Document:

EX-10.6

 Exhibit 10.6 

FORM OF 
 SECOND AMENDED
AND RESTATED 
 LIMITED LIABILITY COMPANY AGREEMENT 

CENTENNIAL RESOURCE DEVELOPMENT, LLC 

[                    ], 2016 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page	 
			
	ARTICLE I	  	FORMATION OF COMPANY	  	 	1	  
				
		 	Section 1.1.	  	Formation	  	 	1	  
		 	Section 1.2.	  	Name	  	 	1	  
		 	Section 1.3.	  	Business	  	 	2	  
		 	Section 1.4.	  	Places of Business; Registered Agent; Names and Addresses of Members	  	 	2	  
		 	Section 1.5.	  	Term	  	 	2	  
		 	Section 1.6.	  	Filings	  	 	2	  
		 	Section 1.7.	  	Title to Company Property	  	 	2	  
		 	Section 1.8.	  	No Payments of Individual Obligations	  	 	3	  
			
	ARTICLE II	  	DEFINITIONS AND REFERENCES	  	 	3	  
				
		 	Section 2.1.	  	Defined Terms	  	 	3	  
		 	Section 2.2.	  	References and Titles	  	 	16	  
			
	ARTICLE III	  	CAPITALIZATION AND UNITS	  	 	16	  
				
		 	Section 3.1.	  	Capital Contributions of Members	  	 	16	  
		 	Section 3.2.	  	Issuances of Additional Securities	  	 	17	  
		 	Section 3.3.	  	Return of Contributions	  	 	19	  
		 	Section 3.4.	  	Incentive Interests	  	 	19	  
			
	ARTICLE IV	  	ALLOCATIONS AND DISTRIBUTIONS	  	 	23	  
				
		 	Section 4.1.	  	Allocations of Net Profits and Net Losses	  	 	23	  
		 	Section 4.2.	  	Special Allocations	  	 	24	  
		 	Section 4.3.	  	Income Tax Allocations	  	 	25	  
		 	Section 4.4.	  	Distributions	  	 	27	  
		 	Section 4.5.	  	Distributions in Kind	  	 	29	  
			
	ARTICLE V	  	MANAGEMENT AND RELATED MATTERS	  	 	30	  
				
		 	Section 5.1.	  	Power and Authority of Board	  	 	30	  
		 	Section 5.2.	  	Officers	  	 	31	  
		 	Section 5.3.	  	Acknowledged and Permitted NGP Activities	  	 	32	  
		 	Section 5.4.	  	Duties and Services of the Board	  	 	33	  
		 	Section 5.5.	  	Liability and Indemnification	  	 	33	  
		 	Section 5.6.	  	Contracts with Affiliates	  	 	34	  
		 	Section 5.7.	  	Reimbursement of Members	  	 	34	  
		 	Section 5.8.	  	Insurance	  	 	34	  
		 	Section 5.9.	  	Tax Elections and Status	  	 	35	  
		 	Section 5.10.	  	Tax Returns	  	 	35	  
		 	Section 5.11.	  	Tax Matters Member	  	 	35	  
		 	Section 5.12.	  	Section 83(b) Election	  	 	36	  
		 	Section 5.13.	  	Subsidiaries of the Company	  	 	36	  
		 	Section 5.14.	  	Tax Reimbursement	  	 	36	  

									
	 	 	 	  	 	  	Page	 
			
	ARTICLE VI	  	RIGHTS OF MEMBERS	  	 	36	  
				
		 	Section 6.1.	  	Rights of Members	  	 	36	  
		 	Section 6.2.	  	Limitations on Members	  	 	36	  
		 	Section 6.3.	  	Liability of Members	  	 	37	  
		 	Section 6.4.	  	Withdrawal and Return of Capital Contributions	  	 	37	  
		 	Section 6.5.	  	Voting Rights	  	 	37	  
			
	ARTICLE VII	  	BOOKS, REPORTS, MEETINGS AND CONFIDENTIALITY	  	 	37	  
				
		 	Section 7.1.	  	Capital Accounts, Books and Records	  	 	37	  
		 	Section 7.2.	  	Bank Accounts	  	 	39	  
		 	Section 7.3.	  	Reports	  	 	39	  
		 	Section 7.4.	  	Meetings of Members	  	 	39	  
		 	Section 7.5.	  	Confidentiality	  	 	40	  
			
	ARTICLE VIII	  	DISSOLUTION, LIQUIDATION AND TERMINATION	  	 	40	  
				
		 	Section 8.1.	  	Dissolution	  	 	40	  
		 	Section 8.2.	  	Winding Down	  	 	40	  
		 	Section 8.3.	  	Liquidation and Termination	  	 	41	  
			
	ARTICLE IX	  	ASSIGNMENTS OF COMPANY INTERESTS	  	 	42	  
			
	ARTICLE X	  	REPRESENTATIONS AND WARRANTIES	  	 	43	  
			
	ARTICLE XI	  	MISCELLANEOUS	  	 	45	  
				
		 	Section 11.1.	  	Notices	  	 	45	  
		 	Section 11.2.	  	Amendment	  	 	45	  
		 	Section 11.3.	  	Partition	  	 	46	  
		 	Section 11.4.	  	Entire Agreement	  	 	46	  
		 	Section 11.5.	  	Severability	  	 	46	  
		 	Section 11.6.	  	No Waiver	  	 	46	  
		 	Section 11.7.	  	Applicable Law	  	 	46	  
		 	Section 11.8.	  	Successors and Assigns	  	 	46	  
		 	Section 11.9.	  	Arbitration	  	 	46	  
		 	Section 11.10.	  	Counterparts	  	 	48	  

  
 ii 

 SECOND AMENDED AND RESTATED 

LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 CENTENNIAL RESOURCE
DEVELOPMENT, LLC 
 THIS SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”), dated as
of [            ], 2016, is made by and among Centennial Resource Development, LLC, a Delaware limited liability company (the “Company”), and the Members and Managers. 

RECITALS: 
 WHEREAS, NGP
and Ward Polzin were parties to that certain Limited Liability Company Agreement of the Company, dated as of July 1, 2013 (the “Original Agreement”); 

WHEREAS, the Original Agreement was amended and restated as that certain Amended and Restated Limited Liability Company Agreement of the
Company, dated August 29, 2014 (the “A&R Original Agreement”), and subsequently amended by that certain First Amendment to the Amended and Restated Limited Liability Company Agreement of the Company, dated May 14,
2015, and that certain Second Amendment to the Amended and Restated Limited Liability Company Agreement of the Company, dated June 15, 2015 (the A&R Original Agreement, as so amended, the “Current Agreement”); 

WHEREAS, the Members and the Company deem it necessary, advisable and in the best interest of the Company and the Members to amend and restate
the Current Agreement in its entirety in order to give effect to the modifications set forth herein. 
 NOW, THEREFORE, in consideration of
the premises, the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Managers and a Majority Interest of the Members, pursuant to
Section 11.2(a) of the Current Agreement, hereby amend and restate the Current Agreement as follows: 
 ARTICLE I 

FORMATION OF COMPANY 

Section 1.1. Formation . Subject to the provisions of this Agreement, the parties do hereby desire to establish this Agreement to
govern the Company as a limited liability company under the provisions of the Delaware Limited Liability Company Act, DEL. CODE ANN. TIT. 6 §§ 18-101 (2010) et seq.,
as amended from time to time, and any successor statute or statutes (the “Act”). The Company was formed upon the execution and filing by the organizer (such Person being hereby authorized to take such action) with the Secretary of
State of the State of Delaware of a Certificate of Formation of the Company effective on May 29, 2013. 
 Section 1.2.
Name. The name of the Company shall be Centennial Resource Development, LLC. Subject to all applicable laws, the business of the Company shall be conducted in the name of the Company unless under the law of some jurisdiction in which the 

  
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Company does business such business must be conducted under another name or unless the Board determines that it is advisable to conduct Company business under another name. In such a case, the
business of the Company in such jurisdiction or in connection with such determination may be conducted under such other name or names as the Board shall determine to be necessary. The Board shall cause to be filed on behalf of the Company such
assumed or fictitious name certificate or certificates or similar instruments as may from time to time be required by law. 

Section 1.3. Business. The business of the Company shall be, whether directly or indirectly through subsidiaries, to
conduct all activities permissible by applicable law. 
 Section 1.4. Places of Business; Registered Agent; Names and Addresses of
Members. 
 (a) The address of the principal United States office and place of business of the Company and its street address shall be
1401 17th Street, Suite 1000, Denver, Colorado 80202. The Board, at any time and from time to time, may change the location of the Company’s principal place of business upon giving prior written notice of such change to the Members and may
establish such additional place or places of business of the Company as the Board shall determine to be necessary or desirable. 
 (b) The
registered office of the Company in the State of Delaware shall be and it hereby is, established and maintained at 615 South DuPont Highway, Dover, Delaware 19901, and the registered agent for service of process on the Company shall be the National
Corporate Research, Ltd., whose business address is the same as the Company’s registered office in Delaware. The Board, at any time and from time to time, may change the Company’s registered office or registered agent or both by complying
with the applicable provisions of the Act, and may establish, appoint and change additional registered offices and registered agents of the Company in such other states as the Board shall determine to be necessary or advisable. 

(c) The mailing address and street address of each of the Members shall be the same as for the Company, unless another address for such Member
is set forth on Exhibit A to this Agreement. 
 Section 1.5. Term. The Company shall continue until terminated in
accordance with Section 8.1. 
 Section 1.6. Filings. Upon the request of the Board, the Members shall promptly
execute and deliver all such certificates and other instruments conforming hereto as shall be necessary for the Board to accomplish all filing, recording, publishing and other acts appropriate to comply with all requirements for the formation and
operation of a limited liability company under the laws of the State of Delaware and for the qualification and operation of a limited liability company in all other jurisdictions where the Company shall propose to conduct business. Prior to
conducting business in any jurisdiction, the Board shall use its reasonable good faith efforts to cause the Company to comply with all requirements for the qualification of the Company to conduct business as a limited liability company in such
jurisdiction. 
 Section 1.7. Title to Company Property. All property owned by the Company, whether real or personal, tangible
or intangible, shall be deemed to be owned by the Company as an entity, and no Member, individually, shall have any ownership of such property. The Company may hold its property in its own name or in the name of a nominee which may be the Board or
any of its Affiliates or any trustee or agent designated by it. 

  
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 Section 1.8. No Payments of Individual Obligations. The Members shall use the
Company’s credit and assets solely for the benefit of the Company. No asset of the Company shall be Transferred for or in payment of any individual obligation of any Member. 

ARTICLE II 
 DEFINITIONS AND
REFERENCES 
 Section 2.1. Defined Terms. When used in this Agreement, the following terms shall have the respective meanings
set forth below: 
 “A&R Original Agreement” shall have the meaning assigned to such term in the Recitals. 

“Act” shall have the meaning assigned to such term in Section 1.1. 

“Additional Company Debt Securities” shall have the meaning assigned to such term in Section 3.2(b). 

“Additional Company Equity Securities” shall have the meaning assigned to such term in Section 3.2(a). 

“Additional Contribution Agreement” shall mean those certain Subscription and Contribution Agreements between the Company and
each of the Centennial Members (other than Ward Polzin). 
 “Adjusted Capital Account” shall mean the Capital Account
maintained for each Member as provided in Section 7.1(b) as of the end of each Fiscal Period, (a) increased by (i) the amount of any unpaid Capital Contributions agreed to be contributed by such Member under
Section 3.1, if any, and (ii) an amount equal to such Member’s allocable share of Minimum Gain as computed on the last day of such Fiscal Period in accordance with the applicable Treasury Regulations, and (b) reduced by
the adjustments provided for in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4)-(6). 
 “Adjusted Property” shall
mean any property the Carrying Value of which has been adjusted pursuant to Section 7.1(b)(vii) or any property that has a Carrying Value different than the adjusted tax basis at the time of a Capital Contribution by a Member. 

“Affiliate” (whether or not capitalized) shall mean, with respect to any Person: (a) any other Person directly or
indirectly owning, controlling or holding power to vote 10% or more of the outstanding voting securities of such Person, (b) any other Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled or
held with power to vote by such Person, (c) any other Person directly or indirectly controlling, controlled by or under common control with such Person, and (d) any officer, director, member, partner or immediate family member of such
Person or any other Person described in subsection (a), (b) or (c) of this paragraph. For purposes of this definition, “control” (including the terms “controlling,” 

  
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“controlled by” and “under common control with”) means the possession, direct or indirect, of the power to (a) direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by contract or otherwise or (b) vote 10% or more of the securities having ordinary voting power for the election of directors, managers, general partners or other
governing body of a Person. 
 “Agreement” shall have the meaning assigned to such term in the introductory paragraph. 

“Benchmark Value Payout” shall have the meaning assigned to such term in Section 3.4(b)(iv). 

“Benchmark Value Re-grant Payout” shall have the meaning assigned to such term in Section 3.4(c)(i). 

“Board” and “Board of Managers” shall have the meaning assigned to such term in Section 5.1(a).

 “Capital Account” shall have the meaning assigned to such term in Section 7.1(b). 

“Capital Account Reduction Amount” shall have the meaning assigned to such term in Section 3.1(d). 

“Capital Commitment” shall mean for each Member, its commitment to make Capital Contributions to the Company in the amount
set forth on the Company’s books and records, as such books and records shall be amended from time to time, payable in the ratio, at the times and on the conditions set forth in Section 3.1. 

“Capital Contributions” shall mean for any Member at the particular time in question the aggregate of the dollar amounts of
any cash, or the fair market value (as determined in the discretion of the Board) of any property, contributed to the capital of the Company, or, if the context in which such term is used so indicates, the dollar amounts of cash or the fair market
value (as determined in the discretion of the Board) of any property agreed to be contributed, or requested to be contributed, by such Member to the capital of the Company; provided, however, that the payment made by NGP as contemplated by
Section 5.7 to fund the Transaction Fee as well as the CRP Incentive Interest Reimbursement Payment shall not be considered to be Capital Contributions for purposes of this Agreement. 

“Carrying Value” shall mean with respect to any asset, the value of such asset as reflected in the Capital Accounts of the
Members. The Carrying Value of any asset shall be such asset’s adjusted basis for federal income tax purposes, except as follows: 

(a) The initial Carrying Value of any asset contributed by a Member to the Company will be the fair market value of the asset on the date of
the contribution, as determined by the Board; 
 (b) The Carrying Value of all Company assets shall be adjusted to equal their respective
fair market values, as determined by the Board, upon (i) the acquisition of an additional Company Interest by any new or existing Member in exchange for a Capital Contribution that is 

  
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not de minimis; (ii) the distribution by the Company to a Member of Company property that is not de minimis as consideration for a Company Interest; (iii) the grant of a
Company Interest that is not de minimis consideration for the performance of services to or for the benefit of the Company by any new or existing Member; (iv) the liquidation of the Company as provided in Section 8.3;
(v) the acquisition of a Company Interest by any new or existing Member upon the exercise of a noncompensatory warrant or the making of any Capital Contribution in accordance with Proposed Treasury Regulation Section 1.704-1(b)(2)(iv)(s),
as such Treasury Regulation may be amended or modified, including upon the issuance of temporary or final Treasury Regulations; or (vi) any other event to the extent determined by the Board to be necessary to properly reflect Carrying Values in
accordance with the standards set forth in Treasury Regulations Section 1.704-1(b)(2)(iv)(q), provided that any adjustments to the Capital Accounts of the Members shall be made as provided in Section 7.1(b)(vii). If any
noncompensatory warrants (or similar interests) are outstanding upon the occurrence of an event described in clauses (i) through (vi) above, the Company shall adjust the Carrying Values of its properties in accordance with Proposed
Treasury Regulations Sections 1.704-1(b)(2)(iv)(f)(1) and 1.704-1(b)(2)(iv)(h)(2), as such Proposed Treasury Regulations may be amended or modified, including upon the issuance of temporary or final Treasury Regulations; 

(c) The Carrying Value of any Company asset distributed to any Member shall be adjusted to equal the fair market value of such asset on the
date of distribution, as determined by the Board; 
 (d) The Carrying Value of an asset shall be adjusted by Depreciation and Simulated
Depletion taken into account with respect to such asset for purposes of computing Net Profits, Net Losses and other items allocated pursuant to Section 7.1(b)(v); and 

(e) The Carrying Value of Company assets shall be adjusted at such other times as required in the applicable Treasury Regulations. 

“Centennial Member” shall mean each of Ward Polzin, Bret Siepman, Terry Sherban, Jamie L. Wheat, Tim Muniz and Roxy Forst,
each of whom is a Member of the Company, and any successor(s) thereto or assignee(s) thereof that shall become a substituted Member of the Company pursuant to the terms of this Agreement and “Centennial Members” shall collectively mean all
of such Persons and any additional Members that are or may become Employees and are admitted after the date hereof pursuant to the terms of this Agreement. 

“Closing Date” shall mean the date the initial funding of Capital Contributions by the Members occurred, which date was
July 1, 2013. 
 “Company” shall have the meaning assigned to it in the introductory paragraph of this Agreement. 

“Company Interest” shall mean any Member’s interest in, or rights in, the Company including and representing, as the
context shall require, any membership interest in the Company, Incentive Interests, and/or any other class or series of interests created pursuant to Section 3.2. 

  
 5 

 “Company Nonrecourse Liabilities” shall mean nonrecourse liabilities (or
portions thereof) of the Company for which no Member bears the economic risk of loss in accordance with applicable Treasury Regulations. 

“Company Securities” shall have the meaning assigned to such term in Section 3.2(b). 

“Confidential Information” shall mean, without limitation, all proprietary and confidential information of the Company,
including business opportunities of the Company, intellectual property, and any other information heretofore or hereafter acquired, developed or used by the Company relating to its business, including any confidential information contained in any
lease files, well files and records, land files, abstracts, title opinions, title or curative matters, contract files, seismic records, electric logs, core data, pressure data, production records, geological and geophysical reports and related data,
memoranda, notes, records, drawings, correspondence, financial and accounting information, customer lists, statistical data and compilations, patents, copyrights, trademarks, trade names, inventions, formulae, methods, processes, agreements,
contracts, manuals or any other documents relating to the business of the Company, developed by, or originated by any third party and brought to the attention of, the Company. 

