
	 	
              5.11

            	
              Further Assurances

            	
              78

            
	 	 	 	 
	 	
              5.12

            	
              Post-Closing Covenants

            	
              78

            
	 	 	 	 
	 	
              5.13

            	
              Plant Completion Date

            	
              79

            
	 	 	 	 
	 	
              5.14

            	
              Compliance with Material Construction-Related Contracts

            	
              80

            
	 	 	 	 
	 	
              5.15

            	
              Unrestricted Subsidiaries

            	
              80

            
	 	 	 	 
	
              SECTION 6.

            	
              NEGATIVE COVENANTS

            	
              80

            
	 	
              6.1

            	
              [Reserved]

            	
              80

            
	 	 	 	 
	 	
              6.2

            	
              Limitation on Indebtedness

            	
              80

            
	 	 	 	 
	 	
              6.3

            	
              Limitation on Liens

            	
              83

            
	 	 	 	 
	 	
              6.4

            	
              Limitation on Fundamental Changes

            	
              87

            
	 	 	 	 
	 	
              6.5

            	
              Limitation on Disposition of Property

            	
              88

            

    

     

    
      -iv-

      
        
 

    

     

    
      	 	 	 	
              Page

            
	 	 	 	 
	 	
              6.6

            	
              Limitation on Restricted Payments

            	
              90

            
	 	 	 	 
	 	
              6.7

            	
              Nature of Business

            	
              92

            
	 	 	 	 
	 	
              6.8

            	
              Limitation on Investments

            	
              92

            
	 	 	 	 
	 	
              6.9

            	
              Limitation on Optional Payments and Modifications of Subordinated Debt Instruments and Certain Other Indebtedness; Limitation on
                Modifications of Organizational Documents or Material Construction-Related Contracts

            	
              94

            
	 	 	 	 
	 	
              6.10

            	
              Limitation on Transactions with Affiliates

            	
              95

            
	 	 	 	 
	 	
              6.11

            	
              Limitation on Sales and Leasebacks

            	
              95

            
	 	 	 	 
	 	
              6.12

            	
              Limitation on Changes in Fiscal Periods

            	
              95

            
	 	 	 	 
	 	
              6.13

            	
              Limitation on Negative Pledge Clauses

            	
              95

            
	 	 	 	 
	 	
              6.14

            	
              Limitation on Restrictions on Subsidiary Distributions

            	
              96

            
	 	 	 	 
	 	
              6.15

            	
              Foreign Subsidiaries

            	
              96

            
	 	 	 	 
	 	
              6.16

            	
              Limitation on Activities of Holdings

            	
              96

            
	 	 	 	 
	 	
              6.17

            	
              In-Balance Test

            	
              97

            
	 	 	 	 
	
              SECTION 7.

            	
              EVENTS OF DEFAULT

            	
              97

            
	 	
              7.1

            	
              Events of Default

            	
              97

            
	 	 	 	 
	 	
              7.2

            	
              Application of Proceeds

            	
              100

            
	 	 	 	 
	 	
              7.3

            	
              Cure Right

            	
              101

            
	 	 	 	 
	
              SECTION 8.

            	
              THE ADMINISTRATIVE AGENT

            	
              102

            
	 	
              8.1

            	
              Appointment and Authority

            	
              102

            
	 	 	 	 
	 	
              8.2

            	
              Rights as a Lender

            	
              102

            
	 	 	 	 
	 	
              8.3

            	
              Exculpatory Provisions

            	
              102

            
	 	 	 	 
	 	
              8.4

            	
              Reliance by Administrative Agent

            	
              104

            
	 	 	 	 
	 	
              8.5

            	
              Delegation of Duties

            	
              104

            
	 	 	 	 
	 	
              8.6

            	
              Resignation of Administrative Agent

            	
              105

            

    

     

    
      -v-

      
        
 

    

    
      	 	
              8.7

            	
              Non-Reliance on Administrative Agent and Other Lenders

            	
              105

            
	 	 	 	 
	 	
              8.8

            	
              No Other Duties, Etc.

            	
              105

            
	 	 	 	 
	 	
              8.9

            	
              Administrative Agent May File Proofs of Claim

            	
              106

            
	 	 	 	 
	 	
              8.10

            	
              Collateral and Guaranty Matters; Rights Under Hedge Agreements

            	
              106

            
	 	 	 	 
	 	
              8.11

            	
              Withholding Taxes

            	
              107

            
	 	 	 	 
	
              SECTION 9.

            	
              MISCELLANEOUS

            	
              107

            
	 	
              9.1

            	
              Amendments and Waivers

            	
              107

            
	 	 	 	 
	 	
              9.2

            	
              Notices

            	
              110

            
	 	 	 	 
	 	
              9.3

            	
              No Waiver; Cumulative Remedies

            	
              111

            
	 	 	 	 
	 	
              9.4

            	
              Survival of Representations and Warranties

            	
              111

            
	 	 	 	 
	 	
              9.5

            	
              Payment of Expenses; Indemnification

            	
              112

            
	 	 	 	 
	 	
              9.6

            	
              Successors and Assigns; Participations and Assignments

            	
              113

            
	 	 	 	 
	 	
              9.7

            	
              Adjustments; Set-off

            	
              120

            
	 	 	 	 
	 	
              9.8

            	
              Counterparts

            	
              121

            
	 	 	 	 
	 	
              9.9

            	
              Severability

            	
              121

            
	 	 	 	 
	 	
              9.10

            	
              Integration

            	
              121

            
	 	 	 	 
	 	
              9.11

            	
              GOVERNING LAW

            	
              121

            

    

     

    
      -vi-

      
        
 

    

    
      	 	 	
              Page

            
	 	 	 
	
              9.12

            	
              Submission To Jurisdiction; Waivers

            	
              121

            
	 	 	 
	
              9.13

            	
              Acknowledgments

            	
              122

            
	 	 	 
	
              9.14

            	
              Confidentiality

            	
              123

            
	 	 	 
	
              9.15

            	
              Accounting Changes

            	
              123

            
	 	 	 
	
              9.16

            	
              WAIVERS OF JURY TRIAL

            	
              123

            
	 	 	 
	
              9.17

            	
              Conversion of Currencies

            	
              123

            
	 	 	 
	
              9.18

            	
              [Reserved]

            	
              124

            
	 	 	 
	
              9.19

            	
              FLORIDA STAMP TAX PAYMENT

            	
              124

            
	 	 	 
	
              9.20

            	
              USA PATRIOT Act

            	
              124

            
	 	 	 
	
              9.21

            	
              Payments Set Aside

            	
              124

            
	 	 	 
	
              9.22

            	
              Releases of Collateral and Guarantees

            	
              125

            
	 	 	 
	
              9.23

            	
              Time

            	
              126

            

    

     

    
      -vii-

      
        
 

    

    
      	
              SCHEDULES:

            
	 
	
              1.1A

            	
              Commitments

            
	
              1.1C

            	
              Mortgaged Properties

            
	
              1.1H

            	
              Disqualified Assignees

            
	
              3.15

            	
              Subsidiaries

            
	
              3.19(a)

            	
              Uniform Commercial Code Filing Jurisdictions

            
	
              3.19(b)

            	
              Mortgage Filing Jurisdictions

            
	
              3.24

            	
              Material Construction-Related Contracts

            
	
              4.1(f)

            	
              Closing Date Lien Searches

            
	
              5.12

            	
              Post-Closing Matters

            
	
              6.2(d)

            	
              Existing Indebtedness

            
	
              6.3(o)

            	
              Existing Liens

            
	
              6.8(i)

            	
              Existing Investments

            
	
              6.10

            	
              Transactions with Affiliates

            
	 	 
	
              EXHIBITS:

            
	 
	
              A

            	
              Form of Compliance Certificate

            
	
              B

            	
              Form of Closing Certificate

            
	
              C-1

            	
              Form of Assignment and Acceptance

            
	
              C-2

            	
              Form of Affiliated Lender Assignment and Acceptance

            
	
              D

            	
              Form of Term Loan Note

            
	
              E-1

            	
              Form of United States Tax Compliance Certificate (For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

            
	
              E-2

            	
              Form of United States Tax Compliance Certificate (For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

            
	
              E-3

            	
              Form of United States Tax Compliance Certificate (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax
                Purposes)

            
	
              E-4

            	
              Form of United States Tax Compliance Certificate (For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax
                Purposes)

            
	
              F

            	
              Form of Solvency Certificate

            
	
              G-1

            	
              Form of Funding Notice

            
	
              G-2

            	
              Form of Conversion/Continuation Notice

            
	
              H

            	
              Form of Security Deposit Agreement

            
	
              I

            	
              Form of Intercompany Debt Subordination Agreement

            
	
              J

            	
              Form of Notice of Collateral Assignment

            
	
              K

            	
              Form of Florida Construction Loan Update Endorsement

            
	
              L

            	
              Form of General Contractor Certificate

            
	 	 
	
              Appendix A 

            	Notice Addresses

    

     

    
      -viii-

      
        
 

    

  

  
  
     

    SENIOR SECURED DELAYED DRAW TERM LOAN CREDIT AGREEMENT, dated as of November 24, 2014 among LNG HOLDINGS LLC, a Delaware limited liability
      company (“Holdings 1”), FEP GP LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 2,” and together with Holdings 1, “Holdings”), LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”), the several banks and other financial institutions or entities from time to time party to this Agreement (the “Lenders”) and MORGAN STANLEY SENIOR FUNDING, INC. (“MSSF”), as administrative agent (in such capacity,
      together with any successor appointed in accordance with Section 8.6, the “Administrative Agent”).

     

    W I T N E S E T H:

     

    WHEREAS, capitalized terms used in these recitals shall have the respective meanings set forth for such terms in Section 1.1;

     

    WHEREAS, the Lenders have agreed, subject to the terms and conditions hereof, to extend term loans (the “Term Loans”) to the Borrower from time to time in an aggregate principal amount of $40,000,000 (the “Term Loan
          Facility”); and

     

    WHEREAS, the proceeds of the Term Loans will be used, together with the Initial Equity Contribution (as defined below) on the Closing Date
      and other cash equity contributions after the Closing Date, to (a) pay fees and expenses incurred in connection with the Term Loan Facility, (b) directly fund the Debt Service Reserve Account to the extent required under the Depositary Agreement, and
      (c) fund construction costs consistent with the Budget, other costs related to the Plant and working capital with respect to and/or related to the Plant (clauses (a) through (c) above, together with the Initial Equity Contribution and all related
      transactions, the “Transactions”).

     

    NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, the parties hereto agree as follows:

     

    Section 1.              DEFINITIONS

     

    1.1          Defined Terms.  As used in this Agreement, the terms listed in this Section 1.1 shall have the respective meanings set forth in this Section 1.1.

     

    “Acquisition”: as to any Person, the acquisition
      by such Person of (a) Capital Stock of any other Person if, after giving effect to the acquisition of such Capital Stock, such other Person would be a Subsidiary (including an Unrestricted Subsidiary), and (b) any other Property of any other Person.

     

    “Acquisition Consideration”: the aggregate
      consideration paid by any LNG Group Member in exchange for, as part of or in connection with any Permitted Acquisition, whether paid in cash or by exchange of Capital Stock or of properties or otherwise, in each case, other than consideration in the
      form of Capital Stock (other than Disqualified Capital Stock) of Holdings or any other direct or indirect parent of Holdings, or the proceeds that are received from any issuance of such Capital Stock (other than Disqualified Capital Stock) and
      contributed to Holdings, to the extent Not Otherwise Applied.

     

    
      
        
 

    

    
    “Adjusted Eurodollar Rate”: for any Interest Rate
      Determination Date with respect to an Interest Period for a Eurodollar Rate Loan, the rate per annum obtained by dividing (i) (a) the rate per annum equal to the rate determined by the Administrative Agent to be the London interbank offered rate
      administered by the Intercontinental Exchange Benchmark Administration Ltd. (or any other person which takes over the administration of that rate) for deposits (for delivery on the first day of such period) with a term equivalent to such period in
      Dollars displayed on page LIBOR01 of the Reuters Screen (or any replacement Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Reuters,
      determined as of approximately 11:00 a.m. (London, England time) on such Interest Rate Determination Date, or (b) in the event the rate referenced in the preceding clause (a) is not available, the rate per annum equal to the offered quotation rate to
      first class banks in the London interbank market by JPMorgan Chase Bank, N.A. for deposits (for delivery on the first day of the relevant period) in Dollars of amounts in same day funds comparable to the principal amount of the applicable Term Loan
      for which the Adjusted Eurodollar Rate is then being determined with maturities comparable to such period as of approximately 11:00 a.m. (London, England time) on such Interest Rate Determination Date, by (ii) an amount equal to (a) one minus (b) the
      Applicable Reserve Requirement; provided, however, that
      notwithstanding the foregoing, the Adjusted Eurodollar Rate shall at no time be less than 1.00% per annum.

     

    “Administrative Agent”: as defined in the preamble
      hereto.

     

    “Affiliate”: as to any Person, any other Person
      that, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person.  For purposes of this definition, “control” of a Person means the power, directly or indirectly, to direct or cause the direction of the
      management and policies of such Person, whether by contract or otherwise.

     

    “Affiliated Lender Assignment and Acceptance”: an
      agreement substantially in the form of Exhibit C-2.

     

    “Affiliated Loan Fund”: any Affiliated Lender that
      is a bona fide debt fund or an investment vehicle that is primarily engaged in, or advises funds or other investment vehicles that are engaged in, making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of
      credit or securities in the ordinary course of business (i) whose managers have fiduciary duties to the investors of such fund independent of their fiduciary duties to the investors in Fortress and (ii) which neither Fortress nor any other private
      equity, real estate or alternative investment funds or vehicles that are Affiliates of Fortress (and that are not engaged in making, purchasing, holding or investing in commercial loans, bonds and similar extensions of credit or securities in the
      ordinary course of business), directly or indirectly, possesses the power to direct or cause the direction of the investment policies of such entity.

     

    “Agent”: the Administrative Agent
      and any other Person appointed under the Loan Documents to serve in an agent or similar capacity, including any Auction Manager.

     

    “Aggregate Equity Contribution”: at any date, the
      direct or indirect contribution to Holdings by Parent on or prior to such date of cash in the form of common equity of Holdings (with such cash contributed by Holdings to the Borrower in the form of common equity).

     

    
      2

      
        
 

    

     

    “Agreement”: this Credit Agreement.

     

    “ALTA”: American Land Title Association.

     

    “Applicable Margin”: (i) on or prior to the
      Original Maturity Date, a rate per annum equal to (A) with respect to Base Rate Loans, 4.00%, and (B) with respect to Eurodollar Rate Loans, 5.00%, and (ii) after the Original Maturity Date, if the Maturity Extension Option is exercised, a rate per
      annum equal to (A) with respect to Base Rate Loans, 4.50%, and (B) with respect to Eurodollar Rate Loans, 5.50%.

     

    “Applicable Reserve Requirement”: at any time, for
      any Eurodollar Rate Loan, the maximum rate, expressed as a decimal, at which reserves (including any basic marginal, special, supplemental, emergency or other reserves) are required to be maintained with respect thereto against “Eurocurrency
      liabilities” (as such term is defined in Regulation D) under regulations issued from time to time by the Board or other applicable banking regulator.  Without limiting the effect of the foregoing, the Applicable Reserve Requirement shall reflect any
      other reserves required to be maintained by such member banks with respect to (i) any category of liabilities which includes deposits by reference to which the applicable Adjusted Eurodollar Rate or any other interest rate of a Term Loan is to be
      determined, or (ii) any category of extensions of credit or other assets which include Eurodollar Rate Loans. A Eurodollar Rate Loan shall be deemed to constitute Eurocurrency liabilities and as such shall be deemed subject to reserve requirements
      without benefits of credit for proration, exceptions or offsets that may be available from time to time to the applicable Lender.  The rate of interest on Eurodollar Rate Loans shall be adjusted automatically on and as of the effective date of any
      change in the Applicable Reserve Requirement.

     

    “Arranger”: MSSFI, in its capacity as arranger and
      bookrunner.

     

    “Asset Sale”: any Disposition of Property or
      series of substantially related Dispositions of Property (excluding any such Disposition permitted by clause (a), (b) (except in reference to Section 6.4(c), unless such Disposition is to the Borrower or any Subsidiary), (c), (d), (e), (g), (o), (p),
      (q), (r), (s) or (t) of Section 6.5) which yields gross proceeds to any LNG Group Member (valued at the initial principal amount thereof in the case of non-cash proceeds consisting of notes or other debt securities and valued at fair market value in
      the case of other non-cash proceeds) in excess of $100,000.

     

    “Assignment and Acceptance”: an agreement
      substantially in the form of Exhibit C-1 or, in the case of an
      assignment to an Affiliated Lender, an Affiliated Lender Assignment and Acceptance.

     

    “Auction Manager”: the Administrative Agent or one
      or more other financial institutions or advisors employed by the Borrower to act as arrangers for any Auction.

     

    “Available Amount”: on any date, an amount equal
      to:

     

    (a)          the sum of:
        (i) the Available ECF Amount on such date, plus (ii) the cumulative proceeds from (A) any capital contribution (other than in the form of
        Disqualified Capital Stock) to Holdings made on or prior to such date (but after the satisfaction of the Equity Fulfillment Condition) and further contributed to the Borrower in the form of common stock or (B) any issuance of Capital Stock
      (other than Disqualified Capital Stock) of Holdings for cash made on or prior to such date (but after the satisfaction of the Equity Fulfillment Condition), the proceeds of which have been further contributed to the Borrower in the form of common
      stock, plus (iii) the cumulative Net Cash Proceeds received on or prior to such date (but after the Closing Date) in connection with a
      Disposition of the Capital Stock of any Unrestricted Subsidiary of the Borrower; minus

    
      3

      
        
 

    

    (b)          the
        aggregate amount of (i) Restricted Payments made prior to such date (but after the Closing Date) pursuant to Section 6.6(i), (ii) voluntary prepayments of Indebtedness made prior to such date (but after the Closing Date) pursuant to Section
        6.9(a)(i), (iii) Investments made prior to such date (but after the Closing Date) pursuant to Section 6.8(p) and (iv) outstanding cash collateral set aside prior to such date (but after the Closing Date) encumbered by a Lien permitted pursuant to
        Section 6.3(y)(i).

     

    “Available ECF Amount”: on any date an amount
      equal to the cumulative amount of the ECF Annual Builder Basket Amount determined for each Excess Cash Flow Determination Date concluded on or prior to such date.

     

    “Base Rate”: for any day, a rate per annum equal
      to the greatest of (i) the Prime Rate in effect on such day, (ii) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1% and (iii) the sum of (a) the Adjusted Eurodollar Rate (after giving effect to any Adjusted Eurodollar Rate “floor”) that would be payable on such day for a Eurodollar Rate Loan with a one-month
      interest period plus (b) the difference between the Applicable Margin for Eurodollar Rate Loans and the Applicable Margin for Base Rate Loans; provided, however, that notwithstanding the foregoing, the Base Rate with respect to Term Loans shall at no time be less than 2.00% per annum.  Any change in the Base Rate
      due to a change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted Eurodollar Rate shall be effective on the effective day of such change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted Eurodollar Rate,
      respectively.

     

    “Base Rate Loans”: Term Loans for which the
      applicable rate of interest is based on the Base Rate.

     

    “Board”: the Board of Governors of the Federal
      Reserve System of the United States (or any successor).

     

    “Borrower”: as defined in the preamble hereto.

     

    “Borrower Obligations”: the collective reference
      to the unpaid principal of and interest on the Term Loans, and all other obligations and liabilities of the Borrower (including, without limitation, interest accruing at the then applicable rate provided herein after the maturity of the Term Loans
      and interest, fees and expenses accruing after the filing of any petition in bankruptcy (or which, but for the filing of such petition, would be accruing), or the commencement of any insolvency, reorganization or like proceeding, relating to the
      Borrower, whether or not a claim for post-filing or post-petition interest, fees or expenses is allowed or allowable in such proceeding) to any Agent, any Lender or any Lender Counterparty, whether direct or indirect, absolute or contingent, due or
      to become due, or now existing or hereafter incurred, which arise under, out of, or in connection with, this Agreement, the Security Agreement, the Guarantee Agreement or the other Loan Documents, any Secured Hedge Agreement or any other document
      made, delivered or given in connection therewith, in each case whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses or otherwise, excluding, in each case, Excluded Swap Obligations.

     

    
      4

      
        
 

    

    “Budget”: the construction budget in respect of
      the Plant delivered by the Borrower to each Lender on October 26, 2014, as revised and updated from time to time by the Borrower with the written consent of the Required Consent Parties (such consent not to be unreasonably withheld or delayed).

     

    “Business Day”: (i) any day excluding Saturday,
      Sunday and any day which is a legal holiday under the laws of the State of New York or is a day on which banking institutions located in such state are authorized or required by law or other governmental action to close and (ii) with respect to all
      notices, determinations, fundings and payments in connection with the Adjusted Eurodollar Rate or any Eurodollar Rate Loans, the term “Business Day” means any day which is a Business Day described in clause (i) and which is also a day for trading by
      and between banks in Dollar deposits in the London interbank market.

     

    “Capital Expenditures”: for any period, with
      respect to any Person, the aggregate of all expenditures by such Person during such period that, in accordance with GAAP, are or should be included in the calculation of “additions to property, plant or equipment” or similar items in the statement of
      cash flows of such Person.

     

    “Capital Lease”: any lease of (or other
      arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet under GAAP; provided that if at any time an operating lease (or a lease or other arrangement to use property that would be an operating lease under GAAP as in effect on the Closing Date) is required to be
      recharacterized as a capital lease as a result of a change in GAAP after the Closing Date (including as a result of the implementation of proposed Accounting Standards Update (ASU) Leases (Topic 842) issued May 15, 2013, any oral, public
      deliberations by FASB regarding such proposal, any successor proposal, or any FASB deliberations regarding any such successor proposal), then for all purposes hereof such lease shall continue to be treated as an operating lease and not a Capital
      Lease.

     

    “Capital Lease Obligations”: with respect to any
      Person, the obligations of such Person to pay rent or other amounts under any Capital Lease and, for the purposes of this Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in
      accordance with GAAP.

     

    “Capital Stock”: 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, but excluding debt convertible or exchangeable into such capital stock or equivalent ownership interests.

     

    
      5

      
        
 

    

    “Cash Equivalents”: (a) marketable direct
      obligations issued by, or unconditionally guaranteed by, the United States government or issued by any agency thereof and backed by the full faith and credit of the United States maturing within one year from the date of acquisition; (b) certificates
      of deposit, time deposits, eurodollar time deposits or overnight bank deposits having maturities of six months or less from the date of acquisition issued by any Lender or by any commercial bank organized under the laws of the United States of
      America or any state thereof having combined capital and surplus of not less than $500,000,000 as of the date of acquisition thereof; (c) commercial paper of an issuer rated in the United States at least A-2 by S&P or P-2 by Moody’s as of the
      date of acquisition thereof or an equivalent thereof by any other nationally recognized rating agency as of the date of acquisition thereof, if both named rating agencies cease publishing ratings of commercial paper issuers generally, and maturing
      within six months from the date of acquisition; (d) repurchase obligations of any Lender or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than 30 days with respect to securities issued
      or fully guaranteed or insured by the United States government; (e) securities with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state, province, commonwealth or territory of the United States, by any
      political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case
      may be) are rated at least A by S&P or A by Moody’s as of the date of acquisition thereof; (f) securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any Lender or any
      commercial bank satisfying the requirements of clause (b) of this definition; and (g) shares of money market mutual or similar funds which invest in assets substantially all of which satisfy the requirements of clauses (a) through (f) of this
      definition.

     

    “Casualty Event”: any involuntary loss of title,
      damage to or destruction of, or any condemnation or other taking (including by any Governmental Authority) of, any Property of Holdings, the Borrower or any of its Subsidiaries. “Casualty Event” shall include, but not be limited to, events of eminent
      domain.

     

    “Change of Control”: the occurrence of any of the
      following events: (i) the Permitted Investors shall at any time fail to own, in the aggregate, directly or indirectly, beneficially and of record, more than 50% of the Capital Stock of Holdings having the power, directly or indirectly, to vote or
      direct the voting of securities having the voting power for the election of directors of Holdings (determined on a fully diluted basis); or (ii) Holdings shall cease to own and control, of record and beneficially, directly, 100% of each class of
      outstanding Capital Stock of the Borrower, free and clear of all Liens (except Liens created by the Security Documents, other Liens permitted by Section 6.3(q) and Liens created by mandatory law).

     

    “Chart Energy Purchase Order”: as defined in the
      definition of “Material Construction-Related Contract.”

     

    “Closing Date”: the date on which the initial Term
      Loans are made.

     

    “Code”: the Internal Revenue Code of 1986.

     

    
      6

      
        
 

    

    

    

    “Collateral”: all Property of the Loan Parties or
      any other Grantor, now owned or hereafter acquired, upon which a Lien is purported to be created by any Security Document.

     

    “Commitment”: the commitment of a Lender to make
      or otherwise fund a Term Loan, and “Commitments” means such commitments of all Lenders in the aggregate.  The amount of each Lender’s Commitment is set forth on
      Schedule 1.1A.  The aggregate amount of the Commitments as of the Closing Date is $40,000,000.

     

    “Commodity Exchange Act”: the Commodity Exchange
      Act (7 U.S.C. § 1 et seq.).

     

    “Commonly Controlled Entity”: an entity, whether
      or not incorporated, that is under common control with the Borrower within the meaning of Section 4001(a)(14) of ERISA or is part of a group that includes the Borrower and that is treated as a single employer under Section 414(b), (c), (m) or (o) of
      the Code.

     

    “Compliance Certificate”: a certificate duly
      executed by a Responsible Officer of the Borrower, substantially in the form of Exhibit A.

     

    “Consolidated Current Assets”: at any date, the
      total assets of a Person and its Subsidiaries on a consolidated basis that may properly be classified as current assets in conformity with GAAP, excluding cash and Cash Equivalents.

     

    “Consolidated Current Liabilities”: at any date,
      the total liabilities of a Person and its Subsidiaries on a consolidated basis that may properly be classified as current liabilities in conformity with GAAP, excluding the current portion of long term debt.

     

    “Consolidated EBITDA”: of any Person for any
      period, Consolidated Net Income of such Person for such period plus, (i) without duplication and to the extent reflected as a charge in Consolidated Net Income
      for such period, the sum of (a) provision for taxes based on income, profits or capital gains, including, without limitation, federal, state, franchise and similar taxes and foreign withholding taxes (including any future taxes or other levies which
      replace or are intended to be in lieu of such taxes and any penalties and interest related to such taxes or arising from tax examinations), (b) interest expense, amortization or write-off of debt discount and debt issuance costs and commissions,
      discounts and other fees and charges associated with Indebtedness, plus all cash dividends or other distributions paid (excluding items eliminated in
      consolidation) on any series of preferred stock or Disqualified Capital Stock, (c) depreciation and amortization expense, (d) any extraordinary, unusual or non-recurring losses or non-cash expenses (including, for the avoidance of doubt, losses on
      sales of assets or investments outside of the ordinary course of business), and non-cash impairments of goodwill, intangibles, fixed assets, land and land held for development, (e) any other non-cash charges (including, for the avoidance of doubt,
      equity incentive plans to the extent not paid in cash and unrealized foreign exchange losses attributable to currency translation), (f) any fees, expenses or charges incurred with respect to the Transactions or any Indebtedness permitted to be
      incurred hereunder, (g) any fees, expenses or charges related to any equity offering by Holdings, Investment, Acquisition (including Permitted Acquisitions) or Disposition, in each case whether or not successful or consummated, (h) any net loss from
      disposed, abandoned or discontinued operations or operations that management is winding down and (i) the amount of any directors’ fees or reimbursements (including fees and reimbursements of directors of Parent), minus, (ii) to the extent included in Consolidated Net Income for such period, the sum of (a) any extraordinary, unusual or non-recurring income or gains (including, for the avoidance of doubt,
      any cash or non-cash income or gains from the sales of assets or investments outside of the ordinary course of business), (b) any other non-cash income or gains (including, for the avoidance of doubt, unrealized foreign exchange gains attributable to
      currency translation), (c) any cash payments made during such period in respect of items described in clause (i)(d) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were reflected as a charge in the statement
      of Consolidated Net Income and (d) any net income from disposed, abandoned or discontinued operations, all as determined on a consolidated basis.

     

    
      7

      
        
 

    

    Consolidated EBITDA for any period shall include, without duplication, the Consolidated EBITDA for such period of each Person that is not
      the Borrower or any of its Subsidiaries accounted for by the equity method of accounting, but only in an amount equal to the Borrower’s pro rata share thereof based on its direct or indirect percentage ownership interest in such Person. To the extent
      an ownership change occurs during such period, effect shall be given to such ownership change on a pro forma basis during such period.

     

    Notwithstanding the foregoing, (i) Consolidated EBITDA for the first Test Period ending after the Plant Completion Date shall be calculated
      by multiplying the Consolidated EBITDA for the fiscal quarter ending on the last day of such Test Period by four; (ii) Consolidated EBITDA for the second Test Period ending after the Plant Completion Date shall be calculated by multiplying the
      Consolidated EBITDA for the two-fiscal-quarter period ending on the last day of such Test Period by two; and (iii) Consolidated EBITDA for the third Test Period ending after the Plant Completion Date shall be calculated by multiplying the
      Consolidated EBITDA for the three-fiscal-quarter period ending on the last day of such Test Period by four-thirds.

     

    Notwithstanding the foregoing, in no event shall Consolidated EBITDA for any Test Period, whether or not measured on a Pro Forma Basis,
      attributable to contracted revenue from agreements that have a term (calculated, for each agreement, as of the date of initial execution of such agreement to its expiration after giving effect to any extension thereto) of less than 180 days
      constitute more than 25% of Consolidated EBITDA for such Test Period.

     

    “Consolidated Excess Cash Flow”: with respect to
      the Borrower and its Subsidiaries, for any fiscal year, an amount (if positive) equal to Consolidated Net Income, plus, without duplication:

     

    (a)          non-cash
        charges, losses and expenses, including non-cash interest expense, depreciation, amortization, impairment charges and other write-offs for such fiscal year to the extent deducted from Consolidated Net Income for such period (excluding any such
        non-cash charge, loss or expense to the extent that it represents an accrual or reserve for an expected cash payment obligation within the four fiscal quarter period following such fiscal year),

     

    
      8

      
        
 

    

    (b)         any cash
        proceeds received in such fiscal year that would have been included in the exclusion in clause (a) above for the four fiscal quarter period immediately preceding such fiscal year, and

     

    (c)          the
        Consolidated Working Capital Adjustment for such fiscal year (other than any such amount arising from Acquisitions or Dispositions by the Borrower or any of its Subsidiaries completed during such period or the application of purchase accounting), minus, without duplication and to the extent not deducted in the calculation of Consolidated Net Income for such fiscal year, the amounts for such fiscal year of:

     

    (d)         prepayments
        or repayments of Indebtedness for borrowed money, together with any interest, premium or penalties required to be paid (and actually paid) in connection therewith (excluding (i) repayments of revolving loans except to the extent the revolving
        commitments associated therewith are permanently reduced in connection with such repayments, (ii) voluntary prepayments of Term Loans and (iii) any prepayments or repayments funded with Net Cash Proceeds of any borrowing or issuance of Indebtedness
        for borrowed money, capital contributions to the Borrower or any of its Subsidiaries by any Person that is not an LNG Group Member, or net cash proceeds from sales of Capital Stock of any LNG Group Member to any Person that is not an LNG Group
        Member (collectively, “Financing Proceeds”)),

     

    (e)          cash
        payments under Capital Leases (excluding any interest expense portion thereof) or other long-term obligations (including pension obligations), together with the aggregate amount of any premiums, make-whole payments or penalties paid in cash and
        required to be made in connection with any such prepayment or repayment (excluding prepayments funded with Financing Proceeds);

     

    (f)           cash
        payments in respect of Capital Expenditures, excluding payments funded with Financing Proceeds,

     

    (g)          cash income
        tax expense, together with the aggregate amount of Restricted Payments made pursuant to Section 6.6(g)(iii),

     

    (h)          cash
        payments in respect of Investments made pursuant to Sections 6.8(k), or 6.8(o) (less, in each case, any amounts received in respect thereof as a return of capital), excluding payments funded with Financing Proceeds,

     

    (i)           non-cash
        income or gains increasing Consolidated Net Income for the Test Period,

     

    (j)           after-tax
        gains attributable to Asset Sales to the extent the proceeds of any such Asset Sale are included in the Asset Sale Threshold Amount; and

     

    (k)          any cash
        actually paid in respect of any non-cash losses or charges recorded in a prior period.

     

    
      9

      
        
 

    

    “Consolidated Net Income”: of the Borrower and its
      Subsidiaries for any period, the consolidated net income (or loss) of the Borrower and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP; provided that in calculating Consolidated Net Income of the Borrower and its Subsidiaries for any period, there shall be excluded (a) the income (or deficit) of any Person that was not a Subsidiary of the Borrower
      that accrued prior to the date it becomes a Subsidiary of the Borrower or is merged into or consolidated with the Borrower or any of its Subsidiaries, (b) the income (or deficit) of any Person (other than a Subsidiary of the Borrower) in which the
      Borrower or any of its Subsidiaries has an ownership interest, except to the extent that any such income is actually received by the Borrower or any of its Subsidiaries in the form of dividends or similar distributions and (c) the undistributed
      earnings of any non-Wholly Owned Subsidiary of the Borrower or any of its Subsidiaries (other than a Loan Party) to the extent that the declaration or payment of dividends or similar distributions by such non-Wholly Owned Subsidiary is not at the
      time permitted by the terms of any Contractual Obligation (other than under any Term Loan Document) or Requirement of Law applicable to such non-Wholly Owned Subsidiary.

     

    “Consolidated Working Capital”: at any date, the
      excess of Consolidated Current Assets of the Borrower and its Subsidiaries over Consolidated Current Liabilities of the Borrower and its Subsidiaries.

     

    “Consolidated Working Capital Adjustment”: for any
      period on a consolidated basis, the amount (which may be a negative number) by which Consolidated Working Capital as of the beginning of such period exceeds (or is less than) Consolidated Working Capital as of the end of such period.  In calculating
      the Consolidated Working Capital Adjustment there shall be excluded the effect of reclassification during such period of current assets to long term assets and current liabilities to long term liabilities and the effect of any Permitted Acquisition
      during such period; provided that there shall be included with respect to any Permitted Acquisition during such period an amount (which may be a negative
      number) by which the Consolidated Working Capital acquired in such Permitted Acquisition as at the time of such acquisition exceeds (or is less than) Consolidated Working Capital at the end of such period.

     

    “Contractual Obligation”: as to any Person, any
      provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its Property is bound (but not including such agreements, instruments or other undertakings
      relating to Indebtedness of such Person).

     

    “Control Investment Affiliate”: as to any Person,
      any other Person that (a) directly or indirectly, is in control of, is controlled by, or is under common control with, such Person and (b) exists primarily for the purpose of making equity or debt investments in one or more companies. For purposes of
      this definition, “control” of a Person means the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

     

    “Conversion/Continuation Date”: the effective date
      of a continuation or conversion, as the case may be, as set forth in the applicable Conversion/Continuation Notice.

     

    
      10

      
        
 

    

    

    

    “Conversion/Continuation Notice”: a
      Conversion/Continuation Notice substantially in the form of Exhibit G-2.

     

    “Credit Date”: the date of the making of a Term
      Loan.

     

    “Credit Suisse”: Credit Suisse Loan Funding LLC.

     

    “Debt Service Reserve Account”: as defined in the
      Depositary Agreement.

     

    “Debtor Relief Laws”: 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.

     

    “Default”: any of the events specified in Section
      7.1, whether or not any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

     

    “Defaulting Lender”: subject to Section 2.23(b),
      any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such
      failure is the result of such Lender’s determination that one or more conditions precedent to funding (which conditions precedent, together with the applicable default, if any, shall be specifically identified in such writing) has not been satisfied,
      or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that it does not
      intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on
      such Lender’s determination that a condition precedent to funding (which condition precedent, together with the applicable default, if any, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed,
      within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent or the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent or
      the Borrower), or (d) the Administrative Agent has received notification that such Lender is, or has a direct or indirect parent company that is, (i) insolvent, or is generally unable to pay its debts as they become due, or admits in writing its
      inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors or (ii) the subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator,
      intervenor or sequestrator or the like has been appointed for such Lender or its direct or indirect parent company, or such Lender or its direct or indirect parent company has taken any action in furtherance of or indicating its consent to or
      acquiescence in any such proceeding or appointment; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of
      any Capital Stock in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United
      States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. 
      Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender
      (subject to Section 2.23(b)) upon delivery of written notice of such determination to the Borrower and each Lender.

     

    
      11

      
        
 

    

    “Depositary”: MSSF, in its capacity as depositary
      bank, together with any successor depositary bank appointed pursuant to the Depositary Agreement or any permitted assign under the Depositary Agreement.

     

    “Depositary Agreement”: the Security Deposit
      Agreement, substantially in the form of Exhibit H, dated as of the Closing Date, among the Borrower, the Administrative Agent and the Depositary.

     

    “Designated Non-Cash Consideration”: the fair
      market value (as determined in good faith by a Responsible Officer) of non-cash consideration received by an LNG Group Member in connection with a Disposition that is so designated as “Designated Non-Cash Consideration” pursuant to a certificate of a
      Responsible Officer, setting forth the basis of such valuation, less the amount of cash or Cash Equivalents received in connection with a subsequent sale of such Designated Non-Cash Consideration.

     

    “Disposition”: with respect to any Property, any
      sale, lease, sale and leaseback, assignment, conveyance, transfer, exchange or other disposition thereof; and the terms “Dispose” and “Disposed of” shall have correlative meanings.

     

    “Disqualified Assignee”: any Person listed on Schedule 1.1H or any of such Person’s Affiliates that share a common name, which Schedule may be updated in writing from time to time by the Borrower to add or
      remove competitors.

     

    “Disqualified Capital Stock”: with respect to any
      Person, any Capital Stock of such Person which, by its terms (or by the terms of any security or other Capital Stock into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (i) matures or is
      mandatorily redeemable (other than solely for Capital Stock which is not otherwise Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control, merger, consolidation, amalgamation,
      liquidation or asset sale (collectively, a “Fundamental Change”) so long as any rights of the holders thereof upon the occurrence of such Fundamental Change
      shall be subject to the prior satisfaction of the Termination Conditions), (ii) is redeemable at the option of the holder thereof (other than solely for Capital Stock which is not otherwise Disqualified Capital Stock), in whole or in part (except as
      a result of a Fundamental Change so long as any rights of the holders thereof upon the occurrence of such Fundamental Change shall be subject to the prior satisfaction of the Termination Conditions), (iii) provides for the scheduled payment of
      dividends in cash, or (iv) is or becomes convertible into or exchangeable for Indebtedness or any other Capital Stock that would constitute Disqualified Capital Stock, in each case, prior to the date that is 91 days after the fifth anniversary of the
      Closing Date.

     

    
      12

      
        
 

    

    “Dollars” and “$”: dollars in lawful currency of the United States of America.

     

    “ECF Annual Builder Basket Amount”: an amount,
      measured as of any Excess Cash Flow Determination Date, equal to (A) 100% minus the ECF Percentage, multiplied by (B) Consolidated Excess Cash Flow for the fiscal year of the Borrower and its Subsidiaries ending on such Excess Cash Flow Determination Date.

     

    “ECF Percentage”: a percentage equal to: (i) if
      the Total Secured Debt Leverage Ratio, calculated on a Pro Forma Basis as of any Excess Cash Flow Determination Date and as of the last day of each of the two fiscal quarters ending immediately after such Excess Cash Flow Determination Date, is
      greater than 4.50:1.00, then 100%; and (ii) otherwise, 0%.

     

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

     

    “Environmental Claim”: any investigation, notice
      of violation, claim, action, suit, proceeding, demand, abatement order, or other order or directive (conditional or otherwise), by any Governmental Authority or any other Person, arising (i) pursuant to or in connection with any actual or alleged
      violation of any Environmental Law; (ii) in connection with the presence, Release of, or exposure to, any Hazardous Materials; or (iii) in connection with any actual or alleged damage, injury, threat, or harm to the Environment.

     

    “Environmental Laws”: any and all applicable Laws
      regulating, relating to or imposing liability or standards of conduct concerning protection or regulation of the Environment, human health or safety in connection with exposure to Hazardous Materials, as has been, is now, or may at any time hereafter
      be, in effect and including, without limitation, the common law insofar as it relates to any of the foregoing.

     

    “Environmental Permits”: any and all Permits
      required under, or issued pursuant to, any Environmental Law.

     

    “ERISA”: the Employee Retirement Income Security
      Act of 1974.

     

    “Eurodollar Rate Loan”: a Term Loan bearing
      interest at a rate determined by reference to the Adjusted Eurodollar Rate.

     

    “Event of Default”: any of the events specified in
      Section 7.1; provided that any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

     

    “Excess Cash Flow Determination Date”: December 31
      of each year, commencing with the first such date to occur after the Plant Completion Date.

     

    “Excess Cash Flow Prepayment Amount”: an amount,
      measured as of any Excess Cash Flow Determination Date, equal to the ECF Percentage multiplied by Consolidated Excess Cash Flow for the most recently ended
      fiscal year of the Borrower ending on December 31.

     

    
      13

      
        
 

    

    “Excess Cash Restriction Period”: any of the
      following periods after the Plant Completion Date (which periods may, for the avoidance of doubt, overlap): (i) the period (A) beginning on the Plant Completion Date and (B) ending on the first date after the Plant Completion Date on which the
      Compliance Certificate delivered pursuant to Section 5.2(a) demonstrates that the Total Secured Debt Leverage Ratio, calculated on a Pro Forma Basis as of the most recent Excess Cash Flow Determination Date and as of the last day of each of the two
      fiscal quarters ending immediately after such Excess Cash Flow Determination Date, is less than or equal to 3.50:1.00 (such date, the “Initial Excess Cash Release Date”);

      and (ii) each subsequent period after the Initial Excess Cash Release Date (A) beginning on the date on which the Compliance Certificate delivered pursuant to Section 5.2(a) demonstrates that the Total Secured Debt Leverage Ratio, calculated on a Pro
      Forma Basis as of the most recent Excess Cash Flow Determination Date or as of the last day of any of the two fiscal quarters ending immediately after such Excess Cash Flow Determination Date, is greater than 3.50:1.00 and (B) ending on the first
      date after date referred to in clause (ii)(A) above on which the Compliance Certificate delivered pursuant to Section 5.2(a) demonstrates that the Total Secured Debt Leverage Ratio, calculated on a Pro Forma Basis as of the most recent Excess Cash
      Flow Determination Date and as of the last day of each of the two fiscal quarters ending immediately after such Excess Cash Flow Determination Date, is less than or equal to 3.50:1.00.

     

    “Exchange Act”: the Securities Exchange Act of
      1934, and the rules and regulations of the SEC promulgated thereunder.

     

    “Excluded Information”: information regarding the
      Term Loans or the applicable Loan Parties hereunder that is not known to a Lender participating in an assignment to an Affiliated Lender pursuant to Section 9.6(d) or in a Borrower Loan Purchase made pursuant to Section 9.6(i) that may be material to
      a decision by such Lender to participate in such Borrower Loan Purchase, assignment to such Affiliated Lender or such assignment by an Affiliated Lender, as applicable.

     

    “Excluded Subsidiary”: each Subsidiary subject to
      any Contractual Obligation permitted under the Loan Documents and existing at the time such Person becomes a Subsidiary (and not entered into in contemplation of such Person becoming a Subsidiary) or Law restricting or limiting the ability of such
      Subsidiary from guaranteeing any portion of the Obligations.

     

    “Excluded Swap Obligations”: with respect to any
      Guarantor, any obligation (a “Swap Obligation”) to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of
      section 1a(47) of the Commodity Exchange Act, if, and to the extent that, all or a portion of the guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or
      becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason not to
      constitute an “eligible contract participant” as defined in the Commodity Exchange Act.

     

    “FASB”: the Financial Accounting Standards Board
      of the American Institute of Certified Public Accountants.

     

    
      14

      
        
 

    

    “Federal Funds Effective Rate”: for any day, the
      rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the
      Business Day next succeeding such day; provided, (i) if such day is not a Business Day, the Federal Funds Effective Rate for such day shall be such rate on
      such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (ii) if no such rate is so published on such next succeeding Business Day, the Federal Funds Effective Rate for such day shall be the
      average rate charged to the Administrative Agent on such day on such transactions as determined by the Administrative Agent.

     

    “Financing Proceeds”: as defined in the definition
      of “Consolidated Excess Cash Flow.”

     

    “FIRREA”: the Financial Institutions Reform,
      Recovery and Enforcement Act of 1989.

     

    “Flood Insurance Laws”: collectively, (i) the
      National Flood Insurance Act of 1968, (ii) the Flood Disaster Protection Act of 1973, (iii) the National Flood Insurance Reform Act of 1994, (iv) the Flood Insurance Reform Act of 2004 and (v) the Biggert-Waters Flood Insurance Reform Act of 2012.

     

    “Fortress”: Fortress Equity Partners (A) LP.

     

    “Funding Notice”: a notice substantially in the
      form of Exhibit G-1.

     

    “GAAP”: generally accepted accounting principles
      in the United States of America as in effect from time to time.

     

    “Governmental Authority”: any federal, state,
      provincial, municipal, national or other government, governmental department, commission, board, bureau, court, agency or instrumentality or political subdivision thereof or any entity, officer or examiner exercising executive, legislative, judicial,
      regulatory or administrative functions of or pertaining to any government or any court, in each case whether associated with a state of the United States, the United States, or a foreign entity or government.

     

    “Grantors”: the collective reference to Holdings,
      the Borrower and the Subsidiary Guarantors, together with any other Person that grants a Lien on any of its Property to secure the obligations and liabilities of any Loan Party under any Loan Document.

     

    “Ground Lease”: that certain ground lease
      agreement dated as of November 20, 2014 by and between the Borrower, as tenant, and FDG LR 7 LLC, as landlord, as the same may be amended, amended and restated or otherwise modified from time to time in accordance with Section 6.9.

     

    “Guarantee Agreements”: collectively, (i) the
      Guarantee Agreement, dated as of Closing Date, made by each of the signatories thereto, in favor of the Administrative Agent for the benefit of the Secured Parties and governed by the Laws of the State of New York, and (ii) any such other guarantee
      made in favor of the Administrative Agent for the benefit of the Secured Parties in form and substance reasonably satisfactory to the Required Consent Parties, in each case, as the same may be amended, restated, supplemented or otherwise modified
      from time to time.

     

    
      15

      
        
 

    

    “Guarantee Obligation”: as to any Person (the “guaranteeing person”), any obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing person that guarantees or in effect
      guarantees, or which is given to induce the creation of a separate obligation by another Person (including any bank under any letter of credit) that guarantees or in effect guarantees any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the “primary obligor”) in
      any manner, whether directly or indirectly, including, without limitation, any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any Property constituting direct or indirect security
      therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary
      obligor, (iii) to purchase Property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or
      hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business, indemnification obligations incurred in the ordinary course of
      business or obligations in respect of indemnification, purchase price adjustments and earnouts incurred in connection with Permitted Acquisitions and Dispositions permitted under Section 6.5. The amount of any Guarantee Obligation of any guaranteeing
      person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be
      liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of
      such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as determined by the Borrower in good faith.

     

    “Guarantor Obligations”: with respect to any
      Guarantor, all obligations and liabilities of such Guarantor (including interest, fees and expenses after the filing of any petition in bankruptcy (or which, but for the filing of such petition, would be accruing), or the commencement of any
      insolvency, reorganization or like proceeding, relating to such Guarantor, whether or not a claim for postfiling or post-petition interests, fees or expenses is allowed or allowable in such proceeding) which arise under or in connection with the
      Guarantee Agreement, any other Loan Document to which such Guarantor is a party, or any Secured Hedge Agreement to which such Guarantor is a party, in each case whether on account of guarantee obligations, reimbursement obligations, fees,
      indemnities, costs, expenses or otherwise, excluding, in each case, Excluded Swap Obligations.

     

    “Guarantors”: the collective reference to Holdings
      and the Subsidiary Guarantors, together with any other Subsidiary of Holdings or the Borrower or any direct or indirect parent of Holdings added as a Guarantor at the election of the Borrower or pursuant to Section 5.10.

     

    
      16

      
        
 

    

    “Hazardous Materials”: any material, substance,
      chemical, or waste (or combination thereof) that (i) is listed, defined, designated, regulated or classified as hazardous, toxic, radioactive, dangerous, a pollutant, a contaminant, or words of similar meaning or effect under any Environmental Law;
      or (ii) can form the basis of any liability under any Environmental Law, including, without limitation, any Environmental Law relating to petroleum, petroleum products, asbestos, urea formaldehyde, radioactive materials, polychlorinated biphenyls and
      toxic mold.

     

    “Hedge Agreements”: (a) any and all rate swap
      transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or
      forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap
      transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to
      any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives
      Association, Inc., any International Foreign Exchange Master Agreement, or any other master derivatives agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement, in each case entered into by Holdings or any of its Subsidiaries.

     

    “Holdings”: as defined in the preamble hereto.

     

    “Holdings 1”: as defined in the preamble hereto.

     

    “Holdings 2”: as defined in the preamble hereto.

     

    “Immaterial Subsidiary”: any Subsidiary of
      Holdings (other than the Borrower) that is not a Subsidiary Guarantor or an Excluded Subsidiary and, as of the last day of the most recent fiscal quarter for which financial statements have been delivered pursuant to Section 5.1, has consolidated
      assets with a book value of $100,000 or less.

     

    
      17

      
        
 

    

    “Indebtedness”: of any Person at any date, without
      duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of Property or services (other than (i) accounts payable and accrued expenses incurred in the ordinary course of
      such Person’s business, (ii) purchase price adjustment, earnouts, holdbacks and contingent payment obligations to which the seller of such Property or services may become entitled; provided that, to the extent such payment is fixed and determinable and not otherwise contingent, the amount is paid within 90 days after the date such payment becomes fixed and determinable and not otherwise
      contingent and (iii) obligations incurred under ERISA or deferred employee or director compensation and accruals for employee expenses or obligations (including workers’ compensation and retiree medical care)), (c) all obligations of such Person
      evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to Property acquired by such Person, (e) all Capital Lease
      Obligations of such Person, (f) all obligations of such Person, contingent or otherwise, as an account party or applicant under acceptance, letter of credit, surety bond or similar facilities, (g) all obligations of such Person, contingent or
      otherwise, to purchase, redeem, retire or otherwise acquire for value any Disqualified Capital Stock of such Person; provided that, the obligations described
      in clauses (a) through (g) shall only constitute “Indebtedness” of a Person if and to the extent such obligations would constitute indebtedness or a liability on a balance sheet of such Person (or related footnotes) in accordance with GAAP, (h) all
      Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (g) above, (i) all obligations of the kind referred to in clauses (a) through (h) above secured by (or for which the holder of such
      obligation has an existing right, contingent or otherwise, to be secured by) any Lien on Property (including, without limitation, accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the
      payment of such obligation and (j) for the purposes of Section 7.1(e) only, all obligations of such Person in respect of Hedge Agreements.  The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership
      in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness expressly provide
      that such Person is not liable therefor.  For purposes of clause (j) above, the principal amount of Indebtedness in respect of Hedge Agreements shall equal the amount that would be payable (giving effect to netting) at such time if such Hedge
      Agreement were terminated.

     

    “Initial Equity Contribution”: the direct or
      indirect contribution to Holdings by Parent on or prior to the Closing Date of cash in the form of common equity of Holdings (with such cash further contributed by Holdings on or prior to the Closing Date to the Borrower in the form of common
      equity), with a value in the aggregate of not less than $10,800,000, as evidenced by the pro forma unaudited consolidated balance sheet of the Borrower delivered to the Administrative Agent pursuant to Section 4.1(c) and certified to in an officer’s
      certificate from a Responsible Officer of the Borrower to the Administrative Agent.

     

    “Insolvency”: with respect to any Multiemployer
      Plan, the condition that such “plan” is insolvent within the meaning of Section 4245 of ERISA.

     

    “Intellectual Property”: the collective reference
      to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, copyrights, patents, trademarks, proprietary technology,
      proprietary know-how and proprietary processes, and all rights to sue at law or in equity for any infringement or other violation thereof, including the right to receive all proceeds and damages therefrom.

     

    “Intellectual Property Security Agreements”: an
      intellectual property security agreement or such other agreement, as applicable, pursuant to which each Loan Party which owns any Intellectual Property which is the subject of a registration or application, to the extent required in the Security
      Agreement, grants to the Administrative Agent, for the benefit of the Secured Parties a security interest in such Intellectual Property, in form and substance reasonably satisfactory to the Administrative Agent.

     

    
      18

      
        
 

    

    “Intercompany Debt Subordination Agreement”: an
      agreement substantially in the form of Exhibit I.

     

    “Interest Payment Date”: with respect to (i) any
      Term Loan that is a Base Rate Loan, the last Business Day of March, June, September and December of each year, commencing on the first such date to occur after the Closing Date, and the Maturity Date; and (ii) any Term Loan that is a Eurodollar Rate
      Loan, the last day of each Interest Period applicable to such Term Loan; provided that in the case of each Interest Period of longer than three months,
      “Interest Payment Date” shall also include each date that is three months, or an integral multiple thereof, after the commencement of such Interest Period.

     

    “Interest Period”: in connection with a Eurodollar
      Rate Loan, an interest period of one, two, three or six months, as selected by the Borrower in the applicable Funding Notice or Conversion/Continuation Notice, (i) initially, commencing on the Closing Date or Conversion/Continuation Date thereof, as
      the case may be; and (ii) thereafter, commencing on the day on which the immediately preceding Interest Period expires; provided that (a) if an Interest Period
      would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in which case such Interest Period shall expire on the immediately
      preceding Business Day; (b) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to
      clause (c) of this definition, end on the last Business Day of a calendar month; and (c) no Interest Period with respect to any portion of Term Loans shall extend beyond the Maturity Date.

     

    “Interest Rate Determination Date”: with respect
      to any Interest Period, the date that is two Business Days prior to the first day of such Interest Period.

     

    “Investments”: as to any Person, (a) the purchase
      or other acquisition of Capital Stock or debt or other securities of another Person, (b) a loan, advance (other than advances to employees for moving, entertainment and travel expenses, drawing accounts and similar expenditures in the ordinary course
      of business and other than trade credit established in the ordinary course of business and advances in the ordinary course of business that would be recorded as accounts receivable of such Person in accordance with GAAP) or capital contribution to,
      guarantee or assumption of Indebtedness of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person or (c) the purchase or
      other acquisition (in one transaction or a series of transactions) of all or substantially all of the property and assets or business of another Person or assets constituting a business unit, line of business or division of such Person.  For purposes
      of covenant compliance, the amount of any Investment outstanding at any time shall be the amount actually invested, reduced by any dividend, distribution, return of capital or repayment received by such Person in respect of the Investment, but
      otherwise without adjustment for subsequent increases or decreases in the value of, or write-ups, write-downs or write-offs with respect to, such Investment.

     

    
      19

      
        
 

    

    “Law”: any law, including, without limitation, any
      common law, constitution, statute, treaty, regulation, by-law, rule, ordinance, order, injunction, award, decree, determination or other official pronouncement of any Governmental Authority.

     

    “Lender Counterparty”: each Lender, the
      Administrative Agent and each of their respective Affiliates counterparty to a Hedge Agreement (including any Person who is the Administrative Agent or a Lender (or an Affiliate of the Administrative Agent or a Lender) as of the date of entering into
      such Hedge Agreement but subsequently ceases to be (or whose Affiliate ceases to be) Administrative Agent or a Lender, as the case may be); provided that at
      the time of entering into a Secured Hedge Agreement, no Lender Counterparty shall be a Defaulting Lender.

     

    “Lenders”: as defined in the preamble hereto.

     

    “Lien”: any mortgage, pledge, hypothec,
      hypothecation, assignment, deposit arrangement, right of retention, encumbrance, lien (statutory or other), charge or other security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature
      whatsoever (including, without limitation, any conditional or installment sale or other title retention agreement and any Capital Lease having substantially the same economic effect as any of the foregoing).

     

    “LNG Group Members”: Holdings, the Borrower and
      each Subsidiary of the Borrower.

     

    “Loan Documents”: this Agreement, the Security
      Documents, the Guarantee Agreements, each Intercompany Debt Subordination Agreement and the Term Loan Notes.

     

    “Loan Parties”: the collective reference to
      Holdings, the Borrower and each Subsidiary Guarantor; provided that if any direct or indirect parent of Holdings has been added as a Grantor at the request of
      the Borrower, “Loan Parties” shall include such direct or indirect parent of Holdings.

     

    “Material Adverse Effect”: any circumstances or
      conditions affecting the business, assets, property or financial condition of the LNG Group Members, taken as a whole, that would have a material adverse effect on (a) the ability of the Borrower and the Guarantors, taken as a whole, to perform their
      payment obligations under this Agreement or any other Loan Document, (b) the rights or remedies of the Secured Parties under this Agreement or any other Loan Document or (c) the Plant, or any other business, assets, property or financial condition of
      the LNG Group Members, taken as a whole.

     

    “Material Construction-Related Contract”: (i) the
      Design-Build Agreement between the Borrower and OnQuest, Inc. dated as of June 9, 2014 (the “Design-Build Agreement”), (ii) the Ground Lease, (iii) the LNG Sale and Purchase Agreement dated the date hereof between the Borrower and Florida East Coast Railway, L.L.C. (the “LNG Sale and Purchase Agreement”), (iv) the Purchase Order dated as of May 27, 2014 between Chart Energy & Chemicals Inc. and the Borrower (the “Chart Energy Purchase Order”), (v) any material written agreement between any LNG Group Member and an engineer or architect in connection with construction of the Plant, (vi) any material permit or
      written approval, agreement or contract necessary for the construction, use or operation of the Plant at any date of determination for the current stage of construction of the Plant at such date and (vii) any agreement or contract, including any
      Permit, with annual payments required to be made by LNG Group Members in excess of $750,000.

     

    
      20

      
        
 

    

    “Material Environmental Amount”: an amount or
      amounts payable by the LNG Group Members, individually or in the aggregate in excess of $1,000,000, for: (a) costs to comply with any Environmental Law; (b) costs of any investigation, and any remediation, of any Hazardous Material or any condition
      relating to the Environment; (c) compensatory damages (including, without limitation, damages to natural resources), punitive damages, fines, and penalties pursuant to any Environmental Law; and (d) any other costs arising out of any Environmental
      Claim.

     

    “Maturity Date”: the earliest of (a) if the
      Maturity Extension Option is not exercised pursuant to Section 2.25, the Original Maturity Date, (b) if the Maturity Extension Option is exercised pursuant to Section 2.25, the date set forth in the Maturity Extension Notice (which date shall not be
      more than 18 months after the Original Maturity Date), and (c) the date on which all Term Loans shall become due and payable in full hereunder, whether by acceleration or otherwise; provided that, in each case, if such date is not a Business Day, then the applicable Maturity Date shall be the immediately preceding Business Day.

     

    “Moody’s”: Moody’s Investors Service, Inc.

     

    “Mortgaged Properties”: the real properties listed
      on Schedule 1.1C and, subject to Section 5.10, the real properties acquired by any Loan Party after the Closing Date, as to which the Administrative Agent for
      the benefit of the Secured Parties shall be granted a Lien pursuant to one or more Mortgages.

     

    “Mortgages”: each of the mortgages, leasehold
      mortgages, leasehold deeds of trust or deeds of trust, including, without limitation, assignments of leases and rents, whether in the same or a separate agreement, made by any Loan Party in favor of, or for the benefit of, the Administrative Agent
      for the benefit of the Secured Parties, in form and substance reasonably satisfactory to the Required Consent Parties taking into consideration the law of the jurisdiction in which such mortgage or deed of trust is to be recorded, registered or
      filed, to the extent applicable, as the same may be amended, supplemented or otherwise modified from time to time.

     

    “MSBNA”: Morgan Stanley Bank, N.A.

     

    “MSSF”: as defined in the preamble hereto.

     

    “Multiemployer Plan”: a plan that is a
      multiemployer plan as defined in Section 4001(a)(3) of ERISA with respect to which the Borrower or any Commonly Controlled Entity has an obligation to make contributions or has any actual or contingent liability.