“Contribution Agreement” shall mean that certain Subscription and Contribution Agreement among the Company and the Members
dated July 1, 2013, as amended. 
 “CRD” shall mean Centennial Resource Development, Inc., a Delaware corporation.

 “CRP” shall mean Centennial Resources Production, LLC, a Delaware limited liability company (formerly known as Atlantic
Energy Holdings, LLC). 
 “CRP Contribution” shall mean the contribution by NGP to the Company of all of the membership
interests in CRP that were formerly held by NGP. 
 “CRP Incentive Interest Reimbursement Payment” shall mean a payment to
the Company made by NGP in the amount of $12,467,844 for the purpose of funding the acquisition by the Company of the outstanding incentive interests previously issued by CRP following the CRP Contribution. 

“Current Agreement” shall have the meaning assigned to such term in the Recitals. 

“Depreciation” shall mean for each Fiscal Period or other period, an amount equal to the depreciation, amortization, or other
cost recovery deduction (other than Simulated Depletion) allowable with respect to an asset for such year or other period, except that if the Carrying Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning
of such year or other period, Depreciation shall be an amount which bears the same ratio to such beginning Carrying Value as the federal income tax depreciation, amortization or other cost recovery deduction for such year or other period bears to
such beginning adjusted tax basis (unless the adjusted tax basis is equal to zero, in which event Depreciation shall be determined under any reasonable method selected by the Board). 

“Dispute” shall have the meaning assigned to such term in Section 11.9. 

  
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 “Distributable Funds” shall mean the available cash of the Company in excess of
the working capital and other requirements of the Company as determined by the Board of Managers. 
 “Distributed Asset
Amount” shall have the meaning assigned to such term in Section 7.1(b)(iv). 
 “Employee” shall mean
an individual who is employed by, or serves as an independent contractor for, the Company or CRD or any of its subsidiaries. In the event any provision of this Agreement refers to the resignation of an Employee, such resignation or termination shall
apply to the entity that is the employer of such Employee. 
 “Excluded Affiliate Transfer” shall mean (a) any
Transfer of a Company Interest by NGP (whether voluntarily or by operation of law) to a partner or other Affiliate or a legal successor of NGP; (b) any Transfer of a Company Interest by a Member who is an individual to a member of such
Member’s family or to a revocable trust for estate planning purposes, but only if and for so long as such Transferring Member retains the exclusive right to vote such Company Interest following such Transfer; (c) any Transfer occurring by
operation of law upon the death or mental incapacity of a Member who is an individual; (d) any Transfer to a corporation, partnership or limited liability company which is wholly owned and controlled (through voting rights) by such Member, but
only if and for so long as such Transferring Member retains the exclusive right to vote such Company Interest following such Transfer, it being acknowledged and agreed that any failure by such Transferring Member to retain the exclusive right to
vote or to retain 100% ownership and control of such Company Interest shall then immediately and automatically be deemed to be a Transfer that is not an Excluded Affiliate Transfer; and (e) any Transfer of a Company Interest by a Member which
is a trust to the principal beneficiary of that trust; provided that, in the case of any Transfer described in clauses (a) – (e) above, such Transferee agrees to be bound by the terms of this Agreement and evidences same by
executing a copy of this Agreement and such other documents as the Company may reasonably request promptly upon receiving the assignment of such Company Interest. 

“Excluded Business Opportunity” shall mean a business opportunity other than a business opportunity: (a) that
(i) has come to the attention of a Person solely in, and as a direct result of, its or his capacity as a director of, advisor to, principal of or employee of the Company or a subsidiary of the Company, or (ii) was developed with the use or
benefit of the personnel or assets of the Company, or a subsidiary of the Company, and (b) that has not been previously independently brought to the attention of the subject Person from a source that is not affiliated (other than through such
subject Person) with the Company or a subsidiary of the Company. 
 “Exercise” shall have the meaning assigned to such term
in Section 7.1(b)(iv). 
 “Fiscal Period” shall mean each period (i) beginning, for the first Fiscal
Period, on the date of formation of the Company, or for each succeeding Fiscal Period on the day after the last day of the immediately preceding Fiscal Period and (ii) ending on the earliest to occur of the last day of the calendar year and the
day on which the Carrying Value of all Company assets are adjusted pursuant to clause (b) of the definition of Carrying Value. 

“Fundamental Change” shall mean the occurrence of any of the following events: 

  
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 (a) any of the following transactions occurs: (i) the Company merges, consolidates or
reconstitutes with or into, or enters into any similar transaction with, any Person other than an Affiliate of the Company or a Member or a Related Party, (ii) the outstanding Company Interests are sold or exchanged by the holders thereof in a
single transaction, or a series of related transactions, to any Person other than an Affiliate of the Company or a Member or a Related Party, or (iii) the Company sells, leases, licenses or exchanges or agrees to sell, lease, license or
exchange all or substantially all of its assets to a Person that is not an Affiliate of the Company or a Member or a Related Party and in the case of any such transaction described in the immediately preceding clauses (i) – (iii), the
Persons who served as members of the Board immediately before consummation of such transaction cease to constitute at least a majority of the members of the Board (in the case of a sale of equity interests) or the members of the board or analogous
managing body of the surviving or acquiring entity (in the case of an asset Transfer, conversion, merger, consolidation or similar transaction), immediately following completion of such transaction; or 

(b) any single Person or group of related Persons (other than the Company, any Member or an Affiliate of the Company or a Member or a Related
Party) purchases or otherwise acquires the right to vote or dispose of the securities of the Company representing 50% or more of the total voting power of all the then outstanding voting securities of the Company, unless such purchase or acquisition
has been approved by the Board; provided that no Capital Contribution(s) made by NGP shall cause a Fundamental Change; or 
 (c) the
Company is dissolved and liquidated. 
 For the avoidance of doubt, notwithstanding anything herein to the contrary, none of the following
shall constitute a Fundamental Change: (i) the consummation of the transactions contemplated by the Master Reorganization Agreement or (ii) the consummation of the transactions undertaken in connection with CRD’s initial public
offering. 
 “Hypothetical Liquidation” shall have the meaning assigned to such term in Section 3.4(a). 

“Incentive Interest Percentage” shall mean, as of any date, the aggregate of the Tier I Percentage, Tier II Percentage, Tier
III Percentage, Tier IV Percentage and Tier V Percentage (which aggregate amount is equal to 40% as of the date hereof), which percentage shall be allocated and reflected on the Company’s books and records, as revised from time to time. 

“Incentive Interests” shall mean the Incentive Units and the Incentive Options. 

“Incentive Option” shall mean any option to acquire Company Interests as such options may be granted from time to time by the
Board of Managers. Any Incentive Option issued by the Company shall have such rights and obligations as the Board of Managers determines in its sole discretion. 

“Incentive Unit” shall mean a Unit issued as a Tier I Unit, Tier II Unit, Tier III Unit, Tier IV Unit or Tier V Unit pursuant
to Section 3.4(a) and reflected on the Company’s books and records as, from time to time, may be updated pursuant to this Agreement. 

  
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 “Indemnification Obligation” shall have the meaning assigned to such term in
Section 3.1(c). 
 “Indemnitee” shall have the meaning assigned to such term in Section 5.5(a).

 “Indirect Transfer” shall mean (with respect to any Member that is a corporation, partnership, limited liability company
or other entity) a deemed Transfer of a Company Interest, which shall occur upon any direct or indirect Transfer of the ownership of, or voting rights associated with, the equity or other ownership interests in such Member. 

“Internal Revenue Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any successor statute
or statutes. 
 “JAMS” shall have the meaning assigned to such term in Section 11.9(a). 

“Majority Interest” of the Members, as to any agreement, election, vote or other action of the Members, shall mean those
Members whose combined Sharing Ratios exceed 50%. 
 “Manager” and “Managers” shall have the meanings
assigned to such terms in Section 5.1(a). 
 “Master Reorganization Agreement” shall mean that certain Master
Contribution Agreement, dated [                    ], 2016, by and among the Company, CRD and the other parties thereto. 

“Members” shall mean the Persons (including holders of Incentive Units) who from time to time shall execute a signature page
to this Agreement (including by counterpart) as the Members, including any Person who becomes a substituted Member of the Company pursuant to the terms hereof. 

“Member Nonrecourse Debt” shall mean any nonrecourse debt of the Company for which any Member bears the economic risk of loss
in accordance with applicable Treasury Regulations. 
 “Member Nonrecourse Deductions” shall mean the amount of deductions,
losses and expenses equal to the net increase during the year in Minimum Gain attributable to a Member Nonrecourse Debt, reduced (but not below zero) by proceeds of such Member Nonrecourse Debt distributed during the year to the Members who bear the
economic risk of loss for such debt, as determined in accordance with applicable Treasury Regulations. 
 “Minimum Gain”
shall mean (a) with respect to Company Nonrecourse Liabilities, the amount of gain that would be realized by the Company if the Company Transferred (in a taxable transaction) all Company properties that are subject to Company Nonrecourse
Liabilities in full satisfaction of Company Nonrecourse Liabilities, computed in accordance with applicable Treasury Regulations, or (b) with respect to each Member Nonrecourse Debt, the amount of gain that would be realized by the Company if
the Company Transferred (in a taxable transaction) the Company property that is subject to such Member Nonrecourse Debt in full satisfaction of such Member Nonrecourse Debt, computed in accordance with applicable Treasury Regulations. 

  
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 “Net Profit” or “Net Loss” shall mean, with respect to any
Fiscal Period, the net income or net loss of the Company for such period, determined in accordance with federal income tax accounting principles and Section 703(a) of the Internal Revenue Code (including any items that are separately stated for
purposes of Section 702(a) of the Internal Revenue Code), with the following adjustments: 
 (a) any income of the Company that is
exempt from federal income tax shall be included as income; 
 (b) any expenditures of the Company that are described in
Section 705(a)(2)(B) of the Internal Revenue Code or treated as so described pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(i) shall be treated as current expenses; 

(c) if Company assets are distributed to the Members in kind, such distributions shall be treated as sales of such assets for cash at their
respective fair market values in determining Net Profit and Net Loss; 
 (d) in the event the Carrying Value of any Company asset is
adjusted as provided in this Agreement, the amount of such adjustment shall be taken into account as gain or loss from the Transfer of such asset for purposes of computing Net Profit or Net Loss; 

(e) gain or loss resulting from any Transfer of Company property with respect to which gain or loss is recognized for federal income tax
purposes shall be computed by reference to the Carrying Value of the property Transferred, notwithstanding that the adjusted tax basis for such property differs from its Carrying Value; 

(f) in lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss,
there shall be taken into account Depreciation for such Fiscal Period; and 
 (g) items specially allocated under Section 4.2
and Section 7.1(b)(v) shall be excluded (but the amount of such items shall be determined under principles similar to those set forth above). 

“NGP” shall mean NGP X US Holdings, L.P., a Delaware limited partnership, and its successors and assigns. 

“NGP Portfolio Companies” shall have the meaning assigned to such term in Section 5.3. 

“NGP Representatives” shall mean the members, managers and employees of NGP Energy Capital Management, L.L.C., NGP or any
Affiliate thereof, together with all other Persons serving as representatives of NGP, including those Persons who are serving as managers of the Company at the request of NGP pursuant to the Voting and Transfer Restriction Agreement. 

“Optionee” shall have the meaning assigned to such term in Section 7.1(b)(iv). 

“Original Agreement” shall have the meaning assigned to such term in the Recitals. 

  
 10 

 “Person” (whether or not capitalized) shall mean any natural person,
corporation, company, limited or general partnership, joint stock company, joint venture, association, limited liability company, trust, bank, trust company, business trust or other entity or organization, whether or not a governmental authority.

 “Pre-existing Incentive Units” shall have the meaning assigned to such term in Section 3.4(b)(iv). 

“Pre-existing Units” shall have the meaning assigned to such term in Section 3.4(b)(iv). 

“Pre-grant Incentive Units” shall have the meaning assigned to such term in Section 3.4(c)(i). 

“Pre-grant Units” shall have the meaning assigned to such term in Section 3.4(c)(i). 

“Re-grant Incentive Units” shall have the meaning assigned to such term in Section 3.4(c). 

“Regulatory Allocations” shall have the meaning assigned to such term in Section 4.2(f). 

“Related Party” shall mean (a) any Person who is a Member of the Company, and any partner, member, shareholder, officer,
director, employee or other Affiliate of such Person, (b) an Employee or group of Employees, (c) a trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (d) an entity owned directly or
indirectly by the Members of the Company in substantially the same proportion as their ownership of the Company. 
 “Rules”
shall have the meaning assigned to such term in Section 11.9(a). 
 “Securities Act” shall mean the Securities
Act of 1933, as amended. 
 “Service Interests” shall have the meaning assigned to such term in Section 3.4(a).

 “Sharing Ratio” shall mean for any Member, at a given time, the proportion that such Member’s Capital Contributions
bear to the total Capital Contributions of all Members as of the date of such determination, subject to adjustment pursuant to Section 3.2(f). In the event the Capital Account of a Member is reduced pursuant to
Section 3.1(d), for purposes of determining the Sharing Ratio of such Member, the Capital Contributions of such Member shall be deemed to be reduced by such Capital Account reduction. 

“Sharing Ratio Reduction Percentage” shall have the meaning assigned to such term in Section 3.1(d). 

“Simulated Basis” shall mean the Carrying Value of any oil and gas property (as defined in Section 614 of the Internal
Revenue Code). 
 “Simulated Depletion” shall mean, with respect to each oil and gas property, a depletion allowance
computed in accordance with federal income tax principles (as if the Simulated Basis of the property were its adjusted tax basis) and in the manner specified in Treasury Regulation 

  
 11 

 
Section 1.704-1(b)(2)(iv)(k)(2). For purposes of computing Simulated Depletion with respect to any property, the Simulated Basis of such property shall be deemed to be the Carrying Value of
such property, and in no event shall such allowance, in the aggregate, exceed such Simulated Basis. 
 “Simulated Gain”
shall mean the excess of the amount realized from the sale of an oil or gas property over the Carrying Value of such property. 

“Simulated Loss” shall mean the excess of the Carrying Value of an oil or gas property over the amount realized from the sale
of such property. 
 “Subsequent Units” shall have the meaning assigned to such term in Section 3.4(b)(iv).

 “Subsidiary” or “Subsidiaries” shall mean with respect to any Person, any corporation, association,
partnership, limited liability company, joint venture, or other business or corporate entity, enterprise or organization of which the management is directly or indirectly (through one or more intermediaries) controlled by such Person or 50% or more
of the equity interests in which is directly or indirectly (through one or more intermediaries) owned by such Person. For purposes of this definition, an entity, enterprise or organization is “controlled by” a Person if such Person
possesses, directly or indirectly, the power to (a) direct or cause the direction of the management and policies of a such entity, enterprise or organization, whether through the ownership of voting securities, by contract or otherwise or
(b) vote 10% or more of the securities having ordinary voting power for the election of directors, managers, general partners or other governing body of such entity, enterprise or organization. Unless otherwise qualified, all references to a
“Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Company. 
 “Tax Matters
Member” shall have the meaning assigned to such term in Section 5.11. 
 “Tier I Members” shall mean
the Members holding Tier I Units as set forth on the Company’s books and records, as revised from time to time. 
 “Tier I
Payout” shall mean the first date, if any, at which all of the Members that have made Capital Contributions shall have received cumulative cash or fair market value of in kind distributions in respect of their Company Interests (whether as
distributions from the Company, as payment for the exchange, purchase or redemption of such Company Interests, or in connection with any merger or other combination of the Company with another Person) equal to their cumulative Capital Contributions
to the Company multiplied by (1.08)n, where “n” is equal to the Weighted Average Capital Contribution Factor determined as of the date of such distribution. For the avoidance of doubt,
any distribution made prior to the Tier I Payout, if any, that is subtracted from such contributions shall be first increased by the exponent for purposes of the payout calculation by multiplying such distribution by (1.08)m, where “m” is equal to the number of years between the distribution and the Tier I Payout (with a partial year being expressed as a decimal determined by dividing the number of days which
have passed since the most recent anniversary by 365). 
 “Tier I Percentage” shall mean 20%, which percentage shall be
allocated to the Tier I Members in proportion to the Tier I Units held by the Tier I Members as set forth on the Company’s books and records, as revised from time to time, including any revisions to take into account such reduced percentage due
to the Transfer of any Tier I Units pursuant to the Voting and Transfer Restriction Agreement. 

  
 12 

 “Tier I Subsequent Units” shall have the meaning assigned to such term in
Section 3.4(a)(i). 
 “Tier I Units” shall mean Tier I Units representing Company Interests in the Company
entitled to receive the Tier I Percentage and with the other rights and obligations specified in this Agreement. 
 “Tier II
Members” shall mean the Members holding Tier II Units as set forth on the Company’s books and records, as revised from time to time. 

“Tier II Payout” shall mean the first date, if any, at which all of the Members that have made Capital Contributions shall
have received cumulative cash or fair market value of in kind distributions in respect of their Company Interests (whether as distributions from the Company, as payment for the exchange, purchase or redemption of such Company Interests, or in
connection with any merger or other combination of the Company with another Person) equal to their cumulative Capital Contributions to the Company multiplied by (1.20)n, where “n” is
equal to the Weighted Average Capital Contribution Factor determined as of the date of such distribution. For the avoidance of doubt, any distribution made prior to the Tier I Payout, if any, that is subtracted from such contributions shall be first
increased by the exponent for purposes of the payout calculation by multiplying such distribution by (1.20)m, where “m” is equal to the number of years between the distribution
and the Tier I Payout (with a partial year being expressed as a decimal determined by dividing the number of days which have passed since the most recent anniversary by 365). 

“Tier II Percentage” shall mean 5%, which percentage shall be allocated to the Tier II Members in proportion to the Tier II
Units held by the Tier II Members as set forth on the Company’s books and records, as revised from time to time, including any revisions to take into account such reduced percentage due to the Transfer of any Tier II Units pursuant to the
Voting and Transfer Restriction Agreement. 
 “Tier II Subsequent Units” shall have the meaning assigned to such term in
Section 3.4(a)(ii). 
 “Tier II Units” shall mean Tier II Units representing Company Interests in the Company
entitled to receive the Tier II Percentage and with the other rights and obligations specified in this Agreement. 
 “Tier III
Members” shall mean the Members holding Tier III Units as set forth on the Company’s books and records, as revised from time to time. 

“Tier III Payout” shall mean the first date, if any, at which all of the Members that have made Capital Contributions shall
have received cumulative cash or fair market value of in kind distributions in respect of their Company Interests (whether as distributions from the Company, as payment for the exchange, purchase or redemption of such Company Interests, or in
connection with any merger or other combination of the Company with another Person) equal to two times (2.0x) their cumulative Capital Contributions to the Company. 

  
 13 

 “Tier III Percentage” shall mean 5%, which percentage shall be allocated to the
Tier III Members in proportion to the Tier III Units held by the Tier III Members as set forth on the Company’s books and records, as revised from time to time, including any revisions to take into account such reduced percentage due to the
Transfer of any Tier III Units pursuant to the Voting and Transfer Restriction Agreement. 
 “Tier III Subsequent Units”
shall have the meaning assigned to such term in Section 3.4(a)(iii). 
 “Tier III Units” shall mean Tier III
Units representing Company Interests in the Company entitled to receive the Tier III Percentage and with the other rights and obligations specified in this Agreement. 

“Tier IV Members” shall mean the Members holding Tier IV Units as set forth on the Company’s books and records, as
revised from time to time. 
 “Tier IV Payout” shall mean the first date, if any, at which all of the Members that have
made Capital Contributions shall have received cumulative cash or fair market value of in kind distributions in respect of their Company Interests (whether as distributions from the Company, as payment for the exchange, purchase or redemption of
such Company Interests, or in connection with any merger or other combination of the Company with another Person) equal to two and one half times (2.5x) their cumulative Capital Contributions to the Company. 

“Tier IV Percentage” shall mean 5%, which percentage shall be allocated to the Tier IV Members in proportion to the Tier IV
Units held by the Tier IV Members as set forth on the Company’s books and records, as revised from time to time, including any revisions to take into account such reduced percentage due to the Transfer of any Tier IV Units pursuant to the
Voting and Transfer Restriction Agreement. 
 “Tier IV Subsequent Units” shall have the meaning assigned to such term in
Section 3.4(a)(iv). 
 “Tier IV Units” shall mean Tier IV Units representing Company Interests in the Company
entitled to receive the Tier IV Percentage and with the other rights and obligations specified in this Agreement. 
 “Tier V
Members” shall mean the Members holding Tier V Units as set forth on the Company’s books and records, as revised from time to time. 

“Tier V Payout” shall mean the first date, if any, at which all of the Members that have made Capital Contributions shall
have received cumulative cash or fair market value of in kind distributions in respect of their Company Interests (whether as distributions from the Company, as payment for the exchange, purchase or redemption of such Company Interests, or in
connection with any merger or other combination of the Company with another Person) equal to three times (3.0x) their cumulative Capital Contributions to the Company. 

  
 14 

 “Tier V Percentage” shall mean 5%, which percentage shall be allocated to the
Tier V Members in proportion to the Tier V Units held by the Tier V Members as set forth on the Company’s books and records, as revised from time to time, including any revisions to take into account such reduced percentage due to the Transfer
of any Tier V Units pursuant to the Voting and Transfer Restriction Agreement. 
 “Tier V Subsequent Units” shall have the
meaning assigned to such term in Section 3.4(a)(v). 
 “Tier V Units” shall mean Tier V Units representing
Company Interests in the Company entitled to receive the Tier V Percentage and with the other rights and obligations specified in this Agreement. 

“Transaction Documents” shall mean, collectively, this Agreement, the Contribution Agreement, the Voting and Transfer
Restriction Agreement, the Master Reorganization Agreement and all other agreements, documents or instruments executed in conjunction with, or relation to, any of the foregoing. 

“Transaction Fee” shall have the meaning assigned to such term in Section 5.7. 

“Transfer,” or any derivation thereof, shall mean any sale, assignment, conveyance, mortgage, pledge, granting of security
interest in, or other disposition of a Company Interest or any asset of the Company, as the context may require. 
 “Treasury
Regulations” shall mean regulations promulgated by the United States Treasury Department under the Internal Revenue Code. 

“Unit” shall mean a unit of a membership interest in the Company representing, as the context shall require, any Company
Interest and/or an Incentive Unit, as well as any other class or series of Units created pursuant to Section 3.2. No Units (other than Incentive Units) will be issued to the Members for Capital Contributions after the date hereof;
provided that the Board of Managers may subsequently amend this Agreement to provide for an issuance of Units for Capital Contributions in its sole discretion. 

“Unrealized Gain” attributable to any item of Company property shall mean, as of any date of determination, the excess, if
any, of (a) the fair market value of such property as of such date over (b) the Carrying Value of such property as of such date (prior to any adjustment to be made pursuant to Section 7.1(b)(vii) as of such date). 

“Unrealized Loss” attributable to any item of Company property shall mean, as of any date of determination, the excess, if
any, of (a) the Carrying Value of such property as of such date (prior to any adjustment to be made pursuant to Section 7.1(b)(vii), as of such date) over (b) the fair market value of such property as of such date. 

“Voting and Transfer Restriction Agreement” shall mean that certain Voting and Transfer Restriction Agreement dated
July 1, 2013 among the Company and the Members. 

  
 15 

 “Weighted Average Capital Contribution Factor” shall mean as of any date of
calculation, a weighted average equal to the sum of the amounts determined for each date on which Capital Contributions have been funded (including without limitation the Capital Contributions funded on the Closing Date) calculated as the product of
(a) the percentage of the total Capital Contributions funded on each date, times (b) the number of years from the date of each Capital Contribution until the date of such calculation (with a partial year being expressed as a decimal
determined by dividing the number of days which have passed since the most recent anniversary by 365). 
 Any capitalized term used in this
Agreement but not defined in this Section 2.1 shall have the meaning assigned to such term elsewhere in this Agreement. 

Section 2.2. References and Titles. All references in this Agreement to articles, sections, subsections and other subdivisions
refer to corresponding articles, sections, subsections and other subdivisions of this Agreement unless expressly provided otherwise. Titles appearing at the beginning of any of such subdivisions are for convenience only and shall not constitute part
of such subdivisions and shall be disregarded in construing the language contained in such subdivisions. The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar
import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. Pronouns in masculine, feminine and neuter genders shall be construed to include any other gender, and words in the singular form shall be
construed to include the plural and vice versa, unless the context otherwise requires. The word “including” (in its various forms) means including without limitation. 

ARTICLE III 
 CAPITALIZATION AND
UNITS 
 Section 3.1. Capital Contributions of Members. 

(a) Subject to the provisions hereof, each Member shall from time to time make Capital Contributions to the Company in an aggregate amount not
to exceed the Capital Commitment of such Member. As of the date hereof, no Member has any remaining outstanding Capital Commitment. 
 (b)
The initial funding of each Member’s Capital Commitment occurred as provided in the Contribution Agreement, and subsequent fundings were made by the Centennial Members in accordance with the terms of the Contribution Agreement or the Additional
Contribution Agreements, as applicable. The Members acknowledge and agree that on April 30, 2014, NGP made the CRP Contribution as a Capital Contribution having a fair market value as set forth on the Company’s books and records and in the
Current Agreement. The Members further acknowledge and agree that on May 29, 2014, NGP made a Capital Contribution pursuant to the Contribution Agreement consisting of cash in the amount as set forth on the Company’s books and records and
in the Current Agreement, and that on the same date, NGP paid to the Company cash in the amount as set forth on the Company’s books and records and in the Current Agreement, which amount was the CRP Incentive Interest Reimbursement Payment. The
Members acknowledge and agree that the amount paid by NGP with respect to the CRP Incentive 

  
 16 

 
Interest Reimbursement Payment shall not be treated as a Capital Contribution for purposes of determining whether the Tier I Payout, the Tier II Payout, the Tier III Payout, the Tier IV Payout or
the Tier V Payout have been met, nor shall it be treated as a Capital Contribution for purposes of calculating the Sharing Ratios of the Members. Notwithstanding the provisions of Sections 4.1, 4.2 and 4.3 to the contrary, any
deduction attributable to the purchase by the Company of the incentive interests issued by CRP shall be specially allocated to NGP and NGP’s Capital Account shall be appropriately adjusted to reflect such allocation. After giving effect to the
foregoing, the Members acknowledge and agree that Exhibit A reflects, as of the date of this Agreement, the Capital Commitment, the Capital Contributions, the Company Interests and the Sharing Ratios set forth opposite each Member’s name
and that such Exhibit A shall be from time to time updated as necessary to reflect additional Capital Contributions made by the Members. 

(c) The Members have made representations and warranties to the Company in the Contribution Agreement. In the event of a breach of any
representation, warranty or covenant contained in the Contribution Agreement that shall entitle the Company to receive indemnification from a Member pursuant to the provisions of the Contribution Agreement (the “Indemnification
Obligation”), in addition to any remedy that otherwise may be available to the Company pursuant to the Transaction Documents, at law or in equity, the Company may take the actions provided in Section 3.1(d). 

(d) In the event that a Member incurs an Indemnification Obligation, the Company may make a corresponding debit to: (i) the Capital
Account of such Member in the amount of the Indemnification Obligation (the “Capital Account Reduction Amount”); and (ii) the Sharing Ratio of such Member in the proportion that the amount of such Indemnification Obligation
bears to the Capital Contributions of such Member (the “Sharing Ratio Reduction Percentage”). Each Member whose Capital Account and Sharing Ratio are debited on account of an Indemnification Obligation shall, at the Company’s
option, satisfy such obligation by either (x) contributing cash to the Company in the amount of the Indemnification Obligation (thereby causing the Company to correspondingly credit his or its Capital Account and Sharing Ratio);
(y) requesting the Company to reduce his or its Capital Account by the Capital Account Reduction Amount and his or its Sharing Ratio by the Sharing Ratio Reduction Percentage; or (z) any combination of the actions set forth in the
preceding clauses (x) and (y). If a Member has not taken any of the alternative actions set forth in clauses (x) – (z) of the immediately preceding sentence within 10 business days following the receipt of notice of the debiting
of such Member’s Capital Account and Sharing Ratio, then the Company may reduce the Capital Account and Sharing Ratio of such Member as provided in clause (y) of the immediately preceding sentence in full satisfaction of the
Indemnification Obligation of such Member. 
 Section 3.2. Issuances of Additional Securities. 

(a) The Board is hereby authorized to cause the Company to issue additional Company Interests, or classes or series thereof, or options,
rights, warrants or appreciation rights relating thereto, or any other type of equity security that the Company may lawfully issue (“Additional Company Equity Securities”) if the Board of Managers determines in good faith that the
Company has a need for additional Capital Contributions for any proper Company purpose. 

  
 17 

 (b) The Board is hereby authorized to cause the Company to issue any unsecured or secured debt
obligations of the Company or debt obligations of the Company convertible into any class or series of equity securities of the Company (“Additional Company Debt Securities”) (collectively, with the Additional Company Equity
Securities, the “Company Securities”). 
 (c) Additional Company Equity Securities may be issuable in one or more classes,
or one or more series of any of such classes, with such designations, preferences and relative, participating, optional or other special rights, powers, and duties, including rights, powers and duties senior to existing classes and series of Company
Securities, all as shall be fixed by the Board in the exercise of its sole and complete discretion, subject to Delaware law and the terms of this Agreement, including (i) the allocations of items of Company income, gain, loss and deduction to
each such class or series of Company Securities; (ii) the right of each such class or series of Company Securities to share in Company distributions; (iii) the rights of each such class or series of Company Securities upon dissolution and
liquidation of the Company; (iv) whether such class or series of additional Company Securities is redeemable by the Company and, if so, the price at which, and the terms and conditions upon which, such class or series of additional Company
Securities may be redeemed by the Company; (v) whether such class or series of additional Company Securities is issued with the privilege of conversion and, if so, the rate at which, and the terms and conditions upon which, such class or series
of Company Securities may be converted into any other class or series of Company Securities; (vi) the terms and conditions upon which each such class or series of Company Securities will be issued and assigned or Transferred; and (vii) the
right, if any, of each such class or series of Company Securities to vote on Company matters, including matters relating to the relative rights, preferences and privileges of each such class or series. 

(d) Company Securities may be issued to such Persons for such consideration and on such terms and conditions as shall be established by the
Board in its sole discretion, and the Board shall have sole discretion, subject to the guidelines set forth in this Section 3.2 and the requirements of the Act, in determining the consideration and terms and conditions with respect to
any future issuance of Company Securities. 
 (e) The Board is hereby authorized and directed to take all actions which it deems appropriate
or necessary in connection with each issuance of Company Securities pursuant to this Section 3.2 and to amend this Agreement in any manner which it deems appropriate or necessary without the joinder of any other Member to provide for
each such issuance, to admit additional Members in connection therewith and to specify the relative rights, powers and duties of the holders of the Company Securities being so issued. The Board shall do all things necessary to comply with the Act
and is authorized and directed to do all things it deems to be necessary or advisable in connection with any future issuance of Company Securities, including compliance with any statute, rule, regulation or guideline of any federal, state or other
governmental agency. 
 (f) Upon the issuance of any Additional Company Equity Securities (whether as a result of the sale of such
securities to a third party or otherwise), the Company shall recompute the Sharing Ratios of the Members, taking into account the valuation of the Company at such time (as determined by the Board in good faith), the terms and conditions of the
Additional Company Equity Securities, the Sharing Ratios as such existed prior to the issuance of such Additional Company Equity Securities, and such other factors as the Board determines, and shall amend

  
 18 

 
Exhibit A to reflect such revised Sharing Ratios. In addition, the Board shall adjust and recompute the Incentive Interest Percentage and the Tier I, II, III, IV and V Percentages, taking
into account all relevant factors which were attributable to the issuance of Additional Company Equity Securities, including the valuation of the Company at such time (as determined by the Board in good faith), the terms and conditions of the
Additional Company Equity Securities and such other factors as the Board determines. The Company shall amend Exhibit A to reflect such revised Sharing Ratios, Incentive Interest Percentages and Tier I, II, III, IV and V Percentages in
accordance with this Section 3.2(f). 
 Section 3.3. Return of Contributions. No interest shall accrue on any
contributions to the capital of the Company, and no Member shall have the right to withdraw or to be repaid any capital contributed by such Member except as otherwise specifically provided in this Agreement. 

Section 3.4. Incentive Interests. 

(a) The following Incentive Units are hereby created and are hereby granted to the Persons and in the respective amounts set forth on
Exhibit A, subject to the adjustments provided for in this Section 3.4: 
 (i) 1,000,000 “Tier I Units,”
of which a certain number of such Tier I Units may be granted to Employees after the date of the Original Agreement pursuant to this Section 3.4 (the “Tier I Subsequent Units”); 

(ii) 1,000,000 “Tier II Units,” of which a certain number of such Tier II Units may be granted to Employees after the date of
the Original Agreement pursuant to this Section 3.4 (the “Tier II Subsequent Units”); 
 (iii) 1,000,000
“Tier III Units,” of which a certain number of Tier III Units may be granted to Employees after the date of the Original Agreement pursuant to this Section 3.4 (the “Tier III Subsequent Units”); 

(iv) 1,000,000 “Tier IV Units,” of which a certain number of Tier IV Units may be granted to Employees after the date of the
Original Agreement pursuant to this Section 3.4 (the “Tier IV Subsequent Units”); and 
 (v) 1,000,000
“Tier V Units,” of which a certain number of Tier V Units may be granted to Employees after the date of the Original Agreement pursuant to this Section 3.4 (the “Tier V Subsequent Units”). 

To the extent not so granted, the remaining Incentive Units are available for future grants by the Board to Employees in accordance with the
terms of this Agreement. The Company and each Member intend to treat any interest attributable to a holder of Incentive Units as a separate “profits interest” within the meaning of Rev. Proc. 93-27, 1993-2 C.B. 343. In accordance with Rev.
Proc. 2001-43, 2001-2 C.B. 191, the Company shall treat a holder of such Incentive Units as the owner of such profits interest from the date it is granted, and shall file its IRS Form 1065, and issue an appropriate Schedule K-1 to such holder of
Incentive Units, allocating to such holder of Incentive Units its distributive share of all items of income, gain, loss, deduction, and credit associated with such profits interest as if it were fully vested. Each such holder of Incentive Units

  
 19 

 
agrees to take into account such distributive share in computing its federal income tax liability for the entire period during which it holds such profits interest. The undertakings contained in
this Section 3.4(a) shall be construed in accordance with Section 4 of Rev. Proc. 2001-43. The provisions of this Section 3.4(a) shall apply regardless of whether or not the holder of a profits interest files an election
pursuant to Section 83(b) of the Internal Revenue Code. 
 The Incentive Units are issued in consideration of services rendered and to
be rendered by the holders for the benefit of the Company and CRD in their capacities as Employees. To the extent provided for in Treasury Regulations, revenue rulings, revenue procedures and/or other Internal Revenue Service guidance issued after
the date hereof, the Tax Matters Member acting on behalf of the Company is hereby specifically authorized and directed to elect a safe harbor implementing the concepts articulated in Internal Revenue Service Notice 2005-43, 2005-1 C.B. 1221, under
which the fair market value of the Incentive Units received by any Member for services (the “Service Interests”) granted after the effective date of such Treasury Regulations (or other guidance) will be treated as equal to the
liquidation value of such Service Interests (i.e., a value equal to the total amount that would be distributed under Section 8.3(b) with respect to such Service Interests in a Hypothetical Liquidation occurring immediately after
the issuance of such Service Interests and assuming for purposes of such Hypothetical Liquidation that all assets of the Company are sold for their fair market values). If the Company makes a safe harbor election as described in the preceding
sentence, the Company and each Member will comply with all safe harbor requirements with respect to Transfers of the Service Interests while the safe harbor election remains effective. For purposes hereof, “Hypothetical Liquidation”
means, as of any date, a hypothetical liquidation of the Company as of such date, assuming for purposes of any such hypothetical liquidation that (i) a sale of all of the assets of the Company occurs at prices equal to their respective fair
market values as of such date and (ii) the net proceeds of such sale are distributed to the Members pursuant to Section 8.3(b), but only after the payment of all actual Company indebtedness, and any other liabilities related to the
Company’s assets, limited, in the case of the hypothetical payment of non-recourse liabilities, to the collateral securing or otherwise available to satisfy such liabilities. 