     

    
      21

      
        
 

    

    “Net Cash Proceeds”: (a) in connection with any
      Asset Sale or any Recovery Event, the proceeds thereof in the form of cash and Cash Equivalents actually received by any LNG Group Member (including any such proceeds received by way of deferred payment of principal pursuant to a note or installment
      receivable or purchase price adjustment receivable or otherwise, but only as and when such cash or Cash Equivalents is received) of such Asset Sale or Recovery Event, net of (1) attorneys’ fees, accountants’ fees, investment banking fees and
      brokerage and sales commissions paid to third parties that are not LNG Group Members, (2) amounts required to be applied to the repayment of Indebtedness secured by a Lien permitted hereunder on any asset which is the subject of such Asset Sale or
      Recovery Event (other than any Lien pursuant to a Security Document) or otherwise subject to mandatory prepayment as a result of such Asset Sale or Recovery Event, and all accrued interest, premiums and fees incurred and payable in connection with
      the repayment of such Indebtedness, (3) other customary fees paid to third parties that are not LNG Group Members, (4) expenses actually incurred in connection therewith, including any and all costs incurred and payable in connection with the repair
      and/or restoration of any property in connection with any Recovery Event with respect to such property and (5) taxes paid or reasonably estimated to be payable as a result thereof (after taking into account any available tax credits or deductions and
      any tax sharing arrangements) and the amount of any reserves established to fund indemnification payments (fixed or contingent) or other contingent liabilities (including purchase price adjustments, payments made in connection with non-compete
      agreements, retained liabilities (such as pension and other post-employment benefit liabilities and liabilities related to environmental matters)) reasonably estimated to be payable as a result thereof; and (b) in connection with any issuance or sale
      of debt securities or instruments or the incurrence of Indebtedness, the cash proceeds actually received from such issuance or incurrence, net of any reasonable acquisition or construction costs, attorneys’ fees, investment banking fees, accountants’
      fees, underwriting discounts and commissions and other customary fees and expenses actually incurred in connection therewith.  Notwithstanding the foregoing, the amount of Net Cash Proceeds from any Asset Sale or Recovery Event, issuance or sale of
      debt securities or the incurrence of loans received by any LNG Group Member that is not a Wholly Owned Subsidiary shall be deemed to equal the amount received by the non-Wholly Owned Subsidiary multiplied by the pro rata amount of Capital Stock of such non-Wholly Owned Sub-sidiary beneficially owned by the LNG
      Group Members; provided that, in the event that any Contractual Obligation of such non-Wholly Owned Subsidiary or Requirement of Law prohibits a distribution
      of such Net Cash Proceeds, such Net Cash Proceeds shall be deemed to have been received by an LNG Group Member upon the earlier of (x) the date of the actual receipt of such Net Cash Proceeds by the Borrower or a Wholly Owned Subsidiary holding an
      ownership interest in such non-Wholly Owned Subsidiary and (y) the date such Net Cash Proceeds are first permitted to be distributed by such non-Wholly Owned Subsidiary to the Borrower or a Wholly Owned Subsidiary holding an ownership interest in
      such non-Wholly Owned Subsidiary.

     

    “Non-Guarantor Subsidiary”: any Subsidiary that is
      not a Subsidiary Guarantor.

     

    “Non-Public Information”: material non-public
      information (within the meaning of United States federal, state or other applicable securities laws) with respect to the LNG Group Members or their securities.

     

    “Notice”: a Funding Notice or a
      Conversion/Continuation Notice.

     

    “Not Otherwise Applied”: with reference to any
      Available Amount that is proposed to be applied to a particular use or transaction, that such proceeds were not previously applied in determining the permissibility of a prior transaction under the Loan Documents where such permissibility was (or may
      have been) contingent on the receipt or availability of such proceeds (including (i) any application of the proceeds of equity issued in connection with the exercise of a Cure Right pursuant to Section 7.3 and (ii) the Aggregate Equity Contribution
      made prior to the satisfaction of the Equity Fulfillment Condition).

     

    
      22

      
        
 

    

    “Obligations”: (i) in the case of the Borrower,
      the Borrower Obligations, and (ii) in the case of each Guarantor, its Guarantor Obligations.

     

    “Original Indebtedness”: as defined in the
      definition of “Refinancing Indebtedness.”

     

    “Original Maturity Date”: May 24, 2018.

     

    “Other Taxes”: all present or future stamp, court
      or documentary, intangible, recording, filing or similar taxes arising from any payment made hereunder or under any other Loan Document or from the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, this
      Agreement or any other Loan Document (and any interest, additions to tax or penalties applicable thereto) (excluding, in each case, any such amounts imposed as a result of an assignment by a Lender (other than an assignment made pursuant to Section
      2.24) that are imposed as a result of a present or former connection of the assignor or assignee with the jurisdiction imposing such tax, other than any connection arising from having executed, delivered, enforced, 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 and/or enforced any Loan Documents).

     

    “Parent”: Fortress Equity Partners (A) LP, a
      Delaware limited partnership.

     

    “PATRIOT Act”: the Uniting and Strengthening
      America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).

     

    “PBGC”: the Pension Benefit Guaranty Corporation
      established pursuant to Subtitle A of Title IV of ERISA (or any successor).

     

    “Pension Plan”: a “pension plan,” as such term is
      defined in section 3(2) of ERISA, which is subject to Title IV of ERISA (other than a Multiemployer Plan), and to which the Borrower may have liability, including any liability by reason of the Borrower’s (i) being jointly and severally liable for
      liabilities of any Commonly Controlled Entity in connection with such Pension Plan, (ii) having been a substantial employer within the meaning of section 4063 of ERISA at any time during the preceding five years, or (iii) being deemed to be a
      contributing sponsor under section 4069 of ERISA.

     

    “Permit”: any permit, license, approval, consent,
      order, right, certificate, judgment, writ, injunction, award, determination, direction, decree, registration, notification, authorization, franchise, privilege, grant, waiver, exemption and other similar concession or bylaw, rule or regulation of, by
      or from any Governmental Authority.

     

    “Permitted Acquisition”: any acquisition, directly
      or indirectly, by any LNG Group Member, whether by purchase, merger or otherwise, of no less than 50% of the assets of, the Capital Stock of, or a business line or unit or a division of, any Person; provided, that

     

    
      23

      
        
 

    

    (i)           in the
        case of the acquisition of Capital Stock, all of the Capital Stock (except for any such Capital Stock in the nature of directors’ qualifying shares or other similar shares required pursuant to applicable Law) acquired in connection with such
        acquisition shall be owned, directly or indirectly, by the Borrower or a Subsidiary thereof, and the Borrower shall have taken, or caused to be taken, within the time periods and subject to the limitations specified therein, each of the actions set
        forth in Section 5.10; provided that the aggregate Acquisition Consideration paid in connection with all acquisitions of Persons that do not become Loan
        Parties or, in the case of a purchase or acquisition of assets other than Capital Stock, not owned by Loan Parties, shall not exceed 5.0% of Total Assets as determined immediately prior to such acquisition; and

     

    (ii)          at the time
        of, and immediately following, the execution and delivery by the applicable LNG Group Members of the definitive documentation relating to such acquisition, no Event of Default shall exist, and after giving effect to such acquisition, the LNG Group
        Members shall be in Pro Forma Compliance with a Total Secured Debt Leverage Ratio of not more than 2.50:1.00 as of the last day of the Test Period most recently ended for which financial statements are required to have been delivered pursuant to
        Section 5.1.

     

    “Permitted Investors”: the collective reference to
      Fortress and its Control Investment Affiliates; provided that the definition of “Permitted Investors” shall not include any Control Investment Affiliate whose
      primary purpose is the operation of an ongoing business (excluding any business whose primary purpose is the investment of capital or assets).

     

    “Person”: an individual, general partnership,
      limited partnership, limited liability partnership, corporation, limited liability company, unlimited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of
      whatever nature.

     

    “Plant”: the liquid natural gas liquefaction plant
      located at 6800 NW 72nd Street in Miami, Florida, and as more fully described in the Mortgage, under construction by the Borrower as of the Closing Date.

     

    “Plant Completion Date”: the first date occurring
      on or after occurrence of the Final Completion (as defined in the Design-Build Agreement as in effect on the Closing Date), as reasonably determined by the Borrower in consultation with its independent engineers and the Required Consent Parties and
      certified as such by a Responsible Officer of the Borrower in an officer’s certificate delivered to the Administrative Agent.

     

    “Plant Encumbrance Date”: the date on which the
      Administrative Agent and the Required Consent Parties receive evidence reasonably satisfactory to them that the Borrower’s lease of the real property on which the Plant is under construction as of the Closing Date is subject to a perfected first
      priority Mortgage for the benefit of the Administrative Agent and the Secured Parties and the other requirements set forth in Schedule 5.12 are satisfied
      pursuant to the terms of such Schedule 5.12.

     

    
      24

      
        
 

    

    “Pledge Agreements”: collectively, (i) the Pledge
      Agreement, dated as of the Closing Date, made by certain Loan Parties in favor of the Administrative Agent for the benefit of the Secured Parties and governed by the Laws of the State of New York and (ii) any such other pledge agreement made in favor
      of the Administrative Agent for the benefit of the Secured Parties in form and substance reasonably satisfactory to the Required Consent Parties, in each case, as the same may be amended, restated, supplemented or otherwise modified from time to
      time.

     

    “Pledged Equity”: with respect to each Grantor,
      the shares of Capital Stock of any other Person in which such Grantor has granted a security interest to the Administrative Agent, for the benefit of the Secured Parties, pursuant to the Pledge Agreements, together with any other shares, stock or
      partnership unit certificates, options or rights of any nature whatsoever in respect of such Capital Stock that may be issued or granted to, or held by, such Grantor.

     

    “Prime Rate”: the rate of interest quoted in the
      print edition of The Wall Street Journal, Money Rates Section as the Prime Rate (currently defined as the base rate on corporate loans in Dollars posted by at least 70% of the nation’s ten (10) largest banks), as in effect from time to time.  The
      Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer.  The Administrative Agent or any other Lender may make commercial loans or other loans at rates of interest at, above or below
      the Prime Rate.

     

    “Principal Office”: the Administrative Agent’s
      “Principal Office” as set forth in Section 9.2, or such other office or office of a third party or sub-agent, as appropriate, as the Administrative Agent may from time to time designate in writing to the Borrower and each Lender.

     

    “Pro Forma Compliance” or “Pro Forma Basis”: for the purposes of determining the occurrence of an Excess Cash Restriction Period or for purposes of calculating the Total Debt Leverage Ratio
      or the Total Secured Debt Leverage Ratio as of any date, determined on a pro forma basis by giving pro forma effect to (A)(1) the Transactions occurring on the Closing Date (to the extent then applicable), (2) all Permitted Acquisitions, (3) all
      Investments and Capital Expenditures, (4) any estimated net impact on Consolidated EBITDA as a result of contracted revenue as evidenced in a written agreement in effect as of the last day of the applicable Test Period (and as adjusted, if required,
      for estimated costs and expenses in connection with performance under such contract) of the Borrower or any of its Subsidiaries for which the Borrower shall have delivered an officer’s certificate from a Responsible Officer of the Borrower to the
      Administrative Agent in respect of the foregoing, together with component calculations thereof in reasonable detail, in each case, subject to the then-available physical capacity of the Plant as of the last day of the applicable Test Period (as
      reasonably determined by the Borrower in consultation with the Administrative Agent), and (5) all Dispositions of any material assets outside of the ordinary course of business (and in each case, the incurrence or repayment of any Indebtedness in
      connection therewith) that have occurred during the Test Period most recently ended (or, if such calculation is being made for the purpose of determining whether (i) any proposed acquisition will constitute (or will be permitted as) a Permitted
      Acquisition, (ii) any Indebtedness or Liens may be incurred or (iii) any Disposition or Restricted Payment made, (x) during the applicable Test Period or (y) subsequent to the end of the applicable Test Period and prior to or simultaneously with the
      event for which the calculation of any such ratio is made) or (B) actions taken, committed to be taken or expected in good faith to be taken no later than 12 months after the end of such Test Period, in each case, as if they occurred on the first day
      of such Test Period.  Whenever pro forma effect is to be given to any such transaction or such action, the pro forma calculations shall be made in good faith by a Responsible Officer of the Borrower and may include expected cost savings, operating
      expense reductions and synergies projected by the Borrower in good faith to result from such transactions or actions (without duplication of actual cost savings, operating expense reductions and synergies), as though such cost savings, operating
      expense reductions and synergies had been realized on the first day of such Test Period and as if such cost savings, operating expense reductions and synergies were realized during the entirety of such Test Period, to the extent such cost savings,
      operating expense reductions and synergies would be permitted to be reflected in pro forma financial information complying with Regulation S-X under the Securities Act of 1933, as interpreted by the staff of the SEC, and as certified by a Responsible
      Officer of the Borrower; provided that no amounts shall be added back as a pro forma adjustment hereunder to the extent duplicative of any amounts that are
      otherwise added back in calculating Consolidated EBITDA.

     

    
      25

      
        
 

    

    “Pro Rata Share”: with respect to all payments,
      computations and other matters relating to the Term Loan of any Lender, the percentage obtained by dividing (a) the Term Loan Exposure of that Lender by (b) the aggregate Term Loan Exposure of all Lenders.

     

    “Property”: any right or interest in or to
      property of any kind whatsoever, whether real or immovable, personal or moveable or mixed and whether tangible or intangible, corporeal or incorporeal, including, without limitation, Capital Stock, Ground Lease and the Plant.

     

    “Public Lenders”: Lenders that do not wish to
      receive Non-Public Information with respect to the LNG Group Members or their Affiliates or the securities of any of the foregoing.

     

    “Recovery Event”: the actual receipt of any
      settlement of or payment in respect of any property or casualty insurance claim or any condemnation proceeding or eminent domain proceeding relating to any Casualty Event of any asset of any LNG Group Member.

     

    “Refinancing Indebtedness”: with respect to any
      Indebtedness (the “Original Indebtedness”), modifications, refinancing, refundings, renewals or extensions of such Original Indebtedness, or Indebtedness issued
      in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund such Original Indebtedness; provided that:

     

    (i)           the
        principal amount (or accreted value, if applicable) plus unfunded commitments of such Refinancing Indebtedness does not exceed the principal amount (or
        accreted value, if applicable) plus unfunded commitments of the Original Indebtedness (plus any related fees and expenses and other amounts paid, unpaid accrued interest and premium thereon);

     

    (ii)          the
        weighted average life to maturity of such Refinancing Indebtedness is greater than or equal to (and the maturity of such Refinancing Indebtedness is no earlier than) that of the Original Indebtedness;

     

    
      26

      
        
 

    

    (iii)         the
        Refinancing Indebtedness shall not have different obligors than the obligors under the Term Loans (unless such obligors are obligors under the Original Indebtedness, or if the obligors under the Original Indebtedness are Non-Guarantor Subsidiaries,
        obligors under the Original Indebtedness and other Non-Guarantor Subsidiaries) or greater guarantees or security than the guarantees and security provided in respect of the Obligations (unless such guarantees and security are the same as provided
        in respect of the Original Indebtedness, or if the guarantees and security under the Original Indebtedness are provided by Non-Guarantor Subsidiaries, additional guarantees and security provided by such Non-Guarantor Subsidiaries or additional
        Non-Guarantor Subsidiaries);

     

    (iv)         if the
        Original Indebtedness is subordinated in right of payment to the Obligations, such Refinancing Indebtedness shall be subordinated in right of payment on terms at least as favorable to the Lenders as those contained in the documentation governing
        the Original Indebtedness; and

     

    (v)          to the
        extent the Liens securing such Original Indebtedness are subordinated to the Liens securing the Obligations, the Liens, if any, securing such Refinancing Indebtedness are subordinated to the Liens securing the Obligations pursuant to intercreditor
        arrangements reasonably acceptable to the Required Consent Parties.

     

    “Regulation D”: Regulation D of the Board as in
      effect from time to time.

     

    “Regulation T”: Regulation T of the Board as in
      effect from time to time.

     

    “Regulation U”: Regulation U of the Board as in
      effect from time to time.

     

    “Regulation X”: Regulation X of the Board as in
      effect from time to time.

     

    “Related Fund”: with respect to any Lender, any
      fund that (x) invests in commercial loans and (y) is managed or advised by the same investment advisor as such Lender, by such Lender or an affiliate of such Lender.

     

    “Related Parties”: with respect to any Person,
      such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s Affiliates.

     

    “Release”: any spilling, leaking, seepage,
      pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing, depositing, dispersing, emanating or migrating of any Hazardous Material in, into, onto or through the Environment, or from, into or through any
      structure or facility.

     

    “Reorganization”: with respect to any
      Multiemployer Plan, the condition that such plan is in reorganization within the meaning of Section 4241 of ERISA.

     

    “Reportable Event”: any of the events set forth in
      Section 4043(c) of ERISA, other than those events as to which the notice requirement is waived.

     

    
      27

      
        
 

    

    

    

    “Required Consent Parties”: (i) prior to the date
      that MSBNA, Credit Suisse and their respective Affiliates no longer hold more than 50% of the aggregate Term Loan Exposure of all Lenders (treating any Participants with respect to any Term Loans and Commitments of MSBNA, Credit Suisse and their
      respective Affiliates as the “Lenders” with respect to such Term Loans and Commitments), the Required Lenders, and (ii) on and after such date, the Administrative Agent; provided
      that, solely for the purposes of Section 5.2, Section 5.6 and the definition of Plant Encumbrance Date, “Required Consent Parties” means (i) prior to the date that neither (x) MSBNA and its Affiliates nor (y) Credit Suisse and its Affiliates, in each
      case hold at least 50% of the aggregate Term Loan Exposure of all Lenders (treating any Participants with respect to any Term Loans and Commitments of MSBNA, Credit Suisse and their respective Affiliates as the “Lenders” with respect to such Term
      Loans and Commitments), then either (A) if MSBNA and its Affiliates hold at least 50% of the aggregate Term Loan Exposure of all Lenders (treating any Participants with respect to any Term Loans and Commitments of MSBNA and its respective Affiliates
      as the “Lenders” with respect to such Term Loans and Commitments), MSBNA, or (B) if Credit Suisse and its Affiliates hold at least 50% of the aggregate Term Loan Exposure of all Lenders (treating any Participants with respect to any Term Loans and
      Commitments of Credit Suisse and its respective Affiliates as the “Lenders” with respect to such Term Loans and Commitments), Credit Suisse, and (ii) on and after such date, the Administrative Agent.

     

    “Required Lenders”: one or more Lenders having or
      holding more than 50% of the aggregate Term Loan Exposure of all Lenders.

     

    “Requirements of Law”: as to any Person, the
      certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any Law applicable to or binding upon such Person or any of its Property or to which such Person or any of its Property is subject.

     

    “Responsible Officer”: with respect to Holdings or
      the Borrower, the chief executive officer, president, chief financial officer, vice president, treasurer, assistant treasurer, controller, secretary, assistant secretary, board member or manager of Holdings or the Borrower, or any other authorized
      officer or signatory of Holdings or the Borrower reasonably acceptable to the Administrative Agent.

     

    “S&P”: Standard & Poor’s Ratings Services.

     

    “SEC”: the Securities and Exchange Commission (or
      successors thereto or an analogous Governmental Authority).

     

    “Secured Hedge Agreement”: each Hedge Agreement
      permitted under Section 6.2 that is entered into by and between the Borrower or any Subsidiary and any Lender Counterparty.

     

    “Secured Parties”: a collective reference to the
      Administrative Agent, the Lenders and the Lender Counterparties.

     

    
      28

      
        
 

    

    “Security Agreement”: the Security Agreement,
      dated as of the Closing Date, made by the Loan Parties in favor of the Administrative Agent for the benefit of the Secured Parties.

     

    “Security Documents”: the collective reference to
      (i) the Pledge Agreements, (ii) the Security Agreement, (iii) the Mortgages, (iv) the Depositary Agreement, (v) the Intellectual Property Security Agreements (if any) and (vi) all other security documents now or hereafter delivered to the
      Administrative Agent granting (or purporting to grant) a Lien on any Property of any Person to secure the Obligations.

     

    “Similar Business”: any business conducted or
      proposed to be conducted by the LNG Group Members on the Closing Date or any business that is similar, reasonably related, incidental, ancillary or complementary thereto, or is a reasonable extension, development or expansion thereof.

     

    “Solvent”: at any date, with respect to the LNG
      Group Members viewed for all purposes of this definition on a consolidated basis, that (a) the sum of the debt (including contingent liabilities) of the LNG Group Members does not exceed the present fair saleable value of the present assets of the
      LNG Group Members; (b) the capital of the LNG Group Members is not unreasonably small in relation to their business as contemplated on such date or with respect to any transaction contemplated to be undertaken after such date; and (c) the LNG Group
      Members have not incurred, and do not intend to incur, debts beyond their ability to pay such debts as they become due (whether at maturity or otherwise).  For purposes of this definition, the amount of any contingent liability at any time shall be
      computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

     

    “Subsidiary”: as to any Person (a) any corporation
      of which more than 50% of the outstanding Capital Stock having ordinary voting power to elect the board of directors of such corporation (irrespective of whether at the time Capital Stock of any other class or classes of such corporation shall or
      might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned (i) by such Person, (ii) by such Person and one or more subsidiaries of such Person, or (iii) by one or more subsidiaries of such Person; or
      (b) any trust, partnership, joint venture or other Person as to which such Person, or one or more subsidiaries of such Person, owns more than 50% of the voting ownership, equity or similar interest of such trust, partnership, joint venture or other
      Person, as the case may be.  Each reference herein or in any other Loan Document to a “Subsidiary” shall be deemed to exclude Unrestricted Subsidiaries unless expressly noted otherwise.

     

    “Subsidiary Guarantor”: each Subsidiary of the
      Borrower providing a guarantee of the Obligations pursuant to a Guarantee Agreement.

     

    “Swap Obligations”: as defined in “Excluded Swap
      Obligations.”

     

    “Term Loan”: as defined in the recitals hereto.

     

    
      29

      
        
 

    

    

    

    “Term Loan Exposure”: with respect to any Lender,
      as of any date of determination, the outstanding principal amount of the Term Loans of such Lender plus the aggregate unused Commitment of such Lender; provided that at any time prior to the making of the initial Term Loans, the Term Loan Exposure of any Lender shall be equal to such Lender’s Commitment.  For the
      avoidance of doubt, any assignments of Term Loans pursuant to Section 9.6 shall require a ratable assignment of the unused Commitment of such Lender.

     

    “Term Loan Facility”: as defined in the recitals
      hereto.

     

    “Term Loan Note”: a promissory note in the form of
      Exhibit D, as it may be amended, restated, supplemented or otherwise modified from time to time.

     

    “Termination Conditions”: collectively, (a) the
      payment in full in cash of the Obligations (other than (i) Unasserted Contingent Obligations and (ii) Obligations owing to Lender Counterparties under any Secured Hedge Agreement that are not then due and payable) and (b) the termination of the
      Commitments.

     

    “Test Period”: at any date, the most recently
      ended period of four consecutive fiscal quarters (taken as one accounting period) of the Borrower for which financial statements have been or are required to be delivered pursuant to Section 5.1.

     

    “Total Assets”: at any date, the total assets of
      the LNG Group Members determined on a consolidated basis in accordance with GAAP as shown on the most recent consolidated balance sheet of the Borrower and its Subsidiaries delivered pursuant to Section 5.1.

     

    “Total Cash”: at any date, the aggregate amount of
      cash and Cash Equivalents of the Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP.

     

    “Total Debt”: at any date, without duplication,
      the aggregate principal amount of all Indebtedness of the type specified in clauses (a), (c), (e) and (h) (solely with respect to Guarantee Obligations in respect of obligations of the kind referred to in clauses (a), (c) and (e) of the definition of
      “Indebtedness”) of the definition thereof, determined on a consolidated basis in accordance with GAAP, as shown on the most recent consolidated balance sheet of the Borrower and its Subsidiaries delivered pursuant to Section 5.1, excluding bank
      guarantees and similar instruments and revolving credit lines, to the extent undrawn.

     

    “Total Debt Leverage Ratio”: as of the last day of
      any Test Period, the ratio of (a)(i) Total Debt as of such date minus (ii) the aggregate amount of Unrestricted Cash as of such date, to (b) Consolidated
      EBITDA of the Borrower for such four consecutive fiscal quarters.

     

    “Total Secured Debt”: at any date, without
      duplication, the aggregate principal amount of Total Debt which is secured by a Lien, determined on a consolidated basis in accordance with GAAP, as shown on the most recent consolidated balance sheet of the Borrower and its Subsidiaries delivered
      pursuant to Section 5.1, (x) including without limitation, any secured Indebtedness incurred in connection with construction or land development or acquisitions and Capital Lease Obligations, and (y) excluding any Indebtedness secured by Liens that
      are subordinated to the Liens securing the Obligations.

     

    
      30

      
        
 

    

    “Total Secured Debt Leverage Ratio”: as of the
      last day of any Test Period, the ratio of (a) (i) Total Secured Debt as of such date minus (ii) the aggregate amount of Unrestricted Cash as of such date, to
      (b) Consolidated EBITDA of the Borrower for such period.

     

    “Transactions”: as defined in the recitals.

     

    “Type of Term Loan”: a Base Rate Loan or a
      Eurodollar Rate Loan.

     

    “Unasserted Contingent Obligations”: at any date,
      Obligations for taxes, costs, indemnifications, reimbursements, damages and other liabilities (excluding Obligations in respect of the principal of, and interest and premium (if any) on, any Obligation) in respect of which no assertion of liability
      and no claim or demand for payment has been made (and, in the case of Obligations for indemnification, no notice for indemnification has been issued by the indemnitee at such time).

     

    “Unrestricted Cash”: at any date, Total Cash on
      the consolidated balance sheet of the Borrower and its Subsidiaries to the extent that the use of such Total Cash for application to payment of the Obligations or other Indebtedness is not prohibited by law or any contract or other agreement and such
      Total Cash is free and clear of all Liens (other than Liens in favor of the Administrative Agent for the benefit of the Secured Parties and Liens permitted under Section 6.3(t)).

     

    “Unrestricted Subsidiary”: any Subsidiary of the
      Borrower designated by the Borrower as an Unrestricted Subsidiary pursuant to Section 5.15.  There shall be no Unrestricted Subsidiaries prior to the Plant Completion Date.

     

    “Wholly Owned Subsidiary”: as to any LNG Group
      Member, any other Person all of the Capital Stock of which (other than directors’ qualifying shares or other similar shares required pursuant to applicable Law) is owned by the Loan Parties directly and/or through other Wholly Owned Subsidiaries.

     

    1.2          Other Definitional Provisions.

     

    (a)          Unless otherwise specified
        therein, all terms defined in this Agreement shall have the defined meanings when used in the other Loan Documents or any certificate or other document made or delivered pursuant hereto or thereto.

     

    (b)          As used herein and in the other
        Loan Documents, and any certificate or other document made or delivered pursuant hereto or thereto, accounting terms relating to Holdings, the Borrower and their respective Subsidiaries not defined in Section 1.1 and accounting terms partly defined
        in Section 1.1, to the extent not defined, shall have the respective meanings given to them under GAAP; provided that if the Borrower notifies the Administrative Agent to any provision hereof to eliminate the effect of any change occurring after
        the Closing Date in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of
        whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective

      until such notice shall have been withdrawn or such provision amended in accordance herewith.

     

    
      31

      
        
 

    

    (c)          The words “hereof,” “herein”
        and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless
        otherwise specified.

     

    (d)          The meanings given to terms
        defined herein shall be equally applicable to both the singular and plural forms of such terms.

     

    (e)          All calculations of financial
        ratios set forth herein shall be calculated to the same number of decimal places as the relevant ratios are expressed in and shall be rounded upward if the number in the decimal place immediately following the last calculated decimal place is five
        or greater.  For example, if the relevant ratio is to be calculated to the hundredth decimal place and the calculation of the ratio is 5.126, the ratio will be rounded up to 5.13.

     

    (f)          As used herein and in the other
        Loan Documents, references to agreements or other Contractual Obligations shall, unless otherwise specified, be deemed to refer to such agreements or Contractual Obligations as amended, restated, replaced, refinanced, supplemented or otherwise
        modified from time to time.

     

    (g)          A reference to a statute
        includes all regulations made pursuant to such statute and, unless otherwise specified, the provisions of any statute or regulation which amends, revises, restates, supplements or supersedes any such statute or any such regulation.

     

    1.3          Timing of Payment or Performance.  When the payment of any obligation or the performance of any covenant, duty or obligation is stated to be due or performance required on a day
        which is not a Business Day, the date of such payment (other than as described in the definition of “Interest Period” and in the definition of “Maturity Date”) or performance shall extend to the immediately succeeding Business Day.

     

    1.4          Currency Equivalents Generally.

     

    (a)          For purposes of determining
        compliance with Sections 6.2, 6.3 and 6.8 with respect to any amount of Indebtedness or Investment in a currency other than Dollars, no Default or Event of Default shall be deemed to have occurred solely as a result of changes in rates of currency
        exchange occurring after the time such Indebtedness or Investment is incurred (so long as such Indebtedness or Investment, at the time incurred, made or acquired, was permitted hereunder).

     

    (b)          For purposes of this Agreement
        and the other Loan Documents, where the permissibility of a transaction or determination of required actions or circumstances depend upon compliance with, or are determined by reference to, amounts stated in Dollars, any requisite currency
        translation shall be based on the exchange rate in effect on the Business Day immediately preceding the date of such transaction (subject to the following proviso) or determination and shall not be affected by subsequent fluctuations in exchange
        rates; provided that for purposes of determining the Total Debt Leverage Ratio or Total Secured Debt Leverage Ratio, amounts denominated in a currency
      other than Dollars will be converted to Dollars at the currency exchange rates used in preparing the financial statements corresponding to the Test Period with respect to the applicable date of determination.

     

    
      32

      
        
 

    

    1.5          Other Defined Terms.  As used in this Agreement, the following terms shall have the respective meanings set forth in the described Sections.

     

    	
            Defined Term

          	 	
            Section

          
	
            “Accounting Change”          

          	 	
            9.15

          
	
            “Affected Lender”          

          	 	
            2.19(b)

          
	
            “Affected Loans”          

          	 	
            2.19(b)

          
	
            “Affiliated Lender”          

          	 	
            9.6(d)

          
	
            “Agent Parties”          

          	 	
            9.2

          
	
            “Aggregate Amounts Due”          

          	 	
            2.18

          
	
            “Agreement Currency”          

          	 	
            9.17(b)

          
	
            “Applicable Creditor”          

          	 	
            9.17(b)

          
	
            “Asset Sale Threshold Amount”          

          	 	
            2.15(a)

          
	
            “Assignee”          

          	 	
            9.6(c)

          
	
            “Assignor”          

          	 	
            9.6(c)

          
	
            “Auction”          

          	 	
            9.6(i)(ii)

          
	
            “Benefited Lender”          

          	 	
            9.7(a)

          
	
            “Borrower Loan Purchase”          

          	 	
            9.6(i)(i)

          
	
            “Borrower Loan Purchase Effective Date”          

          	 	
            9.6(i)(v)

          
	
            “Borrower Materials”          

          	 	
            9.2

          
	
            “Cure Amount”          

          	 	
            7.3(a)

          
	
            “Cure Right”          

          	 	
            7.3(a)

          
	
            “Delivery Date”          

          	 	
            3.24

          
	
            “Eligible Collateral Property”          

          	 	
            5.10(e)

          
	
            “Equity Fulfillment Condition”          

          	 	
            2.1(a)

          
	
            “FATCA”          

          	 	
            2.21(a)

          
	
            “FCPA”          

          	 	
            3.23(a)

          
	
            “Granting Lender”          

          	 	
            9.6(g)

          
	
            “In-Balance Test”          

          	 	
            6.17

          
	
            “Increased Cost Lender”          

          	 	
            2.24

          
	
            “Indemnified Liabilities”          

          	 	
            9.5(a)

          
	
            “Indemnitee”          

          	 	
            9.5(a)

          
	
            “Information”          

          	 	
            9.14

          
	
            “Installment”          

          	 	
            2.13

          
	
            “Judgment Currency”          

          	 	
            9.17(b)

          
	
            “Junior Debt”          

          	 	
            6.9

          
	
            “Maturity Extension Option”          

          	 	
            2.25

          
	
            “Non-Consenting Lender”          

          	 	
            2.24

          
	
            “Non-Excluded Taxes”          

          	 	
            2.21(a)

          
	
            “OFAC”          

          	 	
            3.23(b)

          
	
            “Participant”          

          	 	
            9.6(b)

          
	
            “Participant Register”          

          	 	
            9.6(b)

          

     

    
      33

      
        
 

    

    	
            Defined Term

          	 	
            Section

          
	
            “Platform”          

          	 	
            5.2

          
	
            “Private Side Information”          

          	 	
            5.2

          
	
            “Recipient”          

          	 	
            2.21(a)

          
	
            “Refused Proceeds”          

          	 	
            2.16(c)

          
	
            “Register”          

          	 	
            2.8(b)

          
	
            “Repair Plan”          

          	 	
            2.15(b)(iv)

          
	
            “Replacement Lender”          

          	 	
            2.24

          
	
            “Required Prepayment Date”          

          	 	
            2.16(c)

          
	
            “Restricted Payments”          

          	 	
            6.6

          
	
            “SPC”          

          	 	
            9.6(g)

          
	
            “Successor Borrower”          

          	 	
            6.4(a)

          
	
            “Successor Holdings”          

          	 	
            6.4(a)

          
	
            “Terminated Lender”          

          	 	
            2.24

          
	
            “Transferee”          

          	 	
            9.14

          
	
            “Undrawn Amount”          

          	 	
            2.12(a)

          
	
            “Undrawn Commitment Fees”          

          	 	
            2.12(a)

          
	
            “Voluntary Prepayment”          

          	 	
            6.9

          
	
            “Waivable Mandatory Prepayment”          

          	 	
            2.16(c)

          

     

    Section 2.               LOANS

     

    2.1          Term Loans.

     

    (a)          Loan Commitments.  Subject to the terms and conditions hereof, each Lender severally agrees to make, from time to time during the period from and including the Closing Date to but
        not including the earlier of (i) the Plant Completion Date and (ii) the second anniversary of the Closing Date, Term Loans to the Borrower in an aggregate amount up to but not exceeding such Lender’s Commitment.  The Borrower may not borrow Term
        Loans on the Closing Date in an amount in excess of the Initial Equity Contribution.  The Borrower may not borrow Term Loans on any Credit Date occurring prior to the Plant Encumbrance Date if such borrowing would cause (after giving effect to such
        borrowing) the aggregate principal amount of the Term Loans outstanding on such Credit Date to exceed the Initial Equity Contribution.  The Borrower may not borrow Term Loans on any Credit Date until the date that the Aggregate Equity Contribution
        exceeds $24,300,000 (the “Equity Fulfillment Condition”) if such borrowing would cause (after giving effect to such borrowing) the aggregate principal amount
        of the Term Loans outstanding to exceed the Aggregate Equity Contribution.  Upon and after the satisfaction of the Equity Fulfillment Condition, the Borrower may borrow the then remaining Commitments.  Any amount borrowed under this Section 2.1(a)
        and subsequently repaid or prepaid may not be reborrowed.  Subject to Sections 2.13, 2.14(a) and 2.15, all amounts owed hereunder shall be paid in full no later than the Maturity Date.  On each Credit Date (including the Closing Date), each
        Lender’s Commitment shall be reduced immediately and without further action in the amount of the Term Loans made on such Credit Date.  Each Lender’s Commitment to make additional Term Loans shall terminate immediately and without further action on
        the earlier of (i) the Plant Completion Date and (ii) the second anniversary of the Closing Date to the extent such Commitment is unused or not otherwise terminated prior to such date.

     

    
      34

      
        
 

    

    (b)          Borrowing Mechanics for Term Loans.

     

    (i)     With respect to each Term Loan
        requested by the Borrower, the Borrower shall deliver to the Administrative Agent a fully executed Funding Notice no later than 3:00 p.m. (New York City time) (x) at least one Business Day prior to the proposed Credit Date with respect to Base Rate
        Loans and (y) at least three days prior to the proposed Credit Date with respect to Eurodollar Rate Loans (or, with respect to a Term Loan requested to be made on the Closing Date, such shorter period as may be acceptable to the Lenders on the
        Closing Date).  Promptly upon receipt by the Administrative Agent of such Funding Notice, the Administrative Agent shall notify each Lender of the proposed borrowing.

     

    (ii)    Each Lender shall make its Pro Rata Share of the Term Loans requested to be made on any Credit Date available to the Administrative Agent not later than 10:00
          a.m. (New York City time) on such Credit Date, by wire transfer of same day funds in Dollars, at the principal office designated by Administrative
          Agent.  Upon satisfaction or waiver of the conditions precedent specified herein and subject to any required funding of the Debt Service Reserve Account with the proceeds of any Term Loans pursuant to the Depositary Agreement, the Administrative
          Agent shall make the proceeds of the Term Loans available to the Borrower on the requested Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all such Term Loans received by the Administrative Agent from
          Lenders to be credited to the account of the Borrower at the Principal Office designated by the Administrative Agent or to such other account as may be designated in writing to the Administrative Agent by the Borrower.

     

    2.2          [Reserved].

     

    2.3          [Reserved].

     

    2.4          [Reserved].

     

    2.5          [Reserved].

     

    2.6          Pro Rata Shares; Availability of Funds.

     

    (a)          Pro Rata Shares.  All Term Loans shall be made, and all participations
          purchased, by Lenders simultaneously and proportionately to their respective Pro Rata Shares, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender’s obligation to make a Term Loan
          requested hereunder nor shall any Commitment of any Lender be increased or decreased as a result of a default by any other Lender in such other Lender’s obligation to make a Term Loan requested hereunder.

     

    
      35

      
        
 

    

    (b)          Availability of Funds.  Unless the Administrative Agent shall have been
          notified by any Lender prior to the applicable Credit Date that such Lender does not intend to make available to the Administrative Agent the amount of such Lender’s Term Loan requested on such Credit Date, the Administrative Agent may assume
          that such Lender has made such amount available to the Administrative Agent on such Credit Date and the Administrative Agent may, in its sole discretion, but shall not be obligated to, make available to the Borrower a corresponding amount on such
          Credit Date.  If such corresponding amount is not in fact made available to the Administrative Agent by such Lender, the Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender,
      together with interest thereon, for each day from such Credit Date until the date such amount is paid to the Administrative Agent, at the customary rate set by the Administrative Agent for the correction of errors among banks for three Business Days
      and thereafter at the Base Rate.  If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower and the Borrower shall immediately pay such
      corresponding amount to the Administrative Agent together with interest thereon, for each day from such Credit Date until the date such amount is paid to the Administrative Agent, at the rate payable hereunder for Base Rate Loans.  Nothing in this
      Section 2.6(b) shall be deemed to relieve any Lender from its obligation to fulfill its Commitments hereunder or to prejudice any rights that the Borrower may have against any Lender as a result of any default by such Lender hereunder.  In the event
      that (i) the Administrative Agent declines to make a requested amount available to the Borrower until such time as all Lenders have made payment to the Administrative Agent, (ii) a Lender fails to fund to the Administrative Agent all or any portion
      of the Term Loans required to be funded by such Lender hereunder prior to the time specified in this Agreement and (iii) such Lender’s failure results in the Administrative Agent failing to make a corresponding amount available to the Borrower on the
      applicable Credit Date, then, at the Administrative Agent’s option, such Lender shall not receive interest hereunder with respect to the requested amount of such Lender’s Term Loans for the period commencing with the time specified in this Agreement
      for receipt of payment by the Borrower through and including the time of the Borrower’s receipt of the requested amount.

     

    2.7          Use of Proceeds.  The proceeds of the Term Loans requested to be made on any Credit Date shall be applied by the Borrower to (a) pay fees and expenses incurred in
        connection with the Term Loan Facility, (b) directly fund the Debt Service Reserve Account to the extent required under the Depositary Agreement, and (c) fund construction costs consistent with the Budget, other costs related to the Plant and
        working capital with respect to and/or related to the Plant.

     

    2.8          Evidence of Debt; Register; Lenders’ Books and Records; Notes.

     

    (a)          Lenders’ Evidence of Debt.  Each Lender shall maintain on its internal
          records an account or accounts evidencing the Borrower Obligations to such Lender, including the amounts of the Term Loans made by it and each repayment and prepayment in respect thereof.  Any such recordation shall be conclusive and binding on
          the Borrower, absent manifest error; provided that the failure to make any such recordation, or any error in such recordation, shall not affect any Lender’s Commitments or the Borrower Obligations in respect of any Term Loan; and provided, further, that in the event of any inconsistency between the Register and any Lender’s records, the recordations in the
          Register shall govern.

     

    
      36

      
        
 

    

    (b)          Register.  The Administrative Agent (or its agent or sub-agent appointed
          by it) shall maintain at its Principal Office a register for the recordation of the names and addresses of Lenders and the Commitments and Term Loans (and related interest and fee amounts) of each Lender from time to time (the “Register”).  The Register shall be available for
          inspection by the Borrower or any Lender (with respect to (i) any entry relating to such Lender’s Commitments and Term Loans or (ii) the identity of the other Lenders (but not any information with respect to such other Lenders’ Commitments and
          Term Loans except upon the occurrence and during the continuance of an Event of Default)) at any reasonable time and from time to time upon reasonable prior notice.  The Administrative Agent shall record, or shall cause to be
      recorded, in the Register the Commitments and the Term Loans (and related interest amounts), as well as any assignments thereof, in accordance with the provisions of Section 9.6, and each repayment or prepayment in respect of the principal amount
      (and related interest and fee amounts) of the Term Loans, and any such recordation shall be conclusive and binding on the Borrower and each Lender, absent manifest error; provided
      that any failure to make any such recordation, or any error in such recordation, shall not affect any Lender’s Commitments or the Borrower Obligations in respect of any Term Loan.  The Borrower hereby designates the Administrative Agent to serve as
      the Borrower’s agent solely for purposes of maintaining the Register as provided in this Section 2.8.  The parties hereto shall treat each Person listed in the Register as the owner of the applicable Term Loan, notwithstanding notice to the
      contrary.  This Section 2.8(b) is intended to establish a “book entry system” within the meaning of Treasury regulation Section 5f.103-1(c)(1)(ii) and shall be interpreted consistently with such intent.

     

    (c)          Notes.  If so requested by any Lender by written notice to the Borrower (with a copy to the Administrative Agent) at least two Business Days prior to the Closing
        Date, or at any time thereafter, the Borrower shall execute and deliver to such Lender (and/or, if applicable and if so specified in such notice, to any Person who is an Assignee of such Lender pursuant to Section 9.6) on the Closing Date (or, if
        such notice is delivered after the Closing Date, promptly after the Borrower’s receipt of such notice) a Term Loan Note to evidence such Lender’s Term Loan.

     

    2.9          Interest on Term Loans.

     

    (a)          Except

        as otherwise set forth herein, each Term Loan shall bear interest on the unpaid principal amount thereof from the date made through repayment (whether by acceleration or otherwise) thereof as follows:

     

    (i)     if a Base Rate
        Loan, at the Base Rate plus the Applicable Margin; or

     

    (ii)    if a Eurodollar
        Rate Loan, at the Adjusted Eurodollar Rate plus the Applicable Margin.

     

    (b)          The

        basis for determining the rate of interest with respect to any Term Loan, and the Interest Period with respect to any Eurodollar Rate Loan, shall be selected by the Borrower and notified to Administrative Agent and Lenders pursuant to the
        applicable Funding Notice or Conversion/Continuation Notice, as the case may be.

     

    (c)          In

        connection with Eurodollar Rate Loans there shall be no more than ten (10) Interest Periods outstanding at any time.  In the event the Borrower fails to specify between a Base Rate Loan or a Eurodollar Rate Loan in the applicable Funding Notice or
        Conversion/Continuation Notice, such Term Loan (if outstanding as a Eurodollar Rate Loan) will be automatically converted into a Base Rate Loan on the last day of the then current Interest Period for such Term Loan (or if outstanding as a Base Rate
        Loan will remain as, or (if not then outstanding) will be made as, a Base Rate Loan).  In the event the Borrower fails to specify an Interest Period for any Eurodollar Rate Loan in the applicable Funding Notice or Conversion/Continuation
      Notice, the Borrower shall be deemed to have selected an Interest Period of one month.  As soon as practicable after 10:00 a.m. (New York City time) on each Interest Rate Determination Date, the Administrative Agent shall determine (which
      determination shall, absent manifest error, be final, conclusive and binding upon all parties) the interest rate that shall apply to the Eurodollar Rate Loans for which an interest rate is then being determined for the applicable Interest Period and
      shall promptly give notice thereof (in writing or by telephone confirmed in writing) to the Borrower and each Lender.

     

    
      37

      
        
 

    

    (d)          Interest

        payable pursuant to Section 2.9(a) shall be computed (i) in the case of Base Rate Loans on the basis of a 365 day or 366 day year, as the case may be, and (ii) in the case of Eurodollar Rate Loans, on the basis of a 360 day year, in each case for
        the actual number of days elapsed in the period during which it accrues.  In computing interest on any Term Loan, the date of the making of such Term Loan or the first day of an Interest Period applicable to such Term Loan or the last Interest
        Payment Date with respect to such Term Loan or, with respect to a Base Rate Loan being converted from a Eurodollar Rate Loan, the date of conversion of such Eurodollar Rate Loan to such Base Rate Loan, as the case may be, shall be included, and the
        date of payment of such Term Loan or the expiration date of an Interest Period applicable to such Term Loan or, with respect to a Base Rate Loan being converted to a Eurodollar Rate Loan, the date of conversion of such Base Rate Loan to such
        Eurodollar Rate Loan, as the case may be, shall be excluded; provided that if a Term Loan is repaid on the same day on which it is made, one day’s interest
        shall be paid on that Term Loan.

     

    (e)          Except

        as otherwise set forth herein, interest on each Term Loan (i) shall accrue on a daily basis and shall be payable in arrears on each Interest Payment Date with respect to interest accrued on and to each such payment date; (ii) shall accrue on a
        daily basis and shall be payable in arrears upon any prepayment of that Term Loan, whether voluntary or mandatory, to the extent accrued on the amount being prepaid; and (iii) shall accrue on a daily basis and shall be payable in arrears at
        maturity of the Term Loans, including final maturity of the Term Loans.

     

    2.10        Conversion/Continuation.

     

    (a)          Subject

        to Section 2.19 and so long as no Default or Event of Default shall have occurred and then be continuing, the Borrower shall have the option:

     

    (i)     to convert at
        any time all or any part of any Term Loan equal to $1,000,000 and integral multiples of $1,000,000 in excess of that amount from one Type of Term Loan to another Type of Term Loan; provided that a Eurodollar Rate Loan may only be converted on the expiration of the Interest Period applicable to such Eurodollar Rate Loan unless the Borrower shall pay all amounts due under Section 2.19 in
        connection with any such conversion; or

     

    (ii)    upon the
        expiration of any Interest Period applicable to any Eurodollar Rate Loan, to continue all or any portion of such Term Loan equal to $1,000,000 and integral multiples of $1,000,000 in excess of that amount as a Eurodollar Rate Loan.

     

    
      38

      
        
 

    

    (b)          Subject

        to clause (c) below, the Borrower shall deliver a Conversion/Continuation Notice to the Administrative Agent no later than 2:00 p.m. (New York City time) at least one Business Day in advance of the proposed conversion date (in the case of a
        conversion to a Base Rate Loan) and at least three Business Days in advance of the proposed conversion/continuation date (in the case of a conversion to, or a continuation of, a Eurodollar Rate Loan).  Except as otherwise provided herein, a
        Conversion/Continuation Notice for conversion to, or continuation of, any Eurodollar Rate Loans shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to effect a conversion or continuation
        in accordance therewith.  If on any day a Term Loan is outstanding with respect to which a Funding Notice or Conversion/Continuation Notice has not been delivered to the Administrative Agent in accordance with the terms hereof specifying the
        applicable basis for determining the rate of interest, then for that day such Term Loan shall be a Base Rate Loan.

     

    (c)          Any

        Conversion/Continuation Notice shall be executed by a Responsible Officer in a writing delivered to the Administrative Agent.  In lieu of delivering a Conversion/Continuation Notice, the Borrower may give the Administrative Agent telephonic notice
        by the required time of such proposed conversion or continuation, as the case may be; provided that each such notice shall be promptly confirmed in writing
        by delivery of the applicable Conversion/Continuation Notice to the Administrative Agent on or before 5:00 pm (New York City time) on the Business Day that the telephonic notice is given.  In the event of a discrepancy between the telephone notice
        and the written Conversion/Continuation Notice, the written Conversion/Continuation Notice shall govern.  In the case of any Conversion/Continuation Notice that is irrevocable once given, if the Borrower provides telephonic notice in lieu thereof,
        such telephone notice shall also be irrevocable once given.  Neither the Administrative Agent nor any Lender shall incur any liability to the Borrower in acting upon any telephonic notice referred to above that the Administrative Agent believes in
        good faith to have been given by a duly authorized officer or other person authorized on behalf of the Borrower or for otherwise acting in good faith.

     

    2.11          Default Interest.  Upon the occurrence and during the continuance of an Event of Default under Section 7.1(a) or Section 7.1(f), the overdue principal
        amount of all Term Loans outstanding and, to the extent permitted by applicable law, any overdue interest payments on the Term Loans or any overdue fees or other amounts owed hereunder shall bear interest (including post-petition interest in any
        proceeding under Debtor Relief Laws) payable on demand at a rate that is 2% per annum in excess of the interest rate otherwise payable hereunder with respect to the applicable Term Loans.  Payment or acceptance of the increased rates of interest
        provided for in this Section 2.11 is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Administrative Agent or any Lender.

     

    2.12        Fees.

     

    (a)          The

        Borrower agrees to pay to Lenders undrawn commitment fees (“Undrawn Commitment Fees”) equal to (i) the average of the daily difference between the Commitments
        and the aggregate principal amount of all outstanding Term Loans (such difference, the “Undrawn Amount”), times (ii) 25% of the Applicable Margin then applicable to Eurodollar Rate Loans.  Such Undrawn Commitment Fees shall be paid to the Administrative Agent at its Principal Office and upon receipt, the
        Administrative Agent shall promptly distribute to each Lender its Pro Rata Share thereof.  Such Undrawn Commitment Fees shall be calculated on the basis of a 360-day year and the actual number of days elapsed and shall be paid in arrears on
      the last Business Day of March, June, September and December of each year and on the date of any termination of Commitments pursuant to Section 2.14(c), such payment commencing on December 31, 2014 (but accruing beginning on the Closing Date).

     

    
      39

      
        
 

    

    (b)          The

        Borrower agrees to pay to the Administrative Agent, for the account of MSSF and Credit Suisse, out of the proceeds of the initial Term Loans made by the Lenders on the Closing Date, an underwriting fee in an amount equal to 2.00% of the stated
        principal amount of the aggregate Commitments immediately prior to the funding of the initial Term Loans, payable to the Administrative Agent from the proceeds of the initial Term Loans as and when funded on the Closing Date.  Such underwriting fee
        will be in all respects fully earned, due and payable on the Closing Date and non-refundable and non-creditable thereafter.

     

    (c)          In

        addition to any of the foregoing fees, the Borrower agrees to pay to the Arranger, any Lender and the Administrative Agent such other fees in the amounts and at the times separately agreed upon.

     

    2.13        Scheduled Payments.  The outstanding principal amounts of the Term Loans shall be repaid in consecutive quarterly installments (each such payment, together with
        the payment required to be made on the Maturity Date, an “Installment”) on the last Business Day of March, June, September and December of each year,
        commencing on March 31, 2015, in equal quarterly amounts of 1.00% per annum of the principal amount of the Term Loans outstanding on March 31, 2015; provided
        that such quarterly amounts shall be adjusted by the Administrative Agent after each making of a Term Loan to maintain and reflect a 1.00% per annum scheduled amortization and/or to maintain fungibility among the Term Loans.  Notwithstanding the
        foregoing, (x) such Installments shall be reduced in connection with any voluntary or mandatory prepayments of the Term Loans in accordance with Sections 2.14, 2.15 and 2.16, as applicable; and (y) the Term Loans, together with all other amounts
        owed hereunder with respect thereto, shall, in any event, be paid in full no later than the Maturity Date.

     

    2.14        Voluntary Prepayments/Commitment Reductions.

     

    (a)          Voluntary Prepayments of Term Loans.

     

    (i)     Any time and from time to time
        (and subject to Section 2.14(b)):

     

    (1)          with respect to Base Rate Loans, the Borrower may prepay any such Term Loans on any Business Day in whole, or in part in an aggregate minimum amount of $1,000,000 and integral multiples of $1,000,000 in excess of that
        amount; and

     

    (2)          with respect to Eurodollar Rate Loans, the Borrower may prepay any such Term Loans on any Business Day in whole, or in part in an aggregate minimum amount of $1,000,000 and integral multiples of $1,000,000 in excess of
        that amount.

     

    
      40

      
        
 

    

    

    

    (ii)    All such prepayments shall be
        made:

     

    (1)          upon written or telephonic notice on the date of prepayment, in the case of Base Rate Loans; and

     

    (2)          upon not less than two Business Days’ prior written or telephonic notice in the case of Eurodollar Rate Loans;

     

    in each case given to the Administrative Agent by 3:00 p.m. (New York City time) on the date required and, if given by telephone, promptly confirmed by
      delivery of written notice thereof to the Administrative Agent (and the Administrative Agent will promptly transmit such original notice for Term Loans by telefacsimile or telephone to each applicable Lender).  Upon the giving of any such notice, the
      principal amount of the Term Loans specified in such notice shall become due and payable on the prepayment date specified therein; provided that a notice of
      voluntary prepayment may state that such notice is conditioned upon the effectiveness of other credit facilities, the receipt of proceeds from the issuance of other Indebtedness or the Disposition of assets or the closing of a merger or acquisition
      transaction, in which case such notice of prepayment may be revoked or extended by the Borrower (by written notice to the Administrative Agent on or prior to the specified date) if such condition is not satisfied or delayed in effectiveness.  Any
      such voluntary prepayment shall be applied as specified in Section 2.16(a).

     

    (b)          Prepayment Premium.  If, on or prior to the first anniversary of the
          Closing Date, any Term Loans are voluntarily prepaid pursuant to this Section 2.14 or mandatorily prepaid pursuant to Section 2.15(c)(i), such prepayments shall be made at 101% of the aggregate principal amount of the Term Loans so prepaid.  Any
          repricing amendment in respect of the Term Loans shall be deemed a voluntary prepayment for purposes of the previous sentence, and such prepayment premium shall accrue for the benefit of each Lender prior to giving effect to such amendment.

     

    (c)          Voluntary Commitment Reductions.

     

    (i)     The Borrower may, upon not less
        than three Business Days’ prior written or telephonic notice promptly confirmed by delivery of written notice thereof to the Administrative Agent (which original written notice Administrative Agent will promptly transmit by telefacsimile or
        telephone to each Lender), at any time and from time to time terminate in whole or permanently reduce in part, without premium or penalty, the Commitments; provided
        that any such partial reduction of the Commitments shall in each case be in an aggregate minimum amount of $1,000,000 and integral multiples of $1,000,000 in excess of that amount.

     

    (ii)    The Borrower’s notice to the
        Administrative Agent shall designate the date (which shall be a Business Day) of such termination or reduction and the amount of any partial reduction, and such termination or reduction of the Commitments shall be effective on the date specified in
        the Borrower’s notice and shall reduce the Commitment of each Lender proportionately to its Pro Rata Share thereof; provided that a notice of termination or
        partial reduction of the Commitments may state that such notice is conditional upon the effectiveness of other credit facilities, the receipt of proceeds from the issuance of other Indebtedness or the Disposition of assets or the closing of a
        merger or acquisition transaction, in which case such notice of termination or partial reduction may be revoked or extended by the Borrower (by notice to the Administrative Agent on or prior to the specified date) if such condition is not
      satisfied or delayed in effectiveness.  All Undrawn Commitment Fees in respect of the Commitments accrued until the effective date of any termination of the Commitments shall be paid on the effective date of such termination.

     

    
      41

      
        
 

    

    2.15        Mandatory Prepayments.

     

    (a)          Net Cash Proceeds from Asset Sales.  No later than the tenth Business Day
          following the date of receipt by any LNG Group Member of any Net Cash Proceeds from any Asset Sale, the Borrower shall prepay the Term Loans as set forth in Section 2.16(b) in an aggregate amount equal to such Net Cash Proceeds; provided that so long as no Event of Default under
          Section 7.1(a) or (f) shall have occurred and be continuing at the time such Net Cash Proceeds from Asset Sales are received, the Borrower shall have the option, directly or through one or more of its Subsidiaries, to reinvest such Net Cash
          Proceeds within 180 days of receipt thereof in assets useful in the business of the Borrower and its Subsidiaries or to enter into a binding commitment to acquire such assets within 180 days of receipt thereof so long as such assets are actually
          acquired within 360 days of receipt of such Net Cash Proceeds; provided, further, that any Net Cash Proceeds not so reinvested shall be applied to the prepayment of the Term Loans as set forth in this Section 2.15(a) at the end of such reinvestment period; provided, further, that no such Net Cash Proceeds received in connection with any Asset Sale and not reinvested pursuant to the first
          or second proviso above shall be required to be used to prepay the Term Loans until the aggregate amount of all such Net Cash Proceeds received and not reinvested during the term of this Agreement shall exceed $100,000 (the “Asset Sale Threshold Amount”) (and thereafter, only
          Net Cash Proceeds received and not reinvested in excess of such Asset Sale Threshold Amount shall be required to be used to prepay the Term Loans as set forth in Section 2.16(b)).

     

    (b)          Net Cash Proceeds from Recovery Events.

     

    (A)          No

        later than the tenth Business Day following the date of receipt by any LNG Group Member of any Net Cash Proceeds from any Recovery Event, the Borrower shall prepay the Term Loans as set forth in Section 2.16(b) in an aggregate amount equal to such
        Net Cash Proceeds; provided, (I) in the case of any Recovery Event
        other than a material Recovery Event relating to the Plant, so long as no Event of Default under Section 7.1(a) or (f) shall have occurred and be continuing, the Borrower shall have the option, directly or through one or more of its Subsidiaries,
        to reinvest such Net Cash Proceeds within 180 days of receipt thereof in assets useful in the business of the Borrower and its Subsidiaries (or to use such Net Cash Proceeds to replace assets damaged or destroyed in connection with the property or
        casualty insurance claim or condemnation proceeding that is the basis for such Recovery Event) or to enter into a binding commitment to acquire such assets within 180 days of receipt thereof so long as such assets are actually acquired within 360
        days of receipt of such Net Cash Proceeds; provided further, that any Net Cash Proceeds not so reinvested shall be applied to the prepayment of the Term
        Loans as set forth in this Section 2.15(b) at the end of such reinvestment period; and (II) in the case of any material Recovery Event relating to the Plant, the Borrower shall prepay the Term Loans as set forth in Section 2.16(b) in an aggregate
        amount equal to such Net Cash Proceeds, unless each of the following conditions are satisfied or waived by the Required Consent Parties, within 90 Business Days after any Loan Party’s receipt of such Net Cash Proceeds, in which event such
      amounts shall be permitted to be applied to the repair or restoration of the Plant:

     

    
      42

      
        
 

    

     

    
      (i)            the
          Borrower certifies in writing that the damage or destruction or Casual-ty Event giving rise to such Recovery Event does not constitute the destruction of all or substantially all of the Plant;

       

      (ii)           no Event of Default has occurred and is continuing under at the time of receipt of such Net Cash Proceeds, and after giving
            effect to any proposed repair and resto-ration, no Event of Default would reasonably be expected to be continuing after giving effect to the proposed repair and restoration;

       

      (iii)          the Borrower certifies in writing that repair or restoration of the Plant to a condition substantially similar to the condition of the Plant immediately prior to the dam-age or destruction or Casualty Event to which the relevant Recovery Event relates, is technically and economically feasible within a 12-month period after receipt of any such Net Cash Proceeds, and that a
            sufficient amount of funds is or will be available to the Borrower to make such repairs and restorations;

       

      (iv)          the Borrower delivers to the Administrative Agent a plan describing in reasonable detail the nature of the repairs or restoration to be effected and the anticipated costs and schedule associated therewith (the “Repair Plan”), and the
            Administrative Agent, in the exercise of its reasonable judgment, acknowledges in writing that the Repair Plan is achievable;

       

      (v)          the Debt Service Reserve Account shall be funded with such Net Cash Proceeds in an amount equal to the DSRA Shortfall (as defined in the Depositary Agree-ment) resulting from the extension to
            the expected Plant Completion Date resulting from the damage, destruction or Casualty Event giving rise to such Recovery Event;

       

      (vi)          the Borrower reasonably expects it or the appropriate Loan Party to obtain any Permit necessary to proceed with the repair
            and restoration of the Plant; and

       

      (vii)         the Borrower agrees to
          use commercially reasonable efforts to obtain such additional title insurance, endorsements, mechanic’s lien waivers or other documents as may reasonably be requested by the
          Administrative Agent as necessary or appropriate in connection with such repairs or restoration of the Plant or to preserve or protect the Lenders’ interests hereunder and in the applicable Collateral.

       

      (c)          Net Cash Proceeds from the Issuance of Debt.

       

      (i)          Subject to Section 2.14(b), no later than the
          first Business Day following the date of receipt by any LNG Group Member of any Net Cash Proceeds from the incurrence by any LNG Group Member of any Indebtedness (other than with respect to any Indebtedness permitted to be incurred pursuant to
          Section 6.2), the Borrower shall prepay the Term Loans as set forth in Section 2.16(b) in an aggregate amount equal to 100% of such Net Cash Proceeds.