(b) All of the Incentive Units are non-voting and subject to vesting, forfeiture, and termination as follows: 

(i) (A) The Tier I Units held by each Employee (I) shall vest ratably over a five year period following the grant of such Tier I Units to
such Employee, with 1/5th vesting on the first anniversary of such grant, an additional 1/5th vesting on the second anniversary of such grant, an additional 1/5th vesting on the third anniversary of such grant, an additional 1/5th vesting on the
fourth anniversary of such grant, and the remaining 1/5th vesting on the fifth anniversary (with vesting between such anniversaries occurring pro rata determined by multiplying the number of Incentive Units that would vest on the next annual
vesting date by a fraction with a numerator equal to the number of full months which have then elapsed since the last vesting date and a denominator of 12, and rounding to the closest whole number), and (II) shall vest in full (if not previously
vested pursuant to clause (I)) upon Tier I Payout and the occurrence of a Fundamental Change. 
 (B) The Tier II Units held by each
Employee (I) shall vest ratably over a five year period following the grant of such Tier II Units to such Employee, with 1/5th vesting on 

  
 20 

 
the first anniversary of such grant, an additional 1/5th vesting on the second anniversary of such grant, an additional 1/5th vesting on the third anniversary of such grant, an additional 1/5th
vesting on the fourth anniversary of such grant, and the remaining 1/5th vesting on the fifth anniversary (with vesting between such anniversaries occurring pro rata determined by multiplying the number of Incentive Units that would vest on the next
annual vesting date by a fraction with a numerator equal to the number of full months which have then elapsed since the last vesting date and a denominator of 12, and rounding to the closest whole number), and (II) shall vest in full (if not
previously vested pursuant to clause (I)) upon Tier II Payout and the occurrence of a Fundamental Change. 
 (C) The Tier III Units held by
each Employee shall vest only upon and concurrently with the occurrence of Tier III Payout. 
 (D) The Tier IV Units held by each Employee
shall vest only upon and concurrently with the occurrence of Tier IV Payout. 
 (E) The Tier V Units held by each Employee shall vest only
upon and concurrently with the occurrence of Tier V Payout. 
 (ii) All Incentive Units that have not yet vested in accordance with the
vesting requirements set forth in clause (b)(i) above that are held by a Person who is an Employee will automatically, without any action required of any Person, be forfeited and thereby become null and void, if and when such Person’s status as
an Employee is terminated for any reason or without reason, including by termination, resignation, death or disability, and any vested, unforfeited Incentive Units held by such Person shall, upon such termination, remain non-voting and shall not be
counted in the determination of a Majority Interest of the Members. 
 (iii) Anything herein to the contrary notwithstanding, all Incentive
Units held by a Person who is an Employee (regardless of whether vested or unvested) shall automatically, without any action required of any Person, be forfeited and thereby become null and void if and when such Person’s status as an Employee
is terminated: 
 (A) for “cause,” which shall mean by reason of such holder’s: (I) conviction of, or plea of
nolo contendere to, any felony or to any crime or offense causing substantial harm to the Company or its Affiliates or involving acts of theft, fraud, embezzlement, moral turpitude, or similar conduct, (II) repeated intoxication by alcohol or
drugs during the performance of such holder’s duties in a manner that materially and adversely affects the holder’s performance of such duties, (III) malfeasance, in the conduct of such holder’s duties, including, but not limited to,
(1) misuse or diversion of funds of the Company or its Affiliates, (2) embezzlement, or (3) material and intentional misrepresentations or concealments on any written reports submitted to the Company or its Affiliates, (IV) violation
of any material provision of the Voting and Transfer Restriction Agreement or of such Person’s Confidentiality and Noncompete Agreement, and such Person has failed to cure such violation, if capable of being cured, within a reasonable period of
time (as specified in notice from the Board) after such Person has received notice of such violation, or (V) failure to perform the duties of such holder’s employment or service relationship with the Company or its Affiliates, or failure
to follow or comply with the reasonable and lawful written directives of the Board of Managers or the managers or directors of 

  
 21 

 
a Company Affiliate by which such holder is employed or in a service relationship, and such Person has not cured such failure, if capable of being cured, within a reasonable period of time (as
specified in notice from the Board) after such Person has received notice of such failure; or 
 (B) with respect to vested Incentive Units
only, by such Person’s resignation or voluntary early termination of service relationship, unless such forfeiture is waived by the Board. 

(iv) The Company in its sole discretion, taking into account such factors as it determines from time to time, may issue Tier I Subsequent
Units, Tier II Subsequent Units, Tier III Subsequent Units, Tier IV Subsequent Units and Tier V Subsequent Units (collectively, “Subsequent Units”). Upon issuance of any Subsequent Units of a given Tier, such Units may, at the
election of the Board, have a benchmark value equal to the fair market value of the assets of the Company, net of debt, on the date of grant, as determined in good faith by the Board, and will be entitled to participate in those distributions
allocated to the Units of that Tier pursuant to Section 4.4(a) or Section 8.3(b), as the case may be, only after holders of all the Units that were outstanding on the date of grant (the “Pre-existing Units”
and, when referring solely to Pre-existing Units that are Incentive Units, the “Pre-existing Incentive Units”) have received distributions pursuant to Section 4.4(a) or Section 8.3(b), as the case may be, in
the aggregate equal to the benchmark value (such limitation on distributions, the “Benchmark Value Payout”). Holders of Pre-existing Incentive Units of a given Tier will continue to be entitled to receive all of the profit
distributions payable with respect to the Incentive Units of that Tier pursuant to Section 4.4(a) or Section 8.3(b), as the case may be, until the applicable Benchmark Value Payout occurs, at which time future distributions
will be shared among the holders of the Pre-existing Incentive Units in that Tier and the holders of Subsequent Units in that Tier pro-rata. 

(c) If any Incentive Units are forfeited pursuant to Section 3.4(b)(ii) or Section 3.4(b)(iii), then such forfeited
Incentive Units shall be available to be re-granted, as determined by the Board, in the form of newly awarded, newly issued Incentive Units in the same Tier and in the same amount as the forfeited Incentive Units (any such re-granted Incentive
Units, “Re-grant Incentive Units”), subject to the following terms and conditions: 
 (i) each Re-grant Incentive Unit in a
given Tier may, at the election of the Board, have a benchmark value equal to the fair market value of the assets of the Company, net of debt, on the date of grant, as determined in good faith by the Board, and will be entitled to participate in
distributions made to holders of the Incentive Units of that Tier pursuant to Section 4.4(a) or Section 8.3(b), as the case may be, only after holders of all the Units that were outstanding on the date of such re-grant (the
“Pre-grant Units” and, when referring solely to the Pre-grant Units that are Incentive Units, the “Pre-grant Incentive Units”) have received distributions in the aggregate equal to the benchmark value (such
limitation on distributions, the “Benchmark Value Re-grant Payout”); and 
 (ii) following issuance of such Re-grant
Incentive Units in a given Tier, holders of Pre-grant Incentive Units of that Tier will continue to be entitled to receive all of the distributions payable with respect to the Incentive Units of that Tier pursuant to Section 4.4(a) or
Section 8.3(b), as the case may be, until the applicable Benchmark Value Re-grant Payout occurs, at which time future distributions will be shared among the holders of the Pre-grant Incentive Units and the Re-grant Incentive Units in
that Tier pro-rata. 

  
 22 

 (d) If all of the Incentive Units available hereunder have not been granted to Employees before
the earlier of (i) a Fundamental Change, or (ii) a payout event for the corresponding series of Incentive Units (e.g., a Tier I Payout for Tier I Units), then in such case such available Tier I, Tier II, Tier III, Tier IV, Tier V or
the applicable Subsequent Units, as the case may be, shall automatically, without any action required of any Person, be cancelled. The Board shall reflect all changes contemplated by this Section 3.4(d) in an amended Exhibit A.

 (e) Upon any forfeiture or other termination of Incentive Units and upon any issuance of Re-grant Incentive Units resulting therefrom,
the Company shall amend Exhibit A to reflect such occurrence. In the case of the issuance of Re-grant Incentive Units in lieu of such forfeited Units, the Tier I, II, III, IV or V Percentages will not be reduced as a result of such
forfeiture, but appropriate notation shall be made to reflect the issuance of the Re-grant Incentive Units. The Board shall reflect all changes contemplated by this Section 3.4(e) in an amended Exhibit A. 

(f) For the avoidance of doubt, Persons holding Incentive Units shall be entitled to receive all distributions if and when made by the Company
with respect to any such Incentive Units that have been granted to and are held by such Person on the date such distributions are made and that have not otherwise been forfeited or made null and void pursuant to the provisions of this
Section 3.4, regardless of whether such Person’s Incentive Units have vested, have not yet vested at all or have only partially vested at such time. 

ARTICLE IV 
 ALLOCATIONS AND
DISTRIBUTIONS 
 Section 4.1. Allocations of Net Profits and Net Losses. 

(a) Net Profits and Net Losses and all related items of income, gain, loss, deduction and credit for each Fiscal Period shall be allocated
among the Members in such manner as shall cause the Capital Accounts of each Member to equal, as nearly as possible, (i) the amount such Member would receive if all assets on hand at the end of such year were sold for cash at the Carrying
Values of such assets, all liabilities were satisfied in cash in accordance with their terms (limited in the case of Member Nonrecourse Debt and Company Nonrecourse Liabilities to the Carrying Value of the assets securing such liabilities), and any
remaining or resulting cash was distributed to the Members under Section 4.4(a), minus (ii) an amount equal to such Member’s allocable share of Minimum Gain as computed immediately prior to the deemed sale described in clause
(i) above in accordance with the applicable Treasury Regulations. 
 (b) The Board shall make the foregoing allocations as of the last
day of each Fiscal Period; provided, however, that if during any Fiscal Period of the Company there is a change in any Member’s Company Interest, the Board shall make the foregoing allocations as of the date of each such change in
a manner which takes into account the varying interests of the Members and in a manner the Board reasonably deems appropriate. 

  
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 Section 4.2. Special Allocations. 

(a) Notwithstanding any of the provisions of Section 4.1 to the contrary: 

(i) If during any Fiscal Period of the Company there is a net increase in Minimum Gain attributable to a Member Nonrecourse Debt that gives
rise to Member Nonrecourse Deductions, each Member bearing the economic risk of loss for such Member Nonrecourse Debt shall be allocated items of Company deductions and losses for such period (consisting first of cost recovery or depreciation
deductions with respect to property that is subject to such Member Nonrecourse Debt and then, if necessary, a pro-rata portion of the Company’s other items of deductions and losses, with any remainder being treated as an increase in Minimum
Gain attributable to Member Nonrecourse Debt in the subsequent period) equal to such Member’s share of Member Nonrecourse Deductions, as determined in accordance with applicable Treasury Regulations. 

(ii) If for any Fiscal Period of the Company there is a net decrease in Minimum Gain attributable to Company Nonrecourse Liabilities, each
Member shall be allocated items of Company income and gain for such period (consisting first of gain recognized from the Transfer of Company property subject to one or more Company Nonrecourse Liabilities and then, if necessary, a pro-rata portion
of the Company’s other items of income and gain, and if necessary, for subsequent periods) equal to such Member’s share of such net decrease (except to the extent such Member’s share of such net decrease is caused by a change in debt
structure with such Member commencing to bear the economic risk of loss as to all or part of any Company Nonrecourse Liability or by such Member contributing capital to the Company that the Company uses to repay a Company Nonrecourse Liability), as
determined in accordance with applicable Treasury Regulations. 
 (iii) If for any Fiscal Period of the Company there is a net decrease in
Minimum Gain attributable to a Member Nonrecourse Debt, each Member bearing the economic risk of loss for such Member Nonrecourse Debt shall be allocated items of Company income and gain for such period (consisting first of gain recognized from the
Transfer of Company property subject to Member Nonrecourse Debt, and then, if necessary, a pro-rata portion of the Company’s other items of income and gain, and if necessary, for subsequent periods) equal to such Member’s share of such net
decrease (except to the extent such Member’s share of such net decrease is caused by a change in debt structure such that the Member Nonrecourse Debt becomes partially or wholly a Company Nonrecourse Liability or by the Company’s use of
capital contributed by such Member to repay the Member Nonrecourse Debt) as determined in accordance with applicable Treasury Regulations. 

(b) The Net Losses allocated pursuant to this Article IV shall not exceed the maximum amount of Net Losses that can be allocated to a
Member without causing or increasing a deficit balance in the Member’s Adjusted Capital Account. All Net Losses in excess of the limitation set forth in this Section 4.2(b) shall be allocated to Members with positive Adjusted
Capital Account balances remaining at such time in proportion to such positive balances. In the event an allocation of Net Losses has been made to any Member(s) pursuant to the terms of this Section 4.2(b), Net Profits shall be allocated
to such Member(s), in proportion to the amount of such allocation of Net Losses, until such Member(s) receive an allocation of Net Profits equal to such amount of Net Losses allocated pursuant to the terms of this Section 4.2(b). 

  
 24 

 (c) In the event that a Member unexpectedly receives any adjustment, allocation or distribution
described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) that causes or increases a deficit balance in such Member’s Adjusted Capital Account, items of Company income and gain shall be allocated to that Member
in an amount and manner sufficient to eliminate the deficit balance as quickly as possible. 
 (d) If any holder of Incentive Units forfeits
all or a portion of such Units, such holder shall be allocated items of loss and deduction in the year of such forfeiture in an amount equal to the portion of such holder’s Capital Account attributable to such forfeited Units. 

(e) If, as a result of an exercise of a noncompensatory warrant, a Capital Account reallocation is required under Proposed Treasury Regulation
Section 1.704-1(b)(2)(iv)(s)(3) (as such Proposed Treasury Regulation may be amended or modified, including upon the issuance of temporary or final Treasury Regulations), the Company shall make corrective allocations pursuant to Proposed
Treasury Regulation Section 1.704-1(b)(4)(x), as such Proposed Treasury Regulation may be amended or modified, including upon the issuance of temporary or final Treasury Regulations. 

(f) The allocations set forth in subsections (a) through (c) of this Section 4.2 (collectively, the “Regulatory
Allocations”) are intended to comply with certain requirements of the Treasury Regulations. It is the intent of the Members that, to the extent possible, all Regulatory Allocations that are made be offset either with other Regulatory
Allocations or with special allocations pursuant to this Section 4.2(f). Therefore, notwithstanding any other provisions of this Article IV (other than the Regulatory Allocations), the Board shall make such offsetting special
allocations in whatever manner it determines appropriate so that, after such offsetting allocations are made, the net amount of allocations to each Member is, to the extent possible, equal to the amount such Member would have been allocated if the
Regulatory Allocations were not part of the Agreement and all Company items were allocated pursuant to Section 4.1 and the remaining subsections of this Section 4.2. 

(g) In the event Units are issued to a Person and the issuance of such Units results in items of income or deduction to the Company, such
items of income or deduction shall be allocated to the Members in proportion to the positive balances in their Capital Accounts immediately before the issuance of such Units. 

Section 4.3. Income Tax Allocations. 

(a) Except as provided in this Section 4.3, each item of income, gain, loss and deduction of the Company for federal income tax
purposes shall be allocated among the Members in the same manner as such items are allocated for Capital Account purposes under Section 4.1 and Section 4.2. 

(b) The deduction for depletion with respect to each separate oil and gas property (as defined in Section 614 of the Internal Revenue
Code) shall, in accordance with Section 613A(c)(7)(D) of the Internal Revenue Code, be computed for federal income tax purposes 

  
 25 

 
separately by the Members rather than the Company. Except as provided in Section 4.3(d), for purposes of such computation, the adjusted tax basis of each oil and gas property shall be
allocated among the Members in proportion to their Sharing Ratios at the time of the acquisition of such property. Each Member, with the assistance of the Tax Matters Member, shall separately keep records of its share of the adjusted tax basis in
each separate oil and gas property, adjust such share of the adjusted tax basis for any cost or percentage depletion allowable with respect to such property and use such adjusted tax basis in the computation of its cost depletion or in the
computation of its gain or loss on the Transfer of such property by the Company. Upon the request of the Tax Matters Member, each Member shall advise the Tax Matters Member of its adjusted tax basis in each separate oil and gas property and any
depletion computed with respect thereto, both as computed in accordance with the provisions of this subsection. The Tax Matters Member may rely on such information and, if it is not provided by the Member, may make such reasonable assumptions as it
shall determine with respect thereto 
 (c) Except as provided in Section 4.3(d), for the purposes of the separate computation
of gain or loss by each Member on the Transfer of each separate oil and gas property (as defined in Section 614 of the Internal Revenue Code), the Company’s allocable share of the “amount realized” (as such term is defined in
Section 1001(b) of the Internal Revenue Code) from such Transfer shall be allocated for federal income tax purposes among the Members as follows: 

(i) first, to the extent such amount realized constitutes a recovery of the Simulated Basis of the property, to the Members in the same
proportion as the depletable basis of such property was allocated to the Members pursuant to Section 4.3(b) (without regard to any special allocation of basis under Section 4.3(d)); and 

(ii) second, the remainder of such amount realized, if any, to the Members so that, to the maximum extent possible, the amount realized that
is allocated to each Member under this Section 4.3(c)(i) will equal such Member’s share of the Simulated Gain recognized by the Company from such Transfer. 

(d) The Members recognize that with respect to Adjusted Property, there will be a difference between the Carrying Value of such property at
the time of revaluation or contribution and the adjusted tax basis of such property at the time. All items of tax depreciation, cost recovery, amortization, adjusted tax basis of depletable properties, amount realized and gain or loss with respect
to such Adjusted Property shall be allocated among the Members to take into account the disparities between the Carrying Values and the adjusted tax basis with respect to such properties in accordance with the provisions of Sections 704(b) and
704(c) of the Internal Revenue Code and the Treasury Regulations under those sections; provided, however, that any tax items not required to be allocated under Sections 704(b) or 704(c) of the Internal Revenue Code shall be allocated
in the same manner as such gain or loss would be allocated for Capital Account purposes under Section 4.1 and Section 4.2. In making such allocations, the Board shall use such method or methods of allocation as it shall
determine, in its absolute discretion, to be reasonable and in accord with the applicable Treasury Regulations. 
 (e) All recapture of
income tax deductions resulting from the Transfer of Company property shall, to the maximum extent possible, be allocated to the Member to whom the deduction that gave rise to such recapture was allocated hereunder to the extent that such Member

  
 26 

 
is allocated any gain from the Transfer of such property. For this purpose, deductions that were allocated as a component of Net Profit or Net Loss shall be treated as if allocated in the same
manner as the allocation of the related Net Profit or Net Loss. 
 Section 4.4. Distributions. 

(a) The Board may cause the Company to distribute Distributable Funds at such times and in such amounts as the Board, in its sole discretion,
determines to be appropriate. All such distributions made pursuant to this Section 4.4(a) shall be made to the Members as follows and in the following order of priority: 

(i) First: to the Members, pro-rata in accordance with their respective Sharing Ratios, until Tier I Payout, if any, has occurred; 

(ii) Second: following Tier I Payout, if any, and until the earlier of Tier II Payout or Tier III Payout: the Tier I Percentage to the Members
holding Tier I Units (allocated among the holders of Tier I Units pro-rata, in accordance with the number of Tier I Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)),
and the remainder to the Members (pro-rata, in accordance with their respective Sharing Ratios); 
 (iii) Then, if Tier II Payout has
occurred: 
 (A) following Tier II Payout, if any, and until Tier III Payout: the Tier I Percentage to the Members holding Tier I Units
(allocated among the holders of Tier I Units pro-rata, in accordance with the number of Tier I Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), the Tier II Percentage
to the Members holding Tier II Units (allocated among the holders of Tier II Units pro-rata, in accordance with the number of Tier II Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and
Section 3.4(c)), and the remainder to the Members (pro-rata, in accordance with their respective Sharing Ratios); 
 (B) then,
following Tier III Payout, if any, and until Tier IV Payout: the Tier I Percentage to the Members holding Tier I Units (allocated among the holders of Tier I Units pro-rata, in accordance with the number of Tier I Units of each holder, including, if
applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), the Tier II Percentage to the Members holding Tier II Units (allocated among the holders of Tier II Units pro-rata, in accordance with the number of Tier
II Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), and the Tier III Percentage to the Members holding Tier III Units (allocated among the holders of Tier III Units
pro-rata, in accordance with the number of Tier III Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), and the remainder to the Members (pro-rata, in accordance with
their respective Sharing Ratios); 
 (C) then, following Tier IV Payout, if any, and until Tier V Payout: the Tier I Percentage to the
Members holding Tier I Units (allocated among the holders of Tier I Units pro-rata, in accordance with the number of Tier I Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and
Section 3.4(c)), the Tier II Percentage to the Members holding Tier II Units (allocated among the holders of Tier II Units pro-rata, in accordance with the 

  
 27 

 
number of Tier II Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), the Tier III Percentage to the Members
holding Tier III Units (allocated among the holders of Tier III Units pro-rata, in accordance with the number of Tier III Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and
Section 3.4(c)), the Tier IV Percentage to the Members holding Tier IV Units (allocated among the holders of Tier IV Units pro-rata, in accordance with the number of Tier IV Units of each holder, including, if applicable, taking into
account Section 3.4(b)(iv) and Section 3.4(c)), and the remainder to the Members (pro-rata, in accordance with their respective Sharing Ratios); and 

(D) then, following Tier V Payout, if any: the Tier I Percentage to the Members holding Tier I Units (allocated among the holders of Tier I
Units pro-rata, in accordance with the number of Tier I Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), the Tier II Percentage to the Members holding Tier II Units
(allocated among the holders of Tier II Units pro-rata, in accordance with the number of Tier II Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), the Tier III
Percentage to the Members holding Tier III Units (allocated among the holders of Tier III Units pro-rata, in accordance with the number of Tier III Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv)
and Section 3.4(c)), the Tier IV Percentage to the Members holding Tier IV Units (allocated among the holders of Tier IV Units pro-rata, in accordance with the number of Tier IV Units of each holder, including, if applicable, taking into
account Section 3.4(b)(iv) and Section 3.4(c)), the Tier V Percentage to the Members holding Tier V Units (allocated among the holders of Tier V Units pro-rata, in accordance with the number of Tier V Units of each holder,
including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), and the remainder to the Members (pro-rata, in accordance with their respective Sharing Ratios). 

(iv) and, if Tier II Payout has not occurred: 

(A) following Tier III Payout, if any, and until Tier IV Payout: the Tier I Percentage to the Members holding Tier I Units (allocated among
the holders of Tier I Units pro-rata, in accordance with the number of Tier I Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), and the Tier III Percentage to the
Members holding Tier III Units (allocated among the holders of Tier III Units pro-rata, in accordance with the number of Tier III Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and
Section 3.4(c)), and the remainder to the Members (pro-rata, in accordance with their respective Sharing Ratios); 
 (B) then,
following Tier IV Payout, if any, and until Tier V Payout: the Tier I Percentage to the Members holding Tier I Units (allocated among the holders of Tier I Units pro-rata, in accordance with the number of Tier I Units of each holder, including, if
applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), the Tier III Percentage to the Members holding Tier III Units (allocated among the holders of Tier III Units pro-rata, in accordance with the number of
Tier III Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), the Tier IV Percentage to the Members holding Tier IV Units (allocated among the holders of Tier IV Units
pro-rata, in accordance with the number of Tier IV Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), and the remainder to the Members (pro-rata, in accordance with their
respective Sharing Ratios); and 

  
 28 

 (C) then, following Tier V Payout, if any: the Tier I Percentage to the Members holding Tier I
Units (allocated among the holders of Tier I Units pro-rata, in accordance with the number of Tier I Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), the Tier III
Percentage to the Members holding Tier III Units (allocated among the holders of Tier III Units pro-rata, in accordance with the number of Tier III Units of each holder, including, if applicable, taking into account Section 3.4(b)(iv)
and Section 3.4(c)), the Tier IV Percentage to the Members holding Tier IV Units (allocated among the holders of Tier IV Units pro-rata, in accordance with the number of Tier IV Units of each holder, including, if applicable, taking into
account Section 3.4(b)(iv) and Section 3.4(c)), the Tier V Percentage to the Members holding Tier V Units (allocated among the holders of Tier V Units pro-rata, in accordance with the number of Tier V Units of each holder,
including, if applicable, taking into account Section 3.4(b)(iv) and Section 3.4(c)), and the remainder to the Members (pro-rata, in accordance with their respective Sharing Ratios). 

(b) In addition to distributions made to the Members pursuant to Section 4.4(a), and subject to applicable law, to the extent that
the Board determines that the Company has Distributable Funds, the Board shall cause the Company to pay to the Members within 90 days after the end of each year, through a distribution of cash and/or a distribution in kind, an amount the fair market
value of which is equal to the lesser of (i) the Distributable Funds, or (ii) an amount equal to the highest marginal federal and applicable state income tax rate for individuals (taking into account the character of the taxable income
(e.g., long-term capital gain, qualified dividend income, ordinary income, etc.)) multiplied by the taxable income of the Company, if any, for such year, such payment to be made among the Members in the same percentages as the taxable income
for such year was allocated. Any such payments to a Member under this Section 4.4(b) shall be deemed to be a draw against such Member’s share of future distributions under Section 4.4(a) and Section 8.3(b),
so that such Member’s share of such future distributions shall be reduced by the amounts previously drawn under this Section 4.4(b) until the aggregate reductions in such distributions equal the aggregate draws made under this
Section 4.4(b). 
 Section 4.5. Distributions in Kind. 

(a) The Board may cause the Company to distribute, and may compel the Members to accept, securities or other property held by the Company at
such times and in such amounts as the Board, in its sole discretion, determines to be appropriate; provided, that in any non-cash distribution, the securities or property so distributed will be distributed among the Members in the same proportion
and priority as cash equal to the fair market value of such securities or property would be distributed among the Members pursuant to Section 4.4. Securities or other property distributed in-kind to the Members by the Company shall be
valued on the basis of the fair market value thereof as determined by the Board in its reasonable discretion, acting in good faith, as of the date of distribution. 

(b) Any distribution of securities shall be subject to such conditions and restrictions as the Board determines are required or advisable to
ensure compliance with applicable law. In furtherance of the foregoing, the Board may require that the Members execute and deliver such 

  
 29 

 
documents as the Board may deem necessary or appropriate to ensure compliance with all federal and state securities laws that apply to such distribution and any further Transfer of the
distributed securities, and may appropriately legend the certificates that represent such securities to reflect any restriction on Transfer with respect to such laws. 

ARTICLE V 
 MANAGEMENT AND RELATED
MATTERS 
 Section 5.1. Power and Authority of Board. 

(a) The Company shall be managed by a Board of Managers (“Board” or “Board of Managers”). The Company shall
have seven (7) managers as of the date hereof (each, a “Manager” and, collectively, the “Managers”) and the Managers serving on the Board shall be appointed and removed by a Majority Interest of the Members,
subject to the terms of the Voting and Transfer Restriction Agreement. The Managers making up the Board as of the date hereof shall be Ward Polzin, Bret Siepman, David W. Hayes, Christopher G. Carter, Christopher Ray, Tony Weber and Martin Sumner.
Except as otherwise expressly provided in Section 5.4 and elsewhere in this Agreement, all management powers over the business and affairs of the Company shall be exclusively vested in the Board, and the Members shall have no right of
control over the business and affairs of the Company. In addition to the powers now or hereafter granted to managers under the Act or which are granted to the Board under any other provision of this Agreement, the Board shall have full power and
authority to do all things deemed necessary or desirable by it to conduct the business of the Company in the name of the Company. In connection with the foregoing and otherwise, the Company (and the officers, employees, and agents acting on behalf
of the Company) shall not, either acting on its own behalf or when acting as controlling equity-holder of any of its Subsidiaries (and the officers, employees, and agents acting on the Company’s behalf in such capacity shall not permit such
Subsidiaries to), take any actions with respect to the Company or such Subsidiaries without the affirmative vote of at least a majority of the Board at a regular meeting or a special meeting called for the purpose, or by written consent. 

(b) The Board may hold such meetings at such place and at such time as it may determine. Notice of a meeting shall be served not less than 24
hours before the date and time fixed for such meeting by confirmed facsimile or other written communication or not less than three days prior to such meeting if notice is provided by overnight delivery service. Notice of a meeting need not be given
to any Manager who signs a waiver of notice or provides a waiver by electronic transmission or a consent to holding the meeting or an approval of the minutes thereof, whether before or after the meeting, or who attends the meeting without
protesting, either prior thereto or at its commencement, the lack of notice to such Manager. A special meeting of the Board may be called by any member of the Board. Any member of the Board may participate in a meeting by conference telephone or
similar communications equipment. Any action required or permitted to be taken by the Board may be taken without a meeting if such action is evidenced in writing and signed by all of the members of the Board. At any meeting of the Board, the
presence in person or by telephone or similar electronic communication of Managers representing at least a majority of the Board shall constitute a quorum. 

  
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 (c) Each Manager serving on the Board of Managers shall have one vote on any Company matter.
Except as otherwise provided in this Agreement, the business of the Company presented at any meeting of the Board of Managers shall be decided by a vote of Managers representing a majority of the entire Board of Managers. 

(d) In accomplishing all of the foregoing and in fulfilling its obligations pursuant to this Agreement, the Board may, in its sole discretion,
retain or use any Company Affiliates’ personnel, properties and equipment or the Board may hire or rent those of third parties and may employ on a temporary or continuing basis outside accountants, attorneys, consultants and others on such
terms as the Board deems advisable. No Person, firm or corporation dealing with the Company shall be required to inquire into the authority of the Board to take any action or make any decision. 

Section 5.2. Officers.  

(a) Designation. The Board may, from time to time, designate individuals (who need not be a Manager) to serve as officers of the
Company. The officers may, but need not, include a president and chief executive officer, a chief financial officer, a treasurer and one or more vice presidents and a secretary. Any two or more offices may be held by the same Person. 

(b) Duties of Officers. Each officer of the Company designated hereunder shall devote such time to the Company’s business as he
deems necessary to manage and supervise Company business and affairs in an efficient manner and shall have the duties and limitations (including fiduciary duties) with respect to the Company or its subsidiaries as if such officer were an officer in
a corporation organized under the laws of the State of Delaware, unless otherwise modified by contract between the Company and such officer, and in addition to these duties and limitations: 

(i) The Chief Executive Officer, subject to the control and direction of the Board, shall in general supervise and control all of the business
and affairs of the Company and perform all duties and exercise all powers usually appertaining to the office of the chief executive officer, subject to the provisions of applicable law and this Agreement. The Chief Executive Officer may sign any
contracts or other instruments which the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board or by this Agreement to some other officer or agent of the Company, or
shall be required by law to be otherwise signed and executed. 
 (ii) The President shall assist in the supervision and control of the
business and affairs of the Company in such manner as the Board shall determine. The President may sign any contracts or other instruments which the Board has authorized to be executed, except in cases where the signing and execution thereof shall
be expressly delegated by the Board or by this Agreement to some other officer or agent of the Company, or shall be required by law to be otherwise signed and executed. As between the Chief Executive Officer and President, the Chief Executive
Officer shall be the more senior officer and the President shall perform the duties and exercise the powers of the Chief Executive Officer in the event of the Chief Executive Officer’s absence or disability, unless otherwise determined by the
Chief Executive Officer or the Board. 

  
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 (iii) The Vice Presidents, in the order of their seniority, shall perform the duties and exercise
the powers of the Chief Executive Officer or the President in the event of the Chief Executive Officer’s or the President’s absence or disability, unless otherwise determined by the Chief Executive Officer, the President or the Board. 

(iv) The Secretary shall keep and account for all books, documents, papers and records of the Company except those for which some other
officer or agent is properly accountable; and have authority to attest to the signatures of the Chief Executive Officer, the President or the Vice Presidents and shall generally perform all duties usually appertaining to the office of secretary of a
corporation. 
 (v) Any other officer appointed by the Board shall have such authority and responsibilities as the Board, the Chief
Executive Officer or the President may delegate to such officer from time to time. 
 (c) Term of Office; Removal; Filling of
Vacancies. 
 (i) Each officer of the Company shall hold office until his successor is chosen and qualified in his stead or until his
earlier death, resignation, retirement, disqualification or removal from office. 
 (ii) Any officer may be removed at any time by the Board
whenever in their judgment the best interests of the Company will be served thereby. Designation of an officer shall not of itself create any contract rights in favor of such officer. 

(iii) If the office of any officer becomes vacant for any reason, the vacancy may be filled by the Board. 

Section 5.3. Acknowledged and Permitted NGP Activities. The Company and the Members recognize that (a) NGP and its Affiliates
may own or will own substantial equity interests in other companies (existing and future) that participate in the energy industry (“NGP Portfolio Companies”) and enter into advisory service agreements with those NGP Portfolio
Companies, (b) the NGP Representatives who serve as members of the Board may also serve as principals of other NGP Portfolio Companies, and (c) that at any given time, other NGP Portfolio Companies may be in direct or indirect competition
with the Company and/or its subsidiaries. The Company and the Members acknowledge and agree that (i) NGP, its Affiliates and the NGP Representatives: (A) shall not be prohibited or otherwise restricted by their relationship with the
Company and its subsidiaries from engaging in the business of investing in NGP Portfolio Companies, entering into agreements to provide services to such companies or acting as directors or advisors to, or other principals of, such NGP Portfolio
Companies, regardless of whether such activities are in direct or indirect competition with the business or activities of the Company or its subsidiaries, and (B) shall not have any obligation to offer the Company or its subsidiaries any
Excluded Business Opportunity, and (ii) the Company and the Members hereby renounce any interest or expectancy in any Excluded Business Opportunity pursued by NGP, its Affiliates, the NGP Representatives or another NGP Portfolio Company and
waive any claim that any such business opportunity constitutes a corporate, partnership or other business opportunity of the Company or any of its subsidiaries. 

  
 32 

 Section 5.4. Duties and Services of the Board. The Board shall comply in all respects
with the terms of this Agreement. The Board shall be obligated to perform the duties, responsibilities and obligations of the Board hereunder only to the extent that funds of the Company are available therefor. During the existence of the Company,
each Manager serving on the Board shall devote such time and effort to the Company’s business as he deems necessary to manage and supervise Company business and affairs in an efficient manner. 

Section 5.5. Liability and Indemnification. 

(a) The Company’s officers, the Board, the Members and their Affiliates, and their partners, officers, directors, employees and agents,
shall not be liable, responsible or accountable in damages or otherwise to the Company or the other Members for any acts or omissions that do not constitute gross negligence, willful misconduct, a breach of fiduciary duty or a breach of the express
terms of this Agreement, and the Company shall indemnify to the maximum extent permitted under the Act and save harmless the Company’s officers, the Board and the Members and their Affiliates, and their partners, officers, directors, employees
and agents (individually, an “Indemnitee”) from all liabilities for which indemnification is permitted under the Act. Any act or omission performed or omitted by an Indemnitee on advice of legal counsel or an independent consultant
who has been employed or retained by the Company shall be presumed to have been performed or omitted in good faith without gross negligence or willful misconduct. THE PARTIES RECOGNIZE THAT THIS PROVISION SHALL RELIEVE ANY SUCH INDEMNITEE FROM
ANY AND ALL LIABILITIES, OBLIGATIONS, DUTIES, CLAIMS, ACCOUNTS AND CAUSES OF ACTION WHATSOEVER ARISING OR TO ARISE OUT OF ANY ORDINARY NEGLIGENCE BY ANY SUCH INDEMNITEE, AND SUCH INDEMNITEE SHALL BE ENTITLED TO INDEMNIFICATION FROM ACTS OR OMISSIONS
THAT MAY CONSTITUTE ORDINARY NEGLIGENCE.  
 (b) The Company shall, to the maximum extent permitted under the Act, pay or reimburse
expenses incurred by an Indemnitee in connection with the Indemnitee’s appearance as a witness or other participation in a proceeding involving or affecting the Company at a time when the Indemnitee is not a named defendant or respondent in the
proceeding. 
 (c) The Board shall have the right to require that any contract entered into by the Company provide that the Board shall have
no personal liability for the obligations of the Company thereunder. 
 (d) The indemnification provided by this Section 5.5
shall be in addition to any other rights to which each Indemnitee may be entitled under any agreement or vote of the Members, as a matter of law or otherwise, both as to action in the Indemnitee’s capacity as a Member or an officer, director,
employee or agent of a Member or as a Person serving at the request of the Company as set forth above and to action in another capacity, and shall continue as to an Indemnitee who has ceased to serve in such capacity and shall inure to the benefit
of the heirs, successors, assigns, administrators and personal representatives of the Indemnitees; provided that the indemnification provided by this Section 5.5 shall be the primary source of indemnification with respect to the
matters addressed herein, without regard to other potential sources of indemnification, reimbursement or contribution (subject to applicable express provisions of any insurance policy to which the Company is a party) and the Company irrevocably
waives, 

  
 33 

 
relinquishes and releases all right to contribution, subrogation or any other recovery of any kind from any Member or its Affiliates, including NGP or its Affiliates, and insurance provided by
any Member or its Affiliates, including NGP or its Affiliates, to any Indemnitee; and provided, further, no advancement or payment by any Member or its Affiliates, including NGP or its Affiliates, or insurance provided by any of them to an
Indemnitee with respect to any claim for which an Indemnitee has sought indemnification from the Company shall affect the foregoing and each Member and its Affiliates, including NGP and its Affiliates, shall have a right of contribution and/or be
subrogated to the extent of such advancement or payment to all of the rights of recovery of such Indemnitee against the Company. The Company and each Member agree that each other Member and its Affiliates, including NGP and its Affiliates, and the
insurers they engage to provide insurance to Indemnitees are express third party beneficiaries of the terms of this Section 5.5(d). 