       

    

    
      
        43

        
          
 

      

    

     

  

  
  
    (ii)    No later than the fifth Business
        Day following the date of receipt by any LNG Group Member of any Net Cash Proceeds from the incurrence of any Indebtedness pursuant to Section 6.2(u) in excess of $10,000,000 in the aggregate, the Borrower shall prepay the Term Loans as set forth
        in Section 2.16(b) in an aggregate amount equal to 100% of such Net Cash Proceeds in excess of $10,000,000 in the aggregate.

     

    (d)          Consolidated Excess Cash Flow.  If, as of any Excess Cash Flow
          Determination Date, the Excess Cash Flow Prepayment Amount exceeds $0, then within ten (10) Business Days after the date the financial statements for the second fiscal quarter after each fiscal year ended on any Excess Cash Flow Determination
          Date are required to be delivered pursuant to Section 5.1(b), the Borrower shall prepay the Term Loans as set forth in Section 2.16(b) in an amount equal to (i) 100% of the Excess Cash Flow Prepayment Amount, minus (ii) voluntary prepayments of
          Term Loans made during such fiscal year, and amounts paid by the Borrower in connection with any Borrower Loan Purchase during such fiscal year, in each case in this clause (ii) except to the extent funded with any Financing Proceeds.

     

    (e)          [Reserved].

     

    (f)           Prepayment Certificate.  Concurrently with any prepayment of the Term
          Loans pursuant to Sections 2.15(a) through 2.15(d), the Borrower shall deliver to the Administrative Agent for distribution to the Lenders a certificate of a Responsible Officer of the Borrower demonstrating the calculation of the amount of the
          applicable Net Cash Proceeds or Excess Cash Flow Prepayment Amount, as the case may be.  In the event that the Borrower shall subsequently determine that the actual amount required to be prepaid exceeded the amount set forth in such certificate,
          the Borrower shall promptly make an additional prepayment of the Term Loans in an amount equal to such excess, and the Borrower shall concurrently therewith deliver to the Administrative Agent for distribution to the Lenders a certificate of a
          Responsible Officer of the Borrower demonstrating the derivation of such excess.

     

    2.16        Application of Prepayments/Reductions.

     

    (a)          Application of Voluntary Prepayments.  Any prepayment of any Term Loan
          pursuant to Section 2.14(a) shall be applied as specified by the Borrower in the applicable notice of prepayment; provided that in the event the Borrower fails to specify the Term Loans to which any such prepayment shall be applied, such prepayment shall be applied to prepay the
          Term Loans in direct order of maturity of the scheduled remaining Installments of principal of the Term Loans.

     

    (b)          Application of Mandatory Prepayments.  Any amount required to be used to
          prepay the Term Loans pursuant to Sections 2.15(a) through 2.15(d) shall be applied as specified by the Borrower in the applicable notice of prepayment; provided that in the event the Borrower fails to specify the Term Loans to which any such prepayment shall be applied, such prepayment
          shall be applied to prepay the Term Loans in direct order of maturity of the scheduled remaining Installments of principal of the Term Loans.

     

    (c)          Waivable Mandatory Prepayment.  Anything contained herein to the contrary
          notwithstanding, so long as any Term Loans are outstanding, in the event the Borrower is required to make any mandatory prepayment (a “Waivable
          Mandatory Prepayment”) of the Term Loans, not less than five Business Days prior to the date (the “Required Prepayment Date”) on which the
      Borrower is required to make such Waivable Mandatory Prepayment, the Borrower shall notify the Administrative Agent of the amount of such prepayment, and the Administrative Agent will promptly thereafter notify each Lender holding an outstanding Term
      Loan of the amount of such Lender’s Pro Rata Share of such Waivable Mandatory Prepayment and such Lender’s option to refuse such amount.  Each such Lender may exercise such option to refuse its Pro Rata Share of such Waivable Mandatory Prepayment
      (such refused amount of all such Lenders, the “Refused Proceeds”) by giving written notice to the Borrower and the Administrative Agent of its election to do so
      on or before the third Business Day prior to the Required Prepayment Date (it being understood that any Lender which does not notify the Borrower and the Administrative Agent of its election to exercise such option on or before the third Business Day
      prior to the Required Prepayment Date shall be deemed to have elected, as of such date, not to exercise such option).  On the Required Prepayment Date, the Borrower shall (i) pay to the Administrative Agent the amount of the Waivable Mandatory
      Prepayment, less the Refused Proceeds, which such remaining amount shall be applied to prepay the Term Loans of those Lenders that have elected not to exercise such option (which prepayment shall be applied to the scheduled Installments of principal
      of the Term Loans in accordance with Section 2.16(b)), and (ii) retain any Refused Proceeds or use such Refused Proceeds for any other purpose permitted hereunder.

    
      44

      
        
 

    

    (d)          Application of Prepayments of Term Loans to Base Rate Loans and Eurodollar Rate Loans.  Any prepayment of Term Loans shall be applied first to Base Rate Loans to the full extent thereof before application to Eurodollar Rate Loans, in each case in a manner which minimizes the amount of any payments required to be
          made by the Borrower pursuant to Section 2.19(c).

     

    2.17        General Provisions Regarding Payments.

     

    (a)          All

        payments by the Borrower of principal, interest, fees and other Obligations shall be made in Dollars in same day funds, without defense, recoupment, setoff or counterclaim, free of any restriction or condition, and delivered to the Administrative
        Agent not later than 3:00 p.m. (New York City time) on the date due at the Principal Office of the Administrative Agent for the account of Lenders; for purposes of computing interest and fees, funds received by the Administrative Agent after that
        time on such due date shall be deemed to have been paid by the Borrower on the next succeeding Business Day.

     

    (b)          All

        payments in respect of the principal amount of any Term Loan shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid, and all such payments (and, in any event, any payments in respect of any Term Loan on
        a date when interest is due and payable with respect to such Term Loan) shall be applied to the payment of interest then due and payable before application to principal.

     

    (c)          The

        Administrative Agent (or its agent or sub-agent appointed by it) shall promptly distribute to each Lender at such address as such Lender shall indicate in writing, such Lender’s applicable Pro Rata Share of all payments and prepayments of principal
        and interest due hereunder, together with all other amounts due related thereto, including all fees payable with respect thereto, to the extent received by the Administrative Agent.

    
      45

      
        
 

    

    (d)          Notwithstanding

        the foregoing provisions hereof, if any Conversion/Continuation Notice is withdrawn as to any Affected Lender or if any Affected Lender makes Base Rate Loans in lieu of its Pro Rata Share of any Eurodollar Rate Loans, the Administrative Agent shall
        give effect thereto in apportioning payments received thereafter.

     

    (e)          Whenever

        any payment to be made hereunder with respect to any Term Loan shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day.

     

    (f)           The Administrative Agent shall deem any payment by or on behalf of the Borrower hereunder that is not made in same day funds prior to 3:00 p.m. (New York City time) (unless a later time is otherwise specified herein with respect to such
        payment) to be a nonconforming payment.  Any such payment shall not be deemed to have been received by the Administrative Agent until the later of (i) the time such funds become available funds, and (ii) the applicable next Business Day.  The
        Administrative Agent shall give prompt telephonic notice to the Borrower and each Lender (confirmed in writing) if any payment is non-conforming.  Any non-conforming payment may constitute or become a Default or Event of Default in accordance with
        the terms of Section 7.1(a).  Interest shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event less than the period from the date of such payment to the next
        succeeding applicable Business Day) at the rate determined pursuant to Section 2.11, if applicable, from the date such amount was due and payable until the date such amount is paid in full.

     

    2.18        Ratable Sharing.  The Lenders hereby agree among themselves that if any of them shall, whether by voluntary payment (other than a voluntary prepayment of Term
        Loans made and applied in accordance with the terms hereof), through the exercise of any right of set off or banker’s lien, or by counterclaim or cross action or by the enforcement of any right under the Loan Documents or otherwise, or as adequate
        protection of a deposit treated as cash collateral under Debtor Relief Laws, receive payment or reduction of a proportion of the aggregate amount of principal, interest, fees and other amounts then due and owing to such Lender hereunder or under
        the other Loan Documents (collectively, the “Aggregate Amounts Due” to such Lender) which is greater than the proportion received by any other Lender in
        respect of the Aggregate Amounts Due to such other Lender, then the Lender receiving such proportionately greater payment shall (a) notify the Administrative Agent and each other Lender of the receipt of such payment and (b) apply a portion of such
        payment to purchase participations (which it shall be deemed to have purchased from each seller of a participation simultaneously upon the receipt by such seller of its portion of such payment) in the Aggregate Amounts Due to the other Lenders so
        that all such recoveries of Aggregate Amounts Due shall be shared by all Lenders in proportion to the Aggregate Amounts Due to them; provided, if all or part
        of such proportionately greater payment received by such purchasing Lender is thereafter recovered from such Lender upon the bankruptcy or reorganization of the Borrower or otherwise, those purchases shall be rescinded and the purchase prices paid
        for such participations shall be returned to such purchasing Lender ratably to the extent of such recovery, but without interest.  The Borrower expressly consents to the foregoing arrangement and agrees that any holder of a participation so
        purchased may exercise any and all rights of banker’s lien, consolidation, set off or counterclaim with respect to any and all monies owing by the Borrower to that holder with respect thereto as fully as if that holder were owed the amount of the
        participation held by that holder.  The provisions of this Section 2.18 shall not be construed to apply to (a) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement as in effect from time to
      time (including the application of funds arising from the existence of a Defaulting Lender) or (b) any payment obtained by any Lender as consideration for the assignment or sale of a participation in any of its Term Loans or other Obligations owed to
      it.  For purposes of clause (a)(iii) of Section 2.21, a Lender that acquires a participation pursuant to this Section 2.18 shall be treated as having acquired such participation on the earlier date on which such Lender acquired the applicable
      interest in the Term Loan to which such participation relates.

    
      46

      
        
 

    

    2.19        Making or Maintaining Eurodollar Rate Loans.

     

    (a)          Inability to Determine Applicable Interest Rate.  In the event that the
          Required Lenders shall have reasonably determined (which determination shall be final and conclusive and binding upon all parties hereto but shall be made only after consultation with the Borrower and the Administrative Agent) on any Interest
          Rate Determination Date with respect to any Eurodollar Rate Loans, that by reason of circumstances affecting the London interbank market adequate and fair means do not exist for ascertaining the interest rate applicable to such Term Loans on the
          basis provided for in the definition of “Adjusted Eurodollar Rate,” the Administrative Agent shall on such date give notice (by telefacsimile or by telephone confirmed in writing) to the Borrower and each Lender of such determination, whereupon
          (i) no Term Loans may be made as, or converted to, Eurodollar Rate Loans until such time as the Administrative Agent notifies the Borrower and Lenders that the circumstances giving rise to such notice no longer exist, and (ii) any Funding Notice
          or Conversion/Continuation Notice given by the Borrower with respect to the Term Loans in respect of which such determination was made shall be deemed to be rescinded by the Borrower.

     

    (b)          Illegality or Impracticability of Eurodollar Rate Loans.  In the event
          that on any date (i) any Lender shall have reasonably determined (which determination shall be final and conclusive and binding upon all parties
          hereto but shall be made only after consultation with the Borrower and the Administrative Agent) that the making, maintaining, converting to or continuation of its Eurodollar Rate Loans has become unlawful as a result of compliance by such Lender
          in good faith with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any such treaty, governmental rule, regulation, guideline or order not having the force of law even though the failure to comply
          therewith would not be unlawful), or (ii) the Administrative Agent is advised by the Required Lenders (which determination shall be final and conclusive and binding upon all parties hereto) that the making, maintaining, converting to or
          continuation of its Eurodollar Rate Loans has become impracticable, as a result of contingencies occurring after the date hereof which materially and adversely affect the London interbank market or the position of the Lenders in that market,
          then, and in any such event, such Lenders (or in the case of the preceding clause (i), such Lender) shall be an “Affected Lender” and such Affected Lender shall on that day give notice (by e-mail or by telephone confirmed in writing) to the Borrower and the Administrative Agent of such
          determination (which notice the Administrative Agent shall promptly transmit to each other Lender).  If the Administrative Agent receives a notice from (x) any Lender pursuant to clause (i) of the preceding sentence or (y) Lenders constituting
          Required Lenders pursuant to clause (ii) of the preceding sentence, then (1) the obligation of the Lenders (or, in the case of any notice pursuant to clause (i) of the preceding sentence, such Lender) to make Term Loans as, or to convert Term
          Loans to, Eurodollar Rate Loans shall be suspended until such notice shall be withdrawn by each Affected Lender, (2) to the extent such determination by the Affected Lender relates to a Eurodollar Rate Loan then being requested by
      the Borrower pursuant to a Funding Notice or a Conversion/Continuation Notice, the Lenders (or in the case of any notice pursuant to clause (i) of the preceding
      sentence, such Lender) shall make such Term Loan as (or continue such Term Loan as or convert such Term Loan to, as the case may be) a Base Rate Loan, (3) the Lenders’ (or in the case of any notice pursuant to clause (i) of the preceding sentence,
      such Lender’s) obligations to maintain their respective outstanding Eurodollar Rate Loans (the “Affected Loans”) shall be terminated at the earlier to occur of
      the expiration of the Interest Period then in effect with respect to the Affected Loans or when required by law, and (4) the Affected Loans shall automatically convert into Base Rate Loans on the date of such termination.  Notwithstanding the
      foregoing, to the extent a determination by an Affected Lender as described above relates to a Eurodollar Rate Loan then being requested by the Borrower pursuant to a Funding Notice or a Conversion/Continuation Notice, the Borrower shall have the
      option, subject to the provisions of Section 2.19(c), to rescind such Funding Notice or Conversion/Continuation Notice as to all Lenders by giving written or
      telephonic notice (promptly confirmed by delivery of written notice thereof) to the Administrative Agent of such rescission on the date on which the Affected Lender gives notice of its determination as described above (which notice of rescission the
      Administrative Agent shall promptly transmit to each other Lender).  Except as provided in the immediately preceding sentence, nothing in this Section 2.19(b) shall affect the obligation of any Lender other than an Affected Lender to make or maintain
      Term Loans as, or to convert Term Loans to, Eurodollar Rate Loans in accordance with the terms hereof.

    
      47

      
        
 

    

    (c)          Compensation for Breakage or Non-Commencement of Interest Periods.  The
          Borrower shall compensate each Lender, upon written request by such Lender (which request shall set forth the basis for requesting such amounts in reasonable detail), for all reasonable losses, expenses and liabilities (including any interest
          paid or payable by such Lender to Lenders of funds borrowed by it to make or carry its Eurodollar Rate Loans and any loss, expense or liability sustained by such Lender in connection with the liquidation or re-employment of such funds but
          excluding loss of anticipated profits) which such Lender may sustain: (i) if for any reason (other than a default by such Lender) a borrowing of any Eurodollar Rate Loan does not occur on a date specified therefor in a Funding Notice or a
          telephonic request for borrowing, or a conversion to or continuation of any Eurodollar Rate Loan does not occur on a date specified therefor in a Conversion/Continuation Notice or a telephonic request for conversion or continuation; (ii) if any
          prepayment or other principal payment of, or any conversion of, any of its Eurodollar Rate Loans occurs on a date prior to the last day of an Interest Period applicable to that Term Loan; or (iii) if any prepayment of any of its Eurodollar Rate
          Loans is not made on any date specified in a notice of prepayment given by the Borrower.

     

    (d)          Booking of Eurodollar Rate Loans.  Any Lender may make, carry or transfer
          Eurodollar Rate Loans at, to, or for the account of any of its branch offices or the office of an Affiliate of such Lender.

     

    (e)          Assumptions Concerning Funding of Eurodollar Rate Loans.  Calculation of
          all amounts payable to a Lender under this Section 2.19 and under Section 2.20 shall be made as though such Lender had actually funded each of its relevant Eurodollar Rate Loans through the purchase of a Eurodollar deposit bearing interest at the
          rate obtained pursuant to clause (i) of the definition of “Adjusted Eurodollar Rate” in an amount equal to the amount of such Eurodollar Rate Loan and having a maturity comparable to the relevant Interest Period and through the
      transfer of such Eurodollar deposit from an offshore office of such Lender to a domestic office of such Lender in the United States of America; provided, however, that each Lender may fund each of its Eurodollar Rate Loans in any manner it sees fit and the foregoing assumptions shall be utilized only for the purposes
      of calculating amounts payable under this Section 2.19 and under Section 2.20.

    
      48

      
        
 

    

    2.20        Increased Costs; Capital Adequacy.

     

    (a)          Compensation for Increased Costs and Taxes.  In the event that any Lender shall reasonably determine (which determination shall be final and conclusive and
        binding upon all parties hereto but shall be made only after consultation with the Borrower and the Administrative Agent) that any law, treaty or governmental rule, regulation or order, or any change therein or in the interpretation, administration
        or application thereof (regardless of whether the underlying law, treaty or governmental rule, regulation or order was issued or enacted prior to the date hereof), including the introduction of any new law, treaty or governmental rule, regulation
        or order but excluding solely proposals thereof, or any determination of a court or Governmental Authority, in each case that becomes effective after the date hereof, or compliance by such Lender with any guideline, request or directive by any
        central bank or other governmental or quasi-governmental authority (whether or not having the force of law) or any implementation rules or interpretations of previously issued guidelines, requests or directives, in each case that is issued or made
        after the date hereof: (i) subjects such Lender (or its applicable lending office) to any additional tax (other than taxes excluded from Section 2.21 pursuant to clauses (i) through (vi) of Section 2.21(a) and Non-Excluded Taxes and Other Taxes
        indemnifiable under Section 2.21) with respect to this Agreement or any of the other Loan Documents or any of its obligations hereunder or thereunder or any obligations or payments to such Lender (or its applicable lending office) of principal,
        interest, fees or any other amount payable hereunder; (ii) imposes, modifies or holds applicable any reserve (including any marginal, emergency, supplemental, special or other reserve), special deposit, liquidity, compulsory loan, FDIC insurance or
        similar requirement against assets held by, or deposits or other liabilities in or for the account of, or advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Lender (other than any such
        reserve or other requirements with respect to Eurodollar Rate Loans that are reflected in the definition of “Adjusted Eurodollar Rate”); or (iii) imposes any other condition (other than with respect to a tax matter) on or affecting such Lender (or
        its applicable lending office) or such Lender’s obligations hereunder or the London interbank market; and the result of any of the foregoing is to increase the cost to such Lender by any amount of agreeing to make, making or maintaining Term Loans
        hereunder or to reduce any amount received or receivable by such Lender (or its applicable lending office) by any amount with respect thereto; then, in any such case, the Borrower shall pay to such Lender, within thirty (30) days of receipt of the
        statement referred to in the next sentence, such additional amount or amounts (in the form of an increased rate of, or a different method of calculating, interest or in a lump sum or otherwise as such Lender in its sole discretion shall determine)
        as may be necessary to compensate such Lender for any such increased cost or reduction in amounts received or receivable hereunder.  Such Lender shall deliver to the Borrower (with a copy to the Administrative Agent) a written statement, setting
        forth in reasonable detail the basis for calculating the additional amounts owed to such Lender under this Section 2.20(a), which statement shall be conclusive and binding upon all parties hereto absent manifest error.  Notwithstanding the
      foregoing, no Lender may demand compensation pursuant to this Section 2.20(a) unless it is then the general policy of such Lender to pursue similar compensation in similar circumstances under comparable provisions of other credit agreements.

    
      49

      
        
 

    

    (b)          Capital Adequacy Adjustment.  In the event that any Lender shall have reasonably determined (which determination shall, absent manifest error, be final and
        conclusive and binding upon all parties hereto) that (A) the adoption, effectiveness, phase in or applicability of any law, rule or regulation (or any provision thereof) regarding liquidity and capital adequacy, or any change therein or in the
        interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or (B) compliance by any Lender (or its applicable lending office) with any
        guideline, request or directive regarding liquidity and capital adequacy (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, in each case after the date hereof, has or would have the
        effect of reducing the rate of return on the capital of such Lender by a material amount as a consequence of, or with reference to, such Lender’s Term Loans, or participations therein or other obligations hereunder with respect to the Term Loans to
        a level below that which such Lender could have achieved but for such adoption, effectiveness, phase in, applicability, change or compliance (taking into consideration the policies of such Lender with regard to liquidity and capital adequacy), then
        from time to time, within thirty (30) days after receipt by the Borrower from such Lender of the statement referred to in the next sentence, the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender or
        such controlling company on an after tax basis for such reduction.  Such Lender shall deliver to the Borrower (with a copy to the Administrative Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional
        amounts owed to Lender under this Section 2.20(b), which statement shall be conclusive and binding upon all parties hereto absent manifest error.  For the avoidance of doubt, subsections (a) and (b) of this Section 2.20 shall apply to all requests,
        rules, guidelines or directives concerning liquidity and capital adequacy issued by any United States regulatory authority (i) under or in connection with the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act and (ii)
        in connection with the implementation of the recommendations of the Bank for International Settlements or the Basel Committee on Banking Regulations and Supervisory Practices (or any successor or similar authority), in each case pursuant to Basel
        III, regardless of the date adopted, issued, promulgated or implemented.  Notwithstanding the foregoing, no Lender may demand compensation pursuant to this Section 2.20(b) unless it is then the general policy of such Lender to pursue similar
        compensation in similar circumstances under comparable provisions of other credit agreements.

    
      50

      
        
 

    

    2.21        Taxes.

     

    (a)          All

        payments made by or on behalf of any Loan Party to the Administrative Agent, the Arranger or any Lender or other recipient (each, a “Recipient”) under any
        Loan Document shall be made free and clear of, and without deduction or withholding for or on account of, any present or future taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected,
        withheld or assessed by any Governmental Authority, excluding any of the following taxes (or any interest, additions to tax or penalties applicable thereto): (i) net income, net profit, branch profits, franchise and similar taxes imposed on
      any Recipient as a result of (x) such Recipient being organized under the laws of, or having its principal office or applicable lending office located in, the jurisdiction of the Governmental Authority imposing such tax, or (y) any other present or
      former connection between such Recipient and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection that would not have arisen but for and
      solely as a result of such Recipient having executed, delivered, been a party to, performed its obligations or received a payment under, received or perfected a security interest under, enforced or engaged in any other transaction pursuant to this
      Agreement or any other Loan Document); (ii) taxes imposed on any Recipient that are attributable to such Recipient’s failure to comply with the requirements of paragraph (d), (e), (f), (g) or (h) of this Section 2.21; (iii) with respect to any
      Lender, any U.S. federal withholding tax imposed on such Lender pursuant to any Law in effect at the time such Lender becomes a party hereto or, in the case of any additional interest in a Term Loan acquired after such Lender becomes a party hereto,
      at the time such Lender acquires such additional interest (or changes its applicable lending office) except to the extent that (x) such Lender’s assignor (if any) was entitled, immediately prior to the assignment to such Lender, to additional amounts
      in respect of such withholding tax, or (y) such Lender was entitled, immediately prior to such change in applicable lending office, to additional amounts in respect of such withholding tax; (iv) United States federal backup withholding taxes under
      Section 3406 of the Code; (v) taxes that are imposed pursuant to 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) or any intergovernmental or FFI agreement entered into pursuant thereto, or any applicable Treasury regulations promulgated thereunder or official interpretations thereof (such Code provisions, agreements, regulations and interpretations,
      collectively, “FATCA”); and (vi) any penalties, interest or additions to tax that are found by a final and nonappealable decision of a court of competent
      jurisdiction to have resulted from the Recipient’s gross negligence or willful misconduct.  If any taxes not described in clauses (i) through (vi) of the preceding sentence and/or any interest, additions to tax or penalties applicable thereto (“Non-Excluded Taxes”) or any Other Taxes are required to be withheld by any applicable withholding agent from or are otherwise imposed on any amounts payable to the
      Administrative Agent, the Arranger or any Lender by any Loan Party under any Loan Document, the amounts so payable by or on behalf of any Loan Party to the Administrative Agent, the Arranger or such Lender shall be increased to the extent necessary
      to yield to each Lender (or, in the case of any payment made to the Administrative Agent for its own account, the Administrative Agent), after payment of all Non-Excluded Taxes and Other Taxes (including with respect to additional amounts payable
      under this Section 2.21), interest or any such other amounts payable under such Loan Document at the rates or in the amounts specified in such Loan Document as if no such withholding or deduction had been made.

     

    (b)          Without

        duplication of Section 2.21(a), the Loan Parties shall pay to the relevant Governmental Authority in accordance with applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

    
      51

      
        
 

    

    (c)          Whenever

        any Non-Excluded Taxes or Other Taxes are payable or remittable by a Loan Party, as promptly as possible thereafter the Loan Party shall send to the Administrative Agent and to the Arranger or the relevant Lender, as the case may be, a certified
        copy of an original official receipt received by the Loan Party or other reasonably satisfactory evidence showing payment thereof.  Without duplication of Section 2.21(a), the Loan Parties, jointly and severally, shall indemnify the
      Administrative Agent, the Arranger or the relevant Lender for the full amount of Non-Excluded Taxes or Other Taxes (including any Non-Excluded Taxes and Other Taxes imposed on amounts payable under this Section 2.21) payable by the Administrative
      Agent, the Arranger or the relevant Lender, as the case may be, and any liability (including penalties, additions to tax, interest and reasonable expenses) arising therefrom or with respect thereto, whether or not such Non-Excluded Taxes or Other
      Taxes were correctly or legally asserted by the relevant taxing authority or other Governmental Authority.  Such indemnification shall be made within 30 days after the date the Administrative Agent, any Arranger or any relevant Lender, as the case
      may be, makes written demand therefor (which demand shall set forth in reasonable detail the nature and amount of Non-Excluded Taxes and Other Taxes for which indemnification is being sought).  If the Administrative Agent, the Arranger or a Lender
      determines, in its reasonable discretion, that it has received a refund of any taxes as to which it has been indemnified by a Loan Party or with respect to which a Loan Party has paid additional amounts pursuant to this Section 2.21, it shall pay
      such Loan Party an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Loan Party under this Section 2.21 with respect to the taxes giving rise to such refund), net of all out-of-pocket
      expenses (including taxes) of the Administrative Agent, the Arranger or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Loan Party, upon the request of the Administrative Agent, the Arranger or such Lender, agrees to repay the amount paid over to the Loan Party (plus interest attributable to the period during which the Loan Party held such funds and any penalties, additions to tax, interest or other charges imposed by the relevant Governmental Authority)
      to the Administrative Agent, the Arranger or such Lender in the event the Administrative Agent, the Arranger or such Lender, as the case may be, is required to repay such refund to such Governmental Authority.  This Section 2.21(c) shall not be
      construed to require the Administrative Agent, the Arranger or any Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential) to the Borrower or any other Person.  The agreements in this
      Section 2.21 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all other
      Obligations.

     

    (d)          Without

        limiting the generality of Section 2.21(e), each Lender, to the extent such Lender is not a “U.S. person” (as such term is defined in Section 7701(a)(30) of the Code) shall deliver to the Borrower and the Administrative Agent whichever of the
        following is applicable:

     

    (i)     two duly
        completed copies of IRS Form W-8BEN or W-8BEN-E (or any successor form) claiming eligibility for benefits of an income tax treaty to which the United States is a party and which provides for an exemption from or reduction in United States federal
        withholding tax;

     

    (ii)    two duly
        completed copies of IRS Form W-8ECI (or any successor form);

     

    (iii)   in the case of a Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code, (A) a certificate in substantially the form of Exhibit E-1, to the effect that such Lender is not (1) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (2) a “10 percent shareholder” of the Borrower
          within the meaning of section 881(c)(3)(B) of the Code, (3) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code, and (4) was not engaged in a conduct of a trade or business within the United States to
      which the interest payment is effectively connected, and (B) two duly completed copies of IRS Form W-8BEN or W-8BEN-E (or any successor form);

    
      52

      
        
 

    

    (iv)   to the extent a Lender is not the beneficial owner (for example, where the Lender is a partnership or a participating Lender granting a participation), a
          complete and executed IRS Form W-8IMY, accompanied by a Form W-8ECI, W-8BEN or W-8BEN-E, a certificate in substantially the form of Exhibit E-2, E-3, or E-4, as applicable, IRS Form W-9, and/or other certification documents from each beneficial owner (or any successor forms),
          as applicable; provided that, if the
          Lender is a partnership (and not a participating Lender) and one or more partners of such Lender are claiming the portfolio interest exemption, such Lender may provide a certificate, in substantially the form of Exhibit E-2 or E-4, as applicable, on behalf of such beneficial owner(s) in lieu of requiring each beneficial owner
          to provide its own certificate; or

     

    (v)    any other form prescribed by applicable Law as a basis for claiming exemption from or a reduction in United States federal withholding tax on payments under
          this Agreement and the other Loan Documents duly completed together with such supplementary documentation as may be prescribed by applicable Law
          to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made.

     

    To the extent a Lender is a “U.S. person” (as defined in Section 7701(a)(30) of the Code), such Lender shall deliver to the Borrower and the Administrative Agent two duly completed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup
      withholding tax.

     

    (e)          Upon

        the reasonable request of the Borrower or the Administrative Agent, a Lender that is entitled to an exemption from or reduction of any applicable withholding tax with respect to any payments under this Agreement or any Loan Document shall deliver
        to the Borrower and the Administrative Agent such properly completed and executed documentation prescribed by applicable Law or reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without
        withholding or at a reduced rate; provided that such Lender is legally eligible to provide such documentation.

     

    (f)           If a payment made to any Lender under any Loan Document would be subject to U.S. federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in
        Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the
        Administrative Agent such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be
        necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA, to determine whether such Lender has complied with its obligations under FATCA or to determine the amount, if any, to deduct and withhold
      from such payment.  Solely for the purpose of this Section 2.21(f), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

    
      53

      
        
 

    

    (g)          Each

        Lender shall deliver the forms and other documentation required to be provided under this Section 2.21 (i) on or before the date it becomes a party to this Agreement, (ii) promptly upon the obsolescence, expiration, inaccuracy, or invalidity of any
        form previously delivered by such Lender, and (iii) at such other times as may be reasonably requested by the Borrower or the Administrative Agent or as required by Law.  Each Lender shall promptly notify the Administrative Agent and the Borrower
        at any time it determines that it is no longer in a position to provide any documentation previously delivered to the Borrower or the Administrative Agent.  Notwithstanding any other provision of this Section 2.21, a Lender shall not be required to
        deliver any documentation pursuant to Sections 2.21(d), (e), (f) or (g) that such Lender is not legally eligible to provide.

     

    (h)          If

        the Administrative Agent is a “United States person” within the meaning of Section 7701(a)(30) of the Code, then it shall, on or prior to the date on which it becomes the Administrative Agent, provide the Borrower with a properly completed and duly
        executed copy of IRS Form W-9 confirming that the Administrative Agent is exempt from U.S. federal backup withholding.  If the Administrative Agent is not a “United States person” within the meaning of Section 7701(a)(30) of the Code, then it
        shall, on or prior to the date on which it becomes the Administrative Agent, provide the Borrower with, (i) with respect to payments made to the Administrative Agent for its own account, a properly completed and duly executed IRS Form W-8ECI (or
        other applicable IRS Form W-8), and (ii) with respect to payments made to the Administrative Agent on behalf of the Lenders, a properly completed and duly executed IRS Form W-8IMY confirming that the Administrative Agent agrees to be treated as a
        “United States person” for U.S. federal withholding tax purposes.  The Administrative Agent shall, (i) promptly upon the obsolescence, expiration, inaccuracy or invalidity of any form previously delivered by the Administrative Agent under this
        clause (h), and (ii) at such other times as may be reasonably requested by the Borrower or as required by Law, deliver promptly to the Borrower an updated form or other appropriate documentation or promptly notify the Borrower in writing of its
        legal ineligibility to do so.  Notwithstanding anything to the contrary in this clause (h), the Administrative Agent shall not be required to provide any documentation under this clause (h) that it is legally ineligible to provide as a result of a
        change in Law after the date hereof.

    
      54

      
        
 

    

    2.22        Obligation to Mitigate.  Each Lender agrees that, as promptly as practicable after the officer of such Lender responsible for administering its Term Loans becomes
        aware of the occurrence of an event or the existence of a condition that would cause such Lender to become an Affected Lender or that would entitle such Lender to receive payments under Section 2.19, 2.20 or 2.21, it will, to the extent not
        inconsistent with the internal policies of such Lender and any applicable legal or regulatory restrictions, use reasonable efforts to (a) make, issue, fund or maintain its Term Loans, including any Affected Loans, through another office of such
        Lender, or (b) take such other measures as such Lender may deem reasonable, if as a result thereof the circumstances which would cause such Lender to be an Affected Lender would cease to exist or the additional amounts which would otherwise be
        required to be paid to such Lender pursuant to Section 2.19, 2.20 or 2.21 would be reduced and if, as determined by such Lender in its sole discretion, the making, funding or maintaining of such Term Loans through such other office or in accordance

      with such other measures, as the case may be, would not otherwise adversely affect such Term Loans or the interests of such Lender; provided that such Lender
      will not be obligated to utilize such other office or take such other measures pursuant to this Section 2.22 unless the Borrower agrees to pay all incremental expenses incurred by such Lender as a result of utilizing such other office or taking such
      other measures as described above.  A certificate as to the amount of any such expenses payable by the Borrower pursuant to this Section 2.22 (setting forth in reasonable detail the basis for requesting such amount) submitted by such Lender to the
      Borrower (with a copy to the Administrative Agent) shall be conclusive absent manifest error.  The Borrower shall not be required to make any payments to any Lender under Section 2.19 or 2.20 for any costs or reductions incurred more than 180 days
      prior to the date that such Lender notifies the Borrower of the circumstances giving rise to such costs or reductions and of such Lender’s intention to claim compensation therefor; provided that if the event giving rise to such costs or reductions is given retroactive effect, then the 180-day period referred to above shall be extended to include the period of retroactive effect therefor.

     

    2.23        Defaulting Lenders.

     

    (a)          Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such
        time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

     

    (i)     Defaulting Lender Waterfall.  Any payment of
          principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 8 or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.7 shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by such
          Defaulting Lender to the Administrative Agent hereunder; second, as the Borrower may request (so long as no Event of Default exists), to the funding of any Term Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as
          determined by the Administrative Agent; third, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to Term Loans under this
          Agreement; fourth, to the payment of any
          amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long as no Event of Default exists, to the
          payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this
          Agreement; and sixth, to such Defaulting
          Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Term Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Term Loans were made at a
          time when the conditions set forth in Section 4.2 were satisfied or waived, such payment shall be applied solely to pay the Term Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Term Loans of
          such Defaulting Lender until such time as all Term Loans are held by the Lenders pro rata in accordance with the applicable Commitments.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are
      applied (or held) to pay amounts owed by a Defaulting Lender pursuant to this Section 2.23(a)(i) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

    
      55

      
        
 

    

    (ii)    Certain Fees.  No Defaulting Lender shall be entitled
          to receive any fee pursuant to Section 2.12(a) for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be
          required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

     

    (b)          Defaulting Lender Cure.  If the Borrower and the Administrative Agent agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent
        will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion of outstanding Term Loans of
        the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Term Loans to be held pro rata by the Lenders in accordance with the applicable Commitments, whereupon such Lender will cease to be
        a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower
        while that Lender was a Defaulting Lender; and provided further, that, except to the extent otherwise expressly agreed by the affected parties, no change
        hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender having been a Defaulting Lender.

    
      56

      
        
 

    

    2.24        Removal or Replacement of a Lender.  Anything contained herein to the contrary notwithstanding, in the event that: (a) (i) any Lender (an “Increased Cost Lender”) shall give notice to the Borrower that such Lender is an Affected Lender or that such Lender is entitled to receive payments under Section
        2.19, 2.20 or 2.21, (ii) the circumstances which have caused such Lender to be an Affected Lender or which entitle such Lender to receive such payments shall remain in effect, and (iii) such Lender shall fail to withdraw such notice within five
        Business Days after the Borrower’s request for such withdrawal; or (b) (i) any Lender shall become and continues to be a Defaulting Lender, and (ii) such Defaulting Lender shall fail to cure the default pursuant to Section 2.23(b) within five
        Business Days after the Borrower’s request that it cure such default; or (c) in connection with any proposed amendment, modification, termination, waiver or consent with respect to any of the provisions hereof as contemplated by Section 9.1, the
        consent of Required Lenders shall have been obtained but the consent of one or more of such other Lenders (each, a “Non-Consenting Lender”) whose consent is
        required shall not have been obtained; then, with respect to each such Increased Cost Lender, Defaulting Lender or Non-Consenting Lender (the “Terminated Lender”),

        the Borrower may, by giving written notice to the Administrative Agent and any Terminated Lender of its election to do so, elect to cause such Terminated Lender (and such Terminated Lender hereby irrevocably agrees) to assign its outstanding Term
        Loans and Commitments, if any, in full to one or more Persons permitted to become Lenders hereunder pursuant to and in accordance with the provisions of Section 9.6 (each, a “Replacement Lender”) and the Borrower shall pay the fees, if any, payable thereunder in connection with any such assignment from an Increased Cost Lender, a Defaulting Lender or a Non-Consenting Lender; provided that (1) on the date of such assignment, such Terminated Lender shall have received payment from the Replacement Lender or the Borrower in an
      amount equal to the sum of (A) the principal of, and all accrued interest on, all outstanding Term Loans of the Terminated Lender, (B) all unreimbursed drawings that have been funded by such Terminated Lender, together with all then unpaid interest
      with respect thereto at such time and (C) all accrued, but theretofore unpaid fees, premiums and other amounts accruing but unpaid hereunder owing to such Terminated Lender; (2) in the case of any such assignment resulting from a claim for
      compensation under Section 2.19(c), 2.20 or 2.21, such assignment will result in a material reduction in such compensation and on the date of such assignment, the Borrower shall pay any amounts payable to such Terminated Lender pursuant to Section
      2.19, 2.20 or 2.21; or otherwise as if it were a prepayment and (3) in the event such Terminated Lender is a Non-Consenting Lender, each Replacement Lender shall consent, at the time of such assignment, to each matter in respect of which such
      Terminated Lender was a Non-Consenting Lender.  Upon the prepayment of all amounts owing to any Terminated Lender and the termination of such Terminated Lender’s Commitments, such Terminated Lender shall no longer constitute a “Lender” for purposes
      hereof; provided that any rights of such Terminated Lender to indemnification hereunder shall survive as to such Terminated Lender.  Each Lender agrees that if
      the Borrower exercises its option hereunder to cause an assignment by such Lender as a Non-Consenting Lender, Defaulting Lender or Terminated Lender, such Lender shall, promptly after receipt of written notice of such election, execute and deliver
      all documentation necessary to effectuate such assignment in accordance with Section 9.6; provided that each party hereto agrees that an assignment required
      pursuant to this Section 2.24 may be effected pursuant to an Assignment and Acceptance executed by the Borrower, the Administrative Agent and the assignee and that the Lender required to make such assignment need not be a party thereto, and each
      Lender hereby authorizes and directs the Administrative Agent to execute and deliver such documentation as may be required to give effect to an assignment in accordance with Section 9.6 on behalf of a Non-Consenting Lender or Terminated Lender and
      any such documentation so executed by the Administrative Agent shall be effective for purposes of documenting an assignment pursuant to Section 9.6.

     

    2.25        Maturity Extension Option.  The Borrower may from time to time after the second anniversary of the Closing Date, pursuant to the provisions of this Section 2.25,
        exercise in its sole discretion the right to extend the maturity date of the Term Loan Facility to a date no later than the date that is 18 months past the Original Maturity Date (the “Maturity Extension Option”), by giving irrevocable written notice (the “Maturity Extension Notice”) to the Administrative
        Agent of the exercise of the Maturity Extension Option (including the date of such new maturity date) at least five Business Days prior to the Original Maturity Date.  The Maturity Extension Option shall not become effective unless (a) on the date
        that the Maturity Extension Notice is delivered, (i) the Plant Completion Date has occurred, (ii) no Default or Event of Default is continuing and (iii) the Borrower has paid to the Administrative Agent, for the account of each Lender party to this
        Agreement as a Lender on such date, an extension fee in cash in an amount equal to 1.00% of the principal amount of such Lender’s Term Loans outstanding on such date, and (b) the Total Secured Debt Leverage Ratio (calculated on a Pro Forma Basis)
        as of the last day of the Test Period most recently ended prior to the Original Maturity Date for which financial statements are required to have been delivered pursuant to Section 5.1 is less than or equal to 4.50:1.00; provided that, for the purpose of calculating the Total Secured Debt Leverage Ratio for this clause (b), (A) any Cure Right exercised in respect of such Test Period shall be
        disregarded, and (B) any contracted revenue in respect of agreements that expire prior to the date that is two years after the Original Maturity Date shall be disregarded for purposes of calculating Consolidated EBITDA.  Such fees shall be
      paid to the Administrative Agent at its Principal Office and upon receipt, the Administrative Agent shall promptly distribute to each Lender its Pro Rata Share of the aggregate amount of such fees paid to the Administrative Agent.

    
      57

      
        
 

    

    Section 3.               REPRESENTATIONS AND WARRANTIES

     

    To induce the Administrative Agent and the Lenders to enter into this Agreement and to make the Term Loans, Holdings and the Borrower hereby
      jointly and severally represent and warrant to the Administrative Agent and each Lender that:

     

    3.1          Financial Condition.  The consolidated balance sheet of the Borrower delivered pursuant to Section 4.1(c)(i) and Section 5.1, and the consolidated statements of
        operations and of cash flows delivered pursuant to Section 5.1, in each case, present fairly in all material respects the consolidated financial condition of the Borrower as of such date or for such period, as applicable (subject to normal year-end
        audit adjustments and the absence of footnotes, as the case may be).

     

    3.2          No Change.  Since September 30, 2014, there has been no development or event that has had or could reasonably be expected to have, individually or in the
        aggregate, a Material Adverse Effect.

     

    3.3          Corporate Existence; Compliance with Law.  Each LNG Group Member (a) is duly organized, validly existing and in good standing (if applicable) under the laws of
        the jurisdiction of its organization or formation, (b) has the organizational power and authority to own and operate its Property, to lease the Property it leases as lessee and to conduct the business in which it is currently engaged, (c) is duly
        qualified as a foreign corporation or other organization and in good standing under the laws of each jurisdiction (if applicable) where its ownership, lease or operation of Property or the conduct of its business requires such qualification and (d)
        is in compliance with all Requirements of Law, except, in the case of clause (a) with respect to any LNG Group Member other than the Loan Parties and in the cases of clauses (b), (c) and (d) above, to the extent that failure of the same could not
        reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

     

    3.4          Corporate Power; Authorization; Enforceable Obligations.  Each Loan Party has the requisite corporate or other organizational power and authority to make, deliver
        and perform the Loan Documents to which it is a party.  Each Loan Party has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of the Loan Documents to which it is a party.  No material
        consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the borrowings hereunder or the execution, delivery or performance of this Agreement
        or any of the other Loan Documents, except (i) those consents, authorizations, filings and notices that have been obtained or made and are in full force and effect, (ii) those consents, authorizations, filings and notices, the failure to obtain or
        make could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and (iii) the filings or other actions referred to in Section 3.19.  Each Loan Document has been duly executed and delivered on behalf of
        each Loan Party that is a party thereto and constitutes a legal, valid and binding obligation of each Loan Party that is a party thereto, enforceable against each such Loan Party in accordance with its terms, except as enforceability may be
      limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

    
      58

      
        
 

    

    3.5          No Legal Bar.  The execution, delivery and performance of this Agreement and the other Loan Documents, the borrowings hereunder and the use of the proceeds
        thereof will not violate in any material respect any Requirement of Law (except this shall not apply to tax, employee benefit or environmental matters, which are covered exclusively by Sections 3.10, 3.13 and 3.17, respectively) or any Material
        Construction-Related Contracts or Contractual Obligation of any LNG Group Member, other than any violation that could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and will not result in, or
        require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the Liens created by the Security Documents and Liens permitted by
        Section 6.3).

     

    3.6          No Material Litigation.  No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of
        Holdings or the Borrower, threatened by or against Holdings, the Borrower or any of their respective Subsidiaries or against any of their respective properties or revenues, or with respect to any of the Loan Documents or any of the transactions
        contemplated hereby or thereby, that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

     

    3.7          No Default.  No Default or Event of Default has occurred and is continuing.

     

    3.8          Ownership of Property; Liens.

     

    (a)          Each

        of the LNG Group Members has title in fee simple or good and valid title, as the case may be, to, or a valid leasehold interest in, or easements or other limited property interests in, all its real or immoveable property necessary in the ordinary
        conduct of its business and necessary to develop, construct, complete, own and operate the Plant, including the Mortgaged Property, and good title to, or a valid leasehold interest in, or valid license of or other right to use, all its other
        Property necessary for the conduct of its business as currently conducted, in each case except where the failure to have such title, interest, license or right could not reasonably be expected to have, individually or in the aggregate, a Material
        Adverse Effect, and none of such Property is subject to any Lien except as permitted by Section 6.3.

     

    (b)          Assuming

        completion of the work contemplated in the applicable plans and specifications, the Plant and the current use thereof comply with all applicable Requirements of Law (including applicable building and zoning ordinances and codes) and with all
        insurance requirements, and none of the Loan Parties are non-conforming users of the Plant, except, in each case, where noncompliance or such non-conforming use would not, individually or in the aggregate, reasonably be expected to result in a
        Material Adverse Effect.

    
      59

      
        
 

    

    (c)          No

        taking, condemnation or eminent domain proceeding has been commenced with respect to all or any portion of the Plant or for the relocation of roadways providing access to the Plant.  No taking, condemnation or eminent domain proceeding has
      been commenced with respect to any real Property except, in each case, where such proceeding would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

     

    (d)          There

        are no current or pending special or other assessments (other than for ad valorem taxes) for public improvements to or otherwise affecting the
        Plant, nor are there any contemplated improvements to the Plant that may reasonably be expected to result in such special or other assessments, in any case that would reasonably be expected to result in a Material Adverse Effect.

     

    (e)          [Reserved]

     

    (f)           Other than exceptions to any of the following that could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (A) all approvals from Governmental Authorities having jurisdiction over the Plant,
        including, but not limited to, building permits, street openings or closings, zoning or use permits, variances or special exceptions, zoning reclassifications, setback requirements however established, and approvals of fire underwriters, have been
        obtained for the portion of the improvements that have been constructed, to the extent required under applicable Law, and to the extent so obtained, have not been withdrawn, (B) the construction of the Plant has been performed in conformity with
        all applicable Laws and the plans and specifications with respect thereto, (C) the plans and specifications with respect to the Plant, to the extent required by applicable Law, have been approved by all applicable Governmental Authorities and (D)
        all construction heretofore performed on the improvements with respect to the Plant has been performed within the perimeter of the land in accordance with the plans and specifications thereto and all applicable Requirements of Law, and in
        accordance with any restrictive covenants applicable thereto.  Assuming completion of the work contemplated in the plans and specifications with respect to the Plant, there are no existing material structural defects in the improvements to the
        Plant and no material violation of any Requirements of Law exists with respect thereto.  The anticipated use of the Plant complies with applicable zoning ordinances and all regulations affecting the Plant and all Requirements of Law for such use
        have been satisfied, to the extent required to be satisfied at such time, except to the extent such noncompliance or failure to satisfy government requirements would not reasonably be expected to result in a Material Adverse Effect.

     

    (g)          There

        are no outstanding options to purchase or rights of first refusal or restrictions on transferability affecting the Plant (other than those restrictions on transfer set forth in, or otherwise permitted under, the Ground Lease or the Loan Documents,
        including, without limitation, Liens permitted by Section 6.3).

     

    (h)          Other

        than exceptions to any of the following that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, as of the Closing Date, prior to the Plant Completion Date, (i) all utility services necessary
        for the current state of construction of the Plant are available, including, without limitation, public sanitary sewer service and storm sewers, public water, electricity, gas and telephone service, and (ii) all Permits and approvals have been
        obtained or are available so that the improvements may be hooked up to the public sanitary sewer service, which public sanitary sewer service shall be available to the full extent required for the current construction of and use and operation of
        the Plant and shall permit the discharge of sewage for the types and amounts anticipated to be produced from the construction, use and operation of the Plant.  Other than exceptions to any of the following that would not, individually or in
      the aggregate, reasonably be expected to result in a Material Adverse Effect, after the Closing Date, the Borrower reasonably expects to have all utilities available, as and when necessary, to complete the construction of and use and operation of the
      Plant.

    
      60

      
        
 

    

    (i)           Other than exceptions to any of the following that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, the Borrower reasonably expects that as of the Plant Completion Date, all
        pipelines, public sanitary sewer service and storm sewers necessary for the full operation of the Plant will be available at the title lines of the land (or, if they pass through adjoining private land, in accordance with valid public or
        unencumbered private easements which inure to the benefit of Borrower and run with the land subject to the Ground Lease, copies of which have been delivered to the Administrative Agent).

     

    (j)           On and after the Plant Completion Date, the Plant has all hot and chilled water for purposes of heating and air conditioning, electricity, and gas services necessary for the operation of the Plant at the title lines of the land (or, if they
        pass through adjoining private or public land, in accordance with valid public or unencumbered private easements or licenses which inure to the benefit of Borrower and run with the land subject to the Ground Lease, copies of which have been
        delivered to the Administrative Agent), except where the failure to have such water would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

     

    (k)          All

        roads necessary for the utilization of the Plant provide adequate public access to the Plant for its current and intended purposes, except where the failure to have such access would not reasonably be expected to have, individually or in the
        aggregate, a Material Adverse Effect.

     

    (l)           Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, no building or structure with respect to the Plant or any appurtenance thereto or equipment thereon, or the use, operation or
        maintenance thereof, violates any restrictive covenant affecting the land subject to the Ground Lease or encroaches on any easement or on any property owned by others.

     

    (m)         The

        Budget for the construction of the Plant and all of the amounts set forth therein, present a true, full and complete statement in all material respects of all project costs reasonably anticipated by the Borrower to be incurred in connection with
        the development and completion of the Plant in accordance with this Agreement.  The plans and specifications for the Plant (i) are based on reasonable assumptions as to all legal and factual matters material thereto, (ii) have been prepared in good
        faith and (iii) fairly represent the Borrower’s expectations as to the matters covered thereby.  No material capital expenditures with respect to the Plant are being incurred or are to the Borrower’s knowledge reasonably necessary, except as
        specified in the Budget.

    
      61

      
        
 

    

    3.9          Intellectual Property.  Each of the LNG Group Members owns, or is licensed or otherwise has the right to use, all Intellectual Property necessary for the conduct
        of its business as currently conducted except to the extent such failure could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.  No material claim has been asserted and is pending by any
      Person challenging or questioning the use of any Intellectual Property or the validity or effectiveness of any Intellectual Property, nor does Holdings or the Borrower know of any valid basis for any such claim, except to the extent that any such
      claim could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.  To the knowledge of Holdings and the Borrower, the use of Intellectual Property by the LNG Group Members does not infringe on the
      Intellectual Property rights of any Person in any material respect, except for such infringements which could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

     

    3.10        Taxes.  Each of the LNG Group Members has filed or caused to be filed all tax returns that are required to be filed and has paid all taxes due and payable by it
        (includingin its capacity as a withholding agent) other than (i) any amount the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on
        the books of the relevant LNG Group Member or (ii) where the failure to make such filing, payment, deduction, withholding, collection or remittance could not reasonably be expected, individually or in the aggregate, to have a Material Adverse
        Effect; and no tax Lien has been filed (except to the extent permitted by Section 6.3), and, to the knowledge of Holdings and the Borrower, no claim is being asserted, with respect to any such tax, fee or other charge except, in each case, as could
        not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.

     

    3.11        Federal Regulations.  No part of the proceeds of any Term Loans, and no other extensions of credit hereunder, will be used for any purpose that violates the
        provisions of Regulations T, U or X.

     

    3.12        Labor Matters.  There are no strikes or other labor disputes against any LNG Group Member pending or, to the knowledge of Holdings or the Borrower, threatened
        that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.  All material payments due from the LNG Group Members on account of employee health and welfare insurance have been paid or accrued as a
        liability on the books of the relevant LNG Group Member.

     

    3.13        ERISA.  There are, and have been, no Pension Plans or Multiemployer Plans.  None of the Borrower or any Commonly Controlled Entity has had a complete or partial
        withdrawal from any Multiemployer Plan that has resulted or could reasonably be expected to result in a liability under ERISA, except as could not reasonably be expected to have a Material Adverse Effect.

     

    3.14        Investment Company Act.  No Loan Party is an “investment company,” or a company “controlled” by an “investment company,” within the meaning of the Investment
        Company Act of 1940.

     

    3.15        Subsidiaries.

     

    (a)          As

        of the Closing Date, the only Subsidiary of Holdings is the Borrower, and the Borrower has no Subsidiaries.  Schedule 3.15 (as updated from time to time
        pursuant to Section 5.10(c)) sets forth the name and jurisdiction of incorporation or organization of Holdings and the Borrower and the percentage of each class of Capital Stock owned by the applicable LNG Group Member.

    
      62

      
        
 

    

    (b)          Except

        as set forth on Schedule 3.15 (as updated from time to time pursuant to Section 5.10(c)), there are no outstanding subscriptions, options, warrants, calls,
        rights or other agreements or commitments granted to any Person other than Holdings, the Borrower or any Subsidiary of the Borrower (other than directors’ qualifying shares or other similar shares required pursuant to applicable Law) of any nature
        relating to any Capital Stock of Holdings or the Borrower or any Capital Stock of any Subsidiary owned directly or indirectly by the Borrower; provided that,
        with respect to any non-Wholly Owned Subsidiary, its Capital Stock may be subject to customary rights of first refusal, tag-along, drag-along and other similar rights.

     

    3.16        Use of Proceeds.  The proceeds of the Term Loans shall be used for the purposes set forth in Section 2.7.

     

    3.17        Environmental Matters.  Other than exceptions to any of the following that would not reasonably be expected to result in, individually or in the aggregate, a
        Material Adverse Effect:

     

    (a)          The Borrower and its Subsidiaries and each of their respective facilities: (i) are in compliance with all Environmental Laws; (ii) hold all Environmental Permits (each of which is in full force and effect) required for any
        of their current operations or for any property owned, leased, or otherwise operated by any of them, and have obtained, or expect to obtain in the ordinary course, all Environmental Permits required for any anticipated operations; (iii) are in
        compliance with all of their Environmental Permits; (iv) have taken reasonable steps to ensure each of their Environmental Permits will be timely maintained, renewed and complied with; and (v) have no knowledge of any facts or circumstances upon
        which any such Environmental Permits are reasonably be expected to be adversely amended or revoked.

     

    (b)          Hazardous Materials are not present at, on, under, in, or emanating from any property now or, to the knowledge of the Borrower, formerly owned, leased or operated by the Borrower or any of its Subsidiaries, or, to the
        knowledge of the Borrower, at any other location (including, without limitation, any location to which Hazardous Materials have been sent for reuse or recycling or for treatment, storage, or disposal) which could reasonably be expected to (i) give
        rise to liability of the Borrower or any of its Subsidiaries under any Environmental Law or otherwise result in costs to the Borrower or any of its Subsidiaries, or (ii) interfere with the Borrower’s or any of its Subsidiaries’ continued
        operations.

     

    (c)          There is no Environmental Claim to which the Borrower or any of its Subsidiaries is, or to the knowledge of the Borrower or any of its Subsidiaries will be, named as a party that is pending or, to the knowledge of the
        Borrower or any of its Subsidiaries, threatened.  To the knowledge of the Borrower or any of its Subsidiaries, there are no facts or circumstances that would reasonably be expected to give rise to any Environmental Claim.

    
      63

      
        
 

    

    3.18          Accuracy of Information, Etc.  No statement or information contained in this Agreement, any other Loan Document, or any other document, certificate or
        written statement furnished to the Administrative Agent or the Lenders or any of them, by or on behalf of any Loan Party for use in connection with the transactions contemplated by this Agreement or the other Loan Documents, when taken as a whole,
        contained as of the date such statement, information, document or certificate was so furnished (as modified or supplemented by other information so furnished), any untrue statement of a material fact or omitted to state a material fact necessary to
        make the statements contained herein or therein, in light of the circumstances under which they were made, not materially misleading.  The projections and pro forma financial information contained in the materials referenced above are based upon
        good faith estimates and assumptions believed by management of the Borrower to be reasonable at the time made, it being recognized by the Lenders that such financial information as it relates to future events is not to be viewed as fact and that
        actual results during the period or periods covered by such financial information may differ from the projected results set forth therein by a material amount.

     

    3.19        Security Documents.

     

    (a)          Subject

        to Section 5.12, each of the Security Documents (other than the Mortgages) is effective to create in favor of the Administrative Agent for the benefit of the
        Secured Parties, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof.  In the case of (i) any Pledged Equity as described in the Security Documents which is in certificated form, when any stock,
        membership or partnership unit certificates representing such Pledged Equity are delivered to, and in the possession of, the Administrative Agent, (ii) the Debt Service Reserve Account, when the Depositary Agreement is duly executed and delivered
        to the Administrative Agent, (iii) in the case of any Intellectual Property that is the subject of any application or registration in the United States Patent and Trademark Office and/or United States Copyright Office, when an Intellectual Property
        Security Agreement in appropriate form for filing is recorded in the United States Patent and Trademark Office and/or United States Copyright Office, as appropriate, and (iv) the other Collateral described in the Security Documents, when financing
        statements in appropriate form are filed in the offices specified on Schedule 3.19(a), the security interest created in favor of the Administrative Agent for
        the benefit of the Secured Parties in such Pledged Equity, Debt Service Reserve Account, Intellectual Property and other Collateral shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of the Loan
        Parties in such Pledged Equity, Debt Service Reserve Account, Intellectual Property and other Collateral and the proceeds thereof, in which a security interest may be perfected by delivery to the Administrative Agent of such Pledged Equity, due
        execution and delivery of the Depositary Agreement to the Administrative Agent or by filing a financing statement in the United States, as security for the Obligations, in each case prior and superior in right to any other Person (other than
        Persons holdings Liens or other encumbrances or rights that are permitted by this Agreement to be incurred pursuant to Section 6.3).

     

    (b)          Subject

        to Section 5.12, each of the Mortgages is effective to create in favor of the Administrative Agent for the benefit of the Secured Parties, a legal, valid and
        enforceable Lien on the Mortgaged Properties described therein and proceeds thereof; and when the Mortgages are filed or published in the offices specified on Schedule
            3.19(b) (in the case of the Mortgages to be executed and delivered pursuant to Section 5.12) or in the recording office designated by the Borrower (in the case of any Mortgage to be executed and delivered pursuant to Section
      5.10), each Mortgage shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of the applicable party to the Mortgage in the Mortgaged Properties described therein and the proceeds thereof, as security for
      the Obligations, in each case prior and superior in right to any other Person (other than Persons holding Liens or other encumbrances or rights permitted by this Agreement to be incurred pursuant to Section 6.3).

    
      64

      
        
 

    

    3.20        Solvency.  As of the Closing Date and each Credit Date, and after giving effect to the Transactions occurring on the Closing Date or such Credit Date or any
        extension of credit, as applicable, the LNG Group Members, on a consolidated basis, are Solvent.

     

    3.21        Flood Insurance.  No Mortgage encumbers improved real Property which is located in an area that has been identified by the Director of the Federal Emergency
        Management Agency or any successor agency as an area having special flood hazards and in which flood insurance has been made available under Flood Insurance Laws (except any Mortgaged Properties as to which such flood insurance as required by Flood
        Insurance Laws has been obtained and is in full force and effect as required by this Agreement or the other Loan Documents).

     

    3.22        [Reserved].

     

    3.23        PATRIOT Act; FCPA; OFAC.

     

    (a)          To

        the extent applicable, each LNG Group Member (including any Unrestricted Subsidiary) is in compliance, in all material respects, with (i) the Trading with the Enemy Act and each of the foreign assets control regulations of the United States
        Treasury Department (31 C.F.R., Subtitle B, Chapter V) and any other enabling legislation or executive order relating thereto, and (ii) the PATRIOT Act.  No part of the proceeds of the Term Loans will be used, directly or indirectly, for any
        payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper
        advantage, in violation of the United States Foreign Corrupt Practices Act of 1977 (the “FCPA”).  The LNG Group Members, and to their knowledge their
        employees, officers, directors, affiliates and agents, are in compliance in all material respects with the FCPA.

     

    (b)          No

        LNG Group Member (including any Unrestricted Subsidiary) nor, to the knowledge of any LNG Group Member, any director, officer, agent, employee or Affiliate of any LNG Group Member, (i) is a person on the list of “Specially Designated Nationals and
        Blocked Persons” or (ii) is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”);

        and the Borrower will not directly or indirectly use the proceeds of the Term Loans or otherwise knowingly make available such proceeds to any person, for the purpose of financing the activities of any person currently subject to any U.S. sanctions
        administered by OFAC.