(e) In no event may an Indemnitee subject the Members to personal liability by reason of this indemnification provision. 

(f) An Indemnitee shall not be denied indemnification in whole or in part under this Section 5.5 because the Indemnitee had an
interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement. 

Section 5.6. Contracts with Affiliates. The Company may enter into contracts and agreements with any Member and/or any of its
Affiliates for the rendering of services and the sale and lease of supplies and equipment on such arm’s-length terms that (a) are no less favorable to the Company than those available from unrelated third parties and (b) are approved
by the Board. 
 Section 5.7. Reimbursement of Members. The Company or its subsidiaries shall pay or reimburse to the Centennial
Members and NGP all reasonable direct and indirect costs and expenses incurred by such Members in negotiating this Agreement, including legal fees and accounting fees. The Company has previously paid to Ward Polzin a transaction fee of $200,000 (the
“Transaction Fee”). The Transaction Fee was funded by a contribution to the capital of the Company by NGP concurrently with the initial funding of NGP’s Capital Commitment pursuant to Section 3.1(b); provided, that
the Members acknowledge that the amount paid by NGP with respect to the Transaction Fee shall not be treated as a Capital Contribution for purposes of determining whether the Tier I Payout, the Tier II Payout, the Tier III Payout, the Tier IV Payout
or the Tier V Payout have been met, nor shall it be treated as a Capital Contribution for purposes of calculating the Sharing Ratios of the Members. Notwithstanding the provisions to Sections 4.1, 4.2 and 4.3 to the contrary,
any deduction attributable to the payment of the Transaction Fee shall be specially allocated to NGP and NGP’s Capital Account shall be appropriately adjusted to reflect such allocation. 

Section 5.8. Insurance. The Company shall acquire and maintain insurance covering such risks and in such amounts as the officers
of the Company shall from time to time determine to be necessary or appropriate. 

  
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 Section 5.9. Tax Elections and Status. 

(a) The Board shall make such tax elections on behalf of the Company as it shall deem appropriate in its sole discretion. 

(b) The Members agree to classify the Company as a partnership for income tax purposes. Therefore, any provision hereof to the contrary
notwithstanding, solely for income tax purposes, each of the Members hereby recognizes that the Company, so long as it has at least two Members, shall be subject to all provisions of subchapter K of Chapter 1 of Subtitle A of the Internal Revenue
Code and, to the extent permitted by law, any comparable state or local income tax provisions. Neither the Company, any Member, nor any Manager shall file an election to classify the Company as an association taxable as a corporation for income tax
purposes. 
 Section 5.10. Tax Returns. The Company shall deliver necessary tax information to each Member after the end of each
fiscal year of the Company. Not less than 60 days prior to the date (as extended) on which the Company intends to file its federal income tax return or any state income tax return but in any event no earlier than March 1 of each year, the
return proposed by the Board to be filed by the Company shall be furnished to the Members for review; provided, however, that an IRS Form K-1 or a good faith estimate of the amounts to be included on such IRS Form K-1 for each Member
shall be sent to each Member on or before March 1 of each year. In addition, not more than 10 days after the date on which the Company files its federal income tax return or any state income tax return, a copy of the return so filed shall be
furnished to the Members. 
 Section 5.11. Tax Matters Member. Ward Polzin shall be designated the tax matters member under
Section 6231 of the Internal Revenue Code (in such capacity, the “Tax Matters Member”). The Tax Matters Member may be removed and replaced by action of a Majority Interest of the Members. The Tax Matters Member is authorized to
take such actions and to execute and file all statements and forms on behalf of the Company which may be permitted or required by the applicable provisions of the Internal Revenue Code or Treasury Regulations issued thereunder. The Tax Matters
Member shall have full and exclusive power and authority on behalf of the Company to represent the Company (at the Company’s expense) in connection with all examinations of the Company’s affairs by tax authorities, including resulting
administrative and judicial proceedings, and to expend Company funds for professional services and costs associated therewith. The Tax Matters Member shall keep the Members informed as to the status of any audit of the Company’s tax affairs,
and shall take such action as may be necessary to cause any Member so requesting to become a “notice partner” within the meaning of Section 6223 of the Internal Revenue Code. Without first obtaining the approval of a Majority Interest
of the Members, the Tax Matters Member shall not, with respect to Company tax matters: (a) enter into a settlement agreement with respect to any tax matter which purports to bind Members, (b) intervene in any action pursuant to Internal
Revenue Code Section 6226(b)(5), (c) enter into an agreement extending the statute of limitations, or (d) file a petition pursuant to Internal Revenue Code Section 6226(a) or 6228. If an audit of any of the Company’s tax
returns shall occur, the Tax Matters Member shall not settle or otherwise compromise assertions of the auditing agent which may be adverse to any Member as compared to the position taken on the Company’s tax returns without the prior written
consent of each such affected Member. 

  
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 Section 5.12. Section 83(b) Election. Each Member who acquires Incentive Units
and who is a United States person within the meaning of Internal Revenue Code Section 7701(a)(30) may file a timely election under Internal Revenue Code Section 83(b) with respect to such Incentive Units and consult with such Member’s
tax advisor to determine the tax consequences of such acquisition and of filing an election under Internal Revenue Code Section 83(b). Each such Member acknowledges that it is the sole responsibility of such Member, and not the Company, to file
the election under Internal Revenue Code Section 83(b) even if such Member requests the Company or its representative to assist in making such filing. In accordance with the applicable Treasury Regulations, each Member who makes an election
shall promptly provide a copy of such election to the Company. 
 Section 5.13. Subsidiaries of the Company. The Board may
determine to conduct any Company operations indirectly through one or more subsidiaries. 
 Section 5.14. Tax
Reimbursement. If Texas law requires the Company and NGP both to participate in the filing of a Texas franchise tax combined group report, and if NGP or its Affiliates pay the franchise tax liability due in connection with such combined
report, the parties agree that the Company shall promptly reimburse NGP or its Affiliates for the franchise tax paid on behalf of the Company as a combined group member. The franchise tax paid on behalf of the Company shall be equal to the franchise
tax that the Company would have paid if it had computed its franchise tax liability for the report period on a separate entity basis rather than as a member of the combined group. In such event, the parties agree that NGP and its Affiliates shall be
considered as paying such amount on behalf of the Company and the Company shall deduct for federal income tax purposes one hundred percent (100%) of the Texas franchise tax attributable to the Company; provided that in the event that
such deduction may not be properly taken by the Company, the Company shall reimburse NGP and its Affiliates for the after-tax cost of such payment of Texas franchise tax paid on the Company’s behalf. 

ARTICLE VI 
 RIGHTS OF MEMBERS

 Section 6.1. Rights of Members. Each of the Members shall have the right to: (a) have the Company books and records
(including those required under the Act) kept at the principal United States office of the Company and at all reasonable times to inspect and copy any of them at the sole expense of such Member; (b) have on demand true and full information of
all things affecting the Company and a formal account of Company affairs whenever circumstances render it just and reasonable; (c) have dissolution and winding up of the Company by decree of court as provided for in the Act; and
(d) exercise all rights of a Member under the Act (except to the extent otherwise specifically provided herein). Notwithstanding the foregoing, the Members shall not have the right to receive data pertaining to the properties of the Company if
the Company is subject to a valid agreement prohibiting the distribution of such data or if the Board shall otherwise determine that such data is Confidential Information. 

Section 6.2. Limitations on Members. The Members (in his or its capacity as a Member) shall not: (a) be permitted to take
part in the business or control of the business or affairs of the Company; (b) have any voice in the management or operation of any Company property; or 

  
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(c) have the authority or power to act as agent for or on behalf of the Company or any other Member, to do any act which would be binding on the Company or any other Member, or to incur any
expenditures on behalf of or with respect to the Company. No Member (in his or its capacity as a Member) shall hold out or represent to any third party that the Members have any such power or right or that the Members are anything other than
“members” of the Company. The foregoing provision shall not be applicable to a Member acting in his or its capacity as a member of the Board or an officer of the Company. 

Section 6.3. Liability of Members. No Member shall be liable for the debts, liabilities, contracts or other obligations of the
Company except (a) as otherwise provided in the Act and (b) as expressly provided in this Agreement. 
 Section 6.4.
Withdrawal and Return of Capital Contributions. No Member shall be entitled to (a) withdraw from the Company except upon the assignment by such Member of all of its Company Interest in accordance with Article IX, or (b) the
return of its Capital Contributions except to the extent, if any, that distributions made pursuant to the express terms of this Agreement may be considered as such by law or upon dissolution and liquidation of the Company, and then only to the
extent expressly provided for in this Agreement and as permitted by law. 
 Section 6.5. Voting Rights. Except as otherwise
expressly provided herein, to the extent that the vote of the Members may be required hereunder, the act of a Majority Interest of the Members shall be an act of the Members. Notwithstanding anything in this Agreement to the contrary, with respect
to any Company Interests held by any Member who is an Employee, such Company Interests shall be non-voting if and when such Person’s status as an Employee is terminated for any reason or without reason, including by termination, resignation,
death or disability. 
 ARTICLE VII 

BOOKS, REPORTS, MEETINGS AND CONFIDENTIALITY 

Section 7.1. Capital Accounts, Books and Records. 

(a) The Company shall keep books of account for the Company in accordance with the terms of this Agreement. Such books shall be maintained at
the principal office of the Company. 
 (b) An individual capital account (the “Capital Account”) shall be maintained by
the Company for each Member as provided below: 
 (i) The Capital Account of each Member shall, except as otherwise provided herein, be
increased by the amount of cash and the fair market value of any property contributed to the Company by such Member (net of liabilities secured by such contributed property that the Company is considered to assume or take subject to under
Section 752 of the Internal Revenue Code) and by such Member’s share of the Net Profits of the Company and special allocations of income or gain under Section 4.2, and shall be decreased by such Member’s share of the Net
Losses of the Company and special allocations of deduction or loss under Section 4.2 and by the amount of cash or the fair market value of any property distributed to such Member (net of liabilities secured by such distributed property
that such Member is considered to assume or take 

  
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subject to under Section 752 of the Internal Revenue Code). The Capital Accounts shall also be increased or decreased (A) to reflect a revaluation of Company property pursuant to
paragraph (b) of the definition of Carrying Value and (B) upon the exercise of any noncompensatory warrant pursuant to the requirements of Proposed Treasury Regulation Sections 1.704-1(b)(2)(iv)(d)(4) and 1.704-1(b)(2)(iv)(s), as such
Proposed Treasury Regulations may be amended or modified, including upon the issuance of temporary or final Treasury Regulations. 
 (ii)
Any adjustments of basis of Company property provided for under Sections 734 and 743 of the Internal Revenue Code and comparable provisions of state law (resulting from an election under Section 754 of the Internal Revenue Code or comparable
provisions of state law) shall not affect the Capital Accounts of the Members (unless otherwise required by applicable Treasury Regulations), and the Members’ Capital Accounts shall be debited or credited pursuant to the terms of this
Section 7.1 as if no such election had been made. 
 (iii) Capital Accounts shall be adjusted, in a manner consistent with this
Section 7.1, to reflect any adjustments in items of Company income, gain, loss or deduction (including Simulated Depletion, Simulated Gain and Simulated Loss) that result from amended returns filed by the Company or pursuant to an
agreement by the Company with the Internal Revenue Service or a final court decision. 
 (iv) Immediately before the exercise of an
Incentive Option to acquire Units (the “Exercise”), the Capital Accounts of the existing Members shall be adjusted by assuming that the assets of the Company were sold by the Company for cash at their respective fair market values
as of the date of Exercise, and crediting or debiting each Member’s Capital Account with its respective share of the hypothetical gains and losses resulting from such assumed sales in the same manner as gains or losses on actual sales of such
properties would be credited or debited to such Member’s Capital Account. Thereafter, the Company shall be deemed to have distributed to the person exercising the option (the “Optionee”) cash in an amount equal to the
Distributed Asset Amount (as defined below) and, thereafter, the Optionee shall be deemed to have contributed such cash and the Exercise price to the Company. “Distributed Asset Amount” shall be the excess of (a) the product of
(x) the sum of the Exercise price plus the fair market value of the net assets of the Company immediately before the Exercise, multiplied by (y) the percentage obtained by dividing the number of Units issued to the Optionee by the total
number of Units outstanding (taking into account the Units issued to the Optionee), over (b) the Exercise price. 
 (v) The allocation
of basis prescribed by Section 613A(c)(7)(D) of the Internal Revenue Code and provided for in Section 4.3(b) and each Member’s separately computed depletion deductions shall not reduce such Member’s Capital Account, but
such Member’s Capital Account shall be decreased by its allocable share of Simulated Depletion. The Simulated Basis in each oil and gas property as of the date of the Original Agreement or hereafter acquired shall be allocated among the Members
in proportion to their Sharing Ratios. Simulated Depletion with respect to each separate oil and gas property shall be allocated to the Members in proportion to their respective shares of the Simulated Basis in the related property. No Member’s
Capital Account shall be decreased, however, by Simulated Depletion deductions attributable to any oil and gas property to the extent such deductions exceed such Member’s allocable share of the Company’s remaining Simulated Basis in such
property. Any Simulated Gain shall be allocated to the Members and shall increase their respective Capital Accounts in the same manner as an 

  
 38 

 
equal amount of gain would have been allocated pursuant to Section 4.1. Any Simulated Loss shall be allocated to the Members and shall reduce their respective Capital Accounts in the
same percentages as the basis of the property sold was allocated up to an amount equal to each Member’s share of the Company’s Simulated Basis in such property at the time of such sale. 

(vi) It is the intention of the Members that the Capital Accounts of each Member be kept in the manner required under Treasury Regulation
Section 1.704-1(b)(2)(iv). To the extent any additional adjustment to the Capital Accounts is required by such regulation, the Board is hereby authorized to make such adjustment after notice to the Members. 

(vii) In accordance with the provisions of Treasury Regulation Section 1.704-1(b)(2)(iv)(f), upon a Member’s contribution to the
Company of cash or properties in exchange for a Company Interest, the Capital Accounts of all Members and the Carrying Values of all Company properties shall, immediately prior to such issuance, be adjusted upward or downward to reflect any
Unrealized Gain or Unrealized Loss attributable to the Company properties, as if such Unrealized Gain or Unrealized Loss had been recognized on an actual Transfer of each such property immediately prior to such contribution for an amount equal to
its fair market value and had been allocated to the Members at such time pursuant to Section 4.1 and Section 4.2. 

(viii) Any Person who acquires a Company Interest directly from a Member, or whose Company Interest shall be increased by means of a Transfer
to it of all or part of the Company Interest of another Member, shall have a Capital Account (including a credit for all Capital Contributions made by such Member Transferring such Company Interest) which includes the Capital Account balance of the
Company Interest or portion thereof so acquired or Transferred. 
 Section 7.2. Bank Accounts. The Board shall cause one or more
Company accounts to be maintained in a bank (or banks) which is a member of the Federal Deposit Insurance Corporation or some other financial institution, which accounts shall be used for the payment of the expenditures incurred by the Company in
connection with the business of the Company, and in which shall be deposited any and all receipts of the Company. The Board shall determine the number of and the Persons who will be authorized as signatories on each such bank account. The Company
may invest the Company funds in such money market accounts or other investments as the Board shall determine to be of high quality. 

Section 7.3. Reports. The Company shall provide each Member with copies of such financial reports as shall be reasonably requested
from time to time by the Members and any such other reports and financial information as the Board shall determine from time to time, including periodic consolidated financial statements for the Company and its subsidiaries (including income
statements, balance sheets and cash flow statements) and copies of all engineering reserve reports and other financial reports that the Company or its subsidiaries provides to any financial institution that provides debt or equity financing to the
Company or its subsidiaries. 
 Section 7.4. Meetings of Members. The Board may hold meetings of the Members from time to time
to inform and consult with the Members concerning the Company’s assets and such other matters as the Board deems appropriate, provided that nothing in this Section 7.4 shall require the Board to hold any such meetings. Such
meetings shall be held at such times and 

  
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places, as often and in such manner as shall be determined by the Board. The Board at its election may separately inform and consult with the Members for the above purposes without the necessity
of calling and/or holding a meeting of the Members. Notwithstanding the foregoing provisions of this Section 7.4, the Members shall not be permitted to take part in the business or control of the business of the Company; it being the
intention of the parties that the involvement of the Members as contemplated in this Section 7.4 is for the purpose of informing the Members with respect to various Company matters, explaining any information furnished to the Members in
connection therewith, answering any questions the Members may have with respect thereto and receiving any ideas or suggestions the Members may have with respect thereto; it being the further intention of the parties that the Board shall have full
and exclusive power and authority on behalf of the Company to acquire, manage, control and administer the assets, business and affairs of the Company in accordance with Section 5.1 and the other applicable provisions of this Agreement.

 Section 7.5. Confidentiality. No Member shall use, publish, disseminate or otherwise disclose, directly or indirectly, any
Confidential Information that should come into the possession of such Member for other than a proper Company purpose. No Member shall disclose any such Confidential Information except as expressly authorized by this Agreement or by the Board, or as
required by law or governmental or regulatory authority. Each Member shall instruct all Affiliates (including their representatives, agents and counsel) to comply with this Section 7.5. If a Member is required by law or court order to
disclose information that would otherwise be Confidential Information under this Agreement, such Member shall immediately notify the Company of such notice and provide the Company the opportunity to resist such disclosure by appropriate proceedings.
The terms of this Section 7.5 shall survive with respect to each Member until the earlier to occur of (a) the date following one year from the date of the liquidation of the Company and (b) the date following two years from the
date of termination of such Member’s Company Interest. 
 ARTICLE VIII 

DISSOLUTION, LIQUIDATION AND TERMINATION 

Section 8.1. Dissolution. The Company shall be dissolved upon the occurrence of any of the following: 

(a) July 1, 2020, unless the Board votes to extend for up to two additional one year terms; 

(b) The sale, disposition or termination of all or substantially all of the property then owned by the Company; or 

(c) The consent in writing of the Board of Managers. 

Section 8.2. Winding Down. On or before July 1, 2019, unless a Majority Interest of the Members otherwise mutually agree or
unless the Company has previously been dissolved, the Members shall cooperate in the marketing and sale of all or substantially all of the assets or outstanding Company Interests, or any other similar transaction to potentially interested third
parties, such that the Company can be formally liquidated prior to the end of its stated term. 

  
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 Section 8.3. Liquidation and Termination. Upon dissolution of the Company, the
Board or, if the Board so desires, a Person selected by the Board, shall act as liquidator or shall appoint one or more liquidators who shall have full authority to wind up the affairs of the Company and make final distribution as provided herein.
The liquidator shall continue to operate the Company properties with all of the power and authority of the Board. The steps to be accomplished by the liquidator are as follows: 

(a) As promptly as possible after dissolution and again after final liquidation, the liquidator, if requested by any Member, shall cause a
proper accounting to be made by the Company’s independent accountants of the Company’s assets, liabilities and operations through the last day of the month in which the dissolution occurs or the final liquidation is completed, as
appropriate. 
 (b) The liquidator shall pay all of the debts and liabilities of the Company (including all expenses incurred in
liquidation) or otherwise make adequate provision therefor (including the establishment of a cash escrow fund for contingent liabilities in such amount and for such term as the liquidator may reasonably determine). After making payment or provision
for all debts and liabilities of the Company, the liquidator shall sell all properties and assets of the Company for cash as promptly as is consistent with obtaining the best price therefor; provided, however, that upon the consent of
a Majority Interest of the Members, the liquidator may distribute such properties in kind. All Net Profit, Net Loss, Simulated Gain and Simulated Loss (or other items of income, gain loss or deduction allocable under Section 4.2)
realized on such sales shall be allocated to the Members as provided in this Agreement, and the Capital Accounts of the Members shall be adjusted accordingly. In the event of a distribution of properties in kind, the liquidator shall first adjust
the Capital Accounts of the Members by the amount of any Net Profit, Net Loss, Simulated Gain and Simulated Loss (or other items of income, gain loss or deduction allocable under Section 4.2) that would have been recognized by the
Members if such properties had been sold at then fair market values. The liquidator shall then distribute the proceeds of such sales or such properties to the Members in the manner provided in Section 4.4(a); provided that no holder of
Incentive Units shall be entitled to receive liquidating distributions pursuant to this Section 8.3 to the extent such distribution would result in such holder receiving aggregate distributions with respect to Incentive Units in excess
of the aggregate Net Profit, Simulated Gain or other items of income or gain allocated to such holder with respect to such Incentive Units (any such excess shall be distributed to the other Members in accordance with Section 4.4(a)).
Each Member shall have the right to designate another Person to receive any property which otherwise would be distributed in kind to that Member pursuant to this Section 8.3. 

(c) Except as expressly provided herein, the liquidator shall comply with any applicable requirements of the Act and all other applicable laws
pertaining to the winding up of the affairs of the Company and the final distribution of its assets. 
 (d) Notwithstanding any provision in
this Agreement to the contrary, no Member shall be obligated to restore a deficit balance in its Capital Account at any time. 
 The
distribution of cash and/or property to the Members in accordance with the provisions of this Section 8.3 shall constitute a complete return to the Members of their Capital Contributions and a complete distribution to the Members of
their Company Interest and all Company property. 

  
 41 

 ARTICLE IX 

ASSIGNMENTS OF COMPANY INTERESTS 

Section 9.1 Assignments of Company Interests. 

(a) No Member’s Company Interest or rights therein shall be Transferred, or made subject to an Indirect Transfer, in whole or in part,
without the prior written consent of the Board; provided, however, that any Member may assign its Company Interest without obtaining such consent pursuant to (i) an Excluded Affiliate Transfer or (ii) a Transfer that is
otherwise permitted pursuant to the Voting and Transfer Restriction Agreement. Any attempt by a Member to assign its Company Interest in violation of the immediately preceding sentence shall be void ab initio. If an interest in a Unit or
other Company Interest is required by law to be Transferred to a spouse of a holder thereof pursuant to an order of a court of competent jurisdiction in a divorce proceeding (notwithstanding the foregoing provisions of this
Section 9.1(a)), then such holder shall nevertheless retain all rights with respect to such interest and any interest of such spouse shall be subject to such rights of such holder. In addition, if it is determined that the holder will be
required to pay any taxes attributable to such interest of the spouse in the Company, then any tax liability of such holder that is attributable to such spouse’s interest shall be taken into account, and shall reduce such spouse’s interest
in the Company; in no event shall the Company be required to provide any financial, valuation or other information regarding the Company or any of its subsidiaries or Affiliates or any of their respective assets to the spouse or former spouse of
such holder. 
 (b) Unless an assignee of a Company Interest becomes a substituted Member in accordance with the provisions set forth below,
such assignee shall not be entitled to any of the rights granted to a Member hereunder, other than the right to receive allocations of income, gains, losses, deductions, credits and similar items and distributions to which the assignor would
otherwise be entitled, to the extent such items are assigned. 
 (c) An assignee of a Company Interest shall become a substituted Member
entitled to all of the rights of a Member if, and only if, (i) the assignor gives the assignee such right, (ii) the Board consents in writing to such substitution, the granting or denying of which shall be in the Board’s sole
discretion, (iii) the assignee executes and delivers such instruments, in form and substance satisfactory to the Board, as the Board may deem necessary or desirable to effect such substitution and to confirm the agreement of the assignee to be
bound by all of the terms and provisions of this Agreement, and (iv) if the Board so requires, the assignee reimburses the Company for any costs incurred by the Company in connection with such assignment and substitution. Upon the satisfaction
of such requirements, such assignee shall be admitted as of such date as shall be provided for in any document evidencing such assignment as a substituted Member of the Company. 

(d) The Company and the Board shall be entitled to treat the record Member of any Company Interest as the absolute Member thereof in all
respects and shall incur no liability for distributions of cash or other property made in good faith to such Member until such time as a written assignment of such Company Interest that complies with the terms of this Agreement has been received by
the Board. 

  
 42 

 ARTICLE X 

REPRESENTATIONS AND WARRANTIES 

Section 10.1 Representations and Warranties. Each Member acknowledges and agrees that its Company Interest is being purchased for such
Member’s own account as part of a private offering, exempt from registration under the Securities Act and all applicable state securities or blue sky laws, for investment only and not with a view to the distribution nor other sale thereof and
that an exemption from registration under the Securities Act or any applicable state securities laws under the Securities Act or any applicable state securities laws may not be available if the Company Interest is acquired by such Member with a view
to resale or distribution thereof under any conditions or circumstances as would constitute a distribution of such Company Interest within the meaning and purview of the Securities Act or the applicable state securities laws. Accordingly, each
Member represents and warrants to the Company and all other interested parties that: 
 (a) Such Member has sufficient financial resources
to continue such Member’s investment in the Company for an indefinite period and understands that (i) such Member is acquiring an interest in the Company without being furnished any offering literature or prospectus, and (ii) the
acquisition of such Member’s Company Interest by such Member has not been reviewed by the United States Securities and Exchange Commission or by any administrative agency charged with the administration of the securities or “blue sky”
laws of any state. 
 (b) Such Member acknowledges that the Company Interest being acquired by such Member was not offered to such Member by
means of publicly disseminated advertisements or sales literature, nor is such Member aware of any offers made to other Persons by such means. 

(c) Such Member is familiar with Regulation D promulgated under the Securities Act, and such Member is an “accredited investor” as
defined in Rule 501(a) of such Regulation D. 
 (d) Such Member has adequate means of providing for its current needs and contingencies and
can afford a complete loss of its investment in the Company. 
 (e) It is such Member’s intention to acquire and hold its Company
Interest solely for its private investment and for its own account and with no view or intention to Transfer such Company Interest (or any portion thereof). 

(f) Such Member has no contract, undertaking, agreement, or arrangement with any Person to sell or otherwise Transfer to any Person, or to
have any Person sell on behalf of such Member, its Company Interest (or any portion thereof), and such Member is not engaged in and does not plan to engage within the foreseeable future in any discussion with any Person relative to the sale or any
Transfer of its Company Interest (or any portion thereof). 
 (g) Such Member is not aware of any occurrence, event, or circumstance upon
the happening of which such Member intends to attempt to Transfer its Company Interest (or any portion thereof), and such Member does not have any present intention of Transferring its Company Interest (or any portion thereof) after the lapse of any
particular period of time. 

  
 43 

 (h) Such Member, by making other investments of a similar nature and/or by reason of his/its
business and financial experience or the business and financial experience of those Persons it has retained to advise such Member with respect to its investment in the Company, is a sophisticated investor who has the capacity to protect its own
interest in investments of this nature, so as to be capable of evaluating the merits and risks of an investment in the Company Interest. 

(i) Such Member has had all documents, records, books and due diligence materials pertaining to this investment made available to such Member
and such Member’s accountants and advisors; such Member has also had an opportunity to ask questions of and receive answers from the Company concerning this investment; and such Member has all of the information deemed by such Member to be
necessary or appropriate to evaluate the investment and the risks and merits thereof and to make an informed decision concerning such Member’s investment in the Company Interest. 

(j) Such Member has a close business association with the Company or certain of its Affiliates, thereby making the Member a well-informed
investor for purposes of this investment. 
 (k) Such Member is aware of the following: 

(i) The Company is newly organized and has no financial or operating history and, further, such Member’s investment in the Company is
speculative and involves a high degree of risk of loss by the Member of its entire investment, with no assurance of any income from such investment; 

(ii) No federal or state agency has made any finding or determination as to the fairness of the investment, or any recommendation or
endorsement, of such investment; 
 (iii) There are substantial restrictions on the Transferability of the Company Interest of such Member,
there will be no public market for the Company Interest and, accordingly, it may not be possible for such Member readily to liquidate its investment in the Company in case of emergency; and 

(iv) Any federal or state income tax benefits which may be available to such Member may be lost through changes to existing laws and
regulations or in the interpretation of existing laws and regulations; such Member in making this investment is relying, if at all, solely upon the advice of its own tax advisors with respect to the tax aspects of an investments in the Company. 

(l) Such Member further covenants and agrees that (i) its Company Interest will not be resold unless the provisions set forth in
Article IX above are complied with, and (ii) such Member shall have no right to require registration of its Company Interest under the Securities Act or applicable state securities laws, and, in view of the nature of the Company and its
business, such registration is neither contemplated nor likely. 
 (m) Such Member understands that a legend indicating that the Company
Interest has not been registered under applicable federal and state securities laws and referring to the restrictions on transferability and sale of the Company Interest may be placed on any certificate(s)

  
 44 

 
or other document delivered to such Member or any substitute therefore and any transfer agent of the Company or its affiliates may be instructed to require compliance therewith. 

(n) Such Member confirms that such Member has been advised to consult with such Member’s own attorney regarding legal matters concerning
the Company and to consult with independent tax advisors regarding the tax consequences of investing in the Company. 
 (o) Such Member
acknowledges that such Member understands the meaning and the legal consequences of the representations, warranties, covenants and certifications set forth in this Article X and that the Company has relied and will rely upon such
representations, warranties, covenants and certifications. 
 ARTICLE XI 

MISCELLANEOUS 

Section 11.1. Notices. All notices, elections, demands or other communications required or permitted to be made or given
pursuant to this Agreement shall be in writing and shall be considered as properly given or made on the date of actual delivery if given by (a) personal delivery, (b) United States mail, (c) expedited overnight delivery service with
proof of delivery, or (d) via facsimile or electronic transmission addressed to the respective addressee(s). Any Member may change its address by giving notice in writing to the other Members of its new address. 

Section 11.2. Amendment. 

(a) In addition to the right of the Board to amend this Agreement as provided below, and except as otherwise provided below, any change,
modification, or amendment to this Agreement shall be effective if made by an instrument in writing that has been duly approved by the Board and a Majority Interest of the Members. 

(b) Notwithstanding Section 11.2(a), with respect to any change, modification, or amendment to this Agreement that would
(i) increase the liability or duties of any of the Members, (ii) change the contributions required of any of the Members, (iii) cause the Company to be taxed as a corporation, or (iv) otherwise result in any disproportionate and
material adverse consequences for any Member, such change, modification, or amendment shall not be binding on such Member unless contained in a written instrument duly executed by such Member; provided, however, that this
Section 11.2(b) shall not apply to the Board’s ability to amend this Agreement pursuant to Article III and Article IV; provided further, that any amendment which is made to facilitate a merger or consolidation
of the Company with any other entity, to convert the Company into another entity, or to cause the Company to participate in an exchange of interests or some type of business combination with any other entity, shall require the approval only of the
Board and a Majority Interest of the Members, if each of the material terms and provisions of such merger, consolidation, conversion, exchange or combination provides for equal and/or proportionate treatment of each of the Members. 

(c) With respect to any change, modification, or amendment to this Agreement that would change the name of the Company, admit new or
substituted Members in accordance with 

  
 45 

 
the terms of Article IX, or any other change, modification or amendment that does not adversely affect the Members in any disproportionate and material respect, and any change,
modification or amendment which the Board determines is necessary or advisable to ensure that the Company is not and will not be treated as an association taxable as a corporation for federal income tax purposes or to conform with changes in
applicable tax law (provided such changes do not have a material adverse effect on the Members), such change, modification, or amendment may be contained in a written instrument executed solely by the Board; provided that the Board
notifies the Members of such change, modification, or amendment. 
 Section 11.3. Partition . Each of the Members hereby
irrevocably waives for the term of the Company any right that such Member may have to maintain any action for partition with respect to the Company property. 

Section 11.4. Entire Agreement. This Agreement and the other documents contemplated hereby constitute the full and complete
agreement of the parties hereto with respect to the subject matter hereof. 
 Section 11.5. Severability. Every provision in
this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of this Agreement. 

Section 11.6. No Waiver. The failure of any Member to insist upon strict performance of a covenant hereunder or of any obligation
hereunder, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such Member’s right to demand strict compliance in the future. No consent or waiver, express or implied, to or of any breach or
default in the performance of any obligation hereunder shall constitute a consent or waiver to or of any other breach or default in the performance of the same or any other obligation hereunder. 

Section 11.7. Applicable Law. This Agreement and the rights and obligations of the parties hereunder shall be governed by
and interpreted, construed and enforced in accordance with the internal laws of the State of Delaware, without regard to rules or principles of conflicts of law requiring the application of the law of another State. 

Section 11.8. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective heirs, legal representatives, successors and assigns; provided, however, that no Member may Transfer all or any part of its rights or Company Interest or any interest under this Agreement except in accordance with
Article IX. 
 Section 11.9. Arbitration. Any dispute arising out of or relating to this Agreement, the
Transaction Documents, or the Company, including claims sounding in contract, tort, statutory or otherwise (a “Dispute”), shall be settled exclusively and finally by arbitration in accordance with this Section 11.9. 

(a) Rules and Procedures. Such arbitration shall be administered by JAMS/Endispute, Inc., a Delaware corporation and national dispute
resolution company (“JAMS”), pursuant to (i) the JAMS Streamlined Arbitration Rules and Procedures, if the amount in controversy is $250,000 or less, or (ii) the JAMS Comprehensive Arbitration Rules and Procedures, if the
amount in controversy exceeds $250,000 (each, as applicable, the “Rules”). 

  
 46 

 
The making, validity, construction, and interpretation of this Section 11.9, and all procedural aspects of the arbitration conducted pursuant hereto, shall be decided by the
arbitrator(s). For purposes of this Section 11.9, “amount in controversy” means the stated amount of the claim, not including interest or attorneys’ fees, plus the stated amount of any counterclaim, not including interest
or attorneys’ fees. If the claim or counterclaim seeks a form of relief other than damages, such as injunctive or declaratory relief, it shall be treated as if the amount in controversy exceeds $250,000, unless all parties to the Dispute
otherwise agree. 
 (b) Discovery. Discovery shall be allowed only to the extent permitted by the Rules. 

(c) Time and Place. All arbitration proceedings hereunder shall be conducted in Dallas, Texas or such other location as all parties to
the Dispute may agree. Unless good cause is shown or all parties to the Dispute otherwise agree, the hearing on the merits shall be conducted within 180 days of the initiation of the arbitration, if the arbitration is being conducted under the
Streamlined Arbitration Rules, or within 270 days of the initiation of the arbitration, if the arbitration is being conducted under the Comprehensive Arbitration Rules. However, it shall not be a basis to challenge the outcome or result of the
arbitration proceeding that it was not conducted within the specified timeframe, nor shall the failure to conduct the hearing within the specified timeframe in any way waive the right to arbitration as provided for herein. 

(d) Arbitrators. 
 (i) If
the amount in controversy is $250,000 or less, the arbitration shall be before a single arbitrator selected by JAMS in accordance with the Rules. 