    
      65

      
        
 

    

    3.24        Material Construction-Related Contracts and Permits.  No default by any LNG Group Member under any Material Construction-Related Contracts has occurred and is
        continuing, and no Material Construction-Related Contract has been terminated by any counter-party thereto.  No Requirement of Law or Contractual Obligation applicable to any Loan Party would, individually or in the aggregate, reasonably be
        expected to result in a Material Adverse Effect.  Schedule 3.24 accurately and completely lists all Material Construction-Related Contracts to which
      any Loan Party is a party which are in effect on the Closing Date and thereafter, as of the date of delivery of the Compliance Certificate required to be delivered under Section 5.2(a) (the “Delivery Date”), and the Borrower has delivered to the Administrative Agent complete and correct copies of all such Material Construction-Related Contracts as of the Closing Date (and thereafter, either copies or
      descriptions of all such Material Construction-Related Contracts as of the most recent Delivery Date), including any amendments, supplements or modifications with respect thereto entered into on or prior to the Closing Date (and thereafter, either
      copies or descriptions thereof as of the most recent Delivery Date), and all such Material Construction-Related Contracts are in full force and effect as of the Closing Date (and thereafter, as of the most recent Delivery Date).  Other than
      exceptions set forth on Schedule 3.24 and except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect: (a)
      each Loan Party has obtained and holds all Permits required for the current operation of its business and for the current stage of construction of the Plant at such date, (b) each Loan Party has performed and observed all requirements of such Permits
      (to the extent required to be performed by it) and (c) as of the Closing Date, no other Permits are required for the commencement of construction of the Plant.

     

    3.25        Insurance.  Each of the Loan Parties is insured by insurers of recognized financial responsibility (as of the date such insurance was purchased) against such
        losses and risks and in such amounts as are customary in the businesses in which it is engaged, for companies located in a similar geographic area, taking into account the activities and relative size (as compared to other similarly situated
        companies) of the Loan Parties and in any event in accordance with Section 5.5.

     

    Section 4.              CONDITIONS

          PRECEDENT

     

    4.1          Conditions to Effectiveness.  The effectiveness of this Agreement and the Commitments and the agreement of each Lender to make the Term Loans requested to be made
        by it hereunder is subject to the satisfaction or waiver, prior to or concurrently with the making of such extension of credit on the Closing Date, of the following conditions precedent:

     

    (a)          Loan Documents.  The Administrative Agent shall have
          received (i) this Agreement, executed and delivered by a duly authorized officer or signatory of Holdings and the Borrower, (ii) the Pledge Agreement, dated as of the Closing Date, executed and delivered by a duly authorized officer or signatory
          of each Loan Party that is a party thereto, (iii) the Guarantee Agreement, dated as of the Closing Date, executed and delivered by a duly authorized officer or signatory of each Loan Party that is a party thereto, (iv) the Security Agreement,
          executed and delivered by a duly authorized officer or signatory of each Loan Party that is a party thereto, and (v) the Depositary Agreement, executed and delivered by a duly authorized officer or signatory of the Borrower and the Depositary.

     

    (b)          [Reserved].

    
      66

      
        
 

    

    (c)          Financial Statements.  The Administrative Agent shall
          have received (i) the unaudited consolidated balance sheet of the Borrower as of September 30, 2014 and (ii) a pro forma unaudited consolidated balance sheet of the Borrower as of September 30, 2014, giving pro forma effect to the
      Transactions occurring on the Closing Date.

     

    (d)          Fees and Expenses.  The Borrower shall have paid (or
          the initial Lenders and/or the Administrative Agent shall withhold from the proceeds of the initial Term Loans made on the Closing Date) all fees due and payable as of the Closing Date pursuant to Sections 2.12(b) and 2.12(c) to the
          Administrative Agent (for distribution, as appropriate, to the Lenders) and all expenses required to be paid pursuant to Section 9.5 for which reasonably detailed invoices have been presented prior to the Closing Date.

     

    (e)          Solvency Certificate.  The Administrative Agent shall
          have received a solvency certificate, substantially in the form of Exhibit F, executed by a Responsible Officer of Holdings.

     

    (f)           Lien Searches.  The Administrative Agent shall have
          received the results of recent Uniform Commercial Code, tax and judgment lien searches in each relevant jurisdiction reasonably requested by the Administrative Agent with respect to each of the entities set forth on Schedule 4.1(f); and such searches shall reveal no
          Liens on any of the Collateral except for Liens permitted by Section 6.3 or Liens to be discharged on or prior to the Closing Date.

     

    (g)          Closing Certificate.  The Administrative Agent shall
          have received a certificate of each Loan Party, dated the Closing Date, substantially in the form of Exhibit B, with appropriate insertions and attachments.

     

    (h)          Legal Opinions.  The Administrative Agent shall have
          received, in form and substance reasonably acceptable to the Administrative Agent and the Required Lenders, a legal opinion of Skadden, Arps, Slate, Meagher & Flom LLP, counsel to Holdings, the Borrower and its Subsidiaries, dated the date
          hereof and addressed to the Administrative Agent and the Lenders.

     

    (i)           Pledged Equity; Stock Powers; Pledged Notes.  The
          Administrative Agent shall have received (i) the certificates, if any, representing the shares or membership or partnership units of Capital Stock pledged pursuant to the Security Documents, together with an undated stock power for each such
          certificate executed in blank by a duly authorized representative or officer of the pledgor thereof and (ii) any Pledged Notes (as defined in the Security Agreement), duly endorsed in blank, in each case, as required by the Security Documents to
          be delivered to the Administrative Agent on the Closing Date.

     

    (j)           Filings, Registrations and Recordings.  Each document
          (including, without limitation, any Uniform Commercial Code financing statement) required as of the Closing Date by the Security Documents or under law or reasonably requested by the Administrative Agent to be filed, registered or recorded in
          order to create in favor of the Administrative Agent for the benefit of the Secured Parties, a perfected Lien on the Collateral described therein, prior and superior in right to any other Person (other than with respect to Liens expressly
          permitted by Section 6.3), shall have been filed, registered or recorded or shall have been delivered to the Administrative Agent in proper form for filing, registration or recordation, or arrangements reasonably satisfactory to the
      Administrative Agent for such filing, registration, recordation and/or filing shall have been made.

    
      67

      
        
 

    

    (k)          Insurance.  Subject to Section 5.12, the
          Administrative Agent shall have received insurance certificates and endorsements, as applicable, satisfying the requirements of Section 5.5.

     

    (l)           PATRIOT Act.  The Administrative Agent shall have
          received, at least three Business Days prior to the Closing Date, to the extent requested by any Lender sufficiently in advance thereof, all documentation and other information with respect to the Borrower required by bank regulatory authorities
          under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act.

     

    (m)         Funds Flow.  The Administrative Agent shall have
          received from the Borrower a funds flow for the Transactions contemplated to occur on the Closing Date.

     

    (n)          Debt Service Reserve Account.  The Debt Service
          Reserve Account shall have been established in accordance with the requirements of the Depositary Agreement and, concurrently with the funding of the initial Term Loans, funded in an amount equal to the Debt Service Reserve Requirement (as
          defined in the Depositary Agreement) in effect as of the Closing Date in accordance with the Depositary Agreement.

     

    (o)          Representations and Warranties.  As of the Closing
          Date, the representations and warranties contained herein and in the other Loan Documents shall be true and correct in all material respects on and as of the Closing Date to the same extent as though made on and as of that date, except to the
          extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; provided that, in each case, such materiality
          qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text hereof.

     

    (p)          No Default.  No event shall have occurred and be
          continuing or would result from the making of the initial Term Loans that would constitute an Event of Default or a Default.

     

    (q)          Equity Contribution.  Prior to or substantially
          simultaneously with the funding of the initial Term Loans, the Initial Equity Contribution shall have been made, as evidenced by the pro forma unaudited consolidated balance sheet of the Borrower delivered to the Administrative Agent pursuant to
          Section 4.1(c) and certified to by a Responsible Officer of the Borrower in an officer’s certificate delivered to the Administrative Agent.

     

    (r)           Budget, Plans and Specifications.  The Administrative
          Agent shall have received the Budget and copies of the executed Material Construction-Related Contracts in effect on the Closing Date, the Ground Lease and the plans and specifications in respect of the Plant.

    
      68

      
        
 

    

    (s)           Notice.  Pursuant to Section 26.2 of the Design-Build Agreement, the Administrative Agent shall have received evidence in a manner
        reasonably satisfactory to the Administrative Agent that the Borrower shall have delivered (in electronic form or otherwise) notice to OnQuest, Inc. of the Borrower’s collateral assignment of such agreement to the Administrative Agent pursuant to
        the Security Agreement in the form attached hereto as Exhibit J.

     

    4.2          Conditions to the Making of any Term Loan After the Closing Date.  The obligation of each Lender to make any Term Loan on any Credit Date after the Closing Date
        is subject to the satisfaction, or waiver in accordance with Section 9.1, of the following conditions precedent:

     

    (a)          the Administrative Agent shall have received a fully executed and delivered Funding Notice;

     

    (b)          as of such Credit Date, the representations and warranties contained herein and in the other Loan Documents shall be true and correct in all material respects on and as of such Credit Date to the same extent as though made
        on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such
        earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representations and warranties that already are
        qualified or modified by materiality in the text hereof;

     

    (c)          as of such Credit Date, no event shall have occurred and be continuing or would result from the making of such Term Loan that would constitute an Event of Default or a Default;

     

    (d)          prior to the Plant Completion Date, the Borrower shall be in compliance with the In-Balance Test after giving pro forma effect to the funding of the Term Loans to be made on such Credit Date;

     

    (e)          concurrently with the funding of the Term Loans to be made on such Credit Date, the Debt Service Reserve Account shall be funded in an amount equal to the Debt Service Reserve Requirement (as defined in the Depositary
        Agreement) in accordance with the Depositary Agreement;

     

    (f)           the Administrative Agent shall have received evidence of a title search from the title insurance company with respect to the Mortgaged Property identifying all Liens of record through a date not more than five (5) Business
        Days prior to the applicable Credit Date;

     

    (g)          the Administrative Agent shall have received from the title insurance company a Florida Construction Loan Update Endorsement substantially in the form attached hereto as Exhibit K (or such other form reasonably acceptable to the Administrative Agent) showing that (i) since the last Credit Date, there has been no material and adverse change in the condition of title unless
        permitted by the Loan Documents, and (ii) there are no intervening liens or encumbrances which take priority over the respective Liens of the Mortgage relating to the Mortgaged Property, other than Liens permitted by Section 6.3; and

    
      69

      
        
 

    

    (h)          the Borrower shall have delivered to the Administrative Agent the unconditional Lien releases and waivers from each contractor that has timely filed a notice to owner or other notice sufficient to perfect such contractor’s
        right to a Lien in compliance with all Requirements of Law, to the extent the Borrower has received such Lien releases and waivers prior to such Credit Date.

     

    For the avoidance of doubt, (i) prior to the Plant Encumbrance Date, no Term Loans shall be made if, after giving effect thereto, the
      outstanding principal amount of Term Loans would exceed the Initial Equity Contribution, (ii) on and after the Plant Encumbrance Date and prior to the satisfaction of the Equity Fulfillment Condition, no Term Loans shall be made if, after giving
      effect thereto, the outstanding principal amount of Term Loans would exceed the Aggregate Equity Contribution, and (iii) no Term Loans shall be made after the earlier of (1) the Plant Completion Date and (2) the second anniversary of the Closing
      Date.

     

    Section 5.              AFFIRMATIVE COVENANTS

     

    Holdings and the Borrower hereby jointly and severally agree that, so long as the Termination Conditions have not been satisfied, each of
      Holdings and the Borrower shall and shall cause each of its Subsidiaries to:

     

    5.1          Financial Statements.  Furnish to the Administrative Agent for delivery to each Lender and take the following actions:

     

    (a)          within 90 days after the end of each fiscal year of the Borrower and its subsidiaries ending after the Plant Completion Date, a copy of the audited consolidated balance sheet of the Borrower and its consolidated
        subsidiaries as at the end of such year and the related audited consolidated statements of operations and of cash flows for such year, setting forth in each case in comparative form the figures as of the end of and for the previous year, by Ernst
        & Young LLP or any other independent certified public accountants of nationally recognized standing; and

     

    (b)          not later than 45 days (or 60 days in the case of the fiscal quarters ending March 31, 2015, June 30, 2015, and September 30, 2015) after the end of each of the first three quarterly periods of each fiscal year of the
        Borrower and its subsidiaries, beginning (i) with the fiscal quarter ending March 31, 2015, the unaudited consolidated balance sheet of the Borrower and its consolidated subsidiaries as at the end of such quarter and, (ii) with respect to each
        fiscal quarter ending after the Plant Completion Date, the related unaudited consolidated statements of operations and of cash flows for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in
        comparative form the figures as of the end of and for the corresponding period in the previous year, certified by a Responsible Officer of the Borrower as being fairly stated in all material respects (subject to normal year-end audit adjustments
        and the absence of footnotes).

    
      70

      
        
 

    

    Financial statements and other information required to be delivered pursuant to this Section 5.1, Section 5.2 or Section 5.7 may be
      delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such information, or provides a link thereto, on the website of the Borrower; (ii) on which such information is posted on
      behalf of the Borrower on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial or third-party website or whether sponsored by the Administrative Agent); or (iii) to the extent
      such financial statements are set forth in the Borrower’s Form 10-K or 10-Q, as applicable, filed with the SEC, on which date such documents are filed for public availability on the SEC’s Electronic Data Gathering and Retrieval System; provided that: (i) the Borrower shall deliver paper copies of such documents to the Administrative Agent upon its request to the Borrower to deliver such paper
      copies until a request to cease delivering paper copies is given by the Administrative Agent and (ii) the Borrower shall notify the Administrative Agent (by facsimile or electronic mail) of the posting of any such documents and provide to the
      Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in
      any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be solely responsible for maintaining its copies of such documents.

     

    5.2          Certificates; Other Information.  Furnish to the Administrative Agent for delivery to each Lender, or, in the case of clause (e), to the relevant Lender:

     

    (a)          concurrently with the delivery of any financial statements pursuant to Section 5.1, (i) a Compliance Certificate of the Borrower (the first such Compliance Certificate to be delivered for the fiscal year ending December
        31, 2014) (A) containing all information, calculations and supporting schedules necessary for determining compliance by Holdings, the Borrower and their respective Subsidiaries with the provisions of this Agreement referred to therein as of the
        last day of the fiscal quarter or fiscal year then ended, and if such Compliance Certificate demonstrates an occurrence of (x) an Excess Cash Restriction Period or (y) an ECF Percentage equal to 100%, the Borrower may deliver within ten Business
        Days of the delivery of such Compliance Certificate notice of its intent to cure such event pursuant to Section 7.3, (B) setting forth the names of all Immaterial Subsidiaries (if any) and certify that each Subsidiary set forth on such list
        individually qualifies as an Immaterial Subsidiary and that, in the aggregate, all such Immaterial Subsidiaries had consolidated assets with a book value of less than $300,000 on the last day of such fiscal quarter or such fiscal year, as the case
        may be, and (C) a written update with respect to the Budget (if any), plans and specifications of the Plant (if any) or any Material Construction-Related Contracts entered into during such fiscal quarter or the last fiscal quarter of such fiscal
        year, as applicable, including an update to Schedule 3.24 and copies thereof upon request of the Required Consent Parties, and (ii) with respect to the
        financial statements delivered pursuant to Section 5.1(a), to the extent not previously disclosed to the Administrative Agent, a listing of any material Intellectual Property acquired by any Loan Party since the date of the most recent list
        delivered pursuant to this clause (ii) (or, in the case of the first such list so delivered, since the Closing Date);

    
      71

      
        
 

    

    (b)          no later than 60 days after the end of each fiscal year of the Borrower, a consolidated budget for the following fiscal year (including a consolidated statement of projected results of operations of the Borrower and its
        consolidated subsidiaries as of the end of the following fiscal year presented on a quarterly basis);

     

    (c)          concurrently with the delivery of any financial statements pursuant to Section 5.1, (i) a narrative discussion and analysis of the financial condition and results of operations of the Borrower and its consolidated
        subsidiaries, in each case, for such fiscal quarter and for the period from the beginning of the then current fiscal year to the end of such fiscal quarter, and (ii) prior to the Plant Completion Date, (1) a written progress report in reasonable
        detail regarding the construction of the Plant and (2) use commercially reasonable efforts to deliver an executed certificate from the Contractor (as defined in the Design-Build Agreement) in the form attached hereto as Exhibit L or any other form
        reasonably satisfactory to the Administrative Agent;

     

    (d)          promptly upon their becoming publicly available, copies of all periodic and other publicly available reports, proxy statements and, to the extent requested by the Administrative Agent on behalf of any Lender, other
        materials filed by any LNG Group Member with the SEC or sent or made available generally by Holdings to its security holders acting in such capacity;

     

    (e)          promptly, such additional financial information or information about Material Construction-Related Contracts, the Plant or construction thereof as the Administrative Agent on behalf of any Lender may from time to time
        reasonably request; and

     

    (f)           within ten (10) Business Days after the date the annual audited financial statements for each fiscal year ended on any Excess Cash Flow Determination Date are required to be delivered pursuant to Section 5.1(a), a
        certificate of a Responsible Officer of the Borrower certifying as to the calculation of Consolidated Excess Cash Flow as of such Excess Cash Flow Determination Date accompanied by supporting information in reasonable detail.

     

    The Borrower hereby acknowledges that certain of the Lenders may be Public Lenders and, if documents or notices required to be delivered pursuant to Section
      5.1 or this Section 5.2 or otherwise are being distributed through IntraLinks/IntraAgency, SyndTrak or another relevant website or other information platform (the “Platform”),

      any document or notice that the Borrower has not clearly and conspicuously marked “PUBLIC” shall not be posted on that portion of the Platform designated for such Public Lenders.  The Borrower agrees to use commercially reasonable efforts to clearly
      designate all information provided to the Administrative Agent by or on behalf of the Borrower which is suitable to make available to Public Lenders.  If the Borrower has not indicated whether a document or notice delivered pursuant to this paragraph
      contains Non-Public Information, the Administrative Agent reserves the right to post such document or notice solely on that portion of the Platform designated for Lenders who wish to receive Non-Public Information with respect to the Borrower, its
      Subsidiaries, its Affiliates and their respective securities (“Private Side Information”).  Each Public Lender agrees to cause at least one individual at or on
      behalf of such Public Lender to at all times have selected to receive Private Side Information in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law, including United
      States federal and state securities laws, to make reference to communications that are not made through the “Public” portion of the Platform and that may contain Non-Public Information.

    
      72

      
        
 

    

    5.3          Payment of Taxes.  Pay, discharge or otherwise satisfy all taxes imposed upon it or any of its properties or assets or in respect of any of its income, businesses
        or franchises before any penalty or fine accrues thereon, except where (i) the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been
        provided on the books of Holdings, the Borrower or its Subsidiaries, as the case may be, or (ii) the failure could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

     

    5.4          Conduct of Business and Maintenance of Existence; Compliance with Law.  (a) (i) Preserve, renew and keep in full force and effect its organizational existence and
        (ii) take all reasonable action, in all material respects, to maintain all Permits, rights, privileges and franchises necessary or desirable in the normal conduct of its business, except in each case, as otherwise permitted by Sections 6.4 or 6.5;
        and (b) comply, in all material respects, with all Requirements of Law (including, without limitation, the FCPA, any U.S. sanctions administered by the OFAC, the PATRIOT Act and other antiterrorism and anti-money laundering laws, except this shall
        not apply to tax, environmental or employee benefit matters, which in this respect are covered exclusively in Sections 5.3, 5.8 and 5.9, respectively).

     

    5.5          Maintenance of Property; Insurance.  (a) Keep all real and tangible Property and systems used, useful, or necessary in its business and necessary to develop,
        construct, complete, own and operate the Plant, including the Mortgaged Property, in good working order and condition, ordinary wear and tear excepted, except to the extent the failure to do so could not reasonably be expected to have, individually
        or in the aggregate, a Material Adverse Effect, (b) maintain all insurance as required by the Ground Lease, and (c) maintain with financially sound and reputable insurance companies, insurance with respect to its properties and business against
        loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts (after giving effect to any self-insurance reasonable and customary for similarly situated Persons engaged
        in the same or similar businesses) as are customarily carried under similar circumstances by such other Persons.  All such insurance shall (i) to the extent the applicable insurer will agree based on the commercially reasonably efforts of the
        Borrower, provide that no cancellation, material reduction in amount or material change in coverage thereof shall be effective until at least 10 days (or, to the extent reasonably available, 30 days) after receipt by the Administrative Agent of
        written notice thereof (the Borrower shall deliver an insurance certificates and endorsements with respect thereto) and (ii) name the Administrative Agent as mortgagee and/or loss payee (in the case of property insurance) or additional insured (in
        the case of liability insurance) on behalf of the Secured Parties, as applicable.  Maintain, as of a particular date, all rights of way, easements, grants, privileges, licenses, certificates and Permits necessary for the intended use by the Loan
        Parties of the Plant at such date, except any such item the loss of which, individually or in the aggregate, would not reasonably be expected to materially and adversely affect or interfere with the Plant.  Comply with the terms of the Ground Lease
        or other grant of interest in real property, including easements, so as to not permit any material uncured default on its part to exist thereunder, except where noncom-pliance therewith would not reasonably be expected to materially and
      adversely affect or interfere with the Plant.

    
      73

      
        
 

    

    If any portion of any Mortgaged Property is at any time located in an area identified by the Federal Emergency Management Agency (or any
      successor agency) as a special flood hazard area with respect to which flood insurance has been made available under the National Flood Insurance Act of 1968 (as now or hereafter in effect or successor act thereto), then the Borrower shall, or shall
      cause each Loan Party to, (i) maintain, or cause to be maintained, with a financially sound and reputable insurer, flood insurance in an amount and otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to the
      Flood Insurance Laws and (ii) deliver to the Administrative Agent evidence of such compliance in form and substance reasonably acceptable to the Administrative Agent.

     

    5.6          Inspection of Property; Books and Records; Discussions.  (a) Keep proper books of records
          and account in which entries which are full, true and correct, in all material respects, in conformity with GAAP shall be made of all material dealings and transactions in relation to its business and activities, (b) upon the request of the
          Administrative Agent or the Required Consent Parties, participate in a meeting or conference call with the Administrative Agent or the Lenders at such times as may be agreed to by the Borrower and the Administrative Agent or the Required Consent
          Parties and (c) permit representatives of the Administrative Agent or the Required Consent Parties to visit and inspect any of its properties and examine and make abstracts from any of its books and records at any reasonable time during normal
          business hours and as often as may reasonably be desired (but, the Administrative Agent or the Required Consent Parties may not have more than one visit per any twelve month period except during an Event of Default), upon reasonable advance
          notice to the Borrower, and to discuss the business, operations, properties and financial and other condition of Holdings, the Borrower and their respective Subsidiaries with officers and employees of Holdings, the Borrower and their respective
          Subsidiaries and with their independent certified public accountants (and the Borrower will be given the opportunity to participate in any such discussions with such independent certified accountants).  Any such inspection shall be at the
          Administrative Agent’s or the Required Consent Parties’, as applicable, sole cost and expense unless an Event of Default has occurred and is continuing at the time of such inspection, in which event the Borrower shall reimburse the Administrative
          Agent or the Required Consent Parties, as applicable for its or their reasonable, actual out-of-pocket costs and expenses.  Notwithstanding anything to the contrary in this Section 5.6, none of Holdings, the Borrower and 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, (ii) in respect of which disclosure to the Administrative Agent (or its representatives) is prohibited by any Requirement of Law or any binding agreement or (iii) is subject to attorney-client or similar privilege or
          constitutes attorney work product.

     

    5.7          Notices.  Promptly after obtaining knowledge of the same, give notice to the Administrative Agent of:

     

    (a)          the occurrence of any Default or Event of Default;

     

    (b)          [Reserved];

    
      74

      
        
 

    

    (c)          any litigation or proceeding affecting Holdings, the Borrower or any of its Subsidiaries, or with respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby, that could reasonably be
        expected to have, individually or in the aggregate, a Material Adverse Effect;

     

    (d)          the following events, as soon as possible and in any event within 30 days after any Borrower knows of same: (i) the occurrence of any Reportable Event with respect to any Pension Plan that is currently sponsored or
        maintained by or to which any Borrower or Commonly Controlled Entity is obligated to make contributions, a failure to make any required contribution to a Pension Plan that is not corrected within 30 days, the creation of any Lien in favor of the
        PBGC or a Pension Plan, any withdrawal from a Multiemployer Plan that is reasonably expected to result in the imposition of withdrawal liability, or the termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii) the institution of
        proceedings or the taking of any other action by the PBGC or a Borrower or any Commonly Controlled Entity or any Multiemployer Plan with respect to the withdrawal from, or the termination, Reorganization or Insolvency of, any Multiemployer Plan;

     

    (e)          as soon as possible and in any event within 30 days of obtaining knowledge thereof any development, event, or condition that could reasonably be expected to result in the payment by the Borrowers and their respective
        Subsidiaries of a Material Environmental Amount; and

     

     

    (f)           any other development or event that has had or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

     

    Each notice pursuant to this Section 5.7 shall be accompanied by a statement of a Responsible Officer setting forth details of the occurrence referred to
      therein and stating what action Holdings, the Borrower or the relevant Subsidiary has taken or proposes to take with respect thereto.

     

    5.8          Environmental Laws.

     

    (a)          Except in each case to the
        extent the failure to do so would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, comply with, and use commercially reasonable efforts to ensure compliance by all tenants and subtenants, if any,
        with, all Environmental Laws, and obtain and comply with and maintain, and use commercially reasonable efforts to ensure that all tenants and subtenants obtain and comply with and maintain, any and all Environmental Permits.

     

    (b)          Except

        in each case to the extent the failure to do so would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, conduct and complete all investigations, studies, sampling and testing, and all remedial, removal
        and other similar actions required by any Governmental Authority under Environmental Laws, and promptly comply with all lawful orders and directives of all Governmental Authorities regarding Environmental Laws.

    
      75

      
        
 

    

  

  
  
     

    5.9          Plan Compliance.  Except as could not reasonably be
          expected to result in a Material Adverse Effect, establish, maintain and operate any and all Pension Plans and Multiemployer Plans in compliance with all Requirements of Law applicable thereto and the respective requirements of the governing
          documents for such plans to the extent the Borrower or any Commonly Controlled Entity has the authority to establish, maintain and operate such
          plans.

     

    5.10        Additional Collateral, etc..

     

    (a)          [Reserved].

     

    (b)          Subject

        to Sections 5.10(d) and (e), with respect to any fee interest or absolute right of ownership in any real or immoveable property having a fair market value (together with improvements thereof on the date such property is acquired) of at least
        $250,000 (as determined in good faith by a Responsible Officer) acquired after the Closing Date by any Loan Party (in each case, other than any such real property subject to any Contractual Obligation that includes negative pledge clauses permitted
        by Section 6.13, any Lien permitted pursuant to Section 6.3(j), 6.3(p) or 6.3(s) or any Requirement of Law that prohibits or restricts compliance with the terms and conditions of this Section 5.10) (which, for the purposes of this paragraph, shall
        include any owned real property of any Loan Party that ceases to be subject to the foregoing restrictions), promptly (i) execute and deliver a first priority Mortgage in favor of the Administrative Agent for the benefit of the Secured Parties,
        covering such real or immoveable property (to the extent such property is not already subject to a first priority Lien pursuant to a Security Document), (ii) if reasonably requested by the Administrative Agent, provide the Lenders with (x) title
        and extended coverage insurance covering such real property together with endorsements reasonably requested by the Administrative Agent, in an amount and form reasonably acceptable to the Administrative Agent and at least equal to the purchase
        price of such real property (or such other lesser amount as shall be reasonably specified by the Administrative Agent) as well as a current ALTA survey thereof, together with a surveyor’s certificate sufficient for the title insurance company to
        remove the standard survey exception and issue survey-related endorsements and (y) any estoppels reasonably deemed necessary or advisable by the Administrative Agent in connection with such Mortgage, each of the foregoing in form and substance
        reasonably satisfactory to the Administrative Agent, (iii) a completed “Life-of-Loan” Federal Emergency Management Agency flood hazard determination with respect to each Mortgaged Property (together with a notice about special flood hazard area
        status and flood disaster assistance duly executed by the Borrower and each Loan Party relating thereto) and, if such Mortgaged Property is located in a special flood hazard area, evidence of flood insurance in accordance with the terms of the Loan
        Documents and (iv) if reasonably requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably
        satisfactory to the Administrative Agent.

    
      76

      
        
 

    

    (c)          Subject

        to Sections 5.10(d), (e) and (g), upon (x) the formation or acquisition of any new direct or indirect Subsidiary (x) that is a Wholly Owned Subsidiary or (y) that is not a Wholly Owned Subsidiary and has consolidated assets with a book value of
        $500,000 or more (in each case, other than an Excluded Subsidiary or an Immaterial Subsidiary) by the Borrower or (y) any Excluded Subsidiary ceasing to constitute an Excluded Subsidiary, promptly (and in any event within sixty (60) days after such
        formation or acquisition or such Subsidiary so ceases to be an Excluded Subsidiary, or such longer period as the Required Consent Parties may agree in writing in their discretion) (i) cause such Subsidiary (A) to become a party to a
      Guarantee Agreement and appropriate Security Documents (or enter into amendments to an existing Guarantee Agreement or any existing Security Document as the Administrative Agent deems necessary or advisable) to grant to the Administrative Agent for
      the benefit of the Secured Parties, a perfected first priority (subject to Liens permitted pursuant to Section 6.3) security interest in the Capital Stock held by such Subsidiary and the other Collateral described in the relevant Security Document
      and to cause such Subsidiary to be a Guarantor and (B) to take such actions necessary or advisable to grant to the Administrative Agent for the benefit of the Secured Parties, a perfected first priority (subject to Liens permitted pursuant to Section
      6.3) security interest in the Collateral described in the relevant Security Documents with respect to such Subsidiary, including, without limitation, the filing of Uniform Commercial Code financing statements, Intellectual Property Security
      Agreements or other similar filings in such jurisdictions as may be required by the Security Documents or by law or as may be requested by the Administrative Agent, (ii) deliver to the Administrative Agent the certificates, if any, representing the
      Capital Stock of such Subsidiary and all Capital Stock held by such Subsidiary required to be delivered to the Administrative Agent under the applicable Security Documents, together with undated stock powers, in blank, and all intercompany notes
      owing from such Subsidiary to any Loan Party and all other promissory notes held by such Subsidiary and required to be delivered to the Administrative Agent under the applicable Security Documents, together with instruments of transfer in blank, in
      each case executed and delivered by a duly authorized officer of the relevant Loan Party, as the case may be, (iii) deliver to the Administrative Agent an update to Schedule

          3.15, and (iv) if reasonably requested by the Administrative Agent, deliver to the Administrative Agent legal opinions (addressed to the Administrative Agent and the Lenders) relating to the matters described above, which opinions
      shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent.

     

    (d)          Notwithstanding

        anything to the contrary contained herein, in the event that the compliance by an LNG Group Member (including any non-Wholly Owned Subsidiary) with any of Section 5.10(b) or (c) would require the consent of any un-Affiliated third-party, such LNG
        Group Member shall use commercially reasonable efforts to obtain such consents or other deliveries.  For the avoidance of doubt, (x) the use of commercially reasonable efforts, as contemplated by this Section 5.10, to obtain any consent or delivery
        shall not require the applicable LNG Group Member to pay to such un-Affiliated third-party a fee, premium or penalty or other consideration (other than expense reimbursement) and (y) in the event following the use of commercially reasonable efforts
        to obtain a consent or delivery, the applicable LNG Group Member is unable to obtain a necessary consent or delivery of the relevant un-Affiliated third-party, the Lenders hereby waive compliance by such LNG Group Member with the provisions of this
        Section 5.10 solely to the extent such consent or delivery is not obtained; provided that the consent or delivery giving rise to the waiver as contemplated
        in clause (y) shall have been required pursuant to a Contractual Obligation permitted hereunder that is binding on such Subsidiary or governing such assets, as applicable, and existing on the date such Subsidiary or assets, as applicable, were
        acquired (and not entered into in contemplation hereof).

    
      77

      
        
 

    

    (e)          Notwithstanding

        anything to the contrary contained herein, with respect to any Property of any LNG Group Member that would otherwise be required to be mortgaged or pledged in favor of the Secured Parties in accordance with this Section 5.10 (each such Property, an
        “Eligible Collateral Property”), in no event shall any LNG Group Member have any obligation to mortgage or pledge such Property in favor of the
      Administrative Agent for the benefit of the Secured Parties if such Property is to be used to secure any Indebtedness permitted by Section 6.2(c) within 90 days of the date such Property first qualifies as an Eligible Collateral Property; provided that if such Eligible Collateral Property does not actually secure such Indebtedness within such 90-day period then such Eligible Collateral Property shall
      be subject to the requirements of this Section 5.10 upon the expiration of such 90-day period relating to such Eligible Collateral Property.

     

    (f)          Notwithstanding

        anything to the contrary herein, the Borrower shall be permitted at any time and from time to time to add any of its Subsidiaries as an additional Subsidiary Guarantor in accordance with this Section 5.10.

     

    (g)          If,

        at any time and from time to time after the Closing Date, Immaterial Subsidiaries have in the aggregate consolidated assets with a book value in excess of $300,000 on the last day of any fiscal quarter of Holdings, cause, not later than 30 days
        after the date by which financial statements for such quarter are required to be delivered pursuant to this Agreement, one or more of such Immaterial Subsidiaries to become additional Subsidiary Guarantors (notwithstanding that such Subsidiaries
        are, individually, Immaterial Subsidiaries) and to comply with the requirements of Section 5.10(c) such that the foregoing condition ceases to be true.

     

    5.11        Further Assurances.  From time to time execute and
          deliver, or cause to be executed and delivered, such additional instruments, certificates, title endorsements, opinions (with respect to any amendment of any Mortgage) or documents, and take such actions, as the Administrative Agent may
          reasonably request for the purposes of more fully creating, maintaining, preserving, perfecting or renewing the Liens granted in favor of (together with the other rights of) the Administrative Agent and the Secured Parties with respect to the
          Collateral (or with respect to any additions thereto or replacements or proceeds thereof or with respect to any other property or assets hereafter acquired by any Loan Party which are required to become part of the Collateral pursuant to Section
          5.10) pursuant hereto or thereto.  Upon the exercise by the Administrative Agent or any Secured Party of any power, right, privilege or remedy
          pursuant to this Agreement, the other Loan Documents, any Secured Hedge Agreement which requires any consent, approval, recording, qualification or authorization of any Governmental Authority, Holdings and the Borrower will execute and deliver,
          or will cause the execution and delivery of, all applications, certifications, instruments and other documents and papers that the Administrative Agent or such Secured Party may be reasonably required to obtain from any LNG Group Member or any of
          their Subsidiaries for such governmental consent, approval, recording, qualification or authorization.  If a Governmental Authority determines that, in connection with the Term Loan Facility pursuant to FIRREA, an appraisal is required to be
          prepared in respect of the Plant, provide all information, cooperation and access reasonably necessary in order for the Administrative Agent to obtain, at the sole reasonable cost and expense of the Borrower, appraisals that satisfy the
          applicable requirements of FIRREA.

     

    5.12        Post-Closing Covenants.

     

    (a)          Take

        the actions set forth on Schedule 5.12 within the time periods specified therein.

    
      78

      
        
 

    

    (b)          Use commercially reasonable efforts to deliver to the Administrative Agent a collateral assignment of the Borrower’s rights under the Design-Build Agreement acknowledged by OnQuest, Inc. in the form attached hereto as Exhibit J.

     

    (c)          Within 30 days following the Closing Date, the Administrative Agent shall have received any required insurance endorsements pursuant to Section 4.1(k) of the Credit Agreement not yet delivered by the Closing Date; provided that the failure to complete such delivery by the applicable date specified hereof shall not constitute a Default or an Event of Default under this
        Credit Agreement so long as the Borrower is diligently pursuing the completion of such action.

     

    5.13        Plant Completion Date.  Deliver to the Administrative Agent within 45 days after the Plant Completion Date the following:

     

    (i)           the final payment affidavit(s) from contractors seeking final payment, as required under Sections 713.05 and 713.06(3)(d), Florida Statutes, or evidence reasonably satisfactory to the Administrative Agent that the
        statutory period for filing mechanics liens under Section 713.08, Florida Statutes, with respect to the work which is the subject of such contract(s) for which final payment is sought shall have expired, to the extent the Borrower has received such
        payment affidavit(s) prior to the date that is 45 days after the Plant Completion Date; provided that if any such affidavits have not been delivered as of the date that is 45 days after the Plant Completion Date, the Borrower shall use commercially
        reasonable efforts to provide such affidavits as soon as practicable thereafter;

     

    (ii)          unconditional Lien releases and waivers from each contractor that has timely filed a notice to owner or other notice sufficient to perfect such contractor’s right to a lien in compliance with all Requirements of Law, to
        the extent the Borrower has received such Lien releases and waivers prior to the date that is 45 days after the Plant Completion Date;

     

    (iii)         evidence of a title search from the title insurance company with respect to the Mortgaged Property identifying all Liens of record;

     

    (iv)         a Florida Construction Loan Update Endorsement from the title insurance company substantially in the form attached hereto as Exhibit K
        (or such other form reasonably acceptable to the Administrative Agent) showing that (i) since the last Credit Date, there has been no material and adverse change in the condition of title unless permitted by the Loan Documents, and (ii) there are
        no intervening liens or encumbrances which take priority over the respective Liens of the Mortgage relating to the Mortgaged Property, other than Liens described in Section 6.3; and

     

    (v)          (x) the “as-built” plans and specifications in CAD format showing the final specifications of all improvements comprising the Plant; (y) an ALTA as-built survey of the Plant; and (z) to the extent required to correct the
        description of the Mortgaged Property under the Mortgage to cover all improvements comprising the Plant, (A) an amendment to the Mortgage duly authorized, executed and acknowledged, in recordable form and otherwise in form and substance reasonably
        acceptable to the Administrative Agent, (B) such supplemental local counsel opinions as the Administrative Agent may reasonably request in connection with such amendment to the Mortgage and (C) an amendment or endorsement to the title
      insurance policy with respect to such Mortgage, insuring the continuing priority thereof as so amended, in a form available in the state of Florida and otherwise reasonably acceptable to the Administrative Agent.

    
      79

      
        
 

    

    5.14        Compliance with Material Construction-Related Contracts. 

          Comply in all material respects with its respective obligations, and enforce in all material respects all of its respective rights, under all Material Construction-Related Contracts.

     

    5.15        Unrestricted Subsidiaries.  Prior to the Plant Completion Date, no subsidiaries of the Borrower shall be Unrestricted Subsidiaries.  The Borrower may at any time
        after the Plant Completion Date designate any of its Subsidiaries as an Unrestricted Subsidiary or any Unrestricted Subsidiary as a Subsidiary that is not an Unrestricted Subsidiary by written notice to the Administrative Agent; provided that (i) immediately before and after such designation, no Event of Default shall have occurred and be continuing, (ii) immediately after giving effect
        to such designation, the Total Secured Debt Leverage Ratio (calculated on a Pro Forma Basis) as of the end of the most recent Test Period shall be less than or equal to 2.50 to 1.00, (iii) no Subsidiary may be designated as an Unrestricted
        Subsidiary if it is restricted by and subject to the covenants contained in the documents governing Indebtedness expressly subordinated to the Obligations, (iv) the LNG Group Members shall have sufficient Investment capacity hereunder (determined
        in accordance with the following sentence) in respect of such designation, and (v) for the avoidance of doubt, the Borrower shall not be designated as an Unrestricted Subsidiary.  The designation of any Subsidiary of the Borrower as an Unrestricted
        Subsidiary after the Closing Date shall constitute an Investment by the LNG Group Members therein at the date of designation in an amount equal to the fair market value (as determined in good faith by a Responsible Officer) of the LNG Group
        Members’ investment therein.  The designation of any Unrestricted Subsidiary as a Subsidiary of the Borrower that is not an Unrestricted Subsidiary shall constitute the incurrence at the time of designation of any Indebtedness or Liens of such
        Subsidiary existing at such time.  Notwithstanding anything in this Agreement to the contrary, any LNG Group Member designated as an Unrestricted Subsidiary shall not be deemed to be an LNG Group Member for any purposes of this Agreement, including
        without limitation for purposes of financial definitions and financial calculations contained herein.

     

    Section 6.          NEGATIVE COVENANTS

     

    Holdings and the Borrower hereby jointly and severally agree that, so long as the Termination Conditions are not satisfied, each of Holdings
      and the Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly:

     

    6.1          [Reserved].

     

    6.2          Limitation on Indebtedness.  Create, incur or assume any Indebtedness, except:

     

    (a)          (i) Indebtedness of any Loan
        Party pursuant to any Loan Document;

    
      80

      
        
 

    

    (b)          after the Plant Completion Date, indebtedness of any LNG Group Member to any other LNG Group Member, provided that any Indebtedness
        (A) of Holdings, the Borrower or a Subsidiary Guarantor owing to any Non-Guarantor Subsidiary shall be subject to an Intercompany Debt Subordination Agreement, and (B) of a Non-Guarantor Subsidiary owing to any Subsidiary Guarantor or the Borrower
        shall not exceed $1,000,000 in aggregate principal amount at any one time outstanding; provided further that if any such indebtedness is incurred by
        Holdings, the Borrower shall make a pro forma adjustment for the purpose of calculating the Total Debt Leverage Ratio or the Total Secured Debt Leverage Ratio as of any date to remove the effect of such indebtedness on such calculations;

     

    (c)          Indebtedness (including Capital Lease Obligations) of the Borrower or any Subsidiary secured by Liens pursuant to Section 6.3(p) incurred to finance the acquisition (including pursuant to a sale and leaseback transaction),
        construction, repair, replacement or improvement of Property (real or personal), equipment or other assets used or useful in the business in an aggregate principal amount not to exceed $7,500,000 at any one time outstanding;

     

    (d)          Indebtedness outstanding on the Closing Date (or future advances or Indebtedness contemplated by the existing documentation evidencing such Indebtedness (including any commitment with respect thereto)) and listed and
        identified by type on Schedule 6.2(d) and any Indebtedness that is Refinancing Indebtedness with respect thereto;

     

    (e)          after the Plant Completion Date, (i) Indebtedness assumed by the Borrower or any Subsidiary in connection with any Acquisition or of any Person at the time such Person becomes a Subsidiary in connection with any
        Acquisition (provided that such Indebtedness existed at the time of such Acquisition or the time such Person becomes a Subsidiary and was not created in
        connection therewith or in contemplation thereof) that is either unsecured or secured only by the assets or business acquired in such Acquisition or the assets or business of such Person who becomes a Subsidiary (including any acquired Capital
        Stock), so long as, after giving effect to the assumption of such Indebtedness, the Borrower shall be in Pro Forma Compliance with a Total Secured Debt Leverage Ratio of not greater than 2.50:1.00 (treating any unsecured Indebtedness incurred under
        this Section 6.2(e)(i) as secured Indebtedness for purposes of calculating the Total Secured Debt Leverage Ratio), and (ii) Indebtedness incurred to finance an Acquisition that is unsecured or secured only by the assets or business acquired in such
        Acquisition (including any acquired Capital Stock), and, in each case, any Refinancing Indebtedness in respect thereof so long as, before and after giving effect to such Indebtedness, the Borrower shall be in Pro Forma Compliance with a Total
        Secured Debt Leverage Ratio of not greater than 2.50:1.00 (treating any unsecured Indebtedness incurred under this Section 6.2(e)(ii) as secured Indebtedness for purposes of calculating the Total Secured Debt Leverage Ratio); provided that the aggregate amount of Indebtedness incurred by a Non-Guarantor Subsidiary under this clause 6.2(e)(ii) shall not exceed $1,000,000 at any one time
        outstanding;

     

    (f)          [Reserved];

    
      81

      
        
 

    

    (g)          Guarantee Obligations of (x) Indebtedness otherwise permitted to be incurred pursuant to this Section 6.2 and (y) after the Plant Completion Date, Indebtedness of Unrestricted Subsidiaries and joint ventures in an
        aggregate principal amount, when combined with Investments made pursuant to Section 6.8(o), not to exceed $5,000,000 at any one time outstanding;

     

    (h)          (i) Indebtedness arising under or in respect of any surety, performance, bid or appeal bonds and performance and completion guarantees provided by the Borrower or any Subsidiary of the Borrower, or obligations in respect
        of letters of credit, bank guarantees, bankers’ acceptances or similar instruments related thereto, in the ordinary course of its business, and (ii) Indebtedness in respect of customary agreements providing for indemnification, purchase price
        adjustments or similar obligations incurred in connection with any Investment, Disposition or Acquisition;

     

    (i)           letters of credit and the related guarantees thereof incurred in the ordinary course of business in an aggregate principal amount not to exceed $2,000,000 at any one time outstanding, which Indebtedness may be secured by
        cash collateral; provided, however, that upon the drawing of any
        such letters of credit, such obligations are reimbursed within 30 days following such drawing or incurrence;

     

    (j)           additional unsecured Indebtedness (including, without limitation, Guarantee Obligations) of any Loan Party in an aggregate principal amount (for all LNG Group Members) not to exceed $5,000,000 at any one time outstanding;

     

    (k)          Indebtedness of any Loan Party under working capital facilities or lines of credit (including letters of credit) in an aggregate amount not to exceed $3,000,000 at any one time outstanding, which working capital facilities
        or lines of credit may be secured on a pari passu basis with the Term Loan Facility and may be provided by any direct or indirect parent
        company of the Borrower or by Fortress or its affiliated funds; provided that such working capital facilities or lines of credit, if secured by any of the
        Collateral, shall be subject to a customary intercreditor reasonably satisfactory to the Required Consent Parties;

     

    (l)           [Reserved];

     

    (m)         [Reserved];

     

    (n)          unsecured guarantees of the obligations of the Borrower and its Subsidiaries in connection with any Disposition that is a sale and leaseback arrangement permitted by Section 6.11;

     

    (o)          [Reserved];

     

    (p)          [Reserved];

     

    (q)          [Reserved];

    
      82

      
        
 

    

    (r)           Indebtedness consisting of cash management obligations, netting services, overdraft protection and similar arrangements incurred in the ordinary course of business;

     

    (s)          Indebtedness consisting of the financing of insurance premiums or take-or-pay obligations contained in supply agreements, in each case incurred in the ordinary course of business;

     

    (t)           Indebtedness incurred in respect of letters of credit, bank guarantees, bankers’ acceptances or similar instruments issued or created in the ordinary course of business in respect of workers’ compensation claims and
        health, disability, retiree or other employee benefits;

     

    (u)          Indebtedness of any Loan Party owing to, or guaranteed by, a governmental agency incurred for Investment in, or the purchase, lease, development, construction, maintenance or improvement of Property (real or personal) or
        equipment that is used or useful in, a Similar Business in an aggregate principal amount not to exceed $20,000,000 at any one time outstanding; provided that
        such Indebtedness has a maturity date at the time such Indebtedness is incurred which is not earlier than the fifth anniversary of the Closing Date; and

     

    (v)          after the Plant Completion Date, unsecured Indebtedness of any Loan Party; provided that (i) such Indebtedness matures after, and
        has no amortization in excess of 1% per year or other mandatory principal payments, repurchase, repayment or similar requirements prior to the fifth anniversary of the Closing Date (except as a result of a Fundamental Change so long as any rights
        of the holders thereof upon the occurrence of such Fundamental Change shall be subject to the satisfaction of the Termination Conditions) and (ii) before and after giving effect to such Indebtedness, (A) no Default or Event of Default shall be
        continuing and (B) the Borrower shall be in Pro Forma Compliance with a Total Debt Leverage Ratio of not greater than 3.00:1.00.

     

    6.3          Limitation on Liens.  Create, incur, assume or suffer
          to exist any Lien upon any of its Property, whether now owned or hereafter acquired, except for:

     

    (a)          Liens for taxes not overdue by more than 30 days, Liens for taxes not required to be discharged pursuant to Section 5.3 or Liens with respect to taxes, assessments or other governmental charges or levies that are being
        contested in good faith by appropriate proceedings; provided that, in the case of Liens with respect to contested taxes, assessments or other governmental
        charges or levies, adequate reserves with respect thereto are maintained on the books of the Borrower or its Subsidiaries, as the case may be, in conformity with GAAP, and Liens for property taxes on property that the Borrower or any of its
        Subsidiaries has determined to abandon (so long as such abandonment is not prohibited by this Agreement or any of the other Loan Documents), if the sole recourse for such tax is to such property;

     

    (b)          Liens securing judgments for the payment of money not constituting an Event of Default under Section 7.1(i);

    
      83

      
        
 

    

    (c)          carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlord’s, contractor’s or other like Liens arising in the ordinary course of business securing obligations that are not overdue for a period of more than
        30 days, or that are being contested in good faith by appropriate proceedings; provided that (i) adequate reserves with respect thereto are maintained on the
        books of the Borrower or its Subsidiaries, as the case may be, in conformity with GAAP or (ii) a bond or other security reasonably acceptable to the Required Consent Parties in an amount equal to 100.0% of such obligations is procured;

     

    (d)          undetermined or inchoate Liens incidental to current operations which have not at such time been filed and which do not secure Indebtedness;

     

    (e)          pledges or deposits in connection with workers’ compensation, unemployment insurance and other social security legislation;

     

    (f)          pledges or deposits to secure the performance of bids, trade contracts (other than for borrowed money), leases, concessions, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like
        nature incurred in the ordinary course of business, or deposits to secure letters of credit, bank guarantees, bankers’ acceptances, cash management obligations (including credit card processing obligations) or similar instruments related thereto;

     

    (g)          restrictions, covenants, land use contracts, rent charges, building schemes, declarations of covenants, conditions and restrictions, servicing agreements in favor of any Governmental Authority, easements, rights-of-way,
        servitudes or other similar rights in or with respect to real property (including open space and conservation easements, restrictions or similar agreements and rights of way and servitudes for railways, water, sewer, drainage, gas and oil
        pipelines, electricity, light, power, telephone, telegraph, internet or cable television services and utilities) granted to or reserved by other Persons or properties, incurred in the ordinary course of business, which in the aggregate do not
        materially impair the use of or the operation of the business of such Person or the property subject thereto and any exception on the final title policies issued in connection with the Mortgages;

     

    (h)          the right reserved to or vested in any Governmental Authority, by the terms of any Permit acquired by such Person or by any Law, to terminate any such Permit or to require annual or other payments as a condition to the
        continuance thereof;

     

    (i)           the Lien resulting from the deposit of cash or securities in connection with any of the Liens permitted by Sections 6.3(a), (b) or (c), or in connection with contracts, tenders, leases or expropriation proceedings, or to
        secure workers’ compensation, surety or appeal bonds, costs of litigation when required by Law and public and statutory obligations, and any right of refund, set-off or charge-back, or Liens of a collection bank on items in the course of
        collection, available to any bank or financial institution, including under the general terms and conditions of such bank or financial institution and/or its bank account opening documents or arising as a matter of Law;

    
      84

      
        
 

    

    (j)           any security given to a public authority or other service provider or any other Governmental Authority when required by such utility or other Governmental Authority in connection with the operations of such person in the
        ordinary course of its business;

     

    (k)          any agreement or option to lease, license, sub-lease or sub-license (as lessee, lessor, licensee or licensor) any Property or right of use or occupancy assumed or entered by or on behalf of any LNG Group Member in the
        ordinary course of its business;

     

    (l)           the reservations, limitations, provisos and conditions, if any, expressed in any grants from any Governmental Authority or any similar authority;

     

    (m)          title defects or irregularities which are of a minor nature and in the aggregate will not materially impair the use of the Property for the purposes for which it is held by the Borrower or any of its Subsidiaries;

     

    (n)          junior priority Liens securing Indebtedness incurred pursuant to Section 6.2(u);

     

    (o)          Liens in existence on the Closing Date listed on Schedule 6.3(o), securing Indebtedness permitted by Section 6.2, and any
        modifications, replacements, renewals or extensions thereof; provided that no such Lien is spread to cover any additional Property after the Closing Date
        (other than (i) afteracquired Property that is affixed or incorporated into the Property covered by such Lien or financed by Indebtedness permitted to be incurred under Section 6.2 and (ii) proceeds and products thereof) and that the principal
        amount of Indebtedness secured thereby is not increased (other than capitalized amounts related to fees and expenses incurred with respect thereto and unpaid accrued interest and premiums thereon);

     

    (p)          Liens securing Indebtedness of the Borrower or any Subsidiary incurred pursuant to Section 6.2(c) to finance the acquisition (including pursuant to a sale and leaseback transaction), construction, repair, replacement or
        improvement of Property (real or personal), equipment or other assets used or useful in the business; provided that (i) such Liens shall be created within
        365 days of the acquisition (including pursuant to a sale and leaseback transaction), construction, repair, replacement or improvement, as applicable, of such Property, equipment or other assets, and (ii) such Liens do not at any time encumber any
        Property, equipment or other assets other than the Property, equipment or other assets financed by such Indebtedness, replacements thereof, additions and accessions to such property, proceeds and products thereof and customary security deposits
        (except that individual financings of Property, equipment or other assets provided by one lender may be cross-collateralized to other financings of Property, equipment or other assets provided by such lender);

     

    (q)          Liens created pursuant to the Loan Documents;

    
      85

      
        
 

    

    (r)           Liens created in favor of Chart Energy & Chemicals Inc. pursuant to the Chart Energy Purchase Order as in effect on the Closing Date, which Liens are expressly subordinated or junior to the Liens securing the
        Obligations;

     

    (s)          Liens securing Indebtedness of any LNG Group Member incurred pursuant to Section 6.2(e); provided that (i) such Liens do not at any
        time encumber any Property other than the Property (including Capital Stock of any entity acquired and any of its Subsidiaries) acquired in such Acquisition and (ii) in the case of Indebtedness incurred pursuant to Section 6.2(e)(ii), the amount of
        such Indebtedness initially secured thereby is not more than 100% of the aggregate consideration paid in connection with such Acquisitions plus fees and
        expenses incurred in connection therewith;

     

    (t)           any right of set-off, refund or charge-back available to any bank or other financial institution or any other Lien arising in connection therewith;

     

    (u)          Liens securing Indebtedness incurred pursuant to Section 6.2(k);

     

    (v)          [Reserved];

     

    (w)         [Reserved];

     

    (x)          [Reserved];

     

    (y)          Liens on cash collateral to secure (i) Hedge Agreements permitted by Section 6.8(n), in an aggregate amount of such cash collateral not to exceed $1,000,000 plus, so long as no Excess Cash Restriction Period shall be
        continuing, the Available Amount as of such date and Not Otherwise Applied, or (ii) letters of credit permitted by Section 6.2(i);

     

    (z)          Liens in favor of customs and revenue authorities arising as a matter of Law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business;

     

    (aa)        Liens on Property subject to an agreement to Dispose of such Property in a transaction permitted under Section 6.5;

     

    (bb)        Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into by any LNG Group Member (other than Holdings) in the ordinary course of business;

     

    (cc)        Liens on insurance policies and the proceeds thereof securing the financing of the premiums with respect thereto; and

     

    (dd)       other Liens of any LNG Group Member (other than Holdings) securing Indebtedness or other obligations in an aggregate principal amount at any time outstanding not to exceed $750,000, determined at the time of incurrence of such
        Indebtedness or other obligations.

    
      86

      
        
 

    

    6.4          Limitation on Fundamental Changes.  Merge, consolidate
          or amalgamate, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of (other than in connection with any Lien permitted by Section 6.3) all or substantially all of its Property or business, except:

     

    (a)          that any Person (including, without limitation, any Subsidiary of the Borrower) may be merged, amalgamated or consolidated (i) with or into the Borrower (provided that (x) the Borrower shall be the continuing or surviving entity or (y) if the Person formed by or surviving any such merger, amalgamation or consolidation is not the Borrower (any such Person, a “Successor Borrower”), (A) the Successor Borrower shall be an entity organized or existing under the laws of any state of the United States, (B) the Successor
        Borrower shall expressly assume all the obligations of the Borrower under this Agreement and the other Loan Documents to which the Borrower is a party pursuant to a supplement hereto or thereto in form reasonably satisfactory to the Required
        Consent Parties, and (C) each Guarantor, unless it is the other party to such merger, amalgamation or consolidation, shall have by a supplement to the applicable Guarantee Agreement confirmed that its guarantee thereunder shall apply to the
        Successor Borrower’s obligations under this Agreement; provided that, if the foregoing are satisfied, the Successor Borrower will succeed to, and be
        substituted for, the Borrower under this Agreement); (ii) with or into any Subsidiary Guarantor (provided that, (x) such Subsidiary Guarantor shall be the
        continuing or surviving entity or (y) simultaneously with, or promptly after the consummation of, such transaction, the continuing or surviving entity shall become a Subsidiary Guarantor); (iii) unless such Person is the Borrower or a Subsidiary
        Guarantor, with or into any Subsidiary of the Borrower (other than a Subsidiary Guarantor) (provided that after giving effect to such transaction the
        continuing or surviving entity shall remain a Subsidiary of the Borrower); or (iv) with or into Holdings (provided that (x) Holdings shall be the continuing
        or surviving entity or (y) if the Person formed by or surviving any such merger, amalgamation or consolidation is not Holdings (any such Person, a “Successor Holdings”),

        (A) Successor Holdings shall be an entity organized or existing under the laws of any state of the United States, and (B) Successor Holdings shall expressly assume all the obligations of Holdings under this Agreement and the other Loan Documents to
        which Holdings is a party pursuant to a supplement hereto or thereto in form reasonably satisfactory to the Administrative Agent; provided that, if the
        foregoing are satisfied, Successor Holdings will succeed to, and be substituted for, Holdings under this Agreement);

     

    (b)          that (i) any Subsidiary Guarantor may Dispose of any or all of its assets (upon voluntary liquidation or otherwise) to the Borrower or any Subsidiary Guarantor (or to a Subsidiary that becomes a Subsidiary Guarantor
        simultaneously with, or promptly after the consummation of, such transaction) and (ii) any Subsidiary (other than a Subsidiary Guarantor) of the Borrower may Dispose of any or all of its assets (upon voluntary liquidation or otherwise) to the
        Borrower or any other Subsidiary;

     

    (c)          that any single purpose Non-Guarantor Subsidiary or Immaterial Subsidiary may Dispose of all or any portion of its assets in the ordinary course of business and any Non-Guarantor Subsidiary or Immaterial Subsidiary may
        otherwise liquidate, wind up or be dissolved;

    
      87

      
        
 

    

    (d)          [Reserved]; and

     

    (e)          in connection with any Disposition permitted by Section 6.5.

     

    6.5          Limitation on Disposition of Property.  Dispose of any of its Property (including, without limitation, receivables and leasehold interests), whether now owned or
        hereafter acquired, or, in the case of any Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to any Person, except:

     

    (a)          the Disposition of obsolete, worn out or surplus Property or Property no longer used or useful in the business other than the Ground Lease and Plant;

     

    (b)          to the extent constituting Dispositions, transactions permitted by Sections 6.3, 6.4 (other than Section 6.4(e)), 6.6 (other than Section 6.6(f)) or 6.8;

     

    (c)          the sale or issuance of any Subsidiary’s Capital Stock to the Borrower or any Subsidiary Guarantor;

     

    (d)          the sale or issuance of any Capital Stock of any Subsidiary of the Borrower (other than a Subsidiary Guarantor) to any other Subsidiary;

     

    (e)          any Recovery Event; provided that the requirements of Section 2.15(b), if applicable, are complied with in connection therewith;

     

    (f)           [Reserved];

     

    (g)          the sale or other Disposition of inventory and the lease of assets, in each case in the ordinary course of business other than the Ground Lease;

     

    (h)          [Reserved];

     

    (i)           Dispositions of Investments received in connection with the bankruptcy or reorganization of account debtors and obligors or in settlement of delinquent obligations of, or other disputes with, account debtors and obligors;

     

    (j)           [Reserved];

     

    (k)          [Reserved];

     

    (l)           [Reserved];

     

    (m)         [Reserved];

     

    (n)          [Reserved];

     

    (o)          (i) leases, subleases, licenses, sublicenses or charters of Property in the ordinary course of business other than the Plant and Ground Lease related thereto and (ii) Dispositions of Intellectual Property that is no longer
        material to the business of such LNG Group Member;

    
      88

      
        
 

    

    (p)          Dispositions by any LNG Group Member to the Borrower or any Subsidiary; provided that the gross proceeds from all Dispositions made
        by any Loan Party to any Non-Guarantor Subsidiary pursuant to this clause (p) shall not exceed $250,000 during the term of this Agreement;

     

    (q)          Dispositions of Property other than the Plant and Ground Lease to the extent that (i) such Property is exchanged for credit against the purchase price of similar replacement Property or other Property used or useful in the
        business of the Borrower and its Subsidiaries or (ii) the proceeds of such Disposition are promptly applied to the purchase price of such replacement Property;

     

    (r)           Dispositions of Investments in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements between, the joint venture parties set forth in joint venture arrangements and similar binding
        arrangements;

     

    (s)          Dispositions of cash and Cash Equivalents;

     

    (t)           Dispositions of Investments received in consideration of Dispositions permitted under this Section 6.5;

     

    (u)          Dispositions by the Borrower or any Subsidiary the gross proceeds of which do not exceed an aggregate amount of $1,000,000 during the term of this Agreement; and

     

    (v)          any other Disposition of Property or assets by the Borrower or any Subsidiary other than the Plant and Ground Lease; provided that
        (i) at the time of such Disposition (other than any such Disposition made pursuant to a binding commitment entered into at a time when no Default or Event of Default exists), no Default or Event of Default shall exist or would result from such
        Disposition, (ii) the consideration for such Disposition shall be at least equal to the fair market value of such Property or assets at the time of such Disposition (or at the time such binding commitment is entered into) and (iii) at least 75% of
        such consideration shall be in cash, Cash Equivalents or the assumption of Indebtedness and other liabilities; provided that for the purpose of this clause
        (iii), (A) any notes or other obligations or other securities or assets received by any LNG Group Member in such Disposition that are converted into cash within 180 days of the receipt thereof (to the extent of the cash received) and (B) any
        Designated Non-Cash Consideration received by the Borrower or any Subsidiary in such Disposition having an aggregate fair market value (as determined in good faith by the Borrower), taken together with all other Designated Non-Cash Consideration
        received pursuant to this clause (iii) that is at the time outstanding, not to exceed, at the time of receipt of such consideration, 1.0% of Total Assets as of the end of the fiscal quarter immediately prior to the date of such receipt for which
        financial statements have been delivered pursuant to Section 5.1 (with the fair market value of each item of Designated Non-Cash Consideration being measured at the time received and without giving effect to subsequent changes in value), shall be
        deemed to be cash.

    
      89

      
        
 

    

    6.6           Limitation on Restricted Payments.  Declare or pay any dividend on, or make any payment on account of, or set apart assets for a sinking or other
        analogous fund for, the purchase, redemption, defeasance, retirement or other acquisition of, any Capital Stock of Holdings, the Borrower or any Subsidiary, whether now or hereafter outstanding, or make any other distribution in respect thereof,
        either directly or indirectly, whether in cash or property or in obligations of Holdings, the Borrower or any Subsidiary (collectively, “Restricted Payments”),

        except that:

     

    (a)           any Subsidiary or the Borrower may make Restricted Payments to any of Holdings, the Borrower or any Subsidiary which owns the Capital Stock of such Subsidiary (so long as, with respect to any Restricted Payment made by a
        non-Wholly Owned Subsidiary, such Restricted Payment is made to Holdings, the Borrower or any Subsidiary and to each other owner of Capital Stock of such non-Wholly Owned Subsidiary based on their relative ownership interests of the relevant class
        of Capital Stock);

     

    (b)           so long as no Excess Cash Restriction Period is continuing, any LNG Group Member may make Restricted Payments (x) payable in the Capital Stock (other than Disqualified Capital Stock not otherwise permitted by Section 6.2)
        of such Person and (y) in cash in lieu of fractional shares of such Capital Stock;

     

    (c)           any LNG Group Member may make Restricted Payments to any other LNG Group Member for the purpose of facilitating the application of all or any portion of any Net Cash Proceeds in connection with a reinvestment of such Net
        Cash Proceeds pursuant to Section 2.15 by any LNG Group Member;

     

    (d)           any non-Wholly Owned Subsidiary may make distributions to its partners or other equity holders in accordance with its partnership agreements, articles of incorporation or shareholder agreement, in each case, to the extent
        that such distributions are made on a pro rata basis to the LNG Group Members (based upon the percentage interests held) and each of the other partners or other equity holders of such Subsidiary;

     

    (e)           [Reserved];

     

    (f)           to the extent constituting Restricted Payments, the LNG Group Members may enter into and consummate transactions permitted by any provision of Section 6.4, 6.5 (other than Section 6.5(b)), 6.8 or 6.9;

     

    (g)           without duplication, Holdings 1 and/or Holdings 2 may make Restricted Payments:

     

    (i)          to pay the
        operating costs and expenses of Parent incurred in the ordinary course of business and other corporate overhead costs and expenses of Parent (including administrative, legal, accounting and similar expenses provided by third parties), in each case
        which are reasonable and customary and incurred in the ordinary course of business and attributable to the ownership or operations of Holdings, the Borrower and its Subsidiaries (including Unrestricted Subsidiaries) and any directors and officers
        liability insurance and reasonable and customary indemnification claims made by directors, managers or officers of Parent, in each case which are attributable to the ownership or operations of Holdings, the Borrower and its Subsidiaries
      (including Unrestricted Subsidiaries);

    
      90

      
        
 

    

    (ii)         to its equity holders with respect to any taxable period ending after the Closing Date for which Holdings 1 or Holdings 2, as applicable, is treated
          as a partnership or disregarded entity for U.S. federal income tax purposes, in an aggregate amount equal to the product of (A) the taxable income
          of Holdings 1 or Holdings 2, as applicable, for such taxable period (determined, for any taxable period with respect to which Holdings 1 or Holdings 2, as applicable, is a disregarded entity, as if such entity were a partnership), reduced by any
          cumulative net taxable loss with respect to all prior taxable periods ending after the Closing Date (determined as if all such taxable periods were one taxable period and determined, for any taxable period with respect to which Holdings 1 or
          Holdings 2, as applicable, is a disregarded entity, as if such entity were a partnership) to the extent such cumulative net taxable loss is of a character that would permit such loss to be deducted against the current period taxable income,
          taking into account any applicable limitations to which such cumulative net taxable losses are subject, as reasonably determined by Holdings 1 or Holdings 2, as applicable, and (B) the highest combined marginal U.S. federal, state and local
          income tax rate applicable to any direct or indirect equity owner of Holdings 1 or Holdings 2, as applicable, for such taxable period (taking into account the character of the taxable income in question (ordinary income, long-term capital gain,
          qualified dividend income, etc.) and the deductibility of state and local income taxes for U.S. federal income tax purposes (and any applicable limitations thereon)); provided that distributions permitted under this clause (ii) in respect of the taxable period beginning prior to
          the Closing Date shall be reduced by the amount of estimated tax payments that should have been made by the direct or indirect equity owners of Holdings 1 or Holdings 2, as applicable, prior to the Closing Date (based on the assumptions used in
          this clause (ii)).  Any distributions under this clause (ii) with respect to any taxable period may be made in quarterly installments during the course of such period using reasonable estimates of the anticipated aggregate amount of such
          distributions under this clause (ii) for such period, with any excess of aggregate installments with respect to any such period over the actual amount of such distributions permitted under this clause (ii) for such period reducing the amount of
          distributions permitted under this clause (ii) with respect to the immediately subsequent period (and, to the extent such excess is not fully absorbed in the immediately subsequent period, the following period(s));

     

    (iii)          to finance any Investment that would be permitted to be made pursuant to Section 6.8 if Parent were subject to such Section; provided that (A) such Restricted Payment shall be
          made substantially concurrently with the closing of such Investment and (B) Parent shall, immediately following the closing thereof, cause (1) all
          property acquired (whether Property or Capital Stock) to be contributed to the Borrower or any Subsidiary Guarantor or (2) the merger (to the extent permitted in Section 6.4) of the Person formed or acquired into Holdings, the Borrower or any of
          its Subsidiaries in order to consummate such Permitted Acquisition or Investment, in each case, in accordance with the requirements of Section 5.10;

    
      91

      
        
 

    

    (iv)          the proceeds of which shall be used to pay customary salary, bonus and other benefits payable to officers and employees of Parent or any other direct
          or indirect parent company of Holdings 1 or Holdings 2, as applicable, to the extent such salaries, bonuses and other benefits are attributable to the ownership or operation of Holdings, the Borrower and the Subsidiaries (including Unrestricted Subsidiaries); and

     

    (v)          after the Plant Completion Date and so long as no Excess Cash Restriction Period shall be continuing, the proceeds of which shall be used by Parent to pay (or to make dividends or distributions to allow any direct or
        indirect parent thereof to pay) fees and expenses related to any unsuccessful equity or debt offering by Parent (or any direct or indirect parent thereof) that is directly attributable to the operations of Holdings, the Borrower and its
        Subsidiaries.

     

    (h)           so long as no Excess Cash Restriction Period shall be continuing, Holdings, the Borrower or any of its Subsidiaries may pay cash in lieu of fractional Capital Stock in connection with any dividend, split or combination
        thereof or any Permitted Acquisition;

     

    (i)            after the Plant Completion Date and so long as no Excess Cash Restriction Period shall be continuing, any LNG Group Member may make Restricted Payments in an aggregate amount not to exceed the Available Amount as of such
        date and Not Otherwise Applied; provided that at the time of, and immediately following, such Restricted Payment, no Default or Event of Default shall exist;
        and

     

    (j)            so long as no Excess Cash Restriction Period shall be continuing, any LNG Group Member may make Restricted Payments from the proceeds of dividends or distributions received, directly or indirectly, by such LNG Group Member
        from an Unrestricted Subsidiary.

     

    6.7           Nature of Business.  Engage in any material line of
          business substantially different from those lines of business conducted or proposed to be conducted by the LNG Group Members on the Closing Date
          or any Similar Business.

     

    6.8           Limitation on Investments.  Make or hold any Investment, except:

     

    (a)           extensions of trade credit (or notes receivable arising from such grant) and deposits, prepayments and other credits to suppliers made in the ordinary course of business, and Investments received in satisfaction or partial
        satisfaction thereof from financially troubled account debtors or in connection with the bankruptcy or reorganization of suppliers or customers or in settlement of delinquent obligations of, or other disputes with, suppliers and customers, and
        other credits to suppliers in the ordinary course of business;

    
      92

      
        
 

    

    (b)          Investments in assets that were Cash Equivalents at the time such Investments were made;

     

    (c)          Investments arising in connection with the incurrence of Indebtedness, Liens, fundamental changes, Dispositions, Restricted Payments and sale/leaseback transactions permitted by Sections 6.2, 6.3, 6.4, 6.5 (other than
        Section 6.5(b)), 6.6 (other than Section 6.6(f)) and 6.11, respectively;

     

    (d)          Investments (other than those relating to the incurrence of Indebtedness permitted by Section 6.8(c)) by (i) any LNG Group Member in the Borrower or any Person that, at the time of, prior to or immediately following the
        consummation of, such Investment, is a Subsidiary Guarantor, and (ii) any Subsidiary (other than a Subsidiary Guarantor) in any other Subsidiary (other than a Subsidiary Guarantor);

     

    (e)          Investments (other than those relating to the incurrence of Indebtedness permitted by Section 6.8(c)) by the Borrower or any Subsidiary Guarantor in any other Subsidiary (other than a Subsidiary Guarantor) (i) not to
        exceed $750,000 at any time outstanding;

     

    (f)          [Reserved];

     

    (g)          so long as no Excess Cash Restriction Period shall be continuing, loans to any employee of the Borrower and/or its Subsidiaries, not to exceed an aggregate principal amount of $250,000 at any one time outstanding;

     

    (h)          [Reserved];

     

    (i)           Investments existing or contemplated on the Closing Date and set forth on Schedule 6.8(i) and any modification, replacement,
        renewal, reinvestment or extension thereof; provided that the amount of any Investment permitted pursuant to this Section 6.8(i) is not increased from the
        amount of such Investment on the Closing Date except (A) by capitalized amounts related to unpaid accrued interest and premium, (B) pursuant to the terms of such Investment as of the Closing Date or (C) as otherwise permitted by this Section 6.8;

     

    (j)           promissory notes and other non-cash consideration received in connection with Dispositions permitted by Section 6.5;

     

    (k)          after the Plant Completion Date and so long as no Excess Cash Restriction Period shall be continuing, Permitted Acquisitions;

     

    (l)           Investments held by a Subsidiary acquired after the Closing Date or of a Person merged, amalgamated or consolidated with or into the Borrower or any Subsidiary in accordance with Section 6.4 to the extent that such
        Investments were not made in contemplation of or in connection with such acquisition, merger, amalgamation or consolidation and were in existence on the date of such acquisition, merger, amalgamation or consolidation;

    
      93

      
        
 

    

    (m)          Guaranties by any LNG Group Member of leases (other than Capital Leases) or other obligations that do not constitute Indebtedness, in each case entered into in the ordinary course of business;

     

    (n)          Investments consisting of Hedge Agreements not entered into for speculative purposes but to protect against changes in interest rates, commodity prices, foreign exchange rates, volumes or quantities in accordance with
        prudent industry practice;

     

    (o)          after the Plant Completion Date and so long as no Excess Cash Restriction Period shall be continuing, Investments in Unrestricted Subsidiaries and joint ventures in an amount not to exceed $5,000,000 at any one time
        outstanding;

     

    (p)          after the Plant Completion Date and so long as no Excess Cash Restriction Period shall be continuing, Investments in an aggregate amount not to exceed the Available Amount as of such date to the extent Not Otherwise
        Applied; provided that at the time of, and immediately following, such Investment, no Default or Event of Default shall exist; and

     

    (q)          so long as no Excess Cash Restriction Period shall be continuing, other Investments by any LNG Group Member in an amount not to exceed 1.0% of Total Assets, determined at the time such Investment is made, at any time
        outstanding.

     

    6.9          Limitation on Optional Payments and Modifications of Subordinated Debt Instruments and Certain Other Indebtedness; Limitation on Modifications of
            Organizational Documents or Material Construction-Related Contracts.  (a) Make any optional or voluntary payment, prepayment, repurchase or
          redemption of, or otherwise voluntarily or optionally defease, any Indebtedness that is secured by a Lien ranking junior to those securing the Obligations, expressly subordinated to the Obligations (collectively, “Junior Debt”) or any unsecured Indebtedness for borrowed money, or segregate funds for any such payment, prepayment, repurchase, redemption or defeasance (each such payment, a “Voluntary Prepayment”), other than, so long as no Excess Cash Restriction
          Period shall be continuing, (i) after the Plant Completion Date, Voluntary Prepayments in an aggregate amount not to exceed the Available Amount as of such date to the extent Not Otherwise Applied; provided that at the time of, and immediately following, such Voluntary Prepayments,
          no Default or Event of Default shall exist, (ii) Voluntary Prepayments payable in Capital Stock (other than Disqualified Capital Stock), (iii) Voluntary Prepayments payable in cash in lieu of fractional shares of such Capital Stock, (iv)
          Voluntary Prepayments made to any Loan Party or by a Non-Guarantor Subsidiary to another Non-Guarantor Subsidiary, (v) any other Voluntary Prepayment so long as, before and after giving effect to such Voluntary Prepayment, the Borrower is in Pro
          Forma Compliance with a Total Secured Debt Leverage Ratio of 3.00:1.00, (vi) any Voluntary Prepayment funded with the proceeds of any Indebtedness incurred in accordance with Section 6.2 and (vii) any other Voluntary Prepayment permitted under
          any Intercompany Debt Subordination Agreement; (b) amend, modify or otherwise change, or consent or agree to any amendment, modification, waiver or other change to, any term of any agreement governing or related to Junior Debt or Indebtedness
          permitted under Section 6.2(v) in a manner (1) that is not permitted by the applicable intercreditor or subordination agreement with respect thereto for the benefit of the Administrative Agent or the Lenders with respect to the Obligations or (2)
          that is materially adverse to the Lenders; or (c) amend its certificate of incorporation or other organizational documents or any Material Construction-Related Contract in any manner that is materially adverse to the Lenders.

    
      94

      
        
 

    

    6.10          Limitation on Transactions with Affiliates.  Enter
          into any transaction involving payments in excess of $200,000 (other than the issuance, repurchase, retirement or acquisition of employment and severance arrangements with officers and employees in the ordinary course of business and transactions
          pursuant to stock option plans and employee benefit plans and arrangements), including, without limitation, any purchase, sale, lease or exchange of Property, the rendering of any service or the payment of any management, advisory or similar
          fees, with any Affiliate (other than Holdings, the Borrower or any Subsidiary, or any entity that becomes a Subsidiary as a result of such
          transaction), unless such transaction (or, if applicable, the series of related transactions to which such transaction is related) is upon terms no less favorable to Holdings, the Borrower or such Subsidiary, as the case may be, than it would
          obtain in a comparable arm’s-length transaction with a Person that is not an Affiliate, other than (i) the payment of customary fees and reasonable out-of-pocket costs to, and indemnities provided on behalf of, directors, officers, employees and
          consultants (including those with respect to the Parent) in the ordinary course of business, (ii) Indebtedness permitted under Section 6.2, Restricted Payments permitted under Section 6.6 and Investments permitted under Section 6.8, (iii) the
          Transactions and (iv) the transactions set forth on Schedule 6.10.

     

    6.11          Limitation on Sales and Leasebacks.  Enter into any
          arrangement with any Person providing for the leasing by the Borrower or any Subsidiary of real or personal property which has been or is to be sold or transferred by the Borrower or such Subsidiary to such Person or to any other Person to whom
          funds have been or are to be advanced by such Person on the security of such property or rental obligations of the Borrower or such Subsidiary, other than any such arrangement whereupon such sale is permitted under Section 6.5 and is made for
          cash consideration in an amount at least equal to the fair market value of such property, and, if any Capital Lease Obligations are incurred
          therewith, such Indebtedness is permitted under Section 6.2.

     

    6.12          Limitation on Changes in Fiscal Periods.  Permit the
          fiscal year of Holdings or the Borrower to end on a day other than December 31 or change any such Person’s method of determining fiscal quarters.

     

    6.13          Limitation on Negative Pledge Clauses.  Enter into or
          suffer to exist or become effective any agreement that prohibits or limits the ability of any Loan Party 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 or, in the case of any Guarantor, its obligations under any Guarantee Agreement, other than this Agreement and the other Loan
          Documents and except to the extent that any such agreement (a) exists as of the Closing Date or is a modification, amendment, restatement, replacement, refinancing, renewal or extension thereof (in each case to the extent not more burdensome),
          (b) is assumed by Holdings, the Borrower or any of its Subsidiaries in connection with any Acquisition permitted in Section 6.8 or is binding on any Subsidiary at the time such Person becomes a Subsidiary (provided that such agreement was not entered into solely in contemplation of such
          Person becoming a Subsidiary), (c) is an agreement governing Indebtedness permitted by Section 6.2 or any customary provisions in leases, subleases, licenses, sublicenses, contracts for management or development of Property, asset sale
          agreements, merger agreements, stock purchase agreements and other contracts restricting the same, (d) is an agreement governing any non-Wholly Owned Subsidiary or joint venture or a Contractual Obligation of any non-Wholly Owned
      Subsidiary or joint venture, (e) relates to cash or other deposits (including escrowed funds) received by Holdings, the Borrower or any of its Subsidiaries or (f) relates to assets subject to Liens permitted by Sections 6.3(c), 6.3(d), 6.3(e),
      6.3(f), 6.3(g), 6.3(h), 6.3(i), 6.3(j), 6.3(l) or 6.3(y), provided that, (i) to the extent any such agreement is entered into after the Closing Date, such
      prohibition or limitation shall only be effective against the Property or Person (and its Subsidiaries) acquired in such Acquisition, securing such Indebtedness or that is the subject of such other leases, subleases, licenses, sublicenses,
      agreements, contracts, deposits or liens and (ii) solely with respect to any non-Wholly Owned Subsidiary or joint venture, such prohibition or limitation shall only be effective against the Property, revenues or Capital Stock of such non-Wholly Owned
      Subsidiary or joint venture.

    
      95

      
        
 

    

    6.14          Limitation on Restrictions on Subsidiary Distributions.  Enter into or suffer to exist or become effective any consensual encumbrance or restriction on
        the ability of any Subsidiary to make Restricted Payments in respect of any Capital Stock of such Subsidiary held by the Borrower or any other Subsidiary, except for such encumbrances or restrictions existing under or by reason of (i) any
        restrictions existing under the Loan Documents, (ii) any restrictions with respect to a Subsidiary imposed pursuant to an agreement that has been entered into in connection with the Disposition of all or substantially all of the Capital Stock or
        assets of such Subsidiary and (iii) any agreement existing as of the Closing Date (or a modification, replacement, renewal or extension thereof) or that is assumed by Holdings, the Borrower or any of its Subsidiaries in connection with any
        Acquisition permitted in Section 6.8 or is binding on any Subsidiary at the time such Person becomes a Subsidiary (provided that such agreement was not
        entered into solely in contemplation of such Person becoming a Subsidiary); provided that, (x) to the extent any such agreement is entered into after the
        Closing Date, such encumbrance or restriction shall only be effective against (A) the Property or Person (and its Subsidiaries) acquired in such Acquisition, securing such Indebtedness or that is the subject of such Disposition or other leases,
        subleases, licenses, sublicenses, agreements or contracts, and (B) the distributions of any Subsidiary of the Borrower (provided that such Subsidiary shall
        not have any assets other than such assets to be Disposed of or acquired or financed) and (y) solely with respect to any non-Wholly Owned Subsidiary or joint venture, such encumbrance or restriction shall only be effective against such non-Wholly
        Owned Subsidiary or joint venture.

     

    6.15          Foreign Subsidiaries.  Form or acquire any direct or
          indirect Subsidiary that is not organized under the Laws of the United States of America, any state thereof or the District of Columbia.

     

    6.16          Limitation on Activities of Holdings.  In the case of
          Holdings, notwithstanding anything to the contrary in this Agreement or any other Loan Document, (i) directly conduct, transact or otherwise engage in, or commit to conduct, transact or otherwise engage in, any material business or operations other than those incidental to its ownership of interests in the Borrower, the maintenance of its legal existence (including the ability to incur
          fees, costs and expenses relating to such maintenance), the filing of tax returns and payment of taxes, and the preparation of reports to Governmental Authorities and its shareholders or partners, (ii) incur, create, assume or suffer to exist any
          Indebtedness or financial obligations except (w) Indebtedness permitted by Section 6.2(a), (b), (g)(x) and (r) and any other guarantee obligations required to be incurred hereunder, (x) nonconsensual obligations imposed by operation of law, (y)
          pursuant to the Loan Documents to which it is a party and (z) obligations with respect to its Capital Stock, or (iii) directly own, lease, manage or otherwise operate any properties or assets (including Capital Stock, cash (other
      than cash received in connection with dividends made by the Borrower and Subsidiary Guarantors in accordance with Section 6.6 pending application in the manner contemplated by said Section) and cash equivalents) other than the ownership of interests
      in the Borrower.

    
      96

      
        
 

    

    6.17        In-Balance Test.  Permit the sum of (i) the Undrawn Amount on such date, plus
        (ii) the greater of (A) $24,326,768 less the Aggregate Equity Contribution made on or prior to such date and (B) $0, plus (iii) the aggregate amount of
        Unrestricted Cash included on the consolidated balance sheet of the Borrower and its Subsidiaries as of such date, to be less than the remaining costs as of such date reflected in the Budget to be incurred prior to the Plant Completion Date, as of
        the last day of any fiscal quarter ending prior to the Plant Completion Date (the “In-Balance Test”).

     

    Section 7.          EVENTS OF DEFAULT

     

    7.1          Events of Default.  Each of the following events shall constitute an “Event of Default”:

     

    (a)          the Borrower shall fail to pay any principal of any Term Loan when due in accordance with the terms hereof; or the Borrower shall fail to pay any interest on any Term Loan, or any other amount payable hereunder or under
        any other Loan Document, within five Business Days after any such interest or other amount becomes due in accordance with the terms hereof or thereof; or

     

    (b)          any representation or warranty made or deemed made by any Loan Party herein or in any other Loan Document or that is contained in any certificate, document or financial or other statement furnished by it at any time under
        or in connection with this Agreement or any such other Loan Document shall prove to have been incorrect in any material respect on or as of the date made or deemed made and is not remedied within 30 days after the date of such Default; or

     

    (c)          any Loan Party shall default in the observance or performance of any agreement contained in clause (i) of Section 5.4(a) (with respect to Holdings and the Borrower only), Section 5.7(a) or Section 6; or

     

    (d)          any Loan Party shall default in the observance or performance of any other agreement contained in this Agreement or any other Loan Document (other than as provided in paragraphs (a) through (c) of this Section 7.1), and
        such default shall continue unremedied for a period of 30 days after the date on which the Borrower has received written notice of such failure from the Administrative Agent, or if such default is of a nature that it cannot with reasonable effort
        be completely remedied within said period of 30 days, such additional period of time as may be reasonably necessary to cure same; provided that the
        applicable Loan Party commences such cure within such 30-day period and diligently prosecutes same, until completion, but in no event shall such extended period exceed 60 days; or

    
      97

      
        
 

    

    (e)          any LNG Group Member shall (i) default in making any payment of any principal of any Indebtedness (including, without limitation, any Guarantee Obligation or Hedge Agreement, but excluding the Term Loans) on the scheduled
        due date with respect thereto; (ii) default in making any payment of any interest on any such Indebtedness beyond the period of grace, if any, provided in the instrument or agreement under which such Indebtedness was created; or (iii) default in
        the observance or performance of any other agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist (other than
        (A) the voluntary sale or transfer of any asset securing such Indebtedness, (B) a refinancing of such Indebtedness permitted to be incurred pursuant to Section 6.2, (C) a drawing by a beneficiary under a letter of credit that gives rise to a
        reimbursement obligation in respect thereof in accordance with the terms of such Indebtedness, (D) an issuance of capital stock, incurrence of other Indebtedness or sale or other disposition of any assets, in each case that gives rise to mandatory
        prepayment with the net cash proceeds thereof, so long as such event shall not have otherwise resulted in an event of default with respect to such Indebtedness, and (E) any redemption, conversion or settlement of any such Indebtedness that is
        convertible into Capital Stock and/or cash pursuant to its terms unless such redemption, conversion or settlement results from a default thereunder), the effect of which default or other event or condition is to cause, or to permit the holder or
        beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of notice if required, such Indebtedness to become due prior to its stated maturity or to become subject to a mandatory offer
        to purchase by the obligor thereunder or (in the case of any such Indebtedness constituting a Guarantee Obligation) to become payable; provided that a
        default, event or condition described in clause (i), (ii) or (iii) of this paragraph (e) shall not at any time constitute an Event of Default unless, at such time, one or more defaults, events or conditions of the type described in clauses (i),
        (ii) and (iii) of this paragraph (e) shall have occurred and be continuing with respect to Indebtedness the aggregate outstanding principal amount of which exceeds $2,000,000; or

     

    (f)          (i) any LNG Group Member shall commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, arrangement or
        relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other
        relief with respect to it or its debts, except as permitted under Section 6.4(b) or Section 6.4(c), or (B) seeking appointment of a receiver, trustee, custodian, conservator, receiver and manager, liquidator, sequestrator, monitor, or other similar
        official for it or for all or any substantial part of its assets, or any LNG Group Member shall make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against any LNG Group Member any case, proceeding or other
        action of a nature referred to in clause (i) above that (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged, unstayed or unbonded for a period of 60 days; or (iii) there
        shall be commenced against any LNG Group Member any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets that results in the entry of
        an order for any such relief that shall not have been paid, vacated, discharged, stayed or bonded pending appeal within 60 days from the entry thereof; or (iv) any LNG Group Member shall consent to, approve of, or acquiesce in, any of the
      acts set forth in clause (i), (ii), or (iii) above; or (v) any LNG Group Member shall be unable to, or shall admit in writing its inability to, pay its debts as they become due; or

    
      98

      
        
 

    

    (g)         (i) any Person shall engage in any “prohibited transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code) involving any Pension Plan, (ii) any failure to satisfy the minimum funding standard of Section
        412 of the Code and Section 302 of ERISA, whether or not waived, shall exist with respect to any Pension Plan, or any Lien in favor of the PBGC or a Pension Plan shall arise on the assets of the Borrower or any Commonly Controlled Entity, (iii) a
        Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Pension Plan, which Reportable Event or commencement of proceedings or
        appointment of a trustee is, in the reasonable opinion of the Required Lenders, likely to result in the termination of such Pension Plan for purposes of Title IV of ERISA, (iv) any Pension Plan shall terminate for purposes of Title IV of ERISA or
        (v) the Borrower or any Commonly Controlled Entity shall incur any liability in connection with a withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan; and in each case in clauses (i) through (v) above, such event or
        condition results in or could reasonably be expected to result in a Material Adverse Effect; or

     

    (h)         an Event of Default under the Ground Lease shall occur; or

     

    (i)          one or more judgments or decrees shall be entered against any LNG Group Member involving for the LNG Group Members taken as a whole a liability (to the extent not paid or covered by insurance as to which the relevant
        insurance company has not denied coverage in writing) of $2,000,000 or more, and all such judgments or decrees shall not have been paid, vacated, discharged, stayed or bonded pending appeal within 60 days from the entry thereof; or

     

    (j)          any of the Security Documents shall cease, for any reason (other than by reason of the express release thereof pursuant to Section 8.10 or the terms thereof or the failure of the Administrative Agent to file continuation
        statements or take any other actions required to be taken by the Administrative Agent under the Loan Documents), to be in full force and effect, or any Loan Party or any Affiliate of any Loan Party shall so assert in writing, or any Lien created by
        any of the Security Documents shall cease for any reason (other than by reason of the express release thereof pursuant to Section 8.10 or the terms thereof or by the failure of the Administrative Agent to file continuation statements or take any
        other actions required to be taken by the Administrative Agent under the Loan Documents) to be valid, perfected, enforceable and of the same effect and priority purported to be created thereby with respect to any of the Collateral, or any Loan
        Party or any Affiliate of any Loan Party shall so assert in writing; or

    
      99

      
        
 

    

    (k)          the guarantee contained in any Guarantee Agreement shall cease, for any reason (other than by reason of the express release thereof pursuant to Section 8.10 or the terms thereof), to be in full force and effect or
      any Loan Party or any Affiliate of any Loan Party shall so assert in writing; or

     

    (l)           any Change of Control shall occur; or

     

    (m)         the Plant Completion Date has not occurred by May 15, 2016.

     

    If any Event of Default shall have occurred and be continuing, then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or
      (ii) of paragraph (f) above with respect to the Borrower, the Term Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents shall automatically and immediately become due and
      payable, and (B) if such event is any other Event of Default, with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower, declare the
      Term Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents to be due and payable forthwith, whereupon the same shall immediately become due and payable.

     

    7.2          Application of Proceeds.  All proceeds collected by
          the Administrative Agent upon any collection, sale, foreclosure or other realization upon any Collateral (including without limitation any distribution pursuant to a plan of reorganization), including any Collateral consisting of cash, shall be applied as follows:

     

    FIRST,
      to the payment of all costs and expenses incurred by the Administrative Agent (in its capacity as such hereunder or under any other Loan Document) in connection with such collection, sale, foreclosure or realization or otherwise in connection with
      this Agreement, any other Loan Document or any of the Obligations, including all court costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made by the Administrative Agent hereunder or under any other Loan
      Document on behalf of any Loan Party and any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document;

     

    SECOND,
      to the payment in full of all Obligations (the amounts so applied to be distributed among the Secured Parties pro rata in accordance with the amounts of the Obligations owed to them on the date of any such distribution);

     

    THIRD,
      to the Loan Parties, their successors or assigns, or as a court of competent jurisdiction may otherwise direct.

     

    In addition, in the event that the Administrative Agent receives any non-cash distribution upon any collection, sale, foreclosure or other
      realization upon any Collateral, such non-cash distribution shall be allocated in the manner described above, with the value of such non-cash distribution being reasonably determined by the Administrative Agent; provided that the Administrative Agent shall apply any cash distribution in accordance with this Section 7.2 prior to application of any such non-cash distribution.  The Administrative Agent
      shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement.  Upon any sale of Collateral by the Administrative Agent (including pursuant to a power of sale granted by
      statute or under a judicial proceeding), the receipt of the Administrative Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be
      obligated to see to the application of any part of the purchase money paid over to the Administrative Agent or such officer or be answerable in any way for the misapplication thereof.

    
      100

      
        
 

    

    7.3          Cure Right.

     

    (a)          In

        the event that (x) an Excess Cash Restriction Period occurs or is expected to occur in respect of any Test Period or (y) the ECF Percentage is equal to or is expected to equal 100% in respect of any Test Period, on or before the tenth Business Day
        after the date that the financial statements with respect to the fiscal quarter or fiscal year, as applicable, ending on the last day of such Test Period are required to be delivered pursuant to Section 5.1, Fortress shall have the right (the “Cure Right”), exercisable no more than two times during the term of this Agreement, to make, or cause one or more Affiliates of Fortress to make, cash
        contributions to, or purchase for cash common equity (or other Capital Stock not constituting Disqualified Capital Stock of, of Holdings (with such cash contributions or proceeds to be contributed to the Borrower in the form of common equity), in
        an amount equal to the amount required to cause an Excess Cash Restriction Period or an ECF Percentage of 100%, as applicable, to no longer occur (the “Cure Amount”),

        upon which the financial ratios set forth in such definition shall be recalculated, giving effect to a pro forma increase to Consolidated EBITDA of the Borrower and its Subsidiaries in accordance with the definition thereof for the fiscal quarter
        with respect to which such Cure Right was exercised in an amount equal to such Cure Amount (and such increase shall be included in each period that includes such fiscal quarter); provided, however, that such pro forma adjustment to Consolidated EBITDA of the Borrower and its Subsidiaries shall be given
        solely for the purpose of determining the occurrence of either an Excess Cash Restriction Period or an ECF Percentage of 100%, as applicable, and not for any other purpose under any Loan Document.

     

    (b)          If,

        after the exercise of the Cure Right and the recalculations pursuant to Section 7.3(a), the conditions to an Excess Cash Restriction Period or an ECF Percentage of 100%, as applicable, would no longer be satisfied, such Excess Cash Restriction
        Period or ECF Percentage of 100%, as applicable, shall be deemed to have not occurred on such date; provided, however, that (i) the Cure Amount shall be no greater than the amount required to cause such Excess Cash Sweep Event to not apply and (ii) all Cure Amounts and the use of proceeds therefrom will be
        disregarded for all other purposes (including pro forma reduction of Indebtedness by netting or otherwise) under the Loan Documents.

     

    (c)          For

        the avoidance of doubt, during the pendency of any cure right afforded to the LNG Group Members pursuant to Section 7.3(a), (i) the Administrative Agent shall not exercise any remedies described under Section 7.1 and (ii) no Term Loans may be
        borrowed.

    
      101

      
        
 

    

    Section 8.               THE ADMINISTRATIVE AGENT

     

    8.1          Appointment and Authority.

     

    (a)          Each

        of the Lenders hereby irrevocably appoints MSSF 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 are solely for the benefit of the Administrative Agent and the
        Lenders, and none of the Borrower nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions (except as provided in Section 8.6).

     

    (b)          [Reserved].

     

    (c)          The

        Administrative Agent shall also act as the collateral agent under the Loan Documents, and each of the Lenders hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender for purposes of acquiring, holding
        and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto.  In this connection, the Administrative Agent, as
        collateral agent, and any coagents, sub-agents and attorneys-in-fact appointed by the Administrative Agent pursuant to Section 8.5 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Security
        Documents, or for exercising any rights and remedies thereunder at the direction of the Administrative Agent, shall be entitled to the benefits of all provisions of this Section 8 and Section 9 (including Section 9.5(b), as though such co-agents,
        sub-agents and attorneys-in-fact were the collateral agent under the Loan Documents) as if set forth in full herein with respect thereto.

     

    8.2          Rights as a Lender.  The Person serving as the Administrative Agent here-under 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 Holdings, the Borrower 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.

     

    8.3          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 Default has occurred and is continuing;

    
      102

      
        
 

    

    (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;

     

    (c)          shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its
        Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity;

     

    (d)          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 9.1 and 7.1) or (ii) in the absence of its own gross negligence, bad faith or willful misconduct.  The Administrative Agent shall be deemed not to
        have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by the Borrower or a Lender;

     

    (e)          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 Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or the creation, perfection or priority of any Lien purported to
        be created by the Security Documents, (v) the value or the sufficiency of any Collateral, (vi) perfecting, maintaining, monitoring, preserving or protecting the security interest or lien (including the priority thereof) granted under this
        Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, (vii) the filing, refiling, recording, re-recording or continuing of any document, financing statement, mortgage, assignment, notice, instrument of
        further assurance or other instrument in any public office at any time or times, (viii) providing, maintaining, monitoring or preserving insurance on or the payment of taxes with respect to any of the Collateral or (ix) the satisfaction of any
        condition set forth in Section 4 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent;

     

    (f)          shall not be required to qualify in any jurisdiction in which it is not presently qualified to perform its obligations as Agent; and

    
      103

      
        
 

    

    (g)         shall not be required to (i) expend or risk its own funds or provide indemnities in the performance of any of its duties hereunder or the exercise of any of its rights or powers, or (ii) otherwise incur any
      financial liability in the performance of its duties hereunder or the exercise of any of its rights or powers, except for such expense, indemnity or liability, if any, arising out of the Administrative Agent’s gross negligence, bad faith or willful
      misconduct in the performance of its duties hereunder or under any other Loan Document, as determined by a judgment of a court of competent jurisdiction.

     

    No requirement in any Loan Document for a Loan Party to provide evidence, opinion, information, documentation or other material requested or
      required by the Administrative Agent shall be construed to mean that the Administrative Agent has any responsibility to request or require such evidence, opinion, information, documentation or other material.  No Lender shall assert, and each Lender
      hereby waives, any claim against the Administrative Agent, including any predecessor agent, its sub-agents and their respective Affiliates in respect of any action taken or omitted to be taken by any of them, 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 or thereby, the
      transactions contemplated hereby or thereby, any Term Loan or the use of the proceeds thereof.

     

    8.4          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 Term Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the
        Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Term Loan.  The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower or any Lender), independent
        accountants and other experts, 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.

     

    8.5          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 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 8 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 facility provided for herein as well as activities as Administrative Agent.

    
      104

      
        
 

    

    8.6          Resignation of Administrative Agent.  The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower.  Upon receipt of
        any such notice of resignation, the Required Lenders shall have the right, with the consent of the Borrower (not to be unreasonably withheld or delayed) unless an Event of Default under Section 7.1(a) or (f) is continuing, to appoint a
      successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such
      appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders, with the consent of the Borrower (not to be unreasonably withheld or delayed)
      unless an Event of Default under Section 7.1(a) or (f) is continuing, appoint a successor Administrative Agent meeting the qualifications set forth above; provided
      that if the Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (a) 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 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 (b) 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 directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section.  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).  The fees payable by the Borrower to a successor Administrative Agent shall be the
      same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Section 8 and
      Section 9.5 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.

     

    8.7          Non-Reliance on Administrative Agent and Other Lenders.  Each 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 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.

     

    8.8          No Other Duties, Etc.  Anything herein to the contrary notwithstanding, the Arranger listed on the cover page hereof shall not 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 or a Lender hereunder.

    
      105

      
        
 

    

    8.9          Administrative Agent May File Proofs of Claim.  In
          case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Term Loan shall then be due and payable as
          herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower)
          shall be entitled and empowered, by intervention in such proceeding or otherwise:

     

    (a)          to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Term Loans and all other Obligations that are owing and unpaid and to file such other documents as may be
        necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their
        respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 2.12 and 9.5) allowed in such judicial proceeding; and

     

    (b)          to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

     

    and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each
      Lender to make such payments to the Administrative Agent and, if the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation,
      expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.12 and 9.5.

     

    Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan
      of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender to authorize the Administrative Agent to vote in respect of the claim of any Lender or in any such proceeding.

     

    8.10        Collateral and Guaranty Matters; Rights Under Hedge Agreements.

     

    (a)          Each

        of the Lenders irrevocably authorizes the Administrative Agent to release or evidence the release of any Lien on any property granted to or held by the Administrative Agent under any Loan Document, to release any Guarantor from its obligations
        under a Guarantee Agreement or any Loan Document or to subordinate any Lien on any property granted to or held by the Administrative Agent under any Loan Document, in each case as provided in Section 9.22.

     

    (b)          Upon

        request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its
        obligations under the Loan Documents pursuant to Section 9.22.

    
      106

      
        
 

    

    (c)          No

        Secured Hedge Agreement will create (or be deemed to create) in favor of any Lender Counterparty that is a party thereto any rights to manage or release any Collateral or of the obligations of any Guarantor under the Loan Documents except as
        expressly provided in Section 9.1(ix).  By accepting the benefits of the Collateral, such Lender Counterparty shall be deemed to have appointed the Administrative Agent as its agent and agreed to be bound by the Loan Documents as a Secured Party,
        subject to the limitations set forth in this clause (c).

     

    8.11        Withholding Taxes.  To the extent required by any
          applicable Requirements of Law, the Administrative Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding tax except to the extent that such Lender has established an exemption from or reduction of
          such withholding tax by complying with the requirements of paragraph (d), (e) or (f) of Section 2.21 or that such tax has been withheld by a Loan Party.  Without limiting or expanding the provisions of Section 2.21, each Lender shall indemnify
          the Administrative Agent against, and shall make payable in respect thereof within thirty (30) days after demand therefor, any and all taxes and
          any and all related losses, claims, liabilities and expenses (including fees, charges and disbursements of any counsel for the Administrative Agent) incurred by or asserted against the Administrative Agent by the Internal Revenue Service or any
          other Governmental Authority as a result of the failure of the Administrative Agent to properly withhold tax from amounts paid to or for the account of such Lender for any reason (including because the appropriate form was not delivered or not
          properly executed, or because such Lender failed to notify the Administrative Agent of a change in circumstance that rendered the exemption from, or reduction of, withholding tax ineffective).  A certificate as to the amount of such payment or
          liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under this
          Agreement or any other Loan Document against any amount due the Administrative Agent under this Section 8.11.  The agreements in this Section 8.11 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of
          rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all other Obligations.

     

    Section 9.               MISCELLANEOUS

     

    9.1          Amendments and Waivers.  Neither this Agreement or any
          other Loan Document, nor any terms hereof or thereof may be amended, supplemented or modified except in accordance with the provisions of this Section 9.1.  The Required Lenders, the Borrower and each other Loan Party which is a party to the
          relevant Loan Document may, or (with the written consent of the Required Lenders) the Administrative Agent, the Borrower and each other Loan Party
          which is a party to the relevant Loan Document may, from time to time, (a) enter into written amendments, supplements or modifications hereto and to the other Loan Documents (including amendments and restatements hereof or thereof) for the
          purpose of adding or removing any provisions to this Agreement or the other Loan Documents or changing in any manner the rights and obligations of the Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on such terms and
          conditions as may be specified in the instrument of waiver, any of the requirements of this Agreement or the other Loan Documents or any Default or Event of Default and its consequences; provided further, however, that no such waiver and no such amendment, supplement or modification shall:

    
      107

      
        
 

    

    (i)           forgive
        the principal amount of any Term Loan, extend the final scheduled date of maturity of any Term Loan, reduce the stated rate of any interest, fee or premium payable under this Agreement (except in connection with the waiver of applicability of any
        postdefault increase in interest rates (which waiver shall be effective with the consent of the Required Lenders)), or extend the scheduled date of any Installment payment, extend the time for payment of any interest, fees or premium or increase
        the amount or extend the expiration date of any Commitment of any Lender, in each case without the consent of each Lender directly and adversely affected thereby;

     

    (ii)          amend, modify or waive any provision of this Section 9.1 without the consent of each Lender, or, except as contemplated by the last paragraph of this
          Section 9.1, reduce any percentage specified in the definition of Required Lenders or reduce the consent required under any provision pursuant to
          which the consent of Required Lenders is necessary, in each case without the consent of each Lender directly affected thereby;

     

    (iii)         consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement and the other Loan Documents without the consent of each Lender, other than to a Successor Borrower;

     

    (iv)         amend, modify or waive any provision of Section 8, or any other provision affecting the rights, duties or obligations of the Administrative Agent, without the consent of the Administrative Agent;

     

    (v)          amend, modify or waive any provision of Section
          2.18 without the consent of each Lender directly affected thereby;

     

    (vi)         [Reserved];

     

    (vii)        except upon satisfaction of the Termination Conditions or pursuant to Section 9.22,
      release all or any material portion of the Collateral in any transaction or series of related transactions, without the written consent of each Lender;

     

    (viii)       release all or any material portion of the value of the Guarantee Agreements, without the written consent of each Lender, except (x) to the extent the
          release of any Subsidiary from a Guarantee Agreement is permitted pursuant to Section 9.22 (in which case such release may be made without the consent of any Lender) or (y) upon satisfaction of the Termination Conditions; or

     

    (ix)         amend, modify or waive any provision of this Agreement or the Security Agreement so as to alter the ratable treatment of Obligations arising under the
          Loan Documents and Obligations arising under Secured Hedge Agreements or the definitions of “Lender Counterparty,” “Secured Hedge Agreement” or
          “Obligations” (with respect to the treatment of obligations under Secured Hedge Agreements) in each case in a manner adverse to any Lender Counterparty with Obligations then outstanding without the written consent of any such Lender Counterparty;

    
      108

      
        
 

    

    provided, further, that any Loan Document may be waived, amended, supplemented or modified pursuant to an agreement or agreements in writing entered into by Holdings, the Borrower and the Administrative Agent (without the
      consent of any Lender) solely to grant a new Lien for the benefit of the Secured Parties or extend an existing Lien over additional property.

     

    Any such waiver and any such amendment, supplement or modification shall apply equally to each of the Lenders and shall be binding upon the
      Loan Parties, the Lenders, the Administrative Agent and all future holders of the Term Loans and Commitments.  In the case of any waiver, the Loan Parties, the Lenders and the Administrative Agent shall be restored to their former position and rights
      hereunder and under the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right
      consequent thereon.  Any such waiver, amendment, supplement or modification shall be effected by a written instrument signed by the parties required to sign pursuant to the foregoing provisions of this Section; provided that delivery of an executed signature page of any such instrument by facsimile transmission shall be effective as delivery of a manually executed counterpart thereof.

     

    Notwithstanding the foregoing, Guarantee Agreements, Security Documents and related documents executed in connection with this Agreement may
      be in a form reasonably determined by the Administrative Agent and may be, together with this Agreement, amended and waived with the consent of the Administrative Agent, Holdings and the Borrower only and without the need to obtain the consent of any
      Lender if such amendment or waiver is delivered solely to the extent necessary to (i) comply with local Law or advice of local counsel or (ii) cause such Guarantee Agreement, Security Document or related document to be consistent with this Agreement
      and the other Loan Documents (which, for the avoidance of doubt, includes resolving any conflicts between the operation of the terms in the Depositary Agreement and this Agreement).

     

    Notwithstanding the foregoing, this Agreement may be amended (or amended and restated) with the written consent of the Required Lenders, the
      Administrative Agent and the Borrower (i) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share
      ratably in the benefits of this Agreement and the other Loan Documents with the Term Loans and Commitments hereunder and the accrued interest and fees in respect thereof and (ii) to include appropriately the Lenders holding such credit facilities in
      any determination of the Required Lenders and provide for class voting to the extent appropriate.

     

    Notwithstanding anything to the contrary herein, in connection with any amendment, modification, waiver or other action requiring the
      consent or approval of Required Lenders, Lenders that are Affiliated Lenders shall not be permitted, in the aggregate, to account for more than 49.9% of the amounts actually included in determining whether the threshold in the definition of Required
      Lenders has been satisfied.  The voting power of each Lender that is an Affiliated Lender shall be reduced, pro rata, to the extent necessary in order to comply with the immediately preceding sentence.

    
      109

      
        
 

    

    9.2          Notices.  Except as otherwise provided in Section
          2.10(c), all notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telefacsimile), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three Business Days after being deposited in the mail, postage prepaid, or, in the case of telefacsimile notice, when received, addressed
          (a) in the case of Holdings, the Borrower and the Administrative Agent, as follows and (b) in the case of the Lenders, at its primary address set forth below its name on Appendix A or otherwise indicated to Administrative Agent in writing or, in the case of a Lender which becomes a party to this Agreement pursuant to an Assignment and Acceptance, in such Assignment and Acceptance or
      (c) in the case of any party, to such other address as such party may hereafter notify to the other parties hereto:

     

    Holdings and

    
      		and the Borrower:	
              LNG Holdings (Florida) LLC

            

    

    1345 Avenue of the Americas, 46th Floor

    New York, New York 10105

    

    

    
      		with a copy to:	
              Fortress Investment Group LLC

            

    

    1345 Avenue of the Americas

    New York, New York 10105

      Attention: R. Nardone

    Facsimile: (212) 798-6120

      Telephone: (212) 798-6110

    

    

    
      		with a copy to:	
              Skadden, Arps, Slate, Meagher & Flom LLP

            

    

    155 N. Wacker Drive

    Chicago, Illinois 60606-1720

    Attention: Seth E. Jacobson

    Facsimile: (312) 407-8511

    Telephone: (312) 407-0889

    

    

    The Administrative

    
      		Agent:	
              Morgan Stanley Agency Servicing

            

    

    1 New York Plaza

    New York, NY 10004

    Telephone: (212) 507-6680

    E-mail: msagency@morganstanley.com

    

    

    provided that any notice, request or demand to or upon the
      Administrative Agent or any Lender shall not be effective until received.

     

    Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures
      approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Section 2 unless otherwise agreed by the
      Administrative Agent and the applicable Lender.  The Administrative Agent, or the Borrower 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.

    
      110

      
        
 

    

    THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE
      MATERIALS AND/OR INFORMATION PROVIDED BY OR ON BEHALF OF THE BORROWER HEREUNDER (“BORROWER MATERIALS”) OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM
      LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM
      FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to Holdings, the Borrower, any Lender or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or
      otherwise) arising out of Holdings’, the Borrower’s or the Administrative Agent’s transmission of materials and/or information provided by or on behalf of the Borrower hereunder through the Internet, except to the extent that such losses, claims,
      damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence, bad faith or willful misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to Holdings, the
      Borrower, any Lender or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

     

    9.3          No Waiver; Cumulative Remedies.  No failure to
          exercise and no delay in exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial
          exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right,
          remedy, power or privilege.  The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

     

    9.4          Survival of Representations and Warranties.  All representations and warranties made herein, in the other Loan Documents and in any document, certificate or
        statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the making of the Term Loans and other extensions of credit hereunder.

    
      111

      
        
 

    

    9.5          Payment of Expenses; Indemnification.

     

    (a)          The

        Borrower agrees (a) to pay or reimburse each of the Agents and the Arranger for all their reasonable out-of-pocket costs and expenses incurred in connection with the syndication of the Term Loan Facility (other than fees payable to syndicate
        members) and the development, negotiation, preparation and execution of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection herewith or therewith, and the
        consummation and administration of the transactions contemplated hereby and thereby, including, without limitation, the reasonable and documented fees and disbursements of a single law firm as counsel to the Agents and the Arranger and one local
        counsel to the Agents in any relevant jurisdiction and the charges of Intra-Links, (b) [Reserved], (c) to pay or reimburse each Lender and the Agents for all their reasonable and documented costs and expenses incurred in connection with the
        enforcement or preservation of any rights under this Agreement, the other Loan Documents and any other documents prepared in connection herewith or therewith, including, without limitation, all costs and expenses incurred during any legal
      proceeding, including any proceeding under any Debtor Relief Laws, the reasonable and documented fees and disbursements of a single law firm as counsel to the Lenders and the Agents taken as a whole and one local counsel to the Lenders and the Agents
      taken as a whole in any relevant material jurisdiction (or, with respect to enforcement, any relevant jurisdiction) and, if a conflict exists among such Persons, one additional primary counsel and, if necessary or advisable, one local counsel in each
      relevant jurisdiction, (d) to pay, indemnify, or reimburse each Lender and the Agents for, and hold each Lender and the Agents harmless from, any and all reasonable recording and filing fees and any and all reasonable liabilities with respect to, or
      resulting from any delay in paying Other Taxes, if any, which may be payable or determined to be payable in connection with the execution and delivery of, or consummation or administration of any of the transactions contemplated by, or any amendment,
      supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the other Loan Documents and any such other documents, and (e) to pay, indemnify or reimburse each Lender, the Agents, their respective affiliates, and
      their respective officers, directors, trustees, employees, advisors, agents and controlling persons (each, an “Indemnitee”) for, and hold each Indemnitee
      harmless from and against any and all other liabilities, obligations, losses, damages, penalties, claims (including Environmental Claims), actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever (limited to, in
      the case of counsel, the reasonable and documented fees and disbursements of a single law firm as counsel to the Indemnitees taken as a whole and one local counsel to the Indemnitees taken as a whole in any relevant jurisdiction and, if a conflict
      exists among such Persons, one additional primary counsel and, if necessary or advisable, one local counsel in each relevant jurisdiction) whether direct, indirect, special or consequential, incurred by an Indemnitee or asserted against any
      Indemnitee arising out of, in connection with, or as a result of (i) the execution, enforcement or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties
      hereto or thereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Term Loan or the use or proposed use of the proceeds thereof, (iii) any actual or alleged
      presence or Release of Hazardous Materials on, at, under or from any property owned, occupied or operated by the Borrower or any of its Subsidiaries, or any liability under any Environmental Law related in any way to the Borrower or any of its
      Subsidiaries or any of their respective properties, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by any third
      party or by the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto (all the foregoing in this clause (e), collectively, the “Indemnified

          Liabilities”), but excluding, in each case, taxes other than any taxes that represent losses, damages, etc., in respect of a non-tax claim; provided
      that the Borrower shall have no obligation hereunder to any Indemnitee with respect to Indemnified Liabilities to the extent such Indemnified Liabilities (x) are found by a final and nonappealable decision of a court of competent jurisdiction to have
      resulted from the gross negligence, bad faith, willful misconduct or material breach of its obligations under this Agreement of such Indemnitee or (y) resulted from any dispute that does not involve an act or omission by the Borrower or any of their
      respective affiliates, shareholders, partners or other equity holders and that is brought by an Indemnitee against another Indemnitee other than any claims against an Indemnitee in its capacity or in fulfilling its role as the Administrative Agent or
      the Arranger under the Term Loan Facility.  No Indemnitee shall be liable for any damages arising from the use by unauthorized persons of information or other materials sent through electronic, telecommunications or other information transmission
      systems that are intercepted by such persons or for any special, indirect, consequential or punitive damages in connection with the Term Loan Facility.  Without limiting the foregoing, and to the extent permitted by applicable law, the Borrower
      agrees not to assert and to cause its Subsidiaries not to assert, and hereby waives and agrees to cause its Subsidiaries so to waive, all rights for contribution or any other rights of recovery with respect to all claims, demands, penalties, fines,
      liabilities, settlements, damages, costs and expenses of whatever kind or nature, under or related to Environmental Laws, that any of them might have by statute or otherwise against any Indemnitee except to the extent wholly unrelated to the Facility
      and this Agreement.  All amounts due under this Section 9.5(a) shall be payable not later than 30 days after written demand therefor.  Statements payable by the Borrower pursuant to this Section shall be submitted to R. Nardone (Telephone No. (212)
      798-6110) (Fax No. (212) 798-6120), at the address of the Borrower set forth in Section 9.2, or to such other Person or address as may be hereafter designated by the Borrower in a notice to the Administrative Agent.  The agreements in this Section
      shall survive the termination of the Commitments and the repayment of the Term Loans and all other amounts payable hereunder.

    
      112

      
        
 

    

    (b)          Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under subsection (a) of this Section to be
        paid by it to the Administrative Agent (or any sub-agent thereof) or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such
        Lender’s Pro Rata Share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, 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) 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) in connection with such capacity.

     

    9.6          Successors and Assigns; Participations and Assignments.

     

    (a)          This

        Agreement shall be binding upon and inure to the benefit of Holdings, the Borrower, the Lenders, the Administrative Agent, all future holders of the Term Loans and their respective successors and assigns, except that the Borrower may not assign or
        transfer any of their rights or obligations under this Agreement except in a transaction permitted pursuant to Section 6.4(a)(i)(x) without the prior written consent of the Administrative Agent and each Lender.

    
      113

      
        
 

    

    (b)          Any

        Lender may, without the consent of the Borrower, in accordance with applicable law, at any time sell to one or more banks, financial institutions or other entities (each, a “Participant”) participating interests in any Term Loan owing to such Lender, any Commitment of such Lender or any other interest of such Lender hereunder and under the other Loan Documents; provided, however, that no Lender shall be permitted to sell any such participating interest to
        (i) Fortress, any of its Affiliates (other than any Affiliated Loan Fund) or any of their respective associated investment funds, (ii) a natural person or (iii) any Disqualified Assignee.  In the event of any such sale by a Lender of a
        participating interest to a Participant, such Lender’s obligations under this Agreement to the other parties to this Agreement shall remain unchanged, such Lender shall remain solely responsible for the performance thereof, such Lender shall remain

      the holder of such Term Loan and Commitments for all purposes under this Agreement and the other Loan Documents, and the Borrower and the Administrative Agent shall continue to deal solely and directly with such Lender in connection with such
      Lender’s rights and obligations under this Agreement and the other Loan Documents.  In no event shall any Participant under any such participation have any right to approve any amendment or waiver of any provision of any Loan Document, or any consent
      to any departure by any Loan Party therefrom, except to the extent that such amendment, waiver or consent would require the consent of all the Lenders or of each affected Lender pursuant to Section 9.1.  The Borrower agrees that if amounts
      outstanding under this Agreement and the Term Loans are due or unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an Event of Default, each Participant shall, to the maximum extent permitted by applicable
      law, be deemed to have the right of setoff in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement; provided that, in purchasing such participating interest, such Participant shall be deemed to have agreed to share with the Lenders the proceeds thereof as provided
      in Section 9.7(a) as fully as if such Participant were a Lender hereunder.  The Borrower also agrees that each Participant shall be entitled through the Lender granting the participation to the benefits of Sections 2.19, 2.20 or 2.21 (subject to the
      requirements and limitations of such Sections, Section 2.22 and 2.24, including the requirements of Section 2.21(d) through (g) (it being agreed that any required forms shall be provided solely to the participating Lender)) with respect to its
      participation in the Commitments and the Term Loans outstanding from time to time as if such Participant were a Lender; provided that no Participant shall be
      entitled to receive any greater amount pursuant to any such Section than the transferor Lender would have been entitled to receive in respect of the amount of the participation transferred by such transferor Lender to such Participant had no such
      transfer occurred, except to the extent that entitlement to a greater amount results from a change in Law that occurs after such Participant acquires the applicable participation, unless such transfer was made with the Borrower’s prior written
      consent (which consent shall not be unreasonably withheld or delayed).  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address
      of each Participant and the principal and interest amounts of each Participant’s interest in the Term Loans held by it (the “Participant Register”).  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 the participation in question for all purposes of this
      Agreement, notwithstanding notice to the contrary.  No Lender shall have any obligation to disclose all or any portion of a 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 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 and to confirm a Participant is not a Disqualified Assignee.

    
      114

      
        
 

    

    (c)          Any

        Lender (an “Assignor”) may, in accordance with applicable law and the written consent of the Administrative Agent (which shall not be unreasonably withheld or
        delayed, and which consent shall not be required in connection with an assignment made by or to the Arranger or Affiliate of the Arranger) and, so long as no Event of Default under Section 7.1(a) or (f) has occurred and is continuing, the Borrower
        (which shall not be unreasonably withheld or delayed, and which consent shall not be required in connection with an assignment made by or to the Arranger or Affiliate to the Arranger) (provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five Business Days after having received
      notice thereof), at any time and from time to time assign to any Lender or any affiliate, Related Fund or Control Investment Affiliate thereof, to an additional bank, financial institution or other entity (an “Assignee”) all or any part of its rights and obligations under this Agreement pursuant to an Assignment and Acceptance executed by such Assignee and such Assignor and delivered to the
      Administrative Agent for its acceptance and recording in the Register; provided that assignments made to any Lender, an affiliate of a Lender or a Related Fund
      will not be subject to the above described consents; provided, further,
      that no assignment to an Assignee (other than any Lender or any affiliate thereof) of Term Loans and Commitments shall be in an aggregate principal amount of less than $1,000,000 (other than in the case of an assignment of all of a Lender’s interests
      in the Term Loan Facility under this Agreement) and, after giving effect thereto, the assigning Lender (if it shall retain any Term Loans and Commitments) shall have Term Loans aggregating at least $1,000,000 unless otherwise agreed by the
      Administrative Agent and the Borrower; provided, however, no Lender
      shall be permitted to assign all or any part of its rights and obligations under this Agreement to (i) Fortress, any of its Affiliates or any of their respective associated investment funds (other than Holdings, the Borrower or any of their
      respective Subsidiaries), unless the additional limitations set forth in Section 9.6(d) are satisfied, (ii) Holdings, the Borrower or any of their respective Subsidiaries, except pursuant to Borrower Loan Purchase made in accordance with Section
      9.6(i), (iii) any natural person or (iv) any Disqualified Assignee.  Upon such execution, delivery, acceptance and recording in the Register, from and after the effective date determined pursuant to such Assignment and Acceptance, (x) the Assignee
      thereunder shall be a party hereto and, to the extent provided in such Assignment and Acceptance, have the rights and obligations of a Lender hereunder with Commitments and/or Term Loans as set forth therein, and (y) the Assignor thereunder shall, to
      the extent provided in such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of an Assignor’s rights and obligations under this Agreement, such Assignor
      shall cease to be a party hereto, except as to Sections 2.20, 2.21 and 9.5 in respect of the period prior to such effective date).  For purposes of the minimum assignment amounts set forth in this paragraph, multiple assignments by two or more
      Related Funds shall be aggregated.  Any assignment or participation to a Disqualified Assignee is void ab initio unless such assignment or
      participation, as the case may be, has been approved by the Borrower, in which case such assignee or participant shall not be considered a Disqualified Assignee solely for such particular assignment or participation, as the case may be.  In the case
      of an assignment not approved by the Borrower, such Disqualified Assignee shall be deleted from the Register upon written notification from the Borrower.  Except for providing the list of Disqualified Assignees to each Lender, the Administrative
      Agent shall have no responsibility or liability to monitor or enforce such list of Disqualified Assignees.

     

    (d)          Notwithstanding

        anything in this Agreement or any other Loan Document to the contrary, any Lender may assign all or a portion of its Term Loans and Commitments to Fortress or any of its Affiliates or any of their respective associated investment funds, other than
        Holdings, the Borrower or any of their respective Subsidiaries (an “Affiliated Lender”), pursuant to an Affiliated Lender Assignment and Assumption in
        accordance with this Section 9.6(d) (which assignment will not constitute a prepayment of Term Loans or termination of Commitments for any purposes of this Agreement and the other Loan Documents); provided that:

    
      115

      
        
 

    

    (i)            Affiliated

        Lenders (other than Affiliated Loan Funds) will not have the right to receive, and will not receive, information provided solely to Lenders by the Administrative Agent or any Lender and will not be permitted to, and will not, attend or participate
        in meetings or conference calls attended solely by the Lenders and the Administrative Agent, other than the right to receive notices of prepayments and other administrative notices in respect of its Term Loans required to be delivered to the
        Lenders;

     

    (ii)           notwithstanding anything in Section 9.1 or the definition of “Required Lenders” to the contrary, for purposes of determining whether the “Required

            Lenders” have (A) consented (or not consented) to any amendment, modification, waiver, consent or other action with respect to any of the terms of this Agreement or any other Loan Document or any departure by any Loan Party therefrom, (B) otherwise acted on any matter related to
          this Agreement or any other Loan Document or (C) directed or required the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) with respect to or under this Agreement or any other Loan Document, all Term
          Loans and Commitments held by any Affiliated Lender (other than Affiliated Loan Funds) shall be deemed to have voted in the same proportion as the allocation of voting with respect to such matter by Lenders who are not Affiliated Lenders for all
          purposes of calculating whether the Required Lenders have taken any actions, and each Affiliated Lender (other than Affiliated Loan Funds) hereby irrevocably appoints the Administrative Agent (such appointment being coupled with an interest) as
          such Affiliated Lender’s attorney-in-fact, with full authority in the place and stead of such Affiliated Lender and in the name of such Affiliated Lender, from time to time in the Administrative Agent’s discretion to take any action and to
          execute any instrument that the Administrative Agent may deem reasonably necessary to carry out the provisions of this clause (ii);

     

    (iii)          the aggregate principal amount of Term Loans and Commitments held at any one time by Affiliated Lenders (other than Affiliated Loan Funds)
          may not exceed 20% of the then outstanding principal amount of all Term Loans and Commitments, and any assignments that cause the Affiliated Lenders (other than Affiliated Loan Funds) in the aggregate to exceed such percentages, as applicable, shall be deemed void ab initio and the Register shall be modified to reflect a reversal of such assignment;

     

    (iv)          each of the parties hereto and any Lender participating in any assignment to an Affiliated Lender acknowledge and agree that in connection with such assignment, (A) the assignee then may have, and later may come into possession of Excluded Information, (B) such Lender has, independently and
          without reliance on such Affiliated Lender, any of its Subsidiaries, the Administrative Agent or any of its affiliates, made its own analysis and determination to participate in such assignment notwithstanding such Lender’s lack of knowledge of
          the Excluded Information, (C) none of the Affiliated Lenders or any of its Subsidiaries, the Administrative Agent or any of its affiliates shall have any liability to such Lender, and such Lender hereby waives and releases, to the extent
          permitted by law, any claims such Lender may have against such Affiliated Lender, any of its Subsidiaries, the Administrative Agent and any of its affiliates, under applicable laws or otherwise, with respect to the nondisclosure of the Excluded
          Information and (D) the Excluded Information may not be available to the Administrative Agent or the other Lenders;

    
      116

      
        
 

    

    (v)          no Event of Default has occurred and is continuing at the time of such assignment to an Affiliated Lender (other than an Affiliated Loan Fund) or would result from such assignment; and

     

    (vi)          each Affiliated Lender, solely in its capacity as a Lender, hereby further agrees that if any Loan Party shall be subject to any voluntary or
          involuntary proceeding commenced under any Debtor Relief Law, each such Affiliated Lender shall be deemed to have voted in such proceeding in the
          same proportion as the allocation of voting with respect to such proceeding by those Lenders who are not Affiliated Lenders, except to the extent that any matter under such proceeding proposes to treat the Obligations of the Loan Parties under
          the Loan Documents held by such Affiliated Lender in a manner that is less favorable to such Affiliated Lender in any material respect than the proposed treatment of similar Obligations of the Loan Parties under the Loan Documents held by other
          Lenders.  Each Affiliated Lender agrees and acknowledges that the foregoing constitutes an irrevocable proxy in favor of the Administrative Agent to vote or consent on behalf of such Affiliated Lender in any proceeding in the manner set forth
          above; provided that any Affiliated
          Lender that qualifies as an Affiliated Loan Fund shall not be subject to the limits set forth in this Section 9.6(d)(vi).

     

    (e)          Upon its receipt of an
        Assignment and Acceptance executed by an Assignor and an Assignee (and, in any case where the consent of any other Person is required by Section 9.6(c), by each such other Person) together with payment to the Administrative Agent of a registration
        and processing fee of $3,500 (provided, however, that (i) the
        Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment and (ii) no such fee shall be required to be paid (A) in connection with an assignment by or to the Arranger or any
        Affiliate thereof or (B) in the case of an Assignee which is already a Lender or any Affiliate, Related Fund or Control Investment Affiliate thereof), the Administrative Agent shall (i) promptly accept such Assignment and Acceptance and (ii) on the
        effective date determined pursuant thereto record the information contained therein in the Register and give notice of such acceptance and recordation to the Borrower.  On or prior to such effective date, the Borrower, at its own expense, upon
        request, shall execute and deliver to the Administrative Agent (in exchange for the applicable Term Loan Notes of the assigning Lender) a new Term Loan Note to the order of such Assignee in an amount equal to the Term Loans assumed or acquired by
        it pursuant to such Assignment and Acceptance and, if the Assignor has retained Term Loans, upon request, a new Term Loan Note to the order of the Assignor in an amount equal to the Term Loans retained by it hereunder.  Such new Term Loan Note or
        Term Loan Notes shall be dated the Closing Date and shall otherwise be in the form of the Term Loan Note or Term Loan Notes replaced thereby.

     

    (f)          For the avoidance of doubt, the parties to this Agreement acknowledge that the provisions of this Section 9.6 concerning assignments of Term Loans and
          Commitments and Term Loan Notes relate only to absolute assignments and that such provisions do not prohibit assignments creating security interests in Term Loans and Term Loan Notes, including, without limitation, any pledge or assignment by a Lender of any Term Loan or Term Loan Note to any Federal Reserve Bank in accordance with applicable law.

    
      117

      
        
 

    

  

  
  
     

    (g)          Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such in writing from time to time by the Granting Lender to the
          Administrative Agent and the Borrower, the option to provide to the Borrower all or any part of any Term Loan that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a
          commitment by any SPC to make any Term Loan and (ii) if an SPC elects not to exercise such option or otherwise fails to provide all or any part of
          such Term Loan, the Granting Lender shall be obligated to make such Term Loan pursuant to the terms hereof.  The making of a Term Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such
          Term Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Lender).  In
          furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or
          other indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any
          state thereof.  Each party hereto also agrees that each SPC shall be entitled to the benefits of Sections 2.19, 2.20 or 2.21 (subject to the requirements and limitations of such Sections, Section 2.22 and 2.24, including the requirements of
          Section 2.21(d) through (g) (it being agreed that any required forms shall be provided solely to the Granting Lender)) with respect to its granted interest in the Commitments and the Term Loans outstanding from time to time as if such SPC were a
          Lender; provided that no SPC shall be
          entitled to receive any greater amount pursuant to any such Section than the Granting Lender would have been entitled to receive in respect of the amount of the interest granted by such Granting Lender to such SPC had no such grant occurred,
          except to the extent that entitlement to a greater amount results from a change in Law that occurs after such interest was granted, unless such grant was made with the Borrower’s prior written consent (which consent shall not be unreasonably with
          held or delayed).  In addition, notwithstanding anything to the contrary in this Section 9.6(g), any SPC may (A) with notice to, but without the prior written consent of, the Borrower and the Administrative Agent and with the payment of a
          processing fee in the amount of $3,500 (which processing fee may be waived by the Administrative Agent in its sole discretion), assign all or a portion of its interests in any Term Loans to the Granting Lender, or with the prior written consent
          of the Borrower and the Administrative Agent (which consent shall not be unreasonably withheld) and with the payment of a processing fee in the amount of $3,500 (which processing fee may be waived by the Administrative Agent in its sole
          discretion) to any financial institutions providing liquidity and/or credit support to or for the account of such SPC to support the funding or maintenance of Term Loans, and (B) disclose on a confidential basis any non-public information
          relating to its Term Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC; provided that non-public information with respect to the Borrower may be disclosed only with the Borrower’s consent which
          will not be unreasonably withheld.  This Section 9.6(g) may not be amended without the written consent of any SPC with Term Loans outstanding at the time of such proposed amendment.  To the extent an SPC provides a Term Loan, the applicable
          Lender may maintain a register on behalf of the Borrower and the SPC’s interest must be entered in the register.

     

    (h)          [Reserved].

    
      118

      
        
 

    

    (i)           Purchases of Term Loans and Commitments by the Borrower.

     

    (i)     Notwithstanding anything in this
        Agreement or any other Loan Document to the contrary, the Borrower shall have the right to voluntarily purchase Term Loans and Commitments from one or more Lenders and simultaneously cancel or retire such Term Loans and Commitments and the Lenders
        shall be permitted to sell or assign such Term Loans and Commitments to the Borrower (in each case, a “Borrower Loan Purchase”) subject to all the other
        requirements of this Section 9.6(i).

     

    (ii)    The Borrower may conduct one or more modified “Dutch auctions” (each, an “Auction”) to repurchase
          all or any portion of the Term Loans and Commitments; provided that (A) notice of the Auction shall be made to all Lenders having or holding Term Loans and Commitments and (B) the Auction shall be conducted pursuant to such customary procedures as the Auction Manager may establish
          which are consistent with this Section 9.6(i) and are otherwise reasonably acceptable to the Auction Manager and the Administrative Agent.

     

    (iii)   The Borrower shall deliver to the Administrative Agent a certificate of a Responsible Officer stating that no Default or Event of Default exists at the time of
          such purchase and assignment or would result from such purchase and assignment.

     

    (iv)   [Reserved].

     

    (v)    On and after the effective date of such Borrower Loan Purchase (the “Borrower Loan Purchase Effective Date”), (i) the Term Loans and Commitments purchased by the Borrower shall be deemed
          cancelled or retired for all purposes and shall no longer be deemed outstanding (and may not be resold by the Borrower) for all purposes of this Agreement and all other Loan Documents (notwithstanding any provisions herein or therein to the contrary), including, but not limited to, (A) the making of, or the application of, any payments to the Lenders under this Agreement or any other Loan
          Document, (B) the making of any request, demand, authorization, direction, notice, consent or waiver under this Agreement or any other Loan Document, (C) the providing of any rights to the Borrower as a Lender under this Agreement or any other
          Loan Document, (D) the determination of the Required Lenders and (E) the calculation of the amount of Indebtedness hereunder, and (ii) no interest or fees of any type shall accrue from and after a Borrower Loan Purchase Effective Date on any Term
          Loans purchased by the Borrower on such Borrower Loan Purchase Effective Date.  For clarification purposes, the Borrower shall never be deemed to be a Lender hereunder.

     

    (vi)   The
        Lenders hereby consent to the transactions described in this Section 9.6(i) and waive the requirements of any provision of this Agreement (including, without limitation, Sections 2.17(c), 2.18 and 9.6) and any other Loan Document that might
        otherwise result in a breach of this Agreement or create an Event of Default as a result of or in connection with the consummation of any Borrower Loan Purchase.  The Lenders acknowledge that purchases made by the Borrower pursuant to this Section
        9.6(i) may result in the retirement of Term Loans and Commitments on a non-pro rata basis among the Lenders.  The Lenders further acknowledge that any payment made to a Lender in connection with a Borrower Loan Purchase is solely for the account of
        such Lender and no ratable sharing of such proceeds is required under this Agreement or any other Loan Document.

    
      119

      
        
 

    

    (vii)  All Borrower Loan Purchases and subsequent cancellation or retirement of such Term Loans and Commitments by the Borrower pursuant to this Section 9.6(i) shall be used to prepay the relevant Term Loans in direct order of maturity of the scheduled remaining Installments of principal of such Term Loans.

     

    (viii) Each of the parties hereto and any Lender participating in any Borrower Loan Purchase pursuant to this Section 9.6(i) acknowledge and agree that in connection
          with any such Borrower Loan Purchase, (A) the Borrower then may have, and later may come into possession of Excluded Information, (B) such Lender
          has, independently and without reliance on the Borrower, any of its Subsidiaries, the Administrative Agent or any of their respective affiliates, made its own analysis and determination to participate in such Borrower Loan Purchase
          notwithstanding such Lender’s lack of knowledge of the Excluded Information, (C) none of the Borrower, its Subsidiaries, the Administrative Agent nor any Affiliate of the foregoing shall have any liability to such Lender, and such Lender hereby
          waives and releases, to the extent permitted by law, any claims such Lender may have against the Borrower, its Subsidiaries, the Administrative Agents and any Affiliate of the foregoing, under applicable laws or otherwise, with respect to the
          nondisclosure of the Excluded Information and (D) the Excluded Information may not be available to the Administrative Agents or the other Lenders.

     

    9.7          Adjustments; Set-off.

     

    (a)          If

        any Lender (a “Benefited Lender”) shall at any time receive any payment of all or part of the Obligations owing to it, or receive any collateral in respect
        thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in Section 7.1(f), or otherwise), in a greater proportion than any such payment to or collateral received by any other Lender, if
        any, in respect of such other Lender’s Obligations, such Benefited Lender shall purchase for cash from the other Lenders a participating interest in such portion of each such other Lender’s Obligations, or shall provide such other Lenders with the
        benefits of any such collateral, as shall be necessary to cause such Benefited Lender to share the excess payment or benefits of such collateral ratably with each of the Lenders; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefited
        Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest.  For purposes of clause (iii) of Section 2.21(a), a Benefited Lender that acquires a participation
        interest in another Lender’s Obligations pursuant to this Section 9.7(a) shall be deemed to have acquired such participating interest on the earlier date(s) on which such Benefited Lender acquired its Obligations to which the participating interest
        relates.

     

    (b)          In

        addition to any rights and remedies of the Lenders provided by law, upon the occurrence and during the continuation of any Event of Default, each Lender shall have the right, without prior notice to Holdings or the Borrower, any such notice being
        expressly waived by Holdings and the Borrower to the extent permitted by applicable law, upon any amount becoming due and payable by Holdings or the Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set off and
        appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect,
        absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the account of Holdings or the Borrower, as the case may be.  Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such setoff and application made by such Lender; provided that the failure to give such notice shall not affect the validity of such setoff and application.

    
      120

      
        
 

    

    9.8          Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts
        taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.  A set of the
        copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

     

    9.9          Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
        extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
        jurisdiction.

     

    9.10        Integration.  This Agreement and the other Loan Documents represent the entire agreement of Holdings, the Borrower, the Administrative Agent and the Lenders with
        respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein
        or in the other Loan Documents.

     

    9.11 GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
        THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     

    9.12 Submission To Jurisdiction; Waivers.  Each party hereto hereby irrevocably and unconditionally:

     

    (a)          submits for itself and its Property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof,
        to the exclusive general jurisdiction of the courts of the State and County of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;

     

    (b)          consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or
        proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

     

    (c)          agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified
          mail (or any substantially similar form of mail), postage prepaid, to its address set forth in Section 9.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto;

    
      121

      
        
 

    

    (d)          agrees that the Administrative Agent and the Lenders retain the right to bring proceedings against any Loan Party in the courts of any other jurisdiction in connection with the exercise of any rights under any Security
        Document or the enforcement of any judgment;

     

    (e)           agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

     

    (f)           waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 9.12 any special, exemplary, punitive or consequential damages.

     

    9.13        Acknowledgments.  In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan
          Document), each of Holdings, and the Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Arranger
          are arm’s-length commercial transactions between Holdings, the Borrower and their respective Affiliates, on the one hand, and the Administrative Agent and the Arranger, on the other hand, (B) each of Holdings and the Borrower has consulted its
          own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) each of Holdings, and the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions
          contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative Agent and the Arranger are and have been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and
          will not be acting as an advisor, agent or fiduciary for Holdings, the Borrower or any of their respective Affiliates, or any other Person and (B) neither the Administrative Agent nor the Arranger has any obligation to Holdings, the Borrower or
          any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent and the Arranger and their respective
          Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of Holdings, the Borrower and their respective Affiliates, and neither the Administrative Agent nor the Arranger has any obligation to
          disclose any of such interests to Holdings, the Borrower or any of their respective Affiliates.  To the fullest extent permitted by law, each of Holdings, and the Borrower hereby waives and releases any claims that it may have against the
          Administrative Agent and the Arranger with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

    
      122

      
        
 

    

    9.14        Confidentiality.  Each of the Administrative Agent and the Lenders agrees to keep confidential all non-public information provided to it by any Loan Party
        pursuant to this Agreement that is designated by such Loan Party as confidential (“Information”); provided that nothing herein shall prevent the Administrative Agent or any Lender from disclosing any such information (a) to the Administrative Agent, any other Lender or any affiliate of any thereof, (b) to any
        Participant or Assignee (each, a “Transferee”) or prospective Transferee that agrees to comply with the provisions of this Section 9.14 or substantially
        equivalent provisions, (c) to any of its or its affiliates’ employees, directors, agents, attorneys, accountants and other professional advisors, (d) to any financial institution that is a direct or indirect contractual counterparty in swap
      agreements or such contractual counterparty’s professional advisor (so long as such contractual counterparty or professional advisor to such contractual counterparty agrees to be bound by the provisions of this Section or substantially equivalent
      provisions), (e) upon the request or demand of any Governmental Authority having jurisdiction over it, (f) to the extent required in response to any order of any court or other Governmental Authority or to the extent otherwise required pursuant to
      any Requirement of Law, (g) in connection with any litigation or similar proceeding, (h) that has been publicly disclosed other than in breach of this Section, (i) to the National Association of Insurance Commissioners or any similar organization or
      any nationally recognized rating agency that requires access to information about a Lender’s investment portfolio in connection with ratings issued with respect to such Lender, (j) to any other party hereto, (k) with the consent of the Borrower or
      (l) in connection with the exercise of any remedy hereunder or under any other Loan Document; provided that, in the event a Lender receives a summons or
      subpoena to disclose confidential information to any party, such Lender shall, if legally permitted, endeavor to notify the Borrower thereof as soon as possible after receipt of such request, summons or subpoena and to afford the Loan Parties an
      opportunity to seek protective orders, or such other confidential treatment of such disclosed information, as the Loan Parties may deem reasonable.  Any Person required to maintain the confidentiality of Information as provided in this Section 9.14
      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.

     

    9.15        Accounting Changes.  In the event that any “Accounting Change” (as defined below) shall occur and such change results in a change in the method of calculation of
        financial covenants, standards or terms in this Agreement, and either the Borrower or the Required Lenders shall so request, then the Borrower and the Lenders agree to enter into negotiations in order to amend such provisions of this Agreement so
        as to equitably reflect such Accounting Change with the desired result that the criteria for evaluating the Borrower’s financial condition shall be the same after such Accounting Change as if such Accounting Change had not been made.  Until such
        time as such an amendment shall have been executed and delivered in accordance with Section 9.1, all financial covenants, standards and terms in this Agreement shall continue to be calculated or construed as if such Accounting Change had not
        occurred.  “Accounting Change” refers to any change in accounting
        principles required by the promulgation of any rule, regulation, pronouncement or opinion by the FASB, any other generally accepted accounting authority which provides regulation standard or, if applicable, the SEC.

     

    9.16        WAIVERS OF JURY TRIAL.  HOLDINGS, THE BORROWER, THE ADMINISTRATIVE
          AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

     

    9.17        Conversion of Currencies.

     

    (a)          If,

        for the purpose of obtaining judgment in any court, it is necessary to convert a sum owing hereunder in one currency into another currency, each party hereto agrees, to the fullest extent that it may effectively do so, that the rate of exchange
        used shall be that at which, in accordance with normal banking procedures in the relevant jurisdiction, the first currency could be purchased with such other currency on the Business Day immediately preceding the day on which final judgment
      is given.

    
      123

      
        
 

    

    (b)          The

        obligations of the Borrower in respect of any sum due to any party hereto or any holder of the obligations owing hereunder (the “Applicable Creditor”) shall,
        not-withstanding any judgment in a currency (the “Judgment Currency”) other than the currency in which such sum is stated to be due hereunder (the “Agreement Currency”), be discharged only to the extent that, on the Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in
        the Judgment Currency, the Applicable Creditor may in accordance with normal banking procedures in the relevant jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount of the Agreement Currency so purchased is less
        than the sum originally due to the Applicable Creditor in the Agreement Currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Applicable Creditor against such loss.  The obligations of the
        Borrower contained in this Section 9.17 shall survive the termination of this Agreement and the payment of all other amounts owing hereunder.

     

    9.18        [Reserved].

     

    9.19        FLORIDA STAMP TAX PAYMENT.  FLORIDA DOCUMENTARY STAMP
          TAXES IN THE AMOUNT OF $140,000.00 ARE BEING PAID IN CONNECTION WITH THIS AGREEMENT, AS REQUIRED BY FLORIDA LAW, AND EVIDENCE OF SUCH PAYMENT SHALL BE AFFIXED TO THE MORTGAGE.

     

    9.20        USA PATRIOT Act.  Each Lender that is subject to the
          PATRIOT Act and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the PATRIOT Act, it is required to obtain, verify and record information that identifies each
          Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender or the
          Administrative Agent, as applicable, to identify each Loan Party in accordance with the Act.  The Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the
          Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable “know your customer” and antimoney laundering rules and regulations, including the PATRIOT Act.

     

    9.21        Payments Set Aside.  To the extent that any payment by
          or on behalf of the Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently
          invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party,
          in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part
          thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon
          demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest
      thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Effective Rate from time to time in effect.  The obligations of the Lenders under clause (b) of the preceding sentence shall survive
      the payment in full of the Obligations and the termination of this Agreement.

    
      124

      
        
 

    

    9.22        Releases of Collateral and Guarantees.  Each of the Lenders (including in its capacity as a potential Lender Counterparty) irrevocably authorizes the
        Administrative Agent to be the agent for the representative of the Lenders with respect to the Guarantee Agreements, the Collateral and the Security Documents; provided
        that the Administrative Agent shall not owe any fiduciary duty, duty of loyalty, duty of care, duty of disclosure or any other obligation whatsoever to any holder of Obligations with respect to any Secured Hedge Agreements, and the Administrative
        Agent agrees that:

     

    (a)          The Administrative Agent’s Lien on any property granted to or held by the Administrative Agent under any Loan Document shall be automatically and fully released (A) upon satisfaction of the Termination Conditions, (B) at
        the time the Property subject to such Lien is sold (other than to any other Loan Party or other Person that would be required pursuant to any Security Document to grant a Lien on such Collateral to the Administrative Agent for the benefit of the
        Secured Parties after giving effect to such Disposition) as part of or in connection with any Disposition permitted hereunder or under any other Loan Document, (C) if the Property subject to such Lien is owned by a Guarantor, upon the release of
        such Guarantor from its obligations under a Guarantee Agreement pursuant to clause (b) below, (D) with respect to the property of any Unrestricted Subsidiary upon the designation of such Person as an Unrestricted Subsidiary in accordance with
        Section 5.15, (E) to the extent (and only for so long as) such property constitutes an “Excluded Asset” (as defined in the Security Agreement), or (F) if approved, authorized or ratified in writing in accordance with Section 9.1.

     

    (b)          Any Guarantor shall be released from its obligations under a Guarantee Agreement or any other Loan Document (i) with respect to any Guarantor that is designated as an Unrestricted Subsidiary upon such designation in
        accordance with Section 5.15 or (ii) if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder, to the extent necessary to permit consummation of such transaction as permitted by the Loan Documents; provided that no such release shall occur if such Guarantor continues to be a guarantor in respect of any other Indebtedness expressly subordinated to the
        Obligations.

     

    (c)          At the request of the Borrower, it will subordinate or release its Lien on any property granted to or held by the Administrative Agent under any Loan Document (other than the Plant) to the holder of any Lien on such
        property that is permitted by Section 6.3(p) solely to the extent, and for so long as, the terms of the obligations secured by such Liens do not permit such property to be subject to a Lien in favor of the Administrative Agent or require that such
        Lien in favor of the Administrative Agent be subordinated to the Lien of the holder of such Lien on such property.

    
      125

      
        
 

    

    (d)          At the request of the Borrower, it will subordinate its Lien on any property granted to or held by the Administrative Agent under any Loan Document (other than the Plant) to the holder of any Lien on such property
      that is permitted by Section 6.3(e), (f), (g), (i), (j), (s) or (y), in each case to the extent required by the terms of the obligations secured by such Liens, or with respect to which the Required Lenders (or such other Lenders as may be required to
      give such consent under Section 9.1) have otherwise consented.

     

    (e)          On the date that the Termination Conditions are satisfied, the Collateral shall be released from the Liens created by the Security Documents, and the Security Documents and all obligations (other than those expressly
        stated to survive such termination) of the Administrative Agent and each Loan Party under the Security Documents shall terminate, all without the need to deliver any instrument or performance of any act by any Person.

     

    (f)           It will promptly execute, authorize or file such documentation as may be reasonably requested by any Grantor to release or subordinate, or evidence the release or subordination (in registrable form, if applicable), its
        Liens with respect to any Collateral or the guarantee obligations of any Guarantor as set forth in this Section 9.22; provided that the foregoing shall be at
        the Borrower’s expense.

     

    9.23        Time.  Time is of the essence in all respects hereof.

     

    [Signature pages follow]

    
      126

      
        
 

    

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

     

    
      	
               

            	
              LNG HOLDINGS LLC

            
	
               

            	
               

            	
               

            
	
               

            	
              By: 

            	
              

            
	 	 	Name: John Morrissey - CFO
	 	 	Title:

    

    

      	
               

            	
              FEP GP LNG HOLDINGS LLC

            
	
               

            	
               

            	
               

            
	
               

            	
              By: 

            	
              

            
	 	 	Name: John Morrissey - CFO
	 	 	Title:

    

     

    
      	
               

            	
              LNG HOLDINGS (FLORIDA) LLC

            
	
               

            	
               

            	
               

            
	
               

            	
              By: 

            	
              

            
	 	 	Name: John Morrissey - CFO
	 	 	Title:

    

     

    
      [Credit Agreement — LNG Holdings (Florida)]

      
        
          
 

      

    

     

    
      	
               

            	
              MORGAN STANLEY SENIOR FUNDING, INC., as Administrative Agent

            
	
               

            	
               

            	
               

            
	
               

            	
              By: 

            	
              

            
	 	 	Name: Henrik Sandstrom
	 	 	Title: Authorized Signatory

    

     

    [Credit Agreement — LNG Holdings (Florida)]

    
      
        
 

    

     

    
      	
               

            	
              MORGAN STANLEY BANK, N.A. as Lender

            
	
               

            	
               

            	
               

            
	
               

            	
              By: 

            	
              

            
	 	 	Name: Henrik Sandstrom
	 	 	Title: Authorized Signatory

    

     

    [Credit Agreement — LNG Holdings (Florida)]

    
      
        
 

    

    
      	
               

            	
              CREDIT SUISSE LOAN FUNDING LLC,

            
	
               

            	
               

            	
               

            
	
               

            	
              By: 

            	
              

            
	 	 	Name: Robert Healey
	 	 	Title: Authorized Signatory

    

     

    [Credit Agreement — LNG Holdings (Florida)]

    
      
        
 

    

    Appendix A

     

     

    CREDIT SUISSE LOAN FUNDING LLC

     

    Jiana Ahumada/Ashwinee Sawh

    Eleven Madison Avenue, 23rd Floor

    New York, NY 10010

    Tel: (212) 538-6106 / (212)-538-2905

    Fax: (214) 442-5186

    Email: Americas.Loandocs@Credit-Suisse.com

     

    MORGAN STANLEY BANK, N.A.

     

    Morgan Stanley Agency Servicing

    1 New York Plaza

    New York, NY 10004

    Telephone: (212) 507-6680  

    E-mail: msagency@morganstanley.com

     

    
      
        
 

    

    
    EXHIBIT A TO

    CREDIT AGREEMENT

     

    FORM OF COMPLIANCE CERTIFICATE

     

    THE UNDERSIGNED HEREBY CERTIFIES AS FOLLOWS:

     

    1.          I,
        ____________________, am the ____________________ of LNG HOLDINGS (FLORIDA) LLC.  I am making the certifications below solely in my capacity as and not in any individual capacity.

     

    2.          I have
        reviewed the terms of that certain Credit Agreement, dated as of November 24, 2014 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as
        therein defined), by and among LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 1”), FEP GP LNG HOLDINGS LLC, a Delaware limited
        liability company, (“Holdings 2”, and together with Holdings 1, “Holdings”),

        LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”), the several banks and other financial institutions or entities from time to
        time parties thereto (the “Lenders”) and MORGAN STANLEY SENIOR FUNDING, INC., as administrative agent for the Lenders (the “Administrative Agent”), and I have made, or have caused to be made under my supervision, a review in reasonable detail of the transactions and condition of Holdings, the Borrower and their
        respective Subsidiaries during the accounting period covered by the attached financial statements.

     

    3.          The
        examination described in paragraph 2 above did not disclose, and I have no knowledge of, the existence of any condition or event which constitutes an Event of Default or Default or (x) an Excess Cash Restriction Period or (y) an ECF Percentage
        equal to 100%, as of the date of this Compliance Certificate, except as set forth in a separate attachment, if any, to this Compliance Certificate, describing in detail, the nature of the condition or event, and, in the case of a Default or Event
        of Default, the action the Borrower has taken, is taking or proposes to take with respect to each such condition or event.

     

    4.          Attached
        hereto as Annex I is a list of each Immaterial Subsidiary.  Each Subsidiary listed on Annex I individually qualifies as an Immaterial Subsidiary and, in the aggregate, all such Immaterial Subsidiaries had consolidated assets with a book value of
        less than $300,000 on the last day of the fiscal quarter or fiscal year, as applicable, covered by the financial statements being delivered with this Compliance Certificate.

     

    5.          Attached
        hereto as Annex II is a written update with respect to any Material Construction-Related Contracts entered into during such fiscal quarter or the last fiscal quarter of such fiscal year, as applicable, covered by the financial statements being
        delivered with this Compliance Certificate, including an update to Schedule 3.24 to the Credit Agreement.  Any copies of the foregoing will be made available upon request of the Required Consent Parties.

    
      A-1

      
        
 

    

    The foregoing certifications, together with (i) the computations set forth in Annex III hereto (including any supporting schedules as may be
      attached hereto), (ii) the financial statements delivered with this Compliance Certificate in support hereof and (iii) if this Compliance Certificate is being delivered with the financial statements required to be delivered pursuant to Section 5.1(a)
      of the Credit Agreement, a listing of any material Intellectual Property acquired by any Loan Party since the date of the most recent list delivered pursuant to Section 5.2(a)(ii) of the Credit Agreement or the Closing Date, as applicable, are made
      and delivered on [mm/dd/yy] pursuant to Section 5.2(a) of the Credit Agreement.

    
      A-2

      
        
 

    

    
      	
               

            	
              LNG HOLDINGS (FLORIDA) LLC

            
	
               

            	
               

            	
               

            
	
               

            	
              By: 

            	
               

            
	 	 	Name:
	 	 	Title:

    

    
      A-3

      
        
 

    

    ANNEX I TO

    COMPLIANCE CERTIFICATE

     

    IMMATERIAL SUBSIDIARIES

     

    [None.]

    
      A-4

      
        
 

    

    ANNEX II TO

    COMPLIANCE CERTIFICATE

     

    MATERIAL CONSTRUCTION-RELATED CONTRACTS

    
      A-5

      
        
 

    

  

  
  
     

    ANNEX III TO

    COMPLIANCE CERTIFICATE

     

    
      	
              I.

            	
              To be completed for any fiscal quarter ending prior to the Plant Completion Date:

            	 
	 	 	 	 
	
              1.

            	
              In-Balance Test: (i) + (ii) + (iii)

            	
              $[__,__,__]

            
	 	 	 	 
	 	
              (i)

            	
              Undrawn Amount

            	
              $[__,__,__]

            
	 	 	 	 
	 	
              (ii)

            	
              the greater of (A) $24,326,768 less the Aggregate Equity Contribution made on or prior to such date and (B) $0

            	
              $[__,__,__]

            
	 	 	 	 
	 	
              (iii)

            	
              aggregate amount of Unrestricted Cash included on the consolidated balance sheet of the Borrower and its Subsidiaries as of such date

            	
              $[__,__,__]

            
	 	 	 	 
	
              To be less than the remaining costs as of such date reflected in the Budget to be incurred prior to the Plant Completion Date

            	
              $[__,__,__]

            
	 	 	 	 

    

    

    

    
      	
              II.            To be completed for any Test Period beginning with the Test Period ending on the last day of the first fiscal quarter
                ending after the Plant Completion Date:

            	 
	 	 	 	 	 
	
              1.

            	
              Consolidated EBITDA1: (i) + (ii) - (iii) + (iv)

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	
              (i)

            	
              Consolidated Net Income

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	
              (ii)

            	
              (a)

            	
              provision for taxes based on income, profits or capital gains, including, without limitation, federal, state, franchise and similar
                taxes and foreign withholding taxes (including any future taxes or other levies which replace or are intended to be in lieu of such taxes and any penalties and interest related to such taxes or arising from tax examinations)

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	 	
              (b)

            	
              interest expense, amortization or write-off of debt discount and debt issuance costs and commissions, discounts and other fees and
                charges associated with Indebtedness, plus all cash dividends or other distributions paid (excluding items eliminated in consolidation) on any series of preferred stock or Disqualified Capital Stock

            	
              $[__,__,__]

            

    

     

    
      
 

    1 Notwithstanding the foregoing, (i) Consolidated EBITDA for the first Test Period ending after the Plant Completion Date shall be calculated
      by multiplying the Consolidated EBITDA for the fiscal quarter ending on the last day of such Test Period by four; (ii) Consolidated EBITDA for the second Test Period ending after the Plant Completion Date shall be calculated by multiplying the
      Consolidated EBITDA for the two-fiscal-quarter period ending on the last day of such Test Period by two; and (iii) Consolidated EBITDA for the third Test Period ending after the Plant Completion Date shall be calculated by multiplying the
      Consolidated EBITDA for the three-fiscal-quarter period ending on the last day of such Test Period by four-thirds.

    
      A-6

      
        
 

    

    
      	 	 	
              (c)

            	
              depreciation and amortization expense

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	
              (d)

            	
              any extraordinary, unusual or non-recurring losses or non-cash expenses (including, for the avoidance of doubt, losses on sales of
                assets or investments outside of the ordinary course of business), and non-cash impairments of goodwill, intangibles, fixed assets, land and land held for development

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	
              (e)

            	
              any other non-cash charges (including, for the avoidance of doubt, equity incentive plans to the extent not paid in cash and
                unrealized foreign exchange losses attributable to currency translation)

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	
              (f)

            	
              any fees, expenses or charges incurred with respect to the Transaction or any Indebtedness permitted to be incurred under the Credit
                Agreement

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	
              (g)

            	
              any fees, expenses or charges related to any equity offering by Holdings, Investment, Acquisition (including Permitted Acquisitions)
                or Disposition, in each case whether or not successful or consummated

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	
              (h)

            	
              any net loss from disposed, abandoned or discontinued operations or operations that management is winding down

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	
              (i)

            	
              the amount of any directors’ fees or
                reimbursements (including fees and reimbursements of directors of Parent)

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	 	
              Sum of (a) through (i)

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	
              (iii)

            	
              (a)

            	
              any extraordinary, unusual or non-recurring income or gains(including, for the avoidance of doubt, any cash or non-cash income or
                gains from the sales of assets or investments outside of the ordinary course of business)

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	
              (b)

            	
              any other non-cash income or gains (including, for the avoidance of doubt, unrealized foreign exchange gains attributable to currency
                translation)

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	
              (c)

            	
              any cash payments made during such period in respect of items described in clause (ii)(d) above subsequent to the fiscal quarter in
                which the relevant non-cash expenses or losses were reflected as a charge in the statement of Consolidated Net Income,

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	
              (d)

            	
              any net income from disposed, abandoned or discontinued operations, all as determined on a consolidated basis

            	
              $[__,___,__]

            
	 	 	 	 	 
	 	 	 	
              Sum of (a) through (d)

            	
              $[__,___,__]

            

    

     

    
      A-7

      
        
 

    

    
      	 	
              (iv)

            	
              Pro rata share of Consolidated EBITDA of each Person that is not the Borrower or any of its Subsidiaries designated by management to
                be accounted for by the equity method of accounting

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	
              Notwithstanding the foregoing, in no event shall Consolidated EBITDA for any Test Period, whether or not measured on a Pro Forma
                Basis, attributable to contracted revenue from agreements that have a term (calculated, for each agreement, as of initial execution of such agreement to its expiration after giving effect to any extension thereto) of less than 180 days
                constitute more than 25% of Consolidated EBITDA for such Test Period

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	
              Consolidated EBITDA for such Test Period calculated after inclusion of contracted revenue from agreements that have a term of less
                than 180 days:

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	
              Consolidated EBITDA for such Test Period attributable to contracted revenue from agreements that have a term of less than 180 days:

            	
              $[__,__,__]

            
	 	 	 	 	 
	
              2.

            	
              Consolidated Net Income: (i) – (ii)

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	
              (i)

            	
              the consolidated net income (or loss) of the Borrower and its Subsidiaries for such period, determined on a consolidated basis in
                accordance with GAAP

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	
              (ii)

            	
              (a)

            	
              the income (or deficit) of any Person that was not a Subsidiary of the Borrower that accrued prior to the date it becomes a
                Subsidiary of the Borrower or is merged into or consolidated with the Borrower or any of its Subsidiaries

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	 	
              (b)

            	
              the income (or deficit) of any Person (other than a Subsidiary of the Borrower) in which the Borrower or any of its Subsidiaries has
                an ownership interest, except to the extent that any such in-come is actually received by the Borrower or any of its Subsidiaries in the form of dividends or similar distributions

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	 	
              (c)

            	
              the undistributed earnings of any non-Wholly Owned Subsidiary of the Borrower or any of its Subsidiaries (other than a Loan Party) to
                the extent that the declaration or payment of dividends or similar distributions by such non-Wholly Owned Subsidiary is not at the time permitted by the terms of any Contractual Obligation (other than under any Loan Document) or Requirement
                of Law applicable to such non-Wholly Owned Subsidiary

            	
              $[__,__,__]

            
	 	 	 	 	 
	 	 	 	
              Sum of (a) through (c)

            	
              $[__,__,__]

            

       

      
        A-8

        
          
 

      

      	
              3.

            	
              Total Secured Debt Leverage Ratio: (i) / (ii)

            	
              [_____]:1.00

            

    

    

    

    
      	 	
              (i)

            	
              (a) Total Secured Debt as of such date minus (b) the aggregate amount of Unrestricted Cash as of such date

            	
              $[__,__,__]

            
	 	 	 	 
	 	
              (ii)

            	
              Consolidated EBITDA of the Borrower

            	
              $[__,__,__]

            

    

     

    
      A-9

      
        
 

    

    
    EXHIBIT B TO

    CREDIT AGREEMENT

     

    CLOSING CERTIFICATE

     

    November ___, 2014

     

    This Closing Certificate is delivered pursuant to Section 4.1(g) of the Credit Agreement, dated as of November ____, 2014 (as amended,
      restated, supplemented or modified from time to time, the “Credit Agreement”), among LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 1”), FEP GP LNG HOLDINGS LLC, a Delaware limited liability company, (“Holdings

          2,” and together with Holdings 1, “Holdings”), LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”), the several lenders from time to time parties thereto (the “Lenders”), and MORGAN
      STANLEY SENIOR FUNDING, INC., as administrative agent (in such capacity, the “Administrative Agent”). Capitalized terms defined in the Credit Agreement are used
      herein as therein defined.

     

    The undersigned Secretary of Holdings and the Borrower (collectively, the “Certificate Parties”), hereby certifies, on behalf of each Certificate Party, to the Administrative Agent and the Lenders as follows:

     

    1.          Each person listed on Schedule A is a duly elected and qualified officer or authorized signatory of each Certificate Party holding the office or capacity listed opposite such person’s
        name, and the signature appearing opposite such person’s name on Schedule A is the true and genuine signature of such person, and such person is duly
        authorized to execute and deliver, on the Closing Date, on behalf of such Certificate Party each of the Loan Documents to which such Certificate Party is a party and any certificate or other document to be delivered on the Closing Date by such
        Certificate Party pursuant to the Loan Documents to which it is a party.

     

    2.          The representations and
        warranties set forth in each of the Loan Documents are true and correct in all material respects on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such
        representations and warranties were true and correct in all material respects on and as of such earlier date; provided that, in each case, such materiality
        qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof.

     

    3.          No event has occurred and is
        continuing or would result from the making of the initial Term Loans under the Credit Agreement that would constitute an Event of Default

        or a Default as of the date hereof.

     

    4.          Attached hereto as Schedule B is a true and accurate copy of the unaudited consolidated balance sheet of the Borrower as of September 30, 2014, and a pro forma unaudited
        consolidated balance sheet of the Borrower as of September 30, 2014, giving pro forma effect to the Transactions occurring on the Closing Date.

     

    
      B-1

      
        
 

    

    5.          Prior to or substantially
        simultaneously with the funding of the initial Term Loans, an amount in cash equal to $10,800,000, representing the Initial Equity Contribu-tion, has been contributed to Holdings as common equity and further contributed to the Borrower as
      common equity, which amount is reflected on the pro forma unaudited consolidated balance sheet attached hereto as Schedule B.

     

    6.          There are no liquidation or
        dissolution proceedings pending or to my knowledge threatened against any Certificate Party, nor has any other event occurred adversely affecting or threatening the continued corporate existence of any Certificate Party.

     

    7.          Each Certificate Party is a
        limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware.

     

    8.          Attached hereto as Annex 1 is a true and complete copy of resolutions du-ly adopted by the applicable sole member of each Certificate Party. Such resolutions have not in any way
        been amended, modified, revoked or rescinded, have been in full force and effect since their adoption and including the date hereof and are now in full force and effect and are the only proceedings of such Certificate Party now in force relating to
        or affecting the matters referred to therein.

     

    9.         Attached hereto as Annex 2 is a true and complete copy of the Operating Agreement of each Certificate Party as in effect on the date hereof.

     

    10.       Attached hereto as Annex 3 is a true and complete copy of the Certificate of Formation of each Certificate Party as in effect on the date hereof.

    
      B-2

      
        
 

    

    IN WITNESS WHEREOF, the undersigned have executed this Closing Certificate as of the date set forth
      below.

    
      	 	 	 
	 	
              By:

            	 
	 	
              Name:

            	
              Cameron MacDougall

            
	 	
              Title:

            	
              Secretary

            

    

     

    I, _____________, _____________ of each Certificate Party, hereby certify that Cameron MacDougall is the duly elected and qualified Secretary of each Certificate Party, and the signature above is
        his genuine signature.

    
      	 	 	 
	 	
              By:

            	 
	 	
              Name:

            	
               

            
	 	
              Title:

            	
               

            

    

     

    
      B-3

      
        
 

    

    SCHEDULE A

     

    Incumbencies

     

    	
            Name

          	 	
            Office

          	 	
            Signature

          
	
            Joseph P. Adams, Jr.

          	 	
            President

          	 	 
	
            Cameron MacDougall

          	 	
            Secretary

          	 	 
	
            Ken Nicholson

          	 	
            Chief Operating Officer

          	 	 
	
            John Morrissey

          	 	
            Chief Financial Officer

          	 	 

    

    

    
      B-4

      
        
 

    

    SCHEDULE B

    
      B-5

      
        
 

    

    ANNEX 1

     

    [Resolutions of each Certificate Party]

    
      B-6

      
        
 

    

    ANNEX 2

     

    [Operating Agreement of each Certificate Party]

    
      B-7

      
        
 

    

    ANNEX 3

     

    [Certificate of Formation of each Certificate Party]

    
      B-8

      
        
 

    

    SCHEDULE B

     

    [See attached].

    
      B-9

      
        
 

    

    
    EXHIBIT C-1 TO

    CREDIT AGREEMENT

     

    ASSIGNMENT AND ACCEPTANCE AGREEMENT

     

    This Assignment and Acceptance Agreement (this “Assignment”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the 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 the Assignee, and the 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, (i) all of the Assignor’s
      rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of the As-signor’s
      outstanding rights and obligations under the respective facilities identified below (including without limitation any guarantees included in such facilities), and (ii) to the extent permitted to be assigned under applicable law, all claims, suits,
      causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto
      or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to
      the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by the Assignor to the Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”). 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.

     

    	
            1.

          	
            Assignor:

          	
            ____________________

          
	 	 	 
	
            2.

          	
            Assignee:

          	
            ____________________ 1 [and is a Related Fund/an Affiliated Loan
              Fund]

          
	 	 	 
	 	 	
            Market Entity Identifier (if any): ____________________

          
	 	 	 
	
            3.

          	
            Borrower:

          	
            LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company

          
	 	 	 
	
            4.

          	
            Administrative Agent:

          	
            MORGAN STANLEY SENIOR FUNDING, INC.

          

     
      
 1          Assignee shall not be a Disqualified Assignee
          unless such assignment has been approved by the Borrower.

    
      C-1-1

      
        
 

    

    
      

      	
              5.

            	
              Credit Agreement:

            	
              The Credit Agreement, dated as of November 24, 2014, by and among LNG HOLDINGS LLC, a Delaware limited liability company, as Holdings 1, FEP GP LNG
                HOLDINGS LLC, a Delaware limited lia-bility company, as Holdings 2, the Borrower, the several banks and other financial institutions or entities from time to time parties thereto, as the Lenders, and MORGAN STANLEY SENIOR FUNDING, INC., as
                Administrative Agent, as amended, restated, supplemented or modified from time to time

            
	 	 	 
	6. 	Assigned Interest[s]:	 

       

    

    	
            Facility Assigned

          	
            Aggregate Amount of Loans for all Lenders

          	
            Amount of Loans Assigned

          	
            Percentage Assigned of Loans2

          
	
            _______________3

          	
            $_______________

          	
            $_______________

          	
            _______________%

          
	
            _______________

          	
            $_______________

          	
            $_______________

          	
            _______________%

          
	
            _______________

          	
            $_______________

          	
            $_______________

          	
            _______________%

          

    

    

    Effective Date: ____________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
      THEREFOR.]

     

    
      

      	7.	Notice and Wire Instructions:	 

    

     

    
      	[NAME OF ASSIGNOR]	 	[NAME OF ASSIGNEE]
	 	 	 	 	 
	Notices:	 	Notices:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	
              Attention:

            	 	 	
              Attention:

            
	 	
              Telecopier:

            	 	 	
              Telecopier:

            
	 	 	 	 	 
	with a copy to:	 	with a copy to:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	
              Attention:

            	 	 	
              Attention:

            
	 	
              Telecopier:

            	 	 	
              Telecopier:

            
	 	 	 	 	 
	Wire Instructions:	 	Wire Instructions:

    

     

    
      
 

    
      	2	
              Set forth, to at least 9 decimals, as a percentage of the Loans of all Lenders thereunder.

            

    

     

    
      	3	
              Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being as-signed under this Assignment (e.g. “Term Loans,” etc.)

            

    

     

    
      C-1-2

      
        
 

    

    

    

    The terms set forth in this Assignment are hereby agreed to:

     

    
      	 	
              ASSIGNOR

            
	 	
              [NAME OF ASSIGNOR]

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Title:

            
	 	 	 
	 	
              ASSIGNEE

            
	 	
              [NAME OF ASSIGNEE]

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Title:

            

    

     

    Consented to and Accepted:

     

    
      	
              MORGAN STANLEY SENIOR FUNDING, INC.,
                as Administrative Agent

            	 
	 	 	 
	
              By:

            	 	 
	 	
              Title:

            	 
	 	 	 
	
              [Consented to:]4

            	 
	 	 	 
	
              [LNG HOLDINGS (FLORIDA) LLC],
                as Borrower

            	 
	 	 	 
	
              By:

            	 	 
	 	
              Title:

            	 

    

     

    
      
 

    
      	4	
              To be added only if the consent of Borrower is required by the terms of the Credit Agreement.

            

    

     

    
      C-1-3

      
        
 

    

    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 Interest, (ii) the Assigned Interest is 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 Credit Document (as defined below), (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 “Credit Documents”), or any collateral thereunder, (iii) the financial condition of Borrower, any of their Subsidiaries or Affiliates
        or any other Person obligated in respect of any Credit Document or (iv) the performance or observance by Borrower, any of their Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Credit Document.

     

    1.2          Assignee. The Assignee (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 is not a Disqualified 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 of the Assigned Interest, shall have the obli-gations of a
        Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is
        experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.1
        thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and to purchase the Assigned Interest, (vi) it has, independently and without
        reliance upon Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and to purchase the Assigned Interest, and
        (vii) if it is a Non-U.S. Lender, attached to this Assignment is any documentation required to be delivered by it pursuant to the terms of the Credit Agree-ment, duly completed and executed by the Assignee; and (b) agrees that (i) it will,
        independently and without reliance on 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 Credit Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Credit Documents are required to be performed by it as a Lender.

     

    2.            Payments. All payments with respect to the Assigned Interests shall be made on the Effective Date as follows:

     

    2.1          From and after the Effective
        Date, Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the
        Assignee for amounts which have accrued from and after the Effective Date. Notwithstanding the foregoing, Administrative Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and after the Effective
      Date to the Assignee.

    
      C-1-4

      
        
 

    

    3.           General Provisions. This Assignment shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment may be
        executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counter-part of a signature page of this Assignment by telecopy 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 internal laws of the State of New York without regard to conflict of laws principles thereof.

     

    [Remainder of page intentionally left blank]

    
      C-1-5

      
        
 

    

    
    EXHIBIT C-2 TO

    CREDIT AGREEMENT

     

    AFFILIATED LENDER ASSIGNMENT AND ACCEPTANCE AGREEMENT

     

    This Affiliated Lender Assignment and Acceptance Agreement (this “Assignment”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of
        Assignor] (the “Assignor”) and [Insert name
        of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement
      identified below (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), receipt of a copy of which is
      hereby acknowledged by the 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 the Assignee, and the 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, (i) all of the Assignor’s
      rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of the Assignor’s
      outstanding rights and obligations under the respective facilities identified below (including without limitation any guarantees included in such facilities), and (ii) to the extent permitted to be assigned under applicable law, all claims, suits,
      causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto
      or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to
      the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by the Assignor to the Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”). 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.

     

    	
            1.

          	
            Assignor:

          	
            ____________________

          
	 	 	 
	
            2.

          	
            Assignee:

          	
            ____________________1 and is a [Related Fund/an Affiliated Lender/an
              Affiliated Loan Fund]

          
	 	 	 
	 	 	
            Market Entity Identifier (if any): ____________________

          
	 	 	 
	
            3.

          	
            Borrower:

          	
            LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company

          
	 	 	 
	
            4.

          	
            Administrative Agent:

          	
            MORGAN STANLEY SENIOR FUNDING, INC.

          

     
      
 

    
      	1	
              Assignee shall not be a Disqualified Assignee unless such assignment has been approved by the Borrower.

            

    

    
      C-2-1

      
        
 

    

    
      

      	
              5.

            	
              Credit Agreement:

            	
              The Credit Agreement, dated as of November 24, 2014, by and among LNG HOLDINGS LLC, a Delaware limited liability company, as Holdings 1, FEP GP LNG
                HOLDING LLC, a Delaware limited liability company, as Holdings 2 the Borrower, the several banks and other financial institutions or entities from time to time parties thereto, as the Lenders, and MORGAN STANLEY SENIOR FUNDING, INC., as
                Administrative Agent, as amended, restated, supplemented or modified from time to time

            

       

      
        

        	6.	
                Assigned Interest[s]:

              	 

      

       

    

    	
            Facility Assigned

          	
            Aggregate Amount of Loans for all Lenders

          	
            Amount of Loans Assigned

          	
            Percentage Assigned of Loans2

          
	
            _______________3

          	
            $_______________

          	
            $_______________

          	
            _______________%

          
	
            _______________

          	
            $_______________

          	
            $_______________

          	
            _______________%

          
	
            _______________

          	
            $_______________

          	
            $_______________

          	
            _______________%

          

    

    

    Effective Date: ____________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
      THEREFOR.]

     

    
      

      	7. 	
              Notice and Wire Instructions:

            	 

       

      
        	[NAME OF ASSIGNOR]	 	[NAME OF ASSIGNEE]
	 	 	 	 	 
	Notices:	 	Notices:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	
                Attention:

              	 	 	
                Attention:

              
	 	
                Telecopier:

              	 	 	
                Telecopier:

              
	 	 	 	 	 
	with a copy to:	 	with a copy to:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	
                Attention:

              	 	 	
                Attention:

              
	 	
                Telecopier:

              	 	 	
                Telecopier:

              
	 	 	 	 	 
	Wire Instructions:	 	Wire Instructions:

      

      

        
 

    

    
      	2	
              Set forth, to at least 9 decimals, as a percentage of the Loans of all Lenders thereunder.

            

    

     

    
      	3	
              Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being as-signed under this Assignment (e.g. “Term Loans,” etc.)

            

    

    
      C-2-2

      
        
 

    

    The terms set forth in this Assignment are hereby agreed to:

     

    
      
        	 	
                ASSIGNOR

              
	 	
                [NAME OF ASSIGNOR]

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Title:

              
	 	 	 
	 	
                ASSIGNEE

              
	 	
                [NAME OF ASSIGNEE]

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Title:

              

      

       

      Consented to and Accepted:

       

      
        	
                MORGAN STANLEY SENIOR FUNDING, INC.,
                  as Administrative Agent

              	 
	 	 	 
	
                By:

              	 	 
	 	
                Title:

              	 
	 	 	 
	
                [Consented to:]4

              	 
	 	 	 
	
                [LNG HOLDINGS (FLORIDA) LLC],
                  as Borrower

              	 
	 	 	 
	
                By:

              	 	 
	 	
                Title:

              	 

      

    

     

    
      
 

    
      	4	
              To be added only if the consent of Borrower is required by the terms of the Credit Agreement.

            

    

    
      C-2-3

      
        
 

    

    ANNEX 1

     

    STANDARD TERMS AND CONDITIONS FOR AFFILIATED LENDER ASSIGNMENT

      AND ASSUMPTION AGREEMENT

     

    4.            Representations and Warranties.

     

    4.1          Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is 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 Credit Document (as defined below), (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 “Credit Documents”), or any
        collateral thereunder, (iii) the financial condition of Borrower, any of their Subsidiaries or Affiliates or any other Person obligated in respect of any Credit Document or (iv) the performance or observance by Borrower, any of their Subsidiaries
        or Affiliates or any other Person of any of their respective obligations under any Credit Document.

     

    4.2          Assignee. The Assignee (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 is not a Disqualified 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 of the Assigned Interest, shall have the obli-gations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either
        it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the
        opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.1 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter
        into this Assignment and to purchase the Assigned Interest, (vi) it has, independently and without reliance upon Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit
        analysis and decision to enter into this Assignment and to purchase the Assigned Interest, and (vii) if it is a Non-U.S. Lender, attached to this Assignment is any documentation required to be delivered by it pursuant to the terms of the Credit
        Agree-ment, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on 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 Credit Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Credit Documents
        are required to be performed by it as a Lender.

     

    5.            Payments. All payments with respect to the Assigned Interests shall be made on the Effective Date as follows:

     

    5.1          From and after the Effective
        Date, Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the
        Assignee for amounts which have accrued from and after the Effective Date. Notwithstanding the foregoing, Administrative Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and after the Effective
      Date to the Assignee.

    
      C-2-4

      
        
 

    

    6.            General Provisions. This Assignment shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment may be
        executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counter-part of a signature page of this Assignment by telecopy 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 internal laws of the State of New York without regard to conflict of laws principles thereof.

     

    7.            Acknowledgment. Each of the parties hereto acknowledge and agree that in connection with this Assignment, (A) the Assignee may have, and later may come into possession of, Excluded
        Information, (B) the Assignor has, independently and without reliance on Assignee, any of its Subsidiaries, the Administrative Agent or any of its affiliates, made its own analysis and determination to participate in this Assignment notwithstanding
        Assignor’s lack of knowledge of the Excluded Information, (C) none of the Assignee, any other Affiliated Lenders or any of their Subsidiaries, the Administrative Agent or any of its affiliates shall have any liability to Assignor, and Assignor
        hereby waives and releases, to the extent permitted by law, any claims Assignor may have against Assignee, any other Affiliated Lender, any of their Subsidiaries, the Administrative Agent and any of its affiliates, under applicable laws or
        otherwise, with respect to the nondisclosure of the Excluded Information and (D) the Excluded Information may not be available to the Administrative Agent or the other Lenders. “Excluded Information” means information regarding the Term Loans or
        the applicable Loan Parties that is not known to a Lender participat-ing in an assignment to an Affiliated Lender pursuant to Section 9.6(d) of the Credit Agreement that may be material to a decision by such Lender to participate in such assignment
        to such Affiliated Lender or such assignment by an Affiliated Lender, as applicable.

     

    [Remainder of page intentionally left blank]

    
      C-2-5

      
        
 

    

    
    EXHIBIT D TO

    CREDIT AGREEMENT

     

    TERM LOAN NOTE

     

    $[1][___,___,___][2]

    
      	
              [mm/dd/yy] 

            	
              New York, New York

            

    

     

    FOR VALUE RECEIVED, LNG HOLDINGS
      (FLORIDA) LLC, a Delaware limited liability company (“Borrower”), hereby promises to pay [NAME OF LENDER] (“Payee”) or its registered assigns the principal amount of [          ] DOLLARS ($
      [___,___,          ]) in the installments referred to below.

     

    Borrower also promises to pay interest on the unpaid principal amount hereof, from the date hereof until paid in full, at the rates and at
      the times which shall be determined in accordance with the provisions of that certain Credit Agreement, dated as of November 24, 2014 (as amended, restated, sup-plemented or otherwise modified, the “Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined), by and among LNG HOLDINGS LLC, a Delaware limited liability company, as Holdings
      1, FEP GP LNG HOLDINGS LLC, a Delaware limited liability company, as Holdings 2, Borrower, the several banks and other financial institutions or entities from time to time parties thereto, as the Lenders, and MORGAN STANLEY SENIOR FUNDING, INC., as
      Admin-istrative Agent.

     

    Borrower shall make scheduled principal payments on this Note as set forth in Section 2.13 of the Credit Agreement.

     

    This Note is one of the “Term Loan Notes” and is issued pursuant to and entitled to the benefits of the Credit Agreement, to which reference
      is hereby made for a more complete statement of the terms and conditions under which the Term Loan evidenced hereby was made and is to be repaid.

     

    All payments of principal and interest in respect of this Note shall be made in lawful money of the United States of America in same day
      funds at the Principal Office of Administrative Agent or at such other place as shall be designated in writing for such purpose in accordance with the terms of the Credit Agreement. Unless and until an Assignment and Acceptance effecting the
      assignment or transfer of the obligations evidenced hereby shall have been accepted by Administrative Agent and recorded in the Register, Borrower, the Administrative Agent and Lenders shall be entitled to deem and treat Payee as the owner and holder
      of this Note and the obligations evidenced hereby. Payee hereby agrees, by its ac-ceptance hereof, that before disposing of this Note or any part hereof it will make a notation hereon of all principal payments previously made hereunder and of the
      date to which interest hereon has been paid; provided, the failure to make a notation of any payment made on this Note shall not limit or otherwise affect the obligations of Borrower hereunder with respect to payments of principal of or interest on
      this Note.

     

    This Note is subject to mandatory prepayment and to prepayment at the option of Borrower, each as provided in the Credit Agreement.

     

    
      
 

    
      	1	
              Lender’s Term Loan amount

            

    

     

    
      	2	
              Closing Date (or, if written notice of Lender’s request for Note is delivered after the Closi ng Date, a date that is promptly after the Borrower’s receipt of such
                notice)

            

    

    
      D-1

      
        
 

    

    THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF BORROWER AND PAYEE HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND INTERPRETED IN
      ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     

    Upon the occurrence of an Event of Default, the unpaid balance of the principal amount of this Note, together with all accrued and unpaid
      interest thereon, may become, or may be declared to be, due and payable in the manner, upon the conditions and with the effect provided in the Credit Agreement.

     

    The terms of this Note are subject to amendment only in the manner provided in the Credit Agreement.

     

    No reference herein to the Credit Agreement and no provision of this Note or the Credit Agree-ment shall alter or impair the obligations of
      Borrower, which are absolute and unconditional, to pay the principal of and interest on this Note at the place, at the respective times, and in the currency herein prescribed.

     

    Borrower hereby promises to pay all costs and expenses, including reasonable attorneys’ fees, all as provided in the Credit Agreement,
      incurred in the collection and enforcement of this Note. Borrower and any endorsers of this Note hereby consent to renewals and extensions of time at or after the maturity hereof, without notice, and hereby waive diligence, presentment, protest,
      demand notice of every kind and, to the full extent permitted by law, the right to plead any statute of limitations as a defense to any demand hereunder.

     

    [Remainder of page intentionally left blank]

    
      D-2

      
        
 

    

    IN WITNESS WHEREOF, Borrower has
      caused this Note to be duly executed and delivered by its officer thereunto duly authorized as of the date and at the place first written above.

     

    
      	 	LNG HOLDINGS (FLORIDA) LLC
	 	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            

    

    
      D-3

      
        
 

    

    
    EXHIBIT E-1 TO

    CREDIT AGREEMENT

     

    FORM OF UNITED STATES TAX COMPLIANCE CERTIFICATE

     

    (FOR NON-U.S. LENDERS THAT ARE NOT PARTNERSHIPS

      FOR U.S. FEDERAL INCOME TAX PURPOSES)

     

    1.          Reference is made to that
        certain Credit Agreement, dated as of November 24, 2014 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”; the terms defined
        there-in and not otherwise defined herein being used herein as therein defined), by and among LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 1”),

        FEP GP LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 2,” and together with Holdings 1, “Holdings”), LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”), the several
        banks and other financial institutions or entities from time to time parties thereto, as the Lenders, and MORGAN STANLEY SENIOR FUNDING, INC., as Administrative Agent.

     

    2.          Pursuant to the provisions of Section 2.21(d) 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
        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 the Borrower within the meaning of
        Section 881(c)(3)(B) of the Code, (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code and (v) no interest payments on the Loan(s) are effectively connected with the
        undersigned’s conduct of a U.S. trade or business.

     

    3.          The undersigned has furnished
        the Administrative Agent and the Borrower with a certifi-cate of its non-U.S. person status on Internal Revenue Service Form W-8BEN or W-8BEN-E. By execut-ing this certificate, the undersigned agrees that (1) if the information provided on this
        certificate changes, or if a lapse in time or change in circumstances renders the information on this certificate obsolete, expired or inaccurate in any material respect, the undersigned shall promptly so inform the Borrower and the Administrative
        Agent in writing and deliver promptly to the Borrower and the Administrative Agent an updated certificate or other appropriate documentation (including any new documentation reasonably requested by the Borrower or the Administrative Agent) or
        promptly notify the Borrower and the Admin-istrative Agent in writing of its inability to do so, and (2) the undersigned shall have at all times furnished the Borrower 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.

     

    [SIGNATURE PAGE FOLLOWS]

    
      E-1-1

      
        
 

    

    
       

      
        	 	[LENDER]
	 	 	 
	 	
                By:

              	 
	 	 	
                Name:

              
	 	 	
                Title:

              
	 	 	 
	 	 	Address:

      

    

     

    Dated: _______________, 20__

    
      E-1-2

      
        
 

    

    
    EXHIBIT E-2

    TO CREDIT AGREEMENT

     

    FORM OF UNITED STATES TAX COMPLIANCE CERTIFICATE

     

    (FOR NON-U.S. LENDERS THAT ARE PARTNERSHIPS

      FOR U.S. FEDERAL INCOME TAX PURPOSES)

     

    1.          Reference is made to that
        certain Credit Agreement, dated as of November 24, 2014 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”; the terms defined
        there-in and not otherwise defined herein being used herein as therein defined), by and among LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 1”),

        FEP GP LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 2,” and together with Holdings 1, “Holdings”), LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”), the several
        banks and other financial institutions or entities from time to time parties thereto, as the Lenders, and MORGAN STANLEY SENIOR FUNDING, INC., as Administrative Agent.

     

    2.          Pursuant to the provisions of Section 2.21(d) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any 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 Note(s) evidencing such Loan(s)), (iii) neither the undersigned nor any
        of its direct or indirect partners/members is a “bank” 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 share-holder of the Borrower within the meaning of Section
        881(c)(3)(B) of the Code, (v) none of its direct or indirect partners/members is a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code and (vi) no interest payments on the Loan(s) are
        effectively connected with the conduct of a U.S. trade or business by the undersigned or any of its direct or indirect part-ners/members that is claiming the portfolio interest exemption.

     

    3.          The undersigned has furnished
        the Administrative Agent and the Borrower with Internal Revenue Service Form W-8IMY accompanied by one of the following forms from each of its part-ners/members claiming the portfolio interest exception: (i) an Internal Revenue Service Form W-8BEN
        or W-8BEN-E or (ii) an Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN or W-8BEN-E 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, or if a lapse in time or change in circumstances renders the information on this certificate obsolete, expired or inaccurate in any material
        respect, the undersigned shall promptly so inform the Borrower and the Administrative Agent in writing and deliver promptly to the Borrower and the Administrative Agent an updated certificate or other appropriate documentation (in-cluding any new
        documentation reasonably requested by the Borrower or the Administrative Agent) or promptly notify the Borrower and the Administrative Agent in writing of its inability to do so, and (2) the undersigned shall have at all times furnished the
        Borrower 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.

    
      
         

        
          	 	[LENDER]
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                
	 	 	
                  Title:

                
	 	 	 
	 	 	Address:

        

      

       

      Dated: _______________, 20

    

    
      E-2-1

      
        
 

    

    
     

    EXHIBIT E-3 TO

    CREDIT AGREEMENT

     

    FORM OF UNITED STATES TAX COMPLIANCE CERTIFICATE

     

    (FOR NON-U.S. PARTICIPANTS THAT ARE NOT PARTNERSHIPS

      FOR U.S. FEDERAL INCOME TAX PURPOSES)

     

    1.          Reference is made to that
        certain Credit Agreement, dated as of November 24, 2014 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”; the terms defined
        there-in and not otherwise defined herein being used herein as therein defined), by and among LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 1”),

        FEP GP LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 2,” and together with Holdings 1, “Holdings”), LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”), the several
        banks and other financial institutions or entities from time to time parties thereto, as the Lenders, and MORGAN STANLEY SENIOR FUNDING, INC., as Administrative Agent.

     

    2.          Pursuant to the provisions of Section 2.21(d) 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 the Borrower within the meaning of Section 881(c)(3)(B) of the Code, (iv) it is not
        a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code and (v) no interest payments with respect to such participation are effectively connected with the undersigned’s conduct of a U.S. trade or
        business.

     

    3.          The undersigned has furnished
        its participating Lender with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN or W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes,
        or if a lapse in time or change in circumstances renders the information on this certificate obsolete, expired or inaccurate in any material respect, the undersigned shall promptly so inform such Lender in writing and deliver promptly to such
        Lender an updated certificate or other appropriate documentation (including any new documentation reasonably requested by such Lender) or promptly notify such Lender in writing of its in-ability to do so, 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.

     

    [SIGNATURE PAGE FOLLOWS]

    
      E-3-1

      
        
 

    

    
      
         

        
          	 	[PARTICIPANT]
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                
	 	 	
                  Title:

                
	 	 	 
	 	 	Address:

        

      

       

      Dated: _______________, 20__

      

    

    
      E-3-2

      
        
 

    

    
    EXHIBIT E-4 TO

    CREDIT AGREEMENT

     

    FORM OF UNITED STATES TAX COMPLIANCE CERTIFICATE

     

    (FOR NON-U.S. LENDERS THAT ARE PARTNERSHIPS

      FOR U.S. FEDERAL INCOME TAX PURPOSES)

     

    1.          Reference is made to that
        certain Credit Agreement, dated as of November 24, 2014 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”; the terms defined
        there-in and not otherwise defined herein being used herein as therein defined), by and among LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 1”),

        FEP GP LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 2,” and together with Holdings 1, “Holdings”), LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”), the several
        banks and other financial institutions or entities from time to time parties thereto, as the Lenders, and MORGAN STANLEY SENIOR FUNDING, INC., as Administrative Agent.

     

    2.          Pursuant to the provisions of Section 2.21(d) 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) neither the undersigned nor any of its direct or indirect partners/members is a “bank” 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 the Borrower within the meaning of Section 881(c)(3)(B) of the Code, (v) none of its direct or indirect partners/members is a
        “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code and (vi) no payments in connection with any Loan Document are effectively connected with the conduct of a U.S. trade or business by the
        undersigned’s or any of its direct or indirect partners/members that is claiming the portfolio interest exemption.

     

    3.          The undersigned has furnished
        its participating Lender with Internal Revenue Service Form W-8IMY accompanied by one of the following forms from each of its partners/members claiming the portfolio interest exception: (i) an Internal Revenue Service Form W-8BEN or W-8BEN-E or
        (ii) an Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN or W-8BEN-E 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 or if a lapse in time or change in circumstances renders the information on this certificate obsolete, expired or inaccurate in any material respect, the
        undersigned shall promptly so inform such Lender in writing and deliver promptly to such Lender an updated certificate or other appropri-ate documentation (including any new documentation reasonably requested by such Lender) or promptly notify such
        Lender in writing of its inability to do so, 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.

     

    [SIGNATURE PAGE FOLLOWS]

    
      E-4-1

      
        
 

    

    
      
         

        
          	 	[PARTICIPANT]
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                
	 	 	
                  Title:

                
	 	 	 
	 	 	Address:

        

      

       

      Dated: _______________, 20__

      

    

    
      E-4-2

      
        
 

    

    
    EXHIBIT F TO

    CREDIT AGREEMENT

     

    SOLVENCY CERTIFICATE

     

    _______________, 2014

     

    THE UNDERSIGNED HEREBY CERTIFIES AS FOLLOWS:

     

    
      		1.	
              I, John Morrissey, am the Chief Financial Officer of LNG Holdings LLC, a Delaware limited liability company (“Holdings 1”) and FEP GP LNG Holdings LLC, a Delaware limited liability company (“Holdings 2,” and together
                with Holdings 1, “Holdings”). I am making the certifications below solely in my capacity as President of Holdings and not in any individual capacity.

            

    

     

    
      		2.	
              Reference is made to that certain Credit Agreement, dated as of the date hereof (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein de-fined), by and among Holdings, LNG Holdings
                (Florida) LLC, a Delaware limited liability company (the “Borrower”), the several banks and other financial institutions or enti-

                ties from time to time parties thereto (the “Lenders”) and Morgan Stanley Senior Fund-ing, Inc., as administrative agent (in such capacity, the
                “Administrative Agent”).

            

    

     

    
      		3.	
              I have reviewed the terms of Section 3.20 of the Credit Agreement and the
                definitions and provisions contained in the Credit Agreement relating thereto, and, in my opinion, have made, or have caused to be made under my supervision, such examination or investigation as is necessary to enable me to express an
                informed opinion as to the matters re-ferred to herein.

            

    

     

    
      		4.	
              Based upon my review and examination described in paragraph 3 above, I certify, on be-half of Holdings, that as of the date hereof, after giving effect to the
                Transactions, the LNG Group Members, on a consolidated basis, are Solvent.

            

    

     

    The foregoing certifications are made and delivered as of the date first mentioned above.

    
      F-1

      
        
 

    

    IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate as of the date first mentioned above.

     

    
      	
               

            	
              LNG HOLDINGS LLC

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            

    

     

    
      
        	
                 

              	
                FEP GP LNG HOLDINGS LLC

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Name:

              
	 	 	
                Title:

              

      

      
        F-2

        
          
 

      

      

    EXHIBIT G-1 TO

    CREDIT AGREEMENT

     

    FUNDING NOTICE

     

    Reference is made to the Credit Agreement, dated as of November 24, 2014 (as amended, restat-ed, supplemented or otherwise modified, the “Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined), by and among LNG HOLDINGS LLC, a Delaware
      limited liability company (“Holdings 1”), FEP GP LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 2,” and together with Holdings 1, “Holdings”), LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company
      (the “Borrower”), the several banks and other financial institutions or entities from time to time parties thereto, as the Lenders, and MORGAN STANLEY SENIOR
      FUNDING, INC., as Administrative Agent.

     

    Pursuant to Section 2.1(b) of the Credit
      Agreement, the Borrower desires that Lenders make the following Loans to the Borrower in accordance with the applicable terms and conditions of the Credit Agreement on [mm/dd/yy] (the “Credit Date”):

     

    Term Loans

     

    ☐            Base Rate Loans:                                                                                                                      $[___,___,___]

     

    ☐            Eurodollar Rate Loans, with an
        initial Interest Period of __________ month(s):          $[___,___,___]

     

    The Borrower hereby certifies that:

     

    (i)          as of the
        Credit Date, the representations and warranties contained in each of the Loan Documents are true and correct in all material respects on and as of such Credit Date to the same extent as though made on and as of such date, except to the extent such
        representations and warranties specifically relate to an earlier date, in which case such representations and warranties are true and correct in all material respects on and as of such earlier date; provided that, in each case, such materiality
        qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof;

     

    (ii)          as of
        the Credit Date, no event has occurred and is continuing or would result from the consummation of the borrowing contemplated hereby that would constitute an Event of Default or a Default; [and]

     

    (iii)         concurrently

        with the funding of the Term Loans to be made on such Credit Date, the Debt Service Reserve Account shall be funded in an amount equal to the Debt Service Reserve Requirement (as defined in the Depositary Agreement) in accordance with the
        Depositary Agreement[.][; and]

     

    [(iv)        the
        Borrower is in compliance with the In-Balance Test after giving pro forma effect to the funding of the Term Loans to be made on such Credit Date.]1

     

    
      
 

    1 Include if Credit Date is after the Closing Date.

    
      G-1-1

      
        
 

    

    The account of the Borrower to which the proceeds of the Loans requested on the Credit Date are to be made available by Administrative Agent
      to such Borrower is as follows:

     

    
      	 	
              Bank Name:

            	 
	 	
              Bank Address:

            	 
	 	
              ABA Number:

            	 
	 	
              Account Number:

            	 
	 	
              Attention:

            	 
	 	
              Reference:

            	 

    

    

    

    
      G-1-2

      
        
 

    

    
      	
              Date: [mm/dd/yy]

            	LNG HOLDINGS (FLORIDA) LLC, as Borrower
	 	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            

    

    
      G-1-3

      
        
 

    

    
    EXHIBIT G-2 TO

    CREDIT AGREEMENT

     

    CONVERSION/CONTINUATION NOTICE

     

    Reference is made to the Credit Agreement, dated as of November 24, 2014 (as amended, restat-ed, supplemented or otherwise modified, the “Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined), by and among LNG HOLDINGS LLC, a Delaware
      limited liability company (“Holdings 1”), FEP GP LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 2,” and together with Holdings 1, “Holdings”), LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company
      (the “Borrower”), the several banks and other financial institutions or entities from time to time parties thereto, as the Lenders, and MORGAN STANLEY SENIOR
      FUNDING, INC., as Administrative Agent.

     

    Pursuant to Section 2.10 of the Credit Agreement,
      the Borrower desires to convert or to continue the following Loans, each such conversion and/or continuation to be effective as of [mm/dd/yy]:

     

    1.            Term Loans:

     

    
      		$[___,___,___]	
              Eurodollar Rate Loans to be continued with Interest Period of [_____] month(s)

            

    

     

    
      		$[___,___,___]	
              Base Rate Loans to be converted to Eurodollar Rate Loans with Interest Period of [_____] month(s)

            

    

     

    
      		$[___,___,___]	
              Eurodollar Rate Loans to be converted to Base Rate Loans

            

    

     

    
      G-2-1

      
        
 

    

    
      	
              Date: [mm/dd/yy]

            	LNG HOLDINGS (FLORIDA) LLC, as Borrower
	 	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            

    

     

    
      G-2-2

      
        
 

    

    
    EXHIBIT H TO

    CREDIT AGREEMENT

     

    SECURITY DEPOSIT AGREEMENT

     

    [attached].

    
      H-1

      
        
 

    

  

  
  
    SECURITY DEPOSIT AGREEMENT

     

    Dated as of November 24, 2014

     

    by and among

     

    LNG HOLDINGS (FLORIDA) LLC,

      as Borrower,

     

    MORGAN STANLEY SENIOR FUNDING, INC.,

      as Administrative Agent

     

    MORGAN STANLEY SENIOR FUNDING, INC.,

      as Depositary Agent,

     

    and

     

    EACH OF THE OTHER PARTIES HERETO

      FROM TIME TO TIME

    
      
        
 

    

    Table of Contents

     

    
      	 	 	 	
              Page

            
	 	 	 	 
	
              Article I

            
	
              DEFINITIONS; INTERPRETATION

            	 	
              1

            
	 	 	 	 
	
              Section 1.1

            	
              Certain Defined Terms

            	 	
              1

            
	
              Section 1.2

            	
              Interpretation; Definitions

            	 	
              3

            
	 	 	 	 
	
              Article II

            
	
              APPOINTMENT OF DEPOSITARY AGENT; ESTABLISHMENT OF THE DEBT SERVICE RESERVE ACCOUNT

            	
              3

            
	 	 	 	 
	
              Section 2.1

            	
              Appointment of Depositary Agent

            	
              3

            
	
              Section 2.2

            	
              Establishment of the Debt Service Reserve Account

            	
              3

            
	
              Section 2.3

            	
              Security Interests

            	 	
              4

            
	
              Section 2.4

            	
              Debt Service Reserve Account Maintained as UCC “Securities Account”

            	
              4

            
	
              Section 2.5

            	
              Jurisdiction of Depositary Agent

            	
              5

            
	
              Section 2.6

            	
              Degree of Care; Liens

            	 	
              6

            
	
              Section 2.7

            	
              Subordination of Lien

            	 	
              6

            
	
              Section 2.8

            	
              No Other Agreements

            	 	
              6

            
	
              Section 2.9

            	
              Notice of Adverse Claims

            	 	
              6

            
	
              Section 2.10

            	
              Rights and Powers of the Administrative Agent

            	
              6

            
	
              Section 2.11

            	
              Termination

            	 	
              6

            
	 	 	 	 
	
              Article III

            
	
              DEBT SERVICE RESERVE ACCOUNT

            	 	
              6

            
	 	 	 	 
	
              Section 3.1

            	
              Deposits into Debt Service Reserve Account

            	
              6

            
	
              Section 3.2

            	
              Net Interest on Deposits

            	 	
              7

            
	
              Section 3.3

            	
              [Reserved]

            	 	
              7

            
	
              Section 3.4

            	
              Disbursements of Excess Amounts

            	
              7

            
	
              Section 3.5

            	
              Disbursements to Pay Debt Service

            	
              7

            
	
              Section 3.6

            	
              Investment of Debt Service Reserve Account

            	
              7

            
	
              Section 3.7

            	
              Disposition of the Debt Service Reserve Account upon Discharge Date

            	
              8

            
	
              Section 3.8

            	
              Account Balance Statements

            	 	
              8

            
	
              Section 3.9

            	
              Events of Default; Trigger Events

            	
              8

            
	 	 	 	 
	
              Article IV

            
	
              DEPOSITARY AGENT

            	 	
              9

            
	 	 	 	 
	
              Section 4.1

            	
              Appointment, Authorization and Action

            	
              9

            
	
              Section 4.2

            	
              Reliance by Depositary Agent

            	 	
              10

            
	
              Section 4.3

            	
              Court Orders

            	 	
              11

            
	
              Section 4.4

            	
              Resignation or Removal

            	 	
              11

            
	 	 	 	 
	
              Article V

            
	
              EXPENSES; INDEMNIFICATION; FEES

            	 	
              12

            
	 	 	 	 
	
              Section 5.1

            	
              Compensation and Expenses

            	 	
              12

            

    

     

    
      
        
 

    

    
      	
              Section 5.2

            	
              Indemnification

            	 	
              12

            
	 	 	 	 
	
              Article VI

            
	
              MISCELLANEOUS

            	 	
              13

            
	 	 	 	 
	
              Section 6.1

            	
              Amendments, Etc

            	 	
              13

            
	
              Section 6.2

            	
              Notice and Other Communications

            	
              13

            
	
              Section 6.3

            	
              GOVERNING LAW

            	 	
              14

            
	
              Section 6.4

            	
              WAIVER OF RIGHT TO TRIAL BY JURY

            	
              15

            
	
              Section 6.5

            	
              Further Assurances

            	 	
              15

            
	
              Section 6.6

            	
              Binding Effect

            	 	
              15

            
	
              Section 6.7

            	
              No Waiver; Cumulative Remedies

            	
              16

            
	
              Section 6.8

            	
              Counterparts

            	 	
              16

            
	
              Section 6.9

            	
              Integration

            	 	
              16

            
	
              Section 6.10

            	
              Headings

            	 	
              16

            
	
              Section 6.11

            	
              Severability

            	 	
              16

            
	 	 	 	 
	
              Debt Service Reserve Account

            	 	
              1

            

    

     

    
      	
              EXHIBITS

            	 	 
	 	 	 
	
              Exhibit A          -          Form of Withdrawal Certificate

            	
               

            	
               

            

      

      

      
        
          
 

      

    

    This SECURITY DEPOSIT AGREEMENT, dated as of November 24, 2014 (this “Agreement”), is entered into among LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”), MORGAN
      STANLEY SENIOR FUNDING, INC., as administrative agent pursuant to the Credit Agreement (in such capacity, together with any permitted successor, assign or permitted replacement, the “Administrative Agent”), and MORGAN STANLEY SENIOR FUNDING, INC., as both a “securities intermediary” (as defined in Section 8-102 of the UCC) and a “bank” (as defined in Section 9-102 of the UCC) (“MSSFI” in such capacities, together with any permitted successor, assign or permitted replacement bank and securities intermediary thereto, the “Depositary Agent”).  Capitalized terms used in this Agreement (including in this preamble and the recitals below) have the meanings assigned to such terms in Section 1.1.

     

    RECITALS:

     

    WHEREAS, LNG Holdings LLC, a Delaware limited liability company (“Holdings”), the Borrower, the lenders party thereto from time to time and the Administrative Agent are entering into that certain Credit Agreement, dated as of the date hereof (the “Credit Agreement”), which provides, among other things, for the borrowing of Term Loans for uses as contemplated by the Credit Agreement;

     

    WHEREAS, Holdings, the Borrower, Administrative Agent, and each of the other Grantors named therein are entering into that certain
      Security Agreement, dated as of the date hereof (the “Security Agreement”), to, among other things, define the rights, duties, authorities and responsibilities
      of the Administrative Agent and the respective rights and remedies among the Secured Parties with respect to the Collateral;

     

    WHEREAS, on the date hereof, the Administrative Agent and the Borrower desire to, among other things, appoint MSSFI as the Depositary
      Agent pursuant to the terms hereof to hold and administer money deposited in or credited to the Debt Service Reserve Account; and

     

    WHEREAS, it is a condition precedent to the making of the extensions of credit under the Credit Agreement that the parties hereto enter
      into this Agreement.

     

    AGREEMENT:

     

    NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and obligations herein set forth and for other good and valuable
      consideration, the adequacy and receipt of which are hereby acknowledged and in reliance upon the representations, warranties and covenants contained herein, the parties hereto, intending to be legally bound, hereby agree as follows:

     

    ARTICLE I

      DEFINITIONS; INTERPRETATION

     

    Section 1.1          Certain Defined
        Terms.  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein (including in the preamble, recitals, exhibits and schedules hereto) shall have the meanings given to them in the Credit Agreement.  In the event that a
        term is not defined in the Credit Agreement, but it is used herein (including in the preamble, recitals, exhibits and schedules hereto) and not defined herein, such term shall have the meaning given to such term in the Security Agreement.  In
        addition, as used in this Agreement, the following terms shall have the following meanings:

     

    “Account Collateral” has the meaning specified
      in Section 2.3(a).

    
      
        
 

    

    
    “Administrative Agent” has the meaning
      specified in the recitals to this Agreement.

     

    “Agreement” has the meaning specified in the
      preamble to this Agreement, as may be amended, restated, supplemented, refinanced, replaced or otherwise modified from time to time.

     

    “Borrower” has the meaning specified in the
      preamble to this Agreement.

     

    “Credit Agreement” has the meaning specified in
      the recitals to this Agreement.

     

    “Debt Service” means, for any period, all
      payments of principal, interest and Undrawn Commitment Fees, other fees, expenses or other changes due and payable by the Borrower in respect of all Obligations pursuant to the terms of the Loan Documents in such period.

     

    “Debt Service Payment Deficiency” has the
      meaning set forth in Section 3.5.

     

    “Debt Service Reserve Account” means the
      Account of such name established pursuant to Section 2.2.

     

    “Debt Service Reserve Requirement” means (a) on
      the Closing Date, $912,236.11 or (b) with respect to any DSRA Shortfall in connection with any Credit Extension made under and pursuant to the Credit Agreement on any Credit Date after the Closing Date, if the Full DSRA Funding Condition is not
      satisfied, an amount, certified by the Borrower pursuant to the applicable Funding Notice, equal to (i) the aggregate scheduled principal payments in respect of the Term Loans borrowed on such Credit Date, plus (ii) interest accruing and payable in respect of the Term Loans borrowed on such Credit Date, plus
      (iii) any Undrawn Commitment Fee payable in respect of undrawn Commitments, as adjusted for any Undrawn Commitment Fee no longer payable due to such Credit Extension, in the case of clause (b), for the period beginning on such Credit Date to the then
      Expected Plant Completion Date.

     

    “Depositary Agent” has the meaning specified in
      the preamble to this Agreement.

     

    “Discharge Date” means the date on which the
      discharge of the Obligations has occurred, as notified to the Depositary Agent by the Administrative Agent pursuant to Section 3.7.

     

    “DSRA Excess” has the meaning specified in Section 3.4.

     

    “DSRA Shortfall” has the meaning specified in Section 3.1.

     

    “Expected Plant Completion Date” means (a)
      September 25, 2015 or (b) after the Closing Date, the expected Plant Completion Date as of any Credit Date, which date, if different from the date specified in clause (a), may be extended from time to time by the Borrower in consultation with the
      Administrative Agent, and if requested by the Administrative Agent, confirmed in writing by the Contractor under and as defined in the Design-Build Agreement.

     

    “Financial Assets” has the meaning specified in
      Section 2.4(a).

     

    “Full DSRA Funding Condition” means that, on
      any date of determination, a Responsible Officer of the Borrower has delivered a certificate, accompanied by supporting information in reasonable detail to the Administrative Agent, certifying that (a) the Plant Completion Date has occurred and (b)
      Borrower’s EBITDA, computed on a Pro Forma Basis, as of the date of such certificate, exceeds $10,000,000.

     

    “Holdings” has the meaning specified in the
      recitals to this Agreement.

    
      2

      
        
 

    

    “Indemnified Liabilities” has the meaning
      specified in Section 5.2.

     

    “Indemnitees” has the meaning specified in Section 5.2.

     

    “Interest Expense” means, for any period, all
      interest and breakage costs in respect of outstanding Obligations accrued, capitalized or payable during such period (whether or not actually paid during such period).

     

    “Net Proceeds” means Net Cash Proceeds (as
      defined in the Credit Agreement).

     

    “Property” and “property” means any right or interest in or to any asset or property of any kind whatsoever (including Capital Stock), whether real, personal or mixed and whether tangible or
      intangible.

     

    “Trigger Event” has the meaning specified in Section 3.9(a).

     

    “Trigger Event Date” has the meaning specified
      in Section 3.9(a).

     

    “Withdrawal Certificate” means a Withdrawal
      Certificate delivered by the Borrower in the form of Exhibit A.

     

    Section 1.2          Interpretation; Definitions.  For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, the rules of
        interpretation set forth in Section 1.2 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis, as if fully set forth herein.  All
        capitalized terms used herein (including the preamble and recitals hereto) and not otherwise defined herein or in the Credit Agreement or Security Agreement, have the meanings ascribed thereto in the UCC.  All references herein to provisions of the
        UCC shall include all successor provisions under any subsequent version or amendment to any Article of the UCC.  The terms “lease” and “license” shall include “sub-lease” and “sub-license,” as applicable.

     

    ARTICLE II

      APPOINTMENT OF DEPOSITARY AGENT; ESTABLISHMENT OF THE DEBT SERVICE

      RESERVE ACCOUNT

     

    Section 2.1          Appointment of Depositary Agent.  The Depositary Agent hereby agrees to act, as depositary agent, as “securities intermediary” (within the meaning of Section
        8-102(a)(14) of the UCC) with respect to the Debt Service Reserve Account and the Financial Assets credited to such Debt Service Reserve Account, and as “bank” (within the meaning of 9-102(a)(8) of the UCC) with respect to the Debt Service Reserve
        Account and credit balances not constituting Financial Assets credited thereto and to accept all cash, payments, other amounts and Cash Equivalents to be delivered to or held by the Depositary Agent pursuant to the terms of this Agreement.  The
        Depositary Agent shall hold and safeguard the Debt Service Reserve Account during the term of this Agreement in accordance with the provisions of this Agreement.

     

    Section 2.2          Establishment of the Debt Service Reserve Account.  The Depositary Agent has established the following separate account (inclusive of any sub-account (which may
        include a separate internal ledger)), which shall be maintained at all times upon the date hereof in accordance with the terms of this Agreement until the Discharge Date as further set forth in Section 3.7: an account in the name of the Borrower entitled “Morgan Stanley Senior Funding Inc. –LNG HOLDINGS (FLORIDA) LLC DEBT SERVICE RESERVE ACCT” with account number 876-021263 (the “Debt Service Reserve Account”);

    
      3

      
        
 

    

    The Depositary Agent shall not change the name or account number of the Debt Service Reserve Account without the prior written consent of
      the Administrative Agent and at least ten (10) Business Days’ prior notice to the Borrower.  The Borrower shall at all times maintain, or cause to be maintained, the Debt Service Reserve Account with the Depositary Agent until the Discharge Date as
      further set forth in Section 3.6.

     

    All amounts from time to time held in the Debt Service Reserve Account shall be disbursed solely in accordance with the terms hereof,
      shall constitute the property of the Borrower, and shall be (a) subject to the Lien of the Administrative Agent (for the benefit of the Secured Parties) and (b) held in the sole custody and “control” (within the meaning of Section 8-106(d) or Section
      9-104(a), as applicable, of the UCC) of the Administrative Agent for the purposes and on the terms set forth in this Agreement and all such amounts shall constitute a part of the Account Collateral and shall not constitute payment of any Obligations
      until applied as hereinafter provided.

     

    The Administrative Agent hereby acknowledges that it has control of the Debt Service Reserve Account on behalf of the other Secured
      Parties.

     

    Section 2.3          Security Interests.

     

    (a)         As collateral security for
        the prompt and complete payment and performance when due of all Obligations, the Borrower hereby pledges, assigns, hypothecates and transfers to the Administrative Agent (for the benefit of the Secured Parties), and grants to the Administrative
        Agent (for the benefit of the Secured Parties), a first-priority Lien on all of the Borrower’s right, title and interest in, to and under (i) the Debt Service Reserve Account and (ii) all Cash, instruments, investment property, securities,
        “security entitlements” (as defined in Section 8-102(a)(17) of the UCC) and other Financial Assets at any time on deposit in or credited to the Debt Service Reserve Account, including all income, earnings and distributions thereon and all proceeds,
        products and accessions of and to any and all of the foregoing, including whatever is received or receivable upon any collection, exchange, sale or other disposition of any of the foregoing and any Property into which any of the foregoing is
        converted, whether cash or non-cash proceeds, and any and all other amounts paid or payable under or in connection with any of the foregoing together with all books and records, credit files, computer files, programs, printouts and other computer
        materials and records to the extent related thereto and any “general intangibles” (as defined in Article 9 of the UCC) at any time to the extent evidencing or to the extent relating to any of the foregoing (collectively, the “Account Collateral”).  The security interest of the Administrative Agent granted pursuant hereto shall at all times be valid, perfected and enforceable as a first
        priority security interest.  Without limiting the generality of the foregoing, the Borrower hereby authorizes the Administrative Agent to file one or more UCC financing statements (including amendments thereto and continuations thereof) in such
        jurisdictions and filing offices and containing such description of Account Collateral as may be reasonably necessary in order to perfect the security interest granted herein.

     

    (b)         The Depositary Agent is the
        agent of the Administrative Agent (for the benefit of the Secured Parties) for the purpose of receiving payments contemplated hereunder and for the purpose of perfecting the Lien of the Administrative Agent (for the benefit of the Secured Parties)
        in and to the Debt Service Reserve Account and the other Account Collateral; provided that the Depositary Agent shall not be responsible to take any action
        to perfect such Lien except through the performance of its express obligations hereunder or upon the written direction of the Administrative Agent complying with this Agreement.  This Agreement constitutes a “security agreement” as defined in
        Article 9 of the UCC.

     

    Section 2.4          Debt Service Reserve Account Maintained as UCC “Securities Account”.

    
      4

      
        
 

    

    (a)         The Depositary Agent hereby
        agrees and confirms that it has established the Debt Service Reserve Account as set forth and defined in this Agreement.  The Depositary Agent agrees that (i) the Debt Service Reserve Account established by Depositary Agent is and will be
        maintained as a “securities account” (within the meaning of Section 8-501 of the UCC); (ii) the Depositary Agent will treat the Account Collateral, and all rights related thereto, now or hereafter deposited in or credited to the Debt Service
        Reserve Account as “financial assets” (within the meaning of Section 8-102(a)(9) of the UCC and together with all such property and rights, the “Financial Assets”),

        to be held by the Depositary Agent, acting as “securities intermediary” (as defined in Section 8-102(a)(14) of the UCC); (iii) the Borrower and the Administrative Agent are each an “entitlement holder” (within the meaning of Section 8-102(a)(7) of
        the UCC) in respect of Financial Assets credited to the Debt Service Reserve Account; (iv) all Financial Assets in registered form or payable to or to the order of and credited to the Debt Service Reserve Account shall be registered in the name of,
        payable to or to the order of, or specially endorsed to, the Depositary Agent or in blank, or credited to another securities account maintained in the name of the Depositary Agent as “securities intermediary” for the Borrower and the Administrative
        Agent; and (v) in no case will any Financial Asset credited to the Debt Service Reserve Account be registered in the name of, payable to or to the order of, or endorsed to, the Borrower except to the extent the foregoing have been subsequently
        endorsed by the Borrower to the Depositary Agent or in blank.  Each item of Property (including a security, security entitlement, investment property, instrument or obligation, share, participation, interest or other property whatsoever) credited
        to the Debt Service Reserve Account shall to the fullest extent permitted by law be treated as a Financial Asset.  Until the Discharge Date, the Administrative Agent shall have “control” (within the meaning of Section 8-106(d) or Section 9-104(a)
        (as applicable) of the UCC) of the Debt Service Reserve Account and the “security entitlements” (within the meaning of Section 8-102(a)(17) of the UCC) with respect to the Financial Assets credited to the Debt Service Reserve Account.  All property
        delivered to the Depositary Agent pursuant to this Agreement will be promptly credited to the Debt Service Reserve Account.  The Borrower hereby irrevocably directs, and the Depositary Agent (in its capacity as securities intermediary) hereby
        agrees, that the Depositary Agent will comply with all instructions and orders (including entitlement orders within the meaning of Section 8-102(a)(8) of the UCC) regarding the Debt Service Reserve Account and any Financial Asset therein originated
        by the Administrative Agent without the further consent of the Borrower, any other Loan Party or any other Person.  In the case of a conflict between any instruction or order originated by the Administrative Agent and any instruction or order
        originated by the Borrower, any other Loan Party or any other Person other than a court of competent jurisdiction, the instruction or order originated by the Administrative Agent shall prevail.  The Depositary Agent shall not change the entitlement
        holder in respect of any Financial Asset credited to any Account, which shall at all times be the Borrower and the Administrative Agent.

     

    (b)         The Administrative Agent
        hereby agrees with the Borrower that the Administrative Agent will not originate any instruction or order (including entitlement orders within the meaning of Section 8-102(a)(8) of the UCC) regarding the Debt Service Reserve Account, any Financial
        Asset therein or any other amounts on deposit or credited thereto unless and until a Trigger Event has occurred and is continuing.  The foregoing is solely the agreement between the Administrative Agent and the Borrower; therefore, such provision
        (i) in no way limits or modifies the Depositary Agent’s obligations under paragraph 2.4(a) herein and (ii) imposes no duty or obligation on the Depositary Agent to investigate or inquire of any party whether a Trigger Event has occurred and is
        continuing.

     

    Section 2.5          Jurisdiction of Depositary Agent.  The Borrower, the Administrative Agent and the Depositary Agent agree that, for purposes of the UCC, notwithstanding anything
        to the contrary contained in any other agreement relating to the establishment and operation of the Debt Service Reserve Account, the jurisdiction of the Depositary Agent (in its capacity as the securities intermediary and bank) is the State of New
        York and the laws of the State of New York govern the establishment and operation of the Debt Service Reserve Account.

    
      5

      
        
 

    

    Section 2.6          Degree of Care; Liens.  The Depositary Agent shall exercise the same degree of care in administering the funds held in or credited to the Debt Service Reserve
        Account and the investments purchased with such funds in accordance with the terms of this Agreement as the Depositary Agent exercises in the ordinary course of its day-to-day business in administering other funds and investments for its own
        account and as required by Law.  The Depositary Agent is not party to and shall not execute and deliver, or otherwise become bound by, any agreement under which the Depositary Agent agrees with any Person other than the Administrative Agent to
        comply with entitlement orders or instructions originated by such Person relating to the Debt Service Reserve Account or the Account Collateral that are the subject of this Agreement.  The Depositary Agent shall not grant any Lien on any Financial
        Asset credited to the Debt Service Reserve Account.

     

    Section 2.7          Subordination of Lien.  In the event that the Depositary Agent has or subsequently obtains by agreement, operation of law or otherwise a Lien on, security
        interest in or right of setoff to the Debt Service Reserve Account or any Account Collateral, the Depositary Agent agrees that such Lien, security interest or right of setoff shall be subordinate to the Liens of the Administrative Agent. 

          

    

    Section 2.8          No Other Agreements.  None of the Depositary Agent, the Administrative Agent or the Borrower have entered or will enter into any agreement with respect the Debt
        Service Reserve Account or any Account Collateral, other than this Agreement and Loan Documents.

     

    Section 2.9          Notice of Adverse Claims.  The Depositary Agent hereby represents that, except for the claims and interests of the Administrative Agent and the Borrower in the
        Debt Service Reserve Account, the Depositary Agent, (a) as of the date hereof, has no knowledge of, and has received no notice of, and (b) as of the date on which the Debt Service Reserve Account is established pursuant to this Agreement, has
        received no notice of, any claim to, or interest in, the Debt Service Reserve Account or any other Account Collateral.  If any Person asserts any Lien (including any writ, garnishment, judgment, warrant of attachment, execution or similar process)
        against the Debt Service Reserve Account or any other Account Collateral, the Depositary Agent, upon obtaining actual knowledge thereof, will promptly notify the Administrative Agent and Borrower thereof.

     

    Section 2.10          Rights and Powers of the Administrative Agent.  The rights and powers granted to the Administrative Agent by the Secured Parties, pursuant to the Loan Documents
        and the terms hereof have been granted in order to, among other things, perfect their respective Lien in the Debt Service Reserve Account and the other Account Collateral and to otherwise act, subject to the terms of the Loan Documents, as their
        agent with respect to such perfection.  The Borrower hereby authorizes and directs the Depositary Agent to act at the direction, or on the instructions, of the Administrative Agent with respect to withdrawals, transfers and payments from and to the
        Debt Service Reserve Account or as otherwise specified herein, in each case in accordance with the terms hereof.

     

    Section 2.11          Termination.  This Agreement shall remain in full force and effect until the Discharge Date.

     

    ARTICLE III

      DEBT SERVICE RESERVE ACCOUNT

     

    Section 3.1          Deposits into Debt Service Reserve Account.  On the Closing Date, the Borrower shall deposit funds in the Debt Service Reserve Account in an aggregate amount,
        together with any other funds then on deposit in the Debt Service Reserve Account, equal to the Debt Service Reserve Requirement as of the Closing Date.  Thereafter, if, on any Credit Date prior to the satisfaction of the Full DSRA Funding
        Condition, the aggregate funds then on deposit in or credited to the Debt Service Reserve Account is less than the Debt Service Reserve Requirement at such time (a “DSRA
            Shortfall”) the Debt Service Reserve Account shall be funded with cash from the proceeds of the applicable Credit Extension in an amount equal to the DSRA Shortfall.

    
      6

      
        
 

    

    Section 3.2          Net Interest on Deposits.  At any time that there is a DSRA Shortfall, the Borrower may elect by providing notice to the Depositary Agent (with a copy to the
        Administrative Agent), which may be in the form of a standing notice, that net interest, if any, earned on funds on deposit in the Debt Service Reserve Account shall be accumulated therein.

     

    Section 3.3          [Reserved].Disbursements of Excess Amounts.  If at any time that the funds then on deposit in, or credited to, the Debt Service Reserve Account exceed the Debt
        Service Reserve Requirement at such time (a “DSRA Excess”), the Borrower may, until the DSRA Excess is eliminated, instruct the Depositary Agent to transfer
        an amount of funds from the Debt Service Reserve Account to the Persons specified in a certificate signed by a Responsible Office of the Borrower, which shall certify (A) the amount of such transfer and (B) that the amount of such transfer does not
        exceed the DSRA Excess at such time, which transfer the Depositary Agent shall make at the time specified in such certificate (it is understood that such certificate may be a part of a Withdrawal Certificate).

     

    Section 3.5          Disbursements to Pay Debt Service.  On each date on which Debt Service is due under and in accordance with the Loan Documents, if the funds available for payment
        of Debt Service are not anticipated to be, or are not, adequate to pay the full amount of Debt Service due (any such shortfall, a “Debt Service Payment Deficiency”),

        then the Depositary Agent (at the direction of (A) the Borrower pursuant to a Withdrawal Certificate or (B) if the Borrower has not so delivered a Withdrawal Certificate by 1:00 p.m. (New York City time) on the Business Day on which such amounts
        were due and not paid, the Administrative Agent) shall withdraw from the Debt Service Reserve Account and immediately transfer to the Administrative Agent cash in an amount equal to the Debt Service Payment Deficiency (or, if less, the aggregate
        amount of funds then on deposit in or credited to the Debt Service Reserve Account).

     

    Section 3.6          Investment of Debt Service Reserve Account.

     

    (a)         Amounts deposited in the Debt
        Service Reserve Account under this Agreement shall, at the Borrower’s written request and direction, be invested by the Depositary Agent in Cash Equivalents as specifically directed by the Borrower (which may include standing instructions), subject
        to any investment cut-offs of any Cash Equivalent investments directed by the Borrower.  Any loss shall be charged to the Debt Service Reserve Account.

     

    (b)         In the event that at any time
        amounts are funded into the Debt Service Reserve Account after 1:00 P.M. (New York City time) on any Business Day, the Depositary Agent shall have no obligation to invest or reinvest such amounts on the date on which such amounts are funded. 
        Instructions with respect to the investment of amounts received into the Debt Service Reserve Account after 1:00 P.M. (New York City time) may, in the sole discretion of the Depositary Agent, be deemed to apply for the following Business Day.

     

    (c)         If and when cash is required
        for the making of any transfer, disbursement or withdrawal in accordance with this Agreement, the Borrower shall cause Cash Equivalents to be sold or otherwise liquidated into cash (without regard to maturity) as and to the extent necessary in
        order to make such transfers, disbursements or withdrawals required pursuant to this Agreement.  The Depositary Agent shall comply with any instruction from the Borrower with respect to the liquidation of such Cash Equivalents.  In the event any
        such investments are so redeemed prior to the maturity thereof, neither the Depositary Agent nor the Administrative Agent shall be liable for any loss or penalties relating to any investment.

    
      7

      
        
 

    

    (d)         For purposes of determining
        responsibility for any income tax payable on account of any income or gain on any Cash Equivalents hereunder, such income or gain shall be for the account of the Borrower.

     

    Section 3.7          Disposition of the Debt Service Reserve Account upon Discharge Date.  In the event that the Depositary Agent shall have received a certificate from the
        Administrative Agent stating that the Discharge Date shall have occurred (and the Administrative Agent agrees to deliver such certification to the Depositary Agent immediately upon the occurrence of the Discharge Date), all amounts remaining in the
        Debt Service Reserve Account shall be remitted to the Borrower or as otherwise directed in writing by the Borrower.

     

    Section 3.8          Account Balance Statements.

     

    (a)         The Depositary Agent shall,
        on a monthly basis within 15 days after the end of each month, and at such other times as the Administrative Agent or a financial officer of the Borrower on a list to be provided to the Administrative Agent (which may be supplemented from time to
        time) may from time to time reasonably request, provide to the Administrative Agent and the Borrower, fund balance statements in respect of the Debt Service Reserve Account and any sub-accounts.  Such balance statement shall also include deposits,
        withdrawals and transfers from and to the Debt Service Reserve Account and any sub-account and the net investment income or gain received and collected in the Debt Service Reserve Account and each such sub-account.  The Depositary Agent shall
        maintain records of all receipts, disbursements, and investments of funds with respect to the Debt Service Reserve Account until the third anniversary of the Discharge Date.

     

    (b)         Upon the Borrower’s election
        (which the Borrower hereby elects until further notice to the Depositary Agent), the Depositary Agent also hereby agrees to provide the Borrower and the Administrative Agent with electronic access to all bank and account statements related to the
        Debt Service Reserve Account (subject to the Borrower and Administrative Agent providing the Depositary Agent reasonable information that is needed to provide such Person with access to such system).  Such statements will be delivered via the
        Depositary Agent’s online trust and custody service and while electing such service, paper statements will be provided only upon request.

     

    (c)         The Borrower waives the right
        to receive brokerage confirmations of security transactions effected by the Depositary Agent as they occur, to the extent permitted by Law.  The Borrower and Administrative Agent further understands that trade confirmations for securities
        transactions effected by Depositary Agent will be available upon request and at no additional cost and other trade confirmations may be obtained from the applicable broker.

     

    Section 3.9          Events of Default; Trigger Events.

     

    (a)         On and after any date on
        which the Depositary Agent receives written notice from the Administrative Agent that an Event of Default has occurred and is continuing and that the Administrative Agent has been instructed by the requisite Lenders under the Credit Agreement to
        exercise any right or remedy in respect of the Debt Service Reserve Account (such action and application, a “Trigger Event,” and the date of receipt of such
        notice, the “Trigger Event Date”), notwithstanding anything to the contrary contained herein, the Depositary Agent shall thereafter accept all notices and
        instructions required or permitted to be given to the Depositary Agent pursuant to the terms of this Agreement only from the Administrative Agent and not from the Borrower, any other Loan Party or any other Person and the Depositary Agent shall not
        withdraw, transfer, pay or otherwise distribute any monies in any of the Debt Service Reserve Account except pursuant to such notices and instructions from the Administrative Agent unless the Depositary Agent shall have received written notice from
        the Administrative Agent that such Event of Default has been waived, cured or no longer exists in accordance with the terms of the applicable Loan Documents, in which event the terms of this Section 3.9 shall thereafter be inapplicable to such Event of Default.

    
      8

      
        
 

    

    (b)         Within three Business Days of
        a Trigger Event Date, the Depositary Agent shall, upon the receipt of a written request the Administrative Agent or the Borrower, provide a statement of all monies in the Debt Service Reserve Account as of such Trigger Event Date to the
        Administrative Agent and the Borrower.

     

    (c)         From and after a Trigger
        Event Date, and notwithstanding anything herein to the contrary (but without limiting any of the Secured Parties’ rights or remedies under the Security Documents), the Administrative Agent (or the Depositary Agent at the Administrative Agent’s
        direction) shall have the right to control the Debt Service Reserve Account, use the Account Collateral to repay the Obligations and sell, dispose or realize on the Account Collateral and be permitted to (i) liquidate and invest in Cash Equivalents
        and (ii) direct the disposition of the funds in the Debt Service Reserve Account.

     

    ARTICLE IV

      DEPOSITARY AGENT

     

    Section 4.1          Appointment, Authorization and Action.

     

    (a)         The Borrower and the
        Administrative Agent on behalf of the Secured Parties hereby (i) appoint MSSFI, and MSSFI hereby agrees to act, as the Depositary Agent and (ii) authorize the Depositary Agent to take such action as agent and to exercise such powers and discretion
        under this Agreement as are delegated to the Depositary Agent by the terms hereof, together with such powers and discretion as are reasonably incidental thereto, with such powers as are expressly delegated to the Depositary Agent by the terms of
        this Agreement.  As to any matters not expressly provided for by this Agreement (including enforcement of collection of the obligations of the Loan Parties), the Depositary Agent shall not be required to exercise any discretion or take any action,
        but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Administrative Agent, and such instructions shall be binding upon all of the Secured Parties;
        provided, however, that the Depositary Agent shall not be required
        to take any action that exposes the Depositary Agent to personal liability or that is contrary to this Agreement or applicable law.  The Depositary Agent shall not have any duties or responsibilities except those expressly set forth in this
        Agreement and no implied duties or covenants shall be read against the Depositary Agent.  Without limiting the generality of the foregoing, the Depositary Agent shall take all actions as the Administrative Agent shall direct it to perform in
        accordance with the express provisions of this Agreement.  All notices, instructions or requests to the Depositary Agent shall be in writing.  Notwithstanding anything to the contrary contained herein, the Depositary Agent shall not be required to
        take any action which is contrary to this Agreement.  Neither the Depositary Agent nor any of its Affiliates shall be responsible to the Secured Parties for any recitals, statements, representations or warranties made by the Borrower or any other
        Loan Party contained in this Agreement or any other Loan Document or in any certificate or other document referred to or provided for in, or received by any Secured Party under this Agreement or any other Loan Document for the value, validity,
        effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or any other document referred to or provided for herein or therein or for any failure by the Borrower or any other Loan Party to perform its
        obligations hereunder or thereunder.  The Depositary Agent shall not be required to ascertain or inquire as to the performance by the Borrower or any other Loan Party of any of its obligations under this Agreement, any other Loan Document or any
        other document or agreement contemplated hereby or thereby.  The Depositary Agent shall not be (A) required to initiate or conduct any litigation or collection proceeding hereunder or under any other Security Document or (B) responsible for any
        action taken or omitted to be taken by it hereunder (except for its own gross negligence or willful misconduct, as determined by the final non-appealable judgment of a court of competent jurisdiction).  Whenever in the administration of this
        Agreement the Depositary Agent shall deem it necessary or desirable that a factual or legal matter be proved or established in connection with the Depositary Agent taking, suffering or omitting to take any action hereunder, such matter (unless
        other evidence in respect thereof is herein specifically prescribed) may be deemed to be conclusively proved or established by a certificate of a Responsible Officer of the Borrower or a certificate of an officer of the Administrative Agent, if
        appropriate.  The Depositary Agent shall have the right at any time to seek instructions concerning the administration of this Agreement from the Administrative Agent, the Borrower or any other Loan Party.  The Depositary Agent shall have no
        obligation to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder.  The Depositary Agent shall not be liable for any error of judgment made in good faith by an officer or
        officers of the Depositary Agent, unless it shall be conclusively determined by a court of competent jurisdiction that the Depositary Agent was grossly negligent or acting with willful misconduct in ascertaining the pertinent facts.

    
      9

      
        
 

    

    (b)         The Depositary Agent may
        execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, attorneys, custodians or nominees appointed with due care.  Neither the Depositary Agent nor any of its officers, directors,
        employees or agents shall be liable for any action taken or omitted under this Agreement or in connection therewith except to the extent caused by the Depositary Agent’s gross negligence or willful misconduct, as determined by the final,
        non-appealable judgment of a court of competent jurisdiction.  The Depositary Agent shall not be deemed to have knowledge of any default or an event of default (including any Event of Default) unless the Depositary Agent shall have received written
        notice thereof.  The rights, privileges, protections and benefits given to the Depositary Agent, including its rights to be indemnified, are extended to, and shall be enforceable by, the Depositary Agent in each of its capacities hereunder, and to
        each agent, custodian and other Persons employed by the Administrative Agent in accordance herewith to act hereunder.  The Depositary Agent may request that any Loan Party or Agent deliver a certificate setting forth the names of individuals and/or
        titles of officers authorized at such time to take specified actions pursuant to this Agreement, which certificate may be signed by any person authorized to sign such a certificate, including any person specified as so authorized in any such
        certificate previously delivered and not superseded.  The permissive right of the Depositary Agent to take or refrain from taking action hereunder shall not be construed as a duty.

     

    (c)         Anything in this Agreement
        notwithstanding, in no event shall the Depositary Agent be liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including loss of profit).

     

    Section 4.2          Reliance by Depositary Agent.  The Depositary Agent shall be entitled to conclusively rely upon and shall not be bound to make any investigation into the facts or
        matters stated in any certificate of the Borrower, any certificate of the Administrative Agent or any other notice or other document (including any electronic or facsimile transmission) believed by it to be genuine and to have been signed or sent
        by or on behalf of the proper Person or Persons, and upon advice and statement of legal counsel, independent accountants and other experts selected by the Depositary Agent and shall have no liability for its actions taken thereupon, unless due to
        the Depositary Agent’s willful misconduct or gross negligence, as determined by the final non-appealable judgment of a court of competent jurisdiction.  The Depositary Agent shall be fully justified in failing or refusing to take any action under
        this Agreement (a) if such action would, in the reasonable opinion of the Depositary Agent, be contrary to applicable law or the terms of this Agreement, (b) if such action is not specifically provided for in this Agreement, it shall not have
        received any such advice or concurrence of the Administrative Agent as it deems appropriate or (c) if, in connection with the taking of any such action that would constitute an exercise of remedies under this Agreement (whether such action is or is
        intended to be an action of the Depositary Agent or the Administrative Agent), it shall not first be indemnified to its satisfaction by the Secured Parties (other than the Administrative Agent (in its individual capacity) or any other agent or
        trustee under any of the Loan Documents (in their respective individual capacities)) against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action.  The Depositary Agent shall in all
        cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance with a request of the Administrative Agent, and such request and any action taken or failure to act pursuant thereto shall be binding upon all the
        Secured Parties.

    
      10

      
        
 

    

    Section 4.3          Court Orders.  The Depositary Agent is hereby authorized, in its exclusive discretion, to obey and comply with all writs, orders, judgments or decrees issued by
        any court or administrative agency affecting any money, documents or things held by the Depositary Agent.  The Depositary Agent shall not be liable to any of the parties hereto or any of the Secured Parties or their successors, heirs or personal
        representatives by reason of the Depositary Agent’s compliance with such writs, orders, judgments or decrees, notwithstanding such writ, order, judgment or decree is later reversed, modified, set aside or vacated.

     

    Section 4.4          Resignation or Removal.

     

    (a)         Subject to the appointment
        and acceptance of a successor Depositary Agent as provided below, the Depositary Agent may resign at any time by giving 30 days’ written notice thereof to the Administrative Agent and the Borrower.  The Depositary Agent may be removed at any time
        with or without cause by the Administrative Agent.  So long as no Event of Default shall have then occurred and be continuing, the Borrower shall have the right to remove the Depositary Agent for cause upon 60 days’ notice to the Depositary Agent
        and the Administrative Agent, subject to the consent of the Administrative Agent (not to be unreasonably withheld).  In the event that the Depositary Agent shall decline to take any action without first receiving adequate indemnity (as reasonably
        determined by the Depositary Agent) from the Borrower, the other Loan Parties or the Secured Parties and, having received an adequate indemnity, shall continue to decline to take such action, each of the Borrower, the other Loan Parties and the
        Administrative Agent shall be deemed to have sufficient cause to remove the Depositary Agent.  Notwithstanding anything to the contrary, no resignation or removal of the Depositary Agent shall be effective until (i) a successor Depositary Agent is
        appointed in accordance with this Section 4.4, (ii) the resigning or removed Depositary Agent has transferred to its successor all of its rights and
        obligations in its capacity as the Depositary Agent under this Agreement and the other Loan Documents, and (iii) the successor Depositary Agent has executed and delivered an agreement to be bound by the terms hereof and perform all duties required
        of the Depositary Agent hereunder.  Within 30 days of receipt of a written notice of any resignation or removal of the Depositary Agent, the Administrative Agent shall appoint a successor Depositary Agent with, so long as no Event of Default shall
        have then occurred and be continuing, the consent of the Borrower (not to be unreasonably withheld or delayed); provided that if the Borrower does not
        confirm such acceptance or reject such appointee in writing within 30 days following selection of such successor by the Administrative Agent, then it shall be deemed to have given acceptance thereof and such successor shall be deemed appointed as
        the Depositary Agent hereunder.  If no successor Depositary Agent shall have been appointed by the Administrative Agent and shall have accepted such appointment within 30 days after the retiring Depositary Agent’s giving of notice of resignation or
        the removal of the retiring Depositary Agent or if an Event of Default shall have then occurred and be continuing, then the retiring Depositary Agent may appoint a successor Depositary Agent, which shall be a bank or trust company which has an
        office in New York, New York and that has a combined capital surplus of at least $500,000,000 or at least $100,000,000 and is a wholly owned subsidiary of a bank or trust company that has a combined capital surplus of at least $500,000,000 and is
        reasonably acceptable to the Administrative Agent; provided that if the Administrative Agent does not confirm such acceptance or reject such appointee in
        writing within 30 days following selection of such successor by the retiring Depositary Agent, then it shall be deemed to have given acceptance thereof and such successor shall be deemed appointed as the Depositary Agent hereunder.

    
      11

      
        
 

    

    (b)         Upon the acceptance of any
        appointment as Depositary Agent hereunder by the successor Depositary Agent, (i) such successor Depositary Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Depositary Agent, and
        the retiring Depositary Agent shall be discharged from its duties and obligations hereunder and (ii) the retiring Depositary Agent shall promptly transfer all monies and Cash Equivalents within its possession or control to the possession or control
        of the successor Depositary Agent and shall execute and deliver such notices, instructions and assignments as may be necessary or desirable to transfer the rights of the Depositary Agent with respect to the monies and Cash Equivalents to the
        successor Depositary Agent.  After the retiring Depositary Agent’s resignation or removal hereunder as Depositary Agent, the provisions of this Article IV and of Article V shall continue in effect for its benefit in respect of any actions taken or
        omitted to be taken by it while it was acting as Depositary Agent.  Any corporation into which the Depositary Agent may be merged or converted or with which it may be consolidated or any corporation resulting from any merger, conversion or
        consolidation to which the Depositary Agent shall be a party, or any corporation succeeding to the business of the Depositary Agent shall be the successor of the Depositary Agent hereunder without the execution or filing of any paper with any party
        hereto or any further act on the part of any of the parties hereto except where an instrument of transfer or assignment is required by law to effect such succession, anything herein to the contrary notwithstanding.

     

    ARTICLE V

      EXPENSES; INDEMNIFICATION; FEES

     

    Section 5.1          Compensation and Expenses.  The Borrower agrees, if the Closing Date occurs, to pay to the Depositary Agent (a) the Depositary Agent’s fees in accordance with a
        fee schedule mutually agreed by the Depositary Agent and the Borrower and (b) the amount of any and all of the Depositary Agent’s reasonable and documented out-of-pocket expenses, including the reasonable and documented fees and expenses of its
        counsel (and one local counsel as reasonably necessary in each relevant jurisdiction material to the interests of the Depository Agent), which the Depositary Agent may incur in connection with this Agreement, including (i) the execution and
        administration of this Agreement, (ii) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Collateral or (iii) the exercise or enforcement (whether through negotiations, legal proceedings or
        otherwise) of any of the rights of the Depositary Agent under this Agreement.  It is understood that, to the extent the above matters in clause (b) are set forth in a separate agreement between the Depositary Agent and the Borrower, such agreement
        shall govern in the event of a conflict between the provisions in clause (b) and such agreement.

     

    Section 5.2          Indemnification.  The Borrower agrees from and after the Closing Date, to indemnify and hold harmless the Depository Agent and its Affiliates, and their
        respective officers, directors, employees, partners, agents, advisors and other representatives of each of the foregoing (collectively the “Indemnitees”) from
        and against any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including reasonable and documented out-of-pocket legal fees, expenses, disbursements and
        other charges of one counsel to all Indemnitees taken as a whole) of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against any such Indemnitee in any way relating to or arising out of or in connection
        with the execution, delivery, enforcement, performance or administration of this Agreement to the extent the Borrower would be required to do so pursuant to Section 9.5
        of the Credit Agreement.

    
      12

      
        
 

    

    ARTICLE VI

      MISCELLANEOUS

     

    Section 6.1            Amendments, Etc.

     

    (a)          None of the terms or
        provisions of this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 9.1 of the Credit Agreement.

     

    Section 6.2            Notice and Other Communications.

     

    (a)          Unless otherwise expressly
        provided herein, all notices and other communications provided for hereunder shall be in writing (including by facsimile or electronic transmission; provided
        that notices to the Depositary Agent via electronic transmission shall include the notice in the form of an imaged or scanned attachment such as a “.pdf” file).  All such written notices shall be mailed, faxed, emailed or delivered to the
        applicable address, facsimile number or electronic mail address, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

     

    (i)            if to LNG Holdings (Florida)
        LLC, as the Borrower:

     

    LNG Holdings (Florida) LLC

    1345 Avenue of the Americas

    New York, New York 10105

    Telephone: (212) 515-4644

     

    with a copy to:

     

    Fortress Investment Group LLC

    1345 Avenue of the Americas

    New York, New York 10105

    Attention: R. Nardone

    Facsimile: (212) 798-6120

    Telephone: (212) 798-6110

     

    with a copy to:

     

    Skadden, Arps, Slate, Meagher & Flom LLP

    155 N. Wacker Drive

    Chicago, Illinois 60606-1720

    Attention: Seth E. Jacobson

    Facsimile: (312) 407-8511

    Telephone: (312) 407-0889

    
      13

      
        
 

    

    (ii)           if to MSSFI, as the
        Depositary Agent:

     

    Morgan Stanley Senior Funding, Inc.

    Attn: Benjamin Meyers

    522 Fifth Avenue, 10th Floor

     

    New York, NY 10036

    Fax: (212) 507-3639

    Telephone: (212) 296-6013

    Email: Benjamin.Meyers@morganstanleypwm.com

     

    (iii)          if to MSSFI, as the
        Administrative Agent:

     

    Morgan Stanley Senior Funding, Inc.

    1 New York Plaza, 41st Floor

    New York, NY 10004

    Attention: Agency Servicing

    Telephone: (212) 517-6680

    E-mail: msagency@morganstanley.com

     

    All such notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual
      receipt by the relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail, four (4) Business Days after deposit in the mails, postage prepaid; (C) if
      delivered by facsimile, when sent and receipt has been confirmed by telephone or electronic mail; and (D) if delivered by electronic mail, when delivered; provided
      that notices and other communications to the Depositary Agent or the Administrative Agent shall not be effective until actually received by such Person.  In no event shall a voice mail message be effective as a notice, communication or confirmation
      hereunder.

     

    (b)           Reliance by Agents and Lenders.  The Administrative Agent and the Depository Agent shall be entitled to rely and act upon any notices purportedly given by or on behalf of the
        Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not

        preceded or followed by any other form of notice specified herein or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the Administrative Agent and the Depository
        Agent from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower in the absence of gross negligence or willful misconduct as determined in a final and
        non-appealable judgment by a court of competent jurisdiction.  All telephonic notices to the Administrative Agent or the Depository Agent may be recorded by the Administrative Agent or the Depository Agent, and each of the parties hereto hereby
        consents to such recording.

     

    Section 6.3            GOVERNING LAW.

     

    (a)           THIS AGREEMENT AND EACH
        OTHER LOAN DOCUMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

    
      14

      
        
 

    

    (b)          ANY LEGAL ACTION OR
        PROCEEDING ARISING UNDER THIS AGREEMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW
        EXISTING OR HEREAFTER ARISING, SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH LOAN PARTY, THE
        DEPOSITARY AGENT AND EACH OTHER PARTY HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THOSE COURTS.  EACH PARTY HERETO IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR
        BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR OTHER DOCUMENT RELATED HERETO.  EACH PARTY HERETO IRREVOCABLY CONSENTS
        TO SERVICE OF PROCESS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN THE MANNER PROVIDED FOR NOTICES (OTHER THAN TELECOPIER OR OTHER ELECTRONIC TRANSMISSION) IN SECTION 6.2 NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     

    Section 6.4            WAIVER OF RIGHT TO TRIAL BY JURY.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT, OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
          WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 6.4 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY
          JURY.

     

    Section 6.5            Further Assurances.  The Depositary Agent, the Administrative Agent on behalf of the Secured Parties, and, upon reasonable request, the Borrower, agree that each
        of them shall take such further action and shall execute and deliver such additional documents and instruments (in recordable form, if requested) as the Administrative Agent may reasonably request to effectuate the terms of this Agreement.

     

    Section 6.6            Binding Effect.  This Agreement shall become effective when it shall have been executed by the Borrower, the Administrative Agent and the Depositary Agent and
        thereafter shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent and the Depositary Agent and their respective successors and assigns, except that no Person hereto shall have the right to assign their rights
        hereunder or any interest herein without the prior written consent of the other Persons party hereto; provided that (i) foregoing shall not prohibit the
        Borrower from undertaking any transaction permitted by the Credit Agreement and (ii) any Person into which the Depositary Agent may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or
        consolidation to which the Depositary Agent shall be a party, or any Person succeeding to all or substantially all of the corporate agency or corporate trust business of the Depositary Agent shall be the successor of the Depositary Agent, as the
        case may be, hereunder, without the execution or filing of all paper or any further act on the part of any of the parties hereto.

    
      15

      
        
 

    

    Section 6.7            No Waiver; Cumulative Remedies.  No failure by the Administrative Agent or any other Secured Party to exercise, and no delay by any such Person in exercising, any
        right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
        thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and
        privileges provided by Law.

     

    Section 6.8            Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
        one and the same instrument.  Delivery by telecopier or other electronic transmission of an executed counterpart of a signature page to this Agreement shall be effective as delivery of an original executed counterpart of this Agreement.  Each
        Person party hereto may also require that any such documents and signatures delivered by telecopier or other electronic transmission be confirmed by a manually signed original thereof; provided that the failure to request or deliver the same shall not limit the effectiveness of any document or signature delivered by telecopier or other electronic transmission.

     

    Section 6.9            Integration.  This Agreement, together with the other Loan Documents, comprises the complete and integrated agreement of the parties on the subject matter hereof
        and thereof and supersedes all prior agreements, written or oral, on such subject matter.  This Agreement was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party,
        but rather in accordance with the fair meaning thereof.

     

    Section 6.10          Headings.  The Section headings used in this Agreement are for convenience of reference only and are not to affect the construction hereof or be taken into
        consideration in the interpretation hereof.

     

    Section 6.11          Severability.  Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
        the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not
        invalidate or render unenforceable such provision in any other jurisdiction.  The parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes
        as close as possible to that of the invalid, illegal or unenforceable provisions.

     

    [Signatures follow.]

    
      16

      
        
 

    

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

     

    
      	
               

            	
              LNG HOLDINGS (FLORIDA) LLC, a Delaware

            
	
               

            	
              limited liability company, as Borrower

            
	 	 	 
	
               

            	
              By:

            	
               

            
	 	 	Name:
	 	 	Title:

    

     

    [Signature Page to Security Deposit Agreement – LNG Holdings (Florida)]

    
      
        
 

    

     

    
      	
               

            	
              MORGAN STANLEY SENIOR FUNDING, INC.,

            
	
               

            	
              as Administrative Agent

            
	 	 	 
	
               

            	
              By:

            	
               

            
	 	 	Name:
	 	 	Title:

    

    
       

      [Signature Page to Security Deposit Agreement – LNG Holdings (Florida)]

      
        
          
 

      

    

    
      	
               

            	
              MORGAN STANLEY SENIOR FUNDING, INC.,

            
	
               

            	
              as Depositary Agent

            
	 	 	 
	
               

            	
              By:

            	
               

            
	 	 	Name:
	 	 	Title:

    

     

    [Signature Page to Security Deposit Agreement – LNG Holdings (Florida)]

    
      
        
 

    

    Exhibit A

      to the Security Deposit Agreement

     

    FORM OF WITHDRAWAL CERTIFICATE

     

    Date:  _________, ____

      Requested Disbursement Date:  __________, ____

     

    Morgan Stanley Senior Funding, Inc.

      Attn: Benjamin Meyers

      522 Fifth Avenue, 10th Floor

      New York, NY 10036

      Fax: (212) 507-3639

      Telephone: (212) 296-6013

      Email: Benjamin.Meyers@morganstanleypwm.com

     

    Morgan Stanley Senior Funding, Inc.,

                as Administrative Agent

      1 New York Plaza, 41st Floor

      New York, NY 10004

     

    Re:          LNG Holdings (Florida) LLC

     

    Ladies and Gentlemen:

     

    Reference is made to the Security Deposit Agreement, dated as of November 24, 2014 (the “Security Deposit Agreement”), among LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”),

      MORGAN STANLEY SENIOR FUNDING, INC., as administrative agent for the Secured Parties (in such capacity, together with any permitted successor, assign or replacement, the “Administrative

          Agent”), and Morgan Stanley Senior Funding, Inc., as both a “securities intermediary” (as defined in Section 8-102 of the UCC) and a “bank” (as defined in Section 9-102 of the UCC) (in such capacity, together with any permitted
      successor, assign or replacement, the “Depositary Agent”). 
      Capitalized terms used and not otherwise defined herein shall have the meanings assigned (whether directly or by reference to another agreement) in the Security Deposit Agreement.  All section references herein shall be to the Security Deposit
      Agreement unless otherwise expressly stated herein.

     

    The undersigned is a Responsible Officer of the Borrower and is delivering this certificate (this “Withdrawal Certificate”) pursuant to Sections [3.4, 3.5 or [·]1].

     

    DEBT SERVICE RESERVE ACCOUNT.

     

    [[If at any time a
        DSRA Excess exists] In accordance with Section 3.4, we request that $[_________] be withdrawn from the Debt Service Reserve Account and transferred to
      the transferred to the Persons specified in the attached Schedule I.  Such amount requested does not exceed the DSRA Excess at such time.]

     

    
      
 

    1 To the
      extent that an instruction is required to be delivered by a Borrower pursuant to the Security Deposit Agreement, and it is not reflected herein, reference applicable section and insert applicable instruction.

    
      
        
 

    

    
    In accordance with Section 3.5, we request
      that $[_________] be withdrawn from the Debt Service Reserve Account and transferred to the Administrative Agent to pay the Debt Service Payment Deficiency.  Such amount requested represents [an amount equal to the Debt Service Payment Deficiency]
      [the aggregate amount of funds on deposit in or credited to the Debt Service Reserve Account].

     

    [Signatures Begin Next Page]

    
      Exhibit A-2

      
        
 

    

    
      	
               

            	
              Very truly yours,

            
	 	 
	
               

            	
              LNG HOLDINGS (FLORIDA) LLC,

            
	 	as the Borrower
	 	 	 
	
               

            	
              By:

            	
               

            
	 	 	Name:
	 	 	Title:

    

    
       

       [Signature Page Withdrawl Certificate]

      
        
          

      

      Schedule 1 

  

  to Withdrawal Certificate

   

  Disbursements from Debt Service Reserve Account

   

  
    	
            Transfer Date

          	
            Payee/Account and Purpose

          	
            Payment Date

          	
            Wiring or Other Payment Instructions

          	
            Amount

          
	 	 	 	 	
            $[__________]

          
	 	 	 	 	
            $[__________]

          
	 	 	 	 	
            $[__________]

          
	
            [Insert
              additional rows as necessary]

          	 	 	 	
            $[__________]

          
	 	 	 	
            Total:

          	
            $[__________]

          

  

  

  

  
    Exhibit C-2

    
      
 

  

  
  EXHIBIT I TO 

  CREDIT AGREEMENT

   

  INTERCOMPANY DEBT SUBORDINATION AGREEMENT

   

  [attached].

  
    I-1

    
      
 

  

  INTERCOMPANY DEBT SUBORDINATION AGREEMENT

   

  THIS INTERCOMPANY DEBT SUBORDINATION AGREEMENT (this “Agreement”)

    is entered into [DATE], by and between each of the entities listed on Annex A hereto from time to time (the “Creditors”), each of the entities listed on Annex B hereto from time to time (the “Debtors”) and MORGAN STANLEY SENIOR FUNDING, INC., as administrative agent under the Credit Agreement (as defined below) on behalf of the Claimholders (as defined below) (together with its
    successors and assigns in such capacity and any replacement in such capacity, the “Agent”). Capitalized terms used in this Agreement have the meanings assigned to
    them in Section 1 below.

   

  W I T N E S S
    E T H:

   

  WHEREAS, LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 1”), FEP GP LNG HOLDINGS LLC, a Delaware limited liability company (“Holdings 2,” and together with Holdings 1, “Holdings”), LNG HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”),

    the lenders party thereto and the Agent have entered into that certain Credit Agreement, dated as of [______], 2014 (as amended, restated, supplemented, modified, replaced or Refinanced from time to time, the “Credit Agreement”);

   

  WHEREAS, it is a condition precedent to the willingness of the Claimholders to enter into or maintain the Senior Loan Documents (as defined
    below) and make or maintain the extensions of credit thereunder, that the Creditors enter into this Agreement to, among other things, provide that the Senior Debt will be senior in priority and right of payment, as applicable, to the Subordinated Debt;

   

  WHEREAS, in order to induce the Claimholders to extend credit and other financial accommodations and lend monies to or for the benefit of
    the Debtors and Obligors (which are affiliates to one or more of the Debtors) and to induce the Claimholders to continue to suffer to exist the obligations owing to the Creditors or the security interests in favor of the Creditors, each Creditor has
    agreed to the intercreditor and other provisions set forth in this Agreement; and

   

  WHEREAS, the Creditors hereby acknowledge that each of them receive both direct and indirect benefits from Claimholders’ extension of
    credit to Debtors and Obligors pursuant to the Credit Agreement.

   

  NOW, THEREFORE, in consideration of the premises and the agreements hereinafter set forth and for good and valuable consideration, the
    receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

   

  1.          Definitions.

   

  (a)          Each of the following terms
      shall have the meaning assigned in the Preamble or Recitals
      to this Agreement: Agent, Agreement, Borrower, Credit Agreement, Creditors, Debtors and Holdings.

  
    
      
 

  

  
  (b)          Capitalized
      terms used herein and not defined herein (including, without limitation, Default and Event of Default) shall have the meanings assigned to such terms in the Credit Agreement.

   

  (c)          “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and hereafter in effect, or any successor statute.

   

  (d)          “Bankruptcy Law” means the Bankruptcy Code and any similar federal, state or foreign law for the relief of debtors.

   

  (e)          “Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close.

   

  (f)          “Claimholders” means, at any relevant time, the holders of Obligations under the Credit Agreement or any Secured Hedge Agreement and the agents party to any Senior
      Loan Documents related to the Credit Agreement.

   

  (g)          “Discharge of Senior Debt” means payment in full in cash of the Senior Debt (other than (A) Unasserted Contingent Obligations and (B) Obligations owing to Lender
      Counterparties under any Secured Hedge Agreement that are not then due and payable).

   

  (h)          “Insolvency Proceeding” means:

   

  
    		i)	
            any voluntary or involuntary case or proceeding under the Bankruptcy Code or any other Bankruptcy Law with respect to any Obligor;

          

  

   

  
    		ii)	
            any other voluntary or involuntary insolvency, reorganization or bankruptcy case or proceeding, or any receivership, liquidation, proposal, reorganization, plan of
              arrangement or other similar case or proceeding with respect to any Obligor or with respect to a material portion of its assets;

          

  

   

  
    		iii)	
            any liquidation, dissolution, reorganization, or winding up of any Obligor whether voluntary or involuntary and whether or not involving insolvency or bankruptcy; or

          

  

  
    2

    
      
 

  

  
    		iv)	
            any assignment for the benefit of creditors or any other marshalling of assets and liabilities of any Obligor.

          

  

   

  (i)          “Loan Parties” means Holdings, the Borrower and each Subsidiary of Holdings that is a party to a Senior Loan Document.

   

  (j)          “Obligations” means all advances to, and debts, indemnities and reimbursement obligations, liabilities, obligations, covenants and duties of, any Person, whether
      direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest, fees and expenses that accrue (in accordance with the rate specified in the relevant
      Credit Agreement) after the commencement by or against any Person or any affiliate thereof of any proceeding under any Bankruptcy Law naming such Person as the debtor in such proceeding, regardless of whether such interest, fees or expenses are
      allowed claims in such proceeding.

   

  (k)          “Obligor” means the Borrower, each Guarantor and any other Person that now or hereafter is, or whose assets now or hereafter are, liable for all or any portion of
      the Senior Debt or the Subordinated Debt, as applicable.

   

  (l)          “Person” means an individual, general partnership, limited partnership, limited liability partnership, corporation, limited liability company, unlimited liability
      company or corporation, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.

   

  (m)          “Refinance” means, in respect of any Senior Debt and any Senior Loan Documents, to refinance, extend, renew, defease, amend, modify, supplement, restructure,
      replace, refund or repay, or to issue other indebtedness, in exchange or replacement for, such Senior Debt in whole or in part, in each case with the same or different lenders, agents or arrangers and including any increase in the principal amount of
      the loans and commitments provided thereunder. “Refinanced” and “Refinancing” shall have correlative meanings.

   

  (n)          “Senior Debt” means all of the Obligations due and owing by the Debtors or Obligors and their affiliates pursuant to the Credit Agreement or a Secured Hedge
      Agreement.

   

  (o)          “Senior Loan Documents” means the Credit Agreement and each of the other agreements, documents and instruments providing for or evidencing any other Senior Debt,
      including any intercreditor or joinder agreement among holders of Senior Debt to the extent such are effective at the relevant time, as each may be amended, restated, supplemented, modified, replaced, Refinanced, renewed or extended from time to
      time.

  
    3

    
      
 

  

  (p)          “Subordinated Debt” means all Indebtedness (as defined in the Credit Agreement) owed at any time by any Debtor to any Creditor.

   

  (q)          “Unasserted Contingent Obligations” means, at any time, Obligations for taxes, costs, indemnifications, reimbursements, damages and other liabilities (excluding
      Obligations in respect of the principal of, and interest and premium (if any) on, any Obligation) in respect of which no assertion of liability and no claim or demand for payment has been made (and, in the case of Obligations for indemnification, no
      notice for indemnification has been issued by the indemnitee at such time).

   

  2.         Subordination.  Each Creditor hereby agrees to subordinate all of the Subordinated Debt to the full and final payment and Discharge of Senior Debt (including, without limitation, with respect
      to any Lien granted by any Debtor in favor of any Creditor) on the terms set forth herein. Without limiting the generality of the foregoing, in the event of any distribution, division or application, partial or complete, voluntary or involuntary, by
      operation of law or otherwise, of all or any part of the assets of any Debtor or the proceeds thereof to any Creditor (except to the extent such distribution, division or application is permitted under the terms of the Credit Agreement) or upon any
      payment or distribution to any Creditor by reason of an Insolvency Proceeding, then and in any such event any payment or distribution of any kind or character, either in cash, securities or other property, which shall be payable or deliverable upon
      or with respect to any of the Subordinated Debt, shall be paid or delivered directly to the Agent for application to the Senior Debt (whether or not the same is then due) until the Discharge of Senior Debt. Each Debtor’s and each Creditor’s books
      shall be marked to evidence the subordination of all of the Subordinated Debt to the Senior Debt. The subordination provisions of this Section 2 shall remain in full force and effect notwithstanding any amendment, supplement, restatement,
      replacement, Refinancing or other modification with respect to the Credit Agreement and the Obligations of the Debtors thereunder (including, without limitation, all costs, expenses and interest accruing on the Senior Debt after the commencement of
      any Insolvency Proceeding whether or not such costs, expenses or interest would be allowed in such Insolvency Proceeding).

   

  3.         Nature of Senior Debt.  Each Creditor acknowledges that the terms of the Senior Debt may be modified, extended or amended from time to time, and the aggregate amount of the Senior Debt may be
      increased or Refinanced, in either event, without notice to or the consent of any Creditor and without affecting the provisions hereof. The payment and lien priorities provided herein shall not be altered or otherwise affected by any such amendment,
      modification, supplement, extension, repayment, reborrowing, increase, replacement, renewal, restatement or Refinancing of either the Senior Debt or the Subordinated Debt, or any portion thereof.

  
    4

    
      
 

  

  4.         Warranties and Representations of Debtor and Creditor.  The Debtors and Creditors hereby represent and warrant that, as of the date hereof: (a) none of the Debtors nor any of the Creditors
      have relied nor will rely on any representation or information of any nature made by or received from the Agent or any Claimholder in deciding to execute this Agreement; (b) each Creditor is the lawful owner of its interest in the Subordinated Debt;
      (c) each Creditor has not heretofore assigned or transferred any of the Subordinated Debt, any interest therein or any collateral or security pertaining thereto; and (d) each Creditor has not heretofore given any subordination in respect of any of
      the Subordinated Debt that remains outstanding (other than any subordination with respect to the Senior Debt); and (e) any promissory note evidencing Subordinated Debt issued after the date hereof will be marked with a legend stating that it is
      subject to this Agreement.

   

  5.         Negative Covenants.  Except as otherwise provided or permitted hereunder (including payments permitted to be made on account of the Subordinated Debt pursuant to Section 6), for so long as
      this Agreement is in effect: (a) no Debtor shall, directly or indirectly, make any payment (other than to a Loan Party and other than interest paid in kind and the accrual and addition to principal of capitalized interest) on account of the
      Subordinated Debt if an Event of Default under the Credit Agreement has occurred and is continuing and the Agent has given notice to the applicable Loan Parties prohibiting such payments (which notice shall be deemed to have been given immediately
      upon the commencement of any Insolvency Proceeding constituting an Event of Default under the Credit Agreement), or grant a security interest in, mortgage, pledge, assign or transfer any properties to secure all or any part of the Subordinated Debt;
      (b) no Creditor (other than a Loan Party) shall demand, collect or accept from any Debtor or any other Person or entity now or hereafter obligated, directly or indirectly, to the Agent or any Claimholder for payment or performance of the Senior Debt,
      any payment if an Event of Default under the Credit Agreement has occurred and is continuing and the Agent has given notice to the applicable Loan Parties prohibiting such payment (which notice shall be deemed to have been given immediately upon the
      commencement of any Insolvency Proceeding constituting an Event of Default under the Credit Agreement) (other than interest paid in kind and the accrual and addition to principal of capitalized interest) or collateral on account of the Subordinated
      Debt or any part thereof or realize upon or enforce any collateral securing the Subordinated Debt; (c) no Creditor shall set off any part of the Subordinated Debt if an Event of Default under the Credit Agreement has occurred and is continuing and
      the Agent has given notice to the applicable Loan Parties prohibiting such set off (which notice shall be deemed to have been given immediately upon the commencement of any Insolvency Proceeding constituting an Event of Default under the Credit
      Agreement); (d) no Creditor shall hereafter give any other subordination in respect of the Subordinated Debt, other than with respect to the Senior Debt; (e) no Creditor shall transfer or assign any of the Subordinated Debt to any Person, other than
      to the Agent or any LNG Group Member to the extent permitted by the Credit Agreement; (f) no Creditor will commence or join with any other creditors of any Debtor in commencing any bankruptcy, reorganization, receivership or Insolvency Proceeding
      against any Debtor; and (g) each Creditor shall give the Agent prompt written notice of any default or event of default under any promissory note or other agreement evidencing Subordinated Debt.

  
    5

    
      
 

  

  6.         Payments.  No payments (whether in cash or other property and whether received directly, indirectly or by set off, counterclaim or otherwise) of principal or interest of any nature (other
      than interest paid in kind and the accrual and addition to principal of capitalized interest) may be made on account of the Subordinated Debt or any promissory note evidencing Subordinated Debt if an Event of Default under the Credit Agreement has
      occurred and is continuing and the Agent has given notice to the applicable Loan Parties prohibiting such payments (which notice shall be deemed to have been given immediately upon the commencement of any Insolvency Proceeding constituting an Event
      of Default under the Credit Agreement), provided that any Debtor may make any payment on account of any Subordinated Debt due and owing to a Creditor that is
      also a Loan Party.

   

  7.         Turnover of Prohibited Transfers.  If any payment, distribution or security or the proceeds thereof are received by any Creditor on account of or with respect to the Subordinated Debt in
      violation of this Agreement, such Creditor shall immediately deliver same to the Agent in the form received (except for the addition of any endorsement or assignment necessary to effect a transfer of all rights therein to the Agent) for application
      to the Senior Debt; provided, that, if such payments are in a form other than cash or cash equivalents (“Non-Cash Consideration”), the Agent, for the benefit of the Claimholders, shall be authorized to, but shall have no obligation to, monetize such Non-Cash Consideration in its sole discretion and any cash
      proceeds shall be applied to the Senior Debt. The application of such cash proceeds shall reduce the Senior Debt only to the extent of the actual cash payment indefeasibly received by the Claimholders, net of fees, costs and commissions.
      Notwithstanding the foregoing, to the extent any indemnification obligation or contingent obligation becomes due and payable after such time as the remainder of the Senior Debt are paid, such Creditor is obligated to turn over any such amounts to the
      Agent. The Agent is hereby authorized to make any such endorsements as agent for the applicable Creditor. This authorization is coupled with an interest and is irrevocable until the Discharge of Senior Debt. The Agent is irrevocably authorized to
      supply any required endorsement or assignment which may have been omitted to the extent that the same would have been required by any Creditor hereunder. Until so delivered any such payment, distribution or security shall be held by such Creditor in
      trust for Agent and shall not be commingled with other funds or property of such Creditor.

  
    6

    
      
 

  

  8.         Authority to Act for Creditors.  Prior to the Discharge of Senior Debt, Agent shall have the right to act as each Creditor’s attorney-in-fact for the purposes specified herein and each
      Creditor hereby irrevocably appoints the Agent as such Creditor’s true and lawful attorney, which appointment is coupled with an interest, with full power of substitution, in the name of such Creditor or in the name of the Agent, for the use and
      benefit of the Agent for itself and on behalf of the Claimholders, without notice to any Creditor or any Creditor’s representatives, successors or assigns, to perform the following acts, at the Agent’s option, at any meeting of any Creditor or any
      Debtor in connection with any case or proceeding, whether of a Debtor or of a Creditor, whether voluntary or involuntary, for the distribution, division or application of the assets of any Debtor or the proceeds thereof, regardless of whether such
      case or proceeding is for the liquidation, dissolution, winding up of the affairs, reorganization or arrangement of any Debtor, or for the composition of any Debtor, in bankruptcy or in connection with a receivership, or under an assignment for the
      benefit of any Creditor or otherwise:

   

  (a)          to enforce and collect on claims comprising the Subordinated Debt, either in its own name or in the name of any Creditor, by proof of debt, proof of claim, adversary proceeding, motion, suit or otherwise;

   

  (b)          to collect any assets of any Debtor distributed, divided or applied by way of dividend or payment, or any securities issued, on account of the Subordinated Debt and to apply the same, or the proceeds of any realization upon the same that the
      Agent in its discretion elects to effect, to the Senior Debt until the Discharge of Senior Debt, rendering any surplus to the applicable Creditors if and to the extent permitted by law; and

   

  (c)          to take generally any action in connection with any such meeting, case or proceeding that such Creditor would be authorized to take but for this Agreement, including without limitation casting any votes or ballots with respect to the
      Subordinated Debt.

   

  Anything in this Section 8 to the contrary notwithstanding, the Agent agrees that it will not exercise any rights under the power of attorney
    provided for in this Section 8 with respect to any Creditor unless an Event of Default by an Obligor shall have occurred and be continuing under the Credit Agreement. In no event shall the Agent be liable to any Creditor for any failure to prove or
    file proofs of claim with respect to the Subordinated Debt, to exercise any right with respect thereto or to collect any sums payable thereon.

  
    7

    
      
 

  

  9.         Waivers. If any Creditor is or becomes indebted to any Debtor in any respect, whether now or in the future, then such Creditor shall not offset its indebtedness to such Debtor against any
      Subordinated Debt if an Event of Default under the Credit Agreement has occurred and is continuing and the Agent has given notice to the applicable Loan Parties prohibiting such offset (which notice shall be deemed to have been given immediately upon
      the commencement of any Insolvency Proceeding constituting an Event of Default under the Credit Agreement). Furthermore, no Debtor shall compromise or settle any present or future debts that any Creditor may owe to such Debtor if an Event of Default
      under the Credit Agreement has occurred and is continuing and the Agent has given notice to the applicable Loan Parties prohibiting such compromise or settlement (which notice shall be deemed to have been given immediately upon the commencement of
      any Insolvency Proceeding constituting an Event of Default under the Credit Agreement) unless the Agent shall grant its prior written consent to the same. Each Debtor and each Creditor hereby waive any defense based on the adequacy of a remedy at law
      which might be asserted as a bar to the remedy of specific performance of this Agreement in any action brought therefor by Agent. To the fullest extent permitted by law, each Debtor and each Creditor hereby further waive the following: presentment,
      demand, protest, notice of default or dishonor, notice of payment or nonpayment and any and all other notices and demands of any kind in connection with all negotiable instruments evidencing all or any portion of the Senior Debt or the Subordinated
      Debt to which such Debtor or such Creditor may be a party; the right to require Agent to marshall any security, or to enforce any security interest or lien the Agent may now or hereafter have in any collateral securing the Senior Debt or to pursue
      any claim it may have against any guarantor of the Senior Debt, as a condition to the Agent’s entitlement to receive any payment on account of the Subordinated Debt; notice of any loans made, extensions granted or other action taken in reliance
      hereon; and all other demands and notices of every kind in connection with this Agreement, the Senior Debt or the Subordinated Debt. Each Creditor assents to any release, renewal, extension, compromise or postponement of the time of payment to the
      Senior Debt, to any substitution, exchange or release of collateral therefor and to the addition or release of any Person primarily or secondarily liable thereon (collectively, the “Consented Actions”). Each Debtor agrees to use its best efforts to give such Creditor notice of any Consented Actions, but the failure of such Creditor to receive such notice from such Debtor shall in no way affect
      the validity or enforceability of the subordination granted hereunder, or the agreements, consents or waivers of such Creditor set forth in this Agreement.

   

  10.       Subrogation.  Provided that the Discharge of Senior Debt has occurred, each Creditor shall be subrogated to the rights of the Agent to receive payments or distributions of cash, property or
      securities payable or distributable on account of the Senior Debt, to the extent of all payments and distributions paid over to or for the benefit of Agent pursuant to this Agreement.

   

  11.       Statement of Account.  Each Debtor and each Creditor agree to render to the Agent from time to time upon the Agent’s reasonable written request therefor a statement of such Debtor’s account with
      such Creditor and to afford each Agent reasonable access to the books and records of such Debtor during normal business hours in order that the Agent may make a full examination of the state of accounts of such Debtor with such Creditor.

   

  12.       Validity of Subordinated and Senior Debt. The provisions of this Agreement subordinating the Subordinated Debt are solely for the purpose of defining the relative rights of the Agent and
      Claimholders, on the one hand, and the Creditors, on the other hand, and shall not impair, as between each Creditor and each Debtor or between the Agent and Claimholders and the Debtors, the Borrower or other Obligors, the obligations of Debtors, the
      Borrower or other Obligors which are unconditional and absolute, to pay the Subordinated Debt and the Senior Debt, respectively, in accordance with their terms subject to the provisions of this Agreement.

  
    8

    
      
 

  

  13.       Indulgences Not Waivers.  Neither the failure nor any delay on the part of the Agent or any Claimholder to exercise any right, remedy, power or privilege hereunder shall operate as a waiver
      thereof or give rise to an estoppel, nor be construed as an agreement to modify the terms of this Agreement, nor shall any single or partial exercise of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of
      such right, remedy, power or privilege with respect to any other occurrence. No waiver by a party hereunder shall be effective unless it is in writing and signed by the party making such waiver, and then only to the extent specifically stated in such
      writing.

   

  14.       Effectiveness; Duration. This Agreement shall become effective when executed by each Debtor and each Creditor, and, when so executed, shall constitute a continuing agreement of subordination, and
      shall remain in effect until the Discharge of Senior Debt. Claimholders may, without notice to any Creditor, extend or continue credit and make other financial accommodations to or for the account of the Debtors in reliance upon this Agreement. If,
      in the context of any Insolvency Proceeding, the Agent is required to or agrees to disgorge any payments received by the Agent on account of the Senior Debt, the transfer of which is challenged as avoidable by a trustee or debtor-in-possession, such
      amount shall be deemed not to be paid to the Agent and this Agreement shall remain in effect with respect to any such disgorged payments.

   

  15.       Default and Enforcement. This Agreement shall create an irrebuttable presumption and admission by each Creditor that relief against such Creditor by injunction, specific performance and/or other
      appropriate equitable relief is necessary to prevent irreparable harm to the Claimholders, it being understood and agreed by each Creditor that (i) the Claimholders’ damages from its actions may at that time be difficult to ascertain and may be
      irreparable, and (ii) such Creditor waives any defense that the Obligors and/or the Claimholders cannot demonstrate damage and/or be made whole by the awarding of damages. If at any time any Creditor fails to comply with any provision of this
      Agreement that is applicable to such Creditor, Agent may demand specific performance of this Agreement, whether or not any Debtor has complied with this Agreement, and may exercise any other remedy available at law or equity. Without limiting the
      generality of the foregoing, if any Creditor, in violation of this Agreement, shall institute or participate in any action, suit or proceeding against any Debtor, such Debtor may interpose as a defense or dilatory plea this Agreement and Agent is
      irrevocably authorized to intervene and to interpose such defense or plea in such Debtor’s name. If any Creditor attempts to enforce or realize upon any collateral securing the Subordinated Debt in violation of this Agreement, any Debtor or Agent (in
      such Debtor’s or any applicable Agent’s name) may by virtue of this Agreement restrain such realization or enforcement.

   

  16.       Exercise of Remedies. Notwithstanding anything to the contrary contained in this Agreement, the Credit Agreement or the other Senior Loan Documents, until the Discharge of Senior Debt has
      occurred, the Creditors shall not (i) take or omit to take any action or assert any claim with respect to the Subordinated Debt or otherwise (or support any other Person in taking any action or asserting any claim) which is inconsistent with the
      provisions of this Agreement, (ii) take any action or enforce any rights or remedies against the Loan Parties or any collateral securing the Senior Debt, (iii) exercise any rights to set-offs or recoupments and/or counterclaims in respect of any of
      the Subordinated Debt or any other obligation with respect thereto, or (iv) accept any additional collateral without the Senior Claimholders obtaining prior ranking liens on such collateral.

  
    9

    
      
 

  

  17.       Assumption and Releases.

   

  (a)       Any party
      that elects to become a party to this Agreement shall become either a Creditor or Debtor for all purposes of this Agreement upon execution and delivery of an assumption agreement in the form of Annex C hereto.

   

  (b)       If in connection
      with any action by the Agent to enforce the rights and remedies of the Claimholders (whether against the collateral or otherwise), the Agent or any other Claimholder, for itself or on behalf of any of the Claimholders, releases any of its liens on
      any part of the collateral or releases any Obligor from its obligations under the Senior Debt, then the liens, if any, of any Creditor on such collateral, and the obligations, if any, of such Obligor as a guarantor under any Subordinated Debt, shall
      be automatically, unconditionally and simultaneously released. Each Creditor promptly shall execute and deliver to the Agent or such Debtor such termination statements, releases and other documents as the Agent, applicable Claimholder or such Debtor
      may request to effectively confirm such release.

   

  18.       No Motions. In connection with an Insolvency Proceeding, without the prior written consent of the Agent as to both form and substance, no Creditor shall file any motion or other application,
      objection, joinder or other filing in connection with sections 362, 363, 364 and/or 506 of the Bankruptcy Code (or any equivalent section of other Bankruptcy Law) or otherwise or in connection with any valuation issues, marshalling issues or
      otherwise make any filing adverse to the interests of the Claimholders, including, without limitation, motions seeking adequate protection, relief from the automatic stay, expense claims, motions requesting post-petition interest and/or similar
      relief sought pursuant to other Bankruptcy Laws. No Creditor will participate in or otherwise support the “priming” of, or granting of any “pari passu” liens with respect to, any of the liens supporting the Senior Debt in connection with a proposed
      debtor-in- possession facility or otherwise.

   

  19.       Effectiveness in Insolvency Proceedings. This Agreement, which the parties hereto expressly acknowledge is a “subordination agreement” under Section 510(a) of the Bankruptcy Code (or
      substantially equivalent or similar provisions and concepts in other Bankruptcy Laws) shall be effective before, during and after the commencement of an Insolvency Proceeding. All references in this Agreement to any Debtor or Obligor shall include
      such Person as a debtor-in-possession and any receiver or trustee for such Person in any Insolvency Proceeding.

  
    10

    
      
 

  

  20.       Litigation.  In the event of any litigation with respect to any matter concerned with this Agreement, each Debtor hereby waives all rights of setoff, crossclaim and counterclaim of any nature.
      Each Creditor and each Debtor hereby irrevocably consents to the exclusive jurisdiction of the Courts of the State of New York and of any Federal court located in the State of New York, in connection with any action or proceeding arising out of or
      relating to this Agreement. The exclusive choice of forum set forth herein shall not be deemed to preclude the enforcement of any judgment obtained in such forum or the taking of any action under this Agreement to enforce the same in any appropriate
      jurisdiction.

   

  21.       Addresses for Notices.  Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other communications to any party herein to be
      effective shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, with respect to any Debtor, Creditor or the Agent as set forth in the Credit Agreement. Any party
      hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All such notices and other communications may be transmitted by overnight delivery, faxed, or mailed, provided, that notices shall not be effective until actually received by such Person at its address specified in this section.

   

  22.       Agent’s Duties Limited. The rights granted to the Agent in this Agreement are solely for its protection and nothing herein contained imposes on the Agent any duties with respect to any property
      either of any Debtor or of any Creditor heretofore or hereafter received by the Agent beyond reasonable care in the custody and preservation of such property while in the Agent’s possession. The Agent has no duty to preserve rights against prior
      parties on any instrument or chattel paper received from any Debtor or any Creditor as collateral security for the Senior Debt or any portion thereof.

   

  23.       Continuing Nature of this Agreement.  Each Creditor hereby waives any right it may have under applicable law to revoke this Agreement or any of the provisions of this Agreement. The terms of this
      Agreement shall survive, and shall continue in full force and effect, in any Insolvency Proceeding.

   

  24.       Entire Agreement. This Agreement constitutes and expresses the entire understanding between the parties hereto with respect to the subject matter hereof, and supersedes all prior and
      contemporaneous agreements and understandings, inducements or conditions, whether express or implied, oral or written. Neither this Agreement nor any portion or provision hereof may be changed, waived or amended orally or in any manner other than by
      an agreement in writing signed by the Agent, Debtors and Creditors. None of the parties hereto are entering into this Agreement in reliance on any oral or other representations made by other parties or other Persons.

  
    11

    
      
 

  

  25.       Additional Documentation. Each Debtor and each Creditor shall execute and deliver to the Agent such further instruments and shall take such further  action as Agent may at any time or times
      reasonably request in order to carry out the provisions and intent of this Agreement.

   

  26.       Expenses. Each Debtor agrees to pay the Agent on demand all reasonable and documented out-of-pocket expenses, including reasonable and documented attorneys’ fees, that the Agent may incur in
      enforcing or protecting any of Claimholders’ rights under this Agreement. Additionally, each Creditor agrees to pay each Agent on demand all reasonable and documented out-of-pocket expenses, including reasonable and documented attorneys’ fees, that
      the Agent may incur in enforcing or protecting the Agent’s or any of Claimholders’ rights under this Agreement resulting from a breach by such Creditor of the terms of this Agreement provided such applicable Agent or Claimholder is a prevailing
      party.

   

  27.       Successors and Assigns. This Agreement shall inure to the benefit of the Agent and its successors and assigns, including without limitation any financial institutions participating with the Agent
      or as the Agent’s successor in connection with the Senior Debt, and shall be binding upon both Debtors and Creditors and their respective successors and assigns.

   

  28.       Defects Waived. This Agreement is effective notwithstanding any defect in the validity or enforceability of any instrument or document at any time evidencing or securing the whole or any part of
      the Senior Debt.

   

  29.       Governing Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT, AND ANY CLAIM OR CONTROVERSY RELATING TO THE SUBJECT MATTER HEREOF WHETHER SOUNDING IN CONTRACT
      LAW OR TORT LAW, SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

   

  30.       Severability. The provisions of this Agreement are independent of and separable from each other. If any provision hereof shall for any reason be held invalid or unenforceable, it is the intent of
      the parties that such invalidity or unenforceability shall not affect the validity or enforceability of any other provision hereof, and that this Agreement shall be construed as if such invalid or unenforceable provision had never been contained
      herein.

   

  31.       Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to
      constitute one and the same instrument.  Delivery of an executed signature page of this Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

   

  [Signature Pages Follow]

  
    12

    
      
 

  

  IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first above written.

   

  
    	
             

          	
            CREDITOR:

          
	
             

          	
             

          
	
             

          	
            [_____________________]

          
	
             

          	
             

          
	 	
	
             

          	
            By:

          
	
             

          	
            Title:

          

  

   

  
    [Signature Page to Intercompany Debt Subordination Agreement]

    
      
        
 

    

  

  
    	 	DEBTORS:
	 	 
	 	[_____________________]
	 	 
	 	 
	 	By:
	 	Title:

  

   

  [Signature Page to Intercompany Debt Subordination Agreement]

  
    
      
 

  

  
    	 	AGENT:
	 	 	 
	 	MORGAN STANLEY SENIOR FUNDING, INC., as Agent,
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	
            Title:

          

  

   

  [Signature Page to Intercompany Debt Subordination Agreement]

  
    
      
 

  

  ANNEX A

   

  CREDITORS

  
    
      
 

  

  ANNEX B

   

  DEBTORS

   

  LNG HOLDINGS LLC 

  LNG HOLDINGS (FLORIDA) LLC 

  FEP GP LNG HOLDINGS LLC

  
    
      
 

  

  ANNEX C

   

  

  

   

  ASSUMPTION AGREEMENT, dated as of ______________________, 201_, made by __________________________________ (“Additional Creditor”/”Additional Debtor”), in favor of MORGAN STANLEY SENIOR FUNDING, INC., as the
    Agent for the benefit of the Claimholders. All capitalized terms not defined herein shall have the meaning ascribed to them in the Intercompany Debt Subordination Agreement, dated as of _____________________, 201_ (the “Intercompany Debt Subordination Agreement”), by and between the Creditors, the Debtors and the Agent.

   

  W I T N E S SETH:

   

  WHEREAS, the Additional [Creditor/Debtor] has agreed to execute and deliver this Assumption Agreement in order to become a party to the
    Intercompany Debt Subordination Agreement.

   

  NOW, THEREFORE, IT IS AGREED:

   

  1.         Intercompany Debt Subordination Agreement. By executing and delivering this Assumption Agreement, the Additional [Creditor/Debtor], hereby becomes a party to the Intercompany Debt
      Subordination Agreement as a [Creditor/Debtor] thereunder with the same force and effect as if originally named therein as a [Creditor/Debtor] and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and
      liabilities of a [Creditor/Debtor] thereunder. The information set forth in Annex C-1 hereto is hereby added to the information set forth in Annex [A/B] to the Intercompany Debt Subordination Agreement and such Annex shall be deemed so amended. The
      Additional [Creditor/Debtor] hereby represents and warrants that each of the representations and warranties contained in the Intercompany Debt Subordination Agreement with respect to Additional [Creditor/Debtor] is true and correct on and as the date
      hereof (after giving effect to this Assumption Agreement) as if made on and as of such date.

   

  2.         GOVERNING LAW. THIS ASSUMPTION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH,
      THE LAW OF THE STATE OF NEW YORK.

  
    
      
 

  

  
    IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above
      written.

     

    	 	[ADDITIONAL CREDITOR/DEBTOR]
	 	 	 
	 	By:	 
	 	 	
            Name:

          
	 	 	Title:

    
      
        
 

    

  

  
  
    EXHIBIT J TO

      CREDIT AGREEMENT

     

    FORM OF NOTICE OF COLLATERAL ASSIGNMENT

     

    November ____, 2014

     

    
      Reference is made to the Design-Build Agreement, dated as of June 9, 2014 (the “Design-Build Agreement”) by and between LNG Holdings (Florida) LLC, a Delaware limited liability company (the  “Company”), and OnQuest
        Inc., a California corporation (the “Contractor”).

       

      Pursuant to Section 26.2 of the Design-Build Agreement, the Company hereby gives notice to the  Contractor that the
        Company is collaterally assigning its interest in the Design-Build Agreement to Morgan Stanley Senior Funding, Inc., for the benefit of the secured parties as additional security for the repayment in full of the obligations under that certain
        Credit Agreement, dated as of November __, 2014,  among LNG Holdings LLC, FEP GP LNG Holdings LLC, the Company, the several banks and other  financial institutions or entities from time to time party thereto, and Morgan Stanley Senior  Funding,
        Inc., as administrative agent (as amended, restated, supplemented or modified from time to  time).

    

    
      J-1

      
        
 

    

    
     

    
      	
               

            	
              LNG HOLDINGS (FLORIDA) LLC

            
	
               

            	
               

            	
               

            
	
               

            	
              By: 

            	
               

            
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Accepted and acknowledged:
	 	 	 
	 	ONQUEST, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

    

    
      J-2

      
        
 

    

    EXHIBIT K TO

      CREDIT AGREEMENT

     

    FORM OF FLORIDA CONSTRUCTION LOAN UPDATE ENDORSEMENT

     

    CONSTRUCTION LOAN UPDATE ENDORSEMENT

      NO.___________________

     

    ISSUED BY

     

    First American Title Insurance Company

    
      	 	 
	
              Issuing Office File No.:          

            	Attached to Policy No.:

    

     

    
      	1.	
              The liability of the Company is increased by $____________ to include disbursements made pursuant to requisition(s) ___________ for a cumulative total to date of
                $_______________.

            

    

     

    
      	2.	
              The Company insures there have been no instruments filed among the Public Records of _____________ County, affecting title to the lands described in Schedule A from
                ____________ through ____________, other than the following:

            

    

     

    
      	3.	
              The Company insures each of the foregoing is subordinate to the lien of the mortgage insured except:

            

    

     

    This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements
      thereto.  Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the
      face amount thereof.

     

    This endorsement shall not be valid or binding unless signed by either a duly authorized officer or agent of the Company.

     

    Issue Date: _____________

    
      	
               

            	
               

            	
               

            
	
              By:

            	
               

            	
               

            
	
               

            	
              Authorized Signatory

            	
               

            

    

                

    
      K-1

      
        
 

    

    
    EXHIBIT L TO

      CREDIT AGREEMENT

     

    FORM OF GENERAL CONTRACTOR CERTIFICATE

     

    [______________], 201[_]

     

    Morgan Stanley Senior Funding, Inc.,

      as Administrative Agent

      1 New York Plaza, 41st Floor

      New York, New York 10004

      Attn: Anil Singh

      Phone: (917) 260-5329

      Email: msagency@morganstanley.com

     

    LNG Holdings (Florida) LLC

      1345 Avenue of the Americas, 46th Floor

      New York, New York 10105

     

    With a copy to:

     

    Fortress Investment Group LLC

      1345 Avenue of the Americas

      New York, New York 10105

      Attn: R. Nardone

      Phone: (212) 798-6110

      Fax: (212) 798-6120

     

    
      	Re:	
              Senior Secured Delayed Draw Term Loan Credit Agreement dated as of November 24, 2014 (as amended, restated, supplemented or modified from time to time, the “Credit Agreement”) among LNG HOLDINGS LLC, a Delaware limited liability company, FEP GP LNG HOLDINGS LLC, a Delaware limited liability company, LNG
                HOLDINGS (FLORIDA) LLC, a Delaware limited liability company (the “Borrower”), the several banks and other financial institutions or entities from
                time to time party thereto and MORGAN STANLEY SENIOR FUNDING, INC., as administrative agent (in such capacity, together with any successor appointed in accordance with Section 8.6 of the Credit Agreement, the “Administrative Agent”).

            

    

     

    Ladies and Gentlemen:

     

    This General Contractor Certificate is being delivered pursuant to Section 5.2(c) of the Credit Agreement and Section 9.21 of the Design-Build Agreement dated June 9, 2014 (the “Design Build Agreement”) with the Company for the completion of the Hialeah LNG Project (the “Project”).

     

    OnQuest, Inc. (the “General Contractor”) hereby
      certifies as follows:

    
      L-1

      
        
 

    

    
      		(a)	
              The construction performed as of the date hereof is substantially in accordance with the plans and specifications of the Plant as set forth in the Design-Build
                Agreement;

            

    

     

    
      		(b)	
              As of the date hereof, the total current contract sum under the Design-Build Agreement is $[                 ];

            

    

     

    
      		(c)	
              That as of the date hereof, the remaining unpaid balance of the Design-Build Agreement is $[                 ];

            

    

     

    
      		(d)	
              To the best of its knowledge as of the date hereof, that under, with respect to the Plant to be constructed pursuant to the Design-Build Agreement, the date of
                completion under the Design-Build Agreement is likely to occur on or about [September 25, 2015], which is prior to the scheduled expiration or termination of the Design-Build Agreement; and

            

    

     

    
      		(e)	
              To the best of its knowledge, solely with respect to the Design-Build Agreement, the Plant will be constructed in accordance with the Plant documents, including the
                Budget (as defined in the Credit Agreement) and the total current contract sum made a part thereof.

            

    

     

    The Administrative Agent is entitled to rely on the foregoing certifications in au-thorizing and making the credit extension requested.

     

    [SIGNATURE PAGE FOLLOWS]

    
      L-2

      
        
 

    

    IN WITNESS WHEREOF, the undersigned has executed this Certificate of General Contractor as of this [____] day of [_________], 201[__].

    
      	 	 	 
	 	ONQUEST, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

    

     

    
      L-3

      
        
 

    

    SCHEDULE 1.1A

     

    COMMITMENTS

     

    	
            LENDER

          	
            COMMITMENT

          
	
            Morgan Stanley Bank, N.A.

          	
            $20,000,000

          
	
            Credit Suisse Loan Funding LLC

          	
            $20,000,000

          
	
            Total

          	
            $40,000,000

          

     

    
      
        
 

    

     SCHEDULE 1.1C

     

    MORTGAGED PROPERTIES

     

    LEGAL DESCRIPTION: (LAND LEASE PARCEL)

     

    A PARCEL OF LAND BEING A PORTION OF LOTS 72, 75, 77 AND 88 AND CERTAIN RIGHTS-OF-WAY WITHIN THE "AMENDED PLAT OF E 1/2 OF SEC. 14 TWP. 53S RGE. 40E", ACCORDING
      TO THE PLAT THEREOF, AS RECORDED IN PLATBOOK 13, PAGE 63, OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA, LYING WITHIN THE NORTHEAST 1/4 OF SECTION 14, TOWNSHIP 53 SOUTH, RANGE 40 EAST, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS;

     

    COMMENCE AT THE NORTHEAST CORNER OF SAID NORTHEAST 1/4 OF SECTION 14; THENCE SOUTH 01°39'24" EAST ON THE EAST LINE OF SAID NORTHEAST 1/4 FOR 457.33 FEET TO THE
      POINT OF BEGINNING; THENCE CONTINUE SOUTH 01°39'24" EAST ON SAID EAST LINE 119.26 FEET; THENCE SOUTH 54°57'45' WEST 405.80 FEET TO THE BEGINNING OF A NON-TANGENT CURVE CONCAVE SOUTHEASTERLY, WHOSE RADIUS POINT BEARS SOUTH 33°36'34" EAST; THENCE
      SOUTHWESTERLY ON THE ARC OF SAID CURVE TO THE LEFT, HAVING A RADIUS OF 2,277.65 FEET, A CENTRAL ANGLE OF 11°13'26", AN ARC DISTANCE OF 446.17 FEET; A CHORD BEARING OF SOUTH 50°46'43" WEST AND A CHORD DISTANCE OF 445.46 FEET TO A POINT OF
      NON-TANGENCY; THENCE SOUTH 46°15'46" WEST 360.84 FEET; THENCE NORTH 14°12'49" WEST 70.74 FEET; THENCE NORTH 16°27'49" WEST 715.15 FEET; THENCE NORTH 22°25'39" WEST 113.14 FEET; THENCE NORTH 89°46'21" EAST 356.40 FEET; THENCE NORTH 78°46'03" EAST
      219.56 FEET; THENCE SOUTH 84°06'08" EAST 326.53 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY; THENCE EASTERLY ON THE ARC OF SAID CURVE TO THE LEFT, HAVING A RADIUS OF 600.00 FEET, A CENTRAL ANGLE OF 10°21'44", FOR AN ARC DISTANCE OF
      108.51 FEET TO A POINT OF TANGENCY; THENCE NORTH 85°32'08" EAST 193.52 FEET TO THE POINT OF BEGINNING.

     

    SAID LAND SITUATE, LYING AND BEING IN MIAMI-DADE COUNTY, FLORIDA, CONTAINING 545,521 SQUARE FEET (12.5234 ACRES), MORE OR LESS.

    
      
        
 

    

    SCHEDULE 1.1H

     

    DISQUALIFIED ASSIGNEES

     

    
      	
              1.

            	
              Lone Star

            

    

    
      	
              2.

            	
              Terra Firma

            

    

    
      	
              3.

            	
              Apollo Group

            

    

    
      	
              4.

            	
              Cerberus

            

    

    
      	
              5.

            	
              Oaktree

            

    

    
      	
              6.

            	
              Icahn

            

    

    
      	
              7.

            	
              KKR

            

    

    
      	
              8.

            	
              Blackstone

            

    

    
      	
              9.

            	
              GSO Capital Partners

            

    

    
      	
              10.

            	
              Warburg Pincus

            

    

    
      	
              11.

            	
              First Reserve

            

    

     

    
      
        
 

    

    SCHEDULE 3.15

     

    SUBSIDIARIES

     

    	
            Subsidiary

          	
            Jurisdiction

          	
            Parent

          	
            Percentage of each

              class of Capital Stock

              owned

          
	
            LNG Holdings LLC

          	
            Delaware

          	
            Fortress Equity Partners (A) LP

          	
            100 percent of the limited liability company membership interests

          
	
            LNG Holdings (Florida) LLC

          	
            Delaware

          	
            LNG Holdings LLC

            FEP GP LNG Holdings LLC

          	
            100 percent of the limited liability company membership interests

          
	
            FEP GP LNG Holdings LLC

          	
            Delaware

          	
            Fortress Equity Partners GP, LLC

          	
            100 percent of the limited liability company membership interests

          

     

    
      
        
 

    

    SCHEDULE 3.19(A)

     

    UCC FILING OFFICES

     

    	
            Entity Name

          	
            Jurisdiction

          	
            Office

          
	
            LNG Holdings LLC

          	
            Delaware

          	
            Secretary of State

          
	
            LNG Holdings (Florida) LLC

          	
            Delaware

          	
            Secretary of State

          
	
            FEP GP LNG Holdings LLC

          	
            Delaware

          	
            Secretary of State

          

     

    
      
        
 

    

    SCHEDULE 3.19(B)

     

    MORTGAGE FILING JURISDICTIONS

     

    Miami-Dade County, Florida

    
      
        
 

    

    SCHEDULE 3.24

     

    MATERIAL CONSTRUCTION-RELATED CONTRACTS

     

    
      	1.	
              Purchase Order, dated as of May 27, 2014, by and between LNG Holdings (Florida) LLC and Chart Energy & Chemicals Inc.

            

    

     

    
      	2.	
              Design-Build Agreement dated as of June 9, 2014, by and between LNG Holdings (Florida) LLC and OnQuest, Inc.

            

    

     

    
      	3.	
              Ground Lease Agreement, dated as of November 20, 2014, by and between FDG LR 7 LLC and LNG Holdings (Florida) LLC

            

    

     

    
      	4.	
              LNG Sale and Purchase Agreement, dated as of November 21, 2014, by and between LNG Holdings (Florida) LLC and Florida East Coast Railway, L.L.C.

            

    

     

    
      	5.	
              Letter agreement, dated December 17, 2013, with Neptune Fire Protection Engineering LLC for fire protection consulting services

            

    

     

    
      
        
 

    

    SCHEDULE 4.1(F)

     

    CLOSING DATE LIEN SEARCHES

     

    	
            ENTITY NAME

          	
            JURISDICTION

          
	
            LNG Holdings LLC

          	
            Delaware

          
	
            LNG Holdings (Florida) LLC

          	
            Delaware

          
	
            FEP GP LNG Holdings LLC

          	
            Delaware

          

     

    
      
        
 

    

    SCHEDULE 5.12

     

    POST CLOSING MATTERS

     

    Within 90 days following the Closing Date, the Administrative Agent shall have received:

     

    (i)            Mortgage.  A Mortgage encumbering each Mortgaged Property in favor of the Administrative Agent, for the benefit of the Secured Parties, duly executed
        and acknowledged by each Loan Party that is the owner or holder of any interest in such Mortgaged Property, in proper form for recording in the land records in the jurisdiction in which such Mortgaged Property is located (the “Land Records”), and in form and substance reasonably satisfactory to the Administrative Agent and sufficient to create a valid and enforceable first
        priority mortgage lien on such Mortgaged Property subject to the Liens permitted by Section 6.3;

     

    (ii)           Title Insurance.  A lender’s policy of title insurance (or commitment to issue such a policy having the effect of a policy of title insurance) issued
        by First American title Insurance Company or such other title insurance company reasonably acceptable to the Administrative Agent (the “Title Company”)

        insuring (or committing to insure) the lien of the applicable Mortgage as valid and enforceable first priority mortgage lien on the Mortgaged Property described therein subject only to the Liens permitted by Section 6.3 (each, a “Title Policy”), in an amount equal to the aggregate principal amount
        of the Term Loan Facility, together with such endorsements as the Administrative Agent reasonably requests and such Title Policy shall not include an exception for mechanics’ liens, or shall provide for affirmative insurance over such mechanics
        liens;

     

    (iii)          Leasehold Documents.  With respect to the Mortgaged Property (w) a copy of the executed Ground lease, (x) an estoppel certificate in form and
        substance reasonably acceptable to the Administrative Agent, (y) a memorandum of lease with respect to the Mortgaged Property, duly executed and delivered by the landlord and the applicable Loan Party, as tenant, in proper form for recording in the
        Land Records, and (z), such other consents, approvals, affidavits, indemnifications, amendments, supplements or other instruments executed by the Loan Parties in order for the Loan Party, as tenant to grant the lien contemplated by the Mortgage or
        sufficient to enable the Title Company to issue the Title Policy and endorsements contemplated in clause (ii) above;

     

    (iv)          Survey.  A survey of the Mortgaged Property which is (a) (i) prepared by a surveyor or engineer licensed to perform surveys in the jurisdiction where
        such Mortgaged Property is located, (ii) certified by the surveyor (in a manner reasonably acceptable to the Administrative Agent) to the Administrative Agent and the Title Company, (iii) complying in all respects with the minimum detail
        requirements of the American Land Title Association as such requirements are in effect on the date of preparation of such survey and (iv) sufficient for the Title Company to remove all standard survey exceptions from the title insurance policy (or
        commitment) relating to such Mortgaged Property and issue the endorsements of the type required by clause (ii) or (b) otherwise acceptable to the
        Administrative Agent;

     

    (v)          Counsel Opinions.  Opinions addressed to the Administrative Agent for the benefit of the Secured Parties of (i) local counsel in each jurisdiction
        where the Mortgaged Property is located with respect to the enforceability and perfection of the Mortgages and other matters customarily included in such opinions and (ii) counsel for the Borrower regarding due authorization, execution and delivery
        of the Mortgages, in each case, in form and substance reasonably satisfactory to the Administrative Agent;

    
      
        
 

    

    (vi)          Flood Hazard Determinations.  A completed “Life-of Loan” Federal Emergency Management Agency Standard Flood Hazard Determination with respect to any
        Mortgaged Property (together with a notice about special flood hazard area status and flood disaster assistance duly executed by the Borrower and each Loan Party relating thereto), and if any portion of any Mortgaged Property is in an area
        identified by the Federal Emergency Management Agency (or any successor agency) as a special flood hazard area with respect to which flood insurance has been made available under the National Flood Insurance Act of 1968 (as now or hereafter in
        effect or successor act thereto), evidence of flood insurance in an amount and otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to the Flood Insurance Laws and otherwise in form and substance acceptable
        to the Administrative Agent; and

     

    (vii)          Real Property Collateral Fees and Expenses.  Evidence reasonably satisfactory to the Administrative Agent of payment by the Borrower of all costs and
        expenses for the issuance of the and payment of the Title Policy, mortgage recording taxes, and, costs and expenses required for the recording of the Mortgages.

    

     

    
      
        
 

    

    SCHEDULE 6.2(D)

     

    EXISTING INDEBTEDNESS

     

    None.

    
      
        
 

    

    SCHEDULE 6.3(O) EXISTING LIENS

     

    None.

    
      
        
 

    

    SCHEDULE 6.8(I) EXISTING INVESTMENTS

     

    None.

    
      
        
 

    

    SCHEDULE 6.10

     

    TRANSACTIONS WITH AFFILIATES

     

    
      	1.	
              Ground Lease Agreement, dated as of November 20, 2014, by and between FDG LR 7 LLC and LNG Holdings (Florida) LLC

            

    

     

    
      	2.	
              LNG Sale and Purchase Agreement, dated as of November 21, 2014, by and between LNG Holdings (Florida) LLC and Florida East Coast Railway, L.L.C.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}]]