(ii) If the amount in controversy is more than $250,000, the arbitration shall be before a panel of three arbitrators, selected in accordance
with this paragraph. The party initiating the arbitration shall designate, with its initial filing, its choice of arbitrator. Within 30 days of the notice of initiation of the arbitration procedure, the opposing party to the Dispute shall select one
arbitrator. If any party to the Dispute shall fail to select an arbitrator within the required time, JAMS shall appoint an arbitrator for that party. In the event that the Dispute involves three or more parties, JAMS shall determine the
parties’ alignment pursuant to Rule 15 and each “side” shall have the right to appoint one arbitrator as provided above. The two arbitrators so selected shall select a third arbitrator, failing agreement on which, the third arbitrator
shall be selected in accordance with JAMS Rule 15. Notwithstanding that each party may select an arbitrator, all arbitrators (whether selected by the parties, JAMS or otherwise) shall be independent and shall disclose any relationship that he or she
may have with any party to the Dispute at the time of their respective appointment. All arbitrators shall be subject to challenge for cause under JAMS Rule 15. In the event that any party-selected arbitrator is struck for cause, JAMS shall appoint
the replacement arbitrator. 
 (e) Waiver of Certain Damages. Notwithstanding any other provision in this Agreement to the contrary,
the Company and the Members expressly agree that the arbitrators shall have absolutely no authority to award consequential, incidental, special, treble, exemplary or punitive damages of any type under any circumstances regardless of whether such
damages may be available under Delaware law, or any other laws, or under the Federal Arbitration Act or the Rules, unless such damages are a part of a third party claim for which a Member is entitled to indemnification hereunder. 

  
 47 

 (f) Limitations on Arbitrators. The arbitrators shall have authority to interpret and
apply the terms and conditions of this Agreement and to order any remedy allowed by this Agreement, including specific performance of the Agreement, but may not change any term or condition of this Agreement, deprive any Member of a remedy expressly
provided hereunder, or provide any right or remedy that has been excluded hereunder. 
 (g) Form of Award. The arbitration award
shall conform with the Rules, but also contain a certification by the arbitrators that, except as permitted by Section 11.9(e), the award does not include any consequential, incidental, special, treble, exemplary or punitive damages.

 (h) Fees and Awards. The fees and expenses of the arbitrator(s) shall be borne equally by each side to the Dispute, but the
decision of the arbitrator(s) may include such award of the arbitrators’ expenses and of other costs to the prevailing side as the arbitrators may determine. In addition, the prevailing party shall be entitled to an award of its attorneys’
fees and interest. 
 (i) Binding Nature. The decision and award shall be binding upon all of the parties to the Dispute and final
and nonappealable to the maximum extent permitted by law, and judgment thereon may be entered in a court of competent jurisdiction and enforced by any party to the Dispute as a final judgment of such court. 

Section 11.10. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be an original and
all of which shall constitute but one and the same document. 

*        *        *       
 * 
 [Signature Pages of Company, Members and Managers Attached] 

  
 48 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written. 
  

			
	COMPANY:
	
	CENTENNIAL RESOURCE DEVELOPMENT, LLC, a Delaware limited liability company
		
	By:	 	  

		 	Ward Polzin, Chief Executive Officer
	
	MEMBERS REPRESENTING A MAJORITY INTEREST OF THE MEMBERS:
	
	  

	Ward Polzin
	
	  

	Bret Siepman
	
	  

	Terry Sherban
	
	  

	Jamie L. Wheat
	
	  

	Tim Muniz
	
	  

	Roxy Forst

 SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT 

SIGNATURE PAGE 

 
			
	NGP X US HOLDINGS, L.P.
		
	By:	 	NGP X Holdings GP, L.L.C.
		 	Its General Partner
		
	By:	 	  

		 	                                    , Authorized
Person

 SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT 

SIGNATURE PAGE 

 
	
	MANAGERS:
	
	  

	Ward Polzin
	
	  

	Bret Siepman
	
	  

	David W. Hayes
	
	  

	Christopher G. Carter
	
	  

	Christopher Ray
	
	  

	Tony Weber
	
	  

	Martin Sumner

 SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT 

SIGNATURE PAGELINT 8-K Credit Agreement Ex 41

		

			Exhibit 4.1

		

		

			EXECUTION VERSION

		

		
			 
		

		
			$2,650,000,000
		

		
			THIRD AMENDED AND RESTATED CREDIT AGREEMENT
		

		
			Dated as of June 23, 2016,
		

		
			among
		

		
			QVC, INC., and ZULILY, LLC 
as Borrowers,
		

		
			THE LENDERS PARTY HERETO,
		

		
			JPMORGAN CHASE BANK, N.A.,
		

		
			as Lead Arranger and Lead Bookrunner, and
		

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

		

		
			BNP PARIBAS and Wells Fargo Bank, N.A.,
		

		
			as Co-Bookrunners and Co-Syndication Agents (solely with respect to the Tranche 1 Revolving Facility and the Tranche 3 Revolving Facility)
		

		

		
			BANK OF AMERICA, N.A., BARCLAYS BANK PLC, CITIBANK, N.A., CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, MIZUHO CORPORATE BANK, LTD., ROYAL BANK OF CANADA, SUNTRUST BANK, THE BANK OF NOVA SCOTIA, MORGAN STANLEY MUFG LOAN PARTNERS, LLC, and Sumitomo Mitsui Banking Corporation,
		

		
			as Co-Bookrunners and Co-Documentation Agents (solely with respect to the Tranche 1 Revolving Facility and the Tranche 3 Revolving Facility)
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

 

		

			 

		

 
		

		
			 
		

		
			$2,650,000,000
		

		
			THIRD AMENDED AND RESTATED CREDIT AGREEMENT
		

		
			Dated as of June 23, 2016,
		

		
			among
		

		
			QVC, INC., and ZULILY, LLC 
as Borrowers,
		

		
			THE LENDERS PARTY HERETO,
		

		
			JPMORGAN CHASE BANK, N.A.,
		

		
			as Lead Arranger and Lead Bookrunner, and
		

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

		

		
			BANK OF AMERICA, N.A., BARCLAYS BANK PLC, BNP PARIBAS, CITIBANK, N.A., CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, MIZUHO CORPORATE BANK, LTD., ROYAL BANK OF CANADA, SUNTRUST BANK, THE BANK OF NOVA SCOTIA, MORGAN STANLEY MUFG LOAN PARTNERS, LLC, Wells Fargo Bank, N.A., and Sumitomo Mitsui Banking Corporation,
		

		
			as Co-Bookrunners and Co-Syndication Agents (solely with respect to the Tranche 2 Revolving Facility)
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

		

			 

		

Table of Contents
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

				
	
					
						ARTICLE I

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Definitions

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SECTION 1.01.   Defined Terms

					
1 
				
	
					
						SECTION 1.02.   Classification of Loans and Borrowings

					
31 
				
	
					
						SECTION 1.03.   Pro Forma Determinations

					
31 
				
	
					
						SECTION 1.04.   Terms Generally

					
31 
				
	
					
						SECTION 1.05.   Accounting Terms; GAAP

					
31 
				
	
					
						SECTION 1.06.   Change of Currency

					
32 
				
	
					
						SECTION 1.07.   Currency Equivalents Generally

					
32 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE II

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						The Credits

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SECTION 2.01.   Revolving Commitments

					
32 
				
	
					
						SECTION 2.02.   Incremental Revolving Commitments and Incremental Term Loans

					
33 
				
	
					
						SECTION 2.03.   Procedure for Revolving Loan Borrowing

					
35 
				
	
					
						SECTION 2.04.   Funding of Borrowings

					
35 
				
	
					
						SECTION 2.05.   Interest Elections

					
36 
				
	
					
						SECTION 2.06.   Termination and Reduction of Commitments.

					
37 
				
	
					
						SECTION 2.07.   Repayment of Loans; Evidence of Debt

					
37 
				
	
					
						SECTION 2.08.   Prepayments

					
38 
				
	
					
						SECTION 2.09.   Fees

					
38 
				
	
					
						SECTION 2.10.   Interest

					
40 
				
	
					
						SECTION 2.11.   Market Disruption; Inability to Determine Interest Rate

					
40 
				
	
					
						SECTION 2.12.   Increased Costs

					
41 
				
	
					
						SECTION 2.13.   Break Funding Payments

					
42 
				
	
					
						SECTION 2.14.   Taxes

					
42 
				
	
					
						SECTION 2.15.   Pro Rata Treatment and Payments

					
46 
				
	
					
						SECTION 2.16.   Mitigation Obligations; Replacement of Lenders

					
48 
				
	
					
						SECTION 2.17.   Letters of Credit.

					
48 
				
	
					
						SECTION 2.18.   Defaulting Lenders

					
53 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE III

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Representations and Warranties

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SECTION 3.01.   Organization; Powers

					
55 
				
	
					
						SECTION 3.02.   Authorization; Enforceability

					
55 
				
	
					
						SECTION 3.03.   Governmental Approvals; No Conflicts

					
55 
				
	
					
						SECTION 3.04.   Financial Position

					
55 
				
	
					
						SECTION 3.05.   Properties

					
56 
				
	
					
						SECTION 3.06.   Litigation and Environmental Matters

					
56 
				
	
					
						SECTION 3.07.   Compliance with Laws and Agreements

					
56 
				
	
					
						SECTION 3.08.   Investment Company Status

					
56 
				

		 

 

		

			ii

		

	
					
						SECTION 3.09.   Taxes

					
57 
				
	
					
						SECTION 3.10.   ERISA

					
57 
				
	
					
						SECTION 3.11.   Disclosure

					
57 
				
	
					
						SECTION 3.12.   Pledge Agreements

					
57 
				
	
					
						SECTION 3.13.   Material Domestic Subsidiaries

					
58 
				
	
					
						SECTION 3.14.   Existing Liens

					
58 
				
	
					
						SECTION 3.15.   Anti-Corruptions Laws and Sanctions

					
58 
				
	
					
						SECTION 3.16.   EEA Financial Institution

					
58 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE IV

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Conditions

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SECTION 4.01.   Closing Date

					
58 
				
	
					
						SECTION 4.02.   Each Credit Event

					
60 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE V

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Affirmative Covenants

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SECTION 5.01.   Financial Statements; Other Information

					
60 
				
	
					
						SECTION 5.02.   Notices of Material Events

					
62 
				
	
					
						SECTION 5.03.   Existence; Conduct of Business

					
62 
				
	
					
						SECTION 5.04.   Payment of Obligations

					
62 
				
	
					
						SECTION 5.05.   Maintenance of Properties; Insurance

					
62 
				
	
					
						SECTION 5.06.   Books and Records; Inspection Rights

					
63 
				
	
					
						SECTION 5.07.   Compliance with Laws

					
63 
				
	
					
						SECTION 5.08.   Use of Proceeds

					
63 
				
	
					
						SECTION 5.09.   Additional Guarantors and Collateral

					
63 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE VI

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Negative Covenants

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SECTION 6.01.   Indebtedness

					
63 
				
	
					
						SECTION 6.02.   Liens

					
64 
				
	
					
						SECTION 6.03.   Fundamental Changes

					
65 
				
	
					
						SECTION 6.04.   Disposition of Property

					
66 
				
	
					
						SECTION 6.05.   Restricted Payments

					
66 
				
	
					
						SECTION 6.06.   Transactions with Affiliates

					
66 
				
	
					
						SECTION 6.07.   Changes in Fiscal Periods

					
66 
				
	
					
						SECTION 6.08.   Sales and Leasebacks

					
67 
				
	
					
						SECTION 6.09.   Clauses Restricting Subsidiary Distributions

					
67 
				
	
					
						SECTION 6.10.   Financial Covenants

					
67 
				
	
					
						SECTION 6.11.   Investments

					
68 
				
	
					
						SECTION 6.12.   Use of Proceeds

					
69 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE VII

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Events of Default

					
					
						 

				
	
					
						 

					
					
						 

				

		 

 

		

			iii

		

	
					
						ARTICLE VIII

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						The Administrative Agent

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SECTION 8.01.   Appointment and Authorization

					
72 
				
	
					
						SECTION 8.02.   Administrative Agent and Affiliates

					
72 
				
	
					
						SECTION 8.03.   Action by Administrative Agent

					
72 
				
	
					
						SECTION 8.04.   Consultation with Experts

					
72 
				
	
					
						SECTION 8.05.   Delegation of Duties

					
73 
				
	
					
						SECTION 8.06.   Successor Administrative Agent

					
73 
				
	
					
						SECTION 8.07.   Credit Decision

					
73 
				
	
					
						SECTION 8.08.   Lead Arrangers; Bookrunners; Syndication Agents; Documentation Agents

					
73 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE IX

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Miscellaneous

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SECTION 9.01.   Notices

					
73 
				
	
					
						SECTION 9.02.   Waivers; Amendments

					
76 
				
	
					
						SECTION 9.03.   [Reserved]

					
77 
				
	
					
						SECTION 9.04.   Expenses; Indemnity; Damage Waiver

					
77 
				
	
					
						SECTION 9.05.   Successors and Assigns

					
78 
				
	
					
						SECTION 9.06.   Survival

					
82 
				
	
					
						SECTION 9.07.   Counterparts; Integration; Effectiveness

					
82 
				
	
					
						SECTION 9.08.   Severability

					
82 
				
	
					
						SECTION 9.09.   Right of Setoff

					
83 
				
	
					
						SECTION 9.10.   Governing Law; Jurisdiction; Consent to Service of Process

					
83 
				
	
					
						SECTION 9.11.   WAIVER OF JURY TRIAL

					
83 
				
	
					
						SECTION 9.12.   Headings

					
84 
				
	
					
						SECTION 9.13.   Confidentiality

					
84 
				
	
					
						SECTION 9.14.   Judgment Currency

					
85 
				
	
					
						SECTION 9.15.   USA PATRIOT Act

					
85 
				
	
					
						SECTION 9.16.   Releases of Guarantees and Liens

					
85 
				
	
					
						SECTION 9.17.   No Advisory or Fiduciary Responsibility

					
85 
				
	
					
						SECTION 9.18.   Acknowledgement and Consent to Bail-In of EEA Financial Institutions

					
86 
				
	
					
						SECTION 9.19.   Removal of zulily

					
86 
				
	
					
						 

					
					
						 

				
	
					
						SCHEDULES:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Schedule 1.01A  -- Commitments

					
					
						 

				
	
					
						Schedule 1.01B  -- Unrestricted Subsidiaries on Closing Date

					
					
						 

				
	
					
						Schedule 1.01C  -- Specified Swap Agreements

					
					
						 

				
	
					
						Schedule 1.01D  – Material Domestic Subsidiaries

					
					
						 

				
	
					
						Schedule 1.01E  -- Existing Letters of Credit

					
					
						 

				
	
					
						Schedule 3.06    -- Disclosed Matters

					
					
						 

				
	
					
						Schedule 3.12    -- Filings

					
					
						 

				
	
					
						Schedule 6.02    -- Existing Liens

					
					
						 

				
	
					
						Schedule 6.09    -- Existing Restrictions

					
					
						 

				
	
					
						 

					
					
						 

				

		 

 

		

			iv

		

	
					
						EXHIBITS:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Exhibit A       -- Form of Assignment and Assumption

					
					
						 

				
	
					
						Exhibit B       -- Form of Opinion of Credit Parties’ Counsel

					
					
						 

				
	
					
						Exhibit C       -- [Reserved]

					
					
						 

				
	
					
						Exhibit D       -- [Reserved]

					
					
						 

				
	
					
						Exhibit E        -- Form of Certificate

					
					
						 

				
	
					
						Exhibit F-1     -- Form of New Lender Supplement

					
					
						 

				
	
					
						Exhibit F-2     -- Form of Incremental Term Facility Activation Notice

					
					
						 

				
	
					
						Exhibit F-3     -- Form of Incremental Revolving Commitment Activation Notice

					
					
						 

				
	
					
						Exhibit G        -- Form of U.S. Tax Compliance Certificate

					
					
						 

				
	
					
						Exhibit H        -- Form of zulily Subsidiary Guarantee

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

		

			 

		

THIRD AMENDED AND RESTATED CREDIT AGREEMENT, dated as of June 23, 2016 (as amended, supplemented or otherwise modified from time to time, this “Agreement”), among QVC, INC., a Delaware corporation (“QVC”), ZULILY, LLC, a Delaware limited liability company (“zulily”), the LENDERS party hereto from time to time, JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “Administrative Agent”) and an Issuing Bank, BNP PARIBAS and WELLS FARGO BANK, N.A., each as a syndication agent, BANK OF AMERICA, N.A., BARCLAYS BANK PLC, CITIBANK, N.A., CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, MIZUHO CORPORATE BANK, LTD., ROYAL BANK OF CANADA, SUNTRUST BANK, THE BANK OF NOVA SCOTIA, MORGAN STANLEY MUFG LOAN PARTNERS, LLC, and Sumitomo Mitsui Banking Corporation, each as a syndication agent solely with respect to the Tranche 2 Revolving Facility  (collectively with BNP PARIBAS and WELLS FARGO BANK, N.A., in such capacity, the “Syndication Agents”) and WELLS FARGO BANK, N.A., BNP PARIBAS, ROYAL BANK OF CANADA, the BANK OF NOVA SCOTIA and MIZUHO BANK, LTD., each as an Issuing Bank.
		

		
			WHEREAS, QVC is a party to the Second Amended and Restated Credit Agreement, dated as of March 9, 2015 (the “Existing Credit Agreement”), among QVC, the Administrative Agent, Wells Fargo Bank, N.A. and BNP Paribas,  as syndication agents, and J.P. Morgan Securities LLC, as lead arranger, and the commitments made thereunder shall terminate five years from the date thereof;
		

		
			WHEREAS,  QVC and zulily have requested that the Existing Credit Agreement be amended and restated to, among other things, (a) establish Revolving Commitments hereunder to replace the Original Commitments in the manner set forth herein, (b) establish a new tranche of Revolving Commitments that will be available to QVC and zulily and (c) make certain other changes as more fully set forth herein, which amendment and restatement shall become effective on the Amendment Effective Date;
		

		
			WHEREAS, all the Lenders have, pursuant to the Amendment Agreement, agreed that this Agreement shall amend and restate the Existing Credit Agreement on the Amendment Effective Date;
		

		
			WHEREAS, each Lender has executed the Amendment Agreement;
		

		
			WHEREAS, it is the intent of the parties hereto that this Agreement not constitute a novation of the obligations and liabilities of the parties under the Existing Credit Agreement and that this Agreement amend and restate in its entirety the Existing Credit Agreement and re-evidence the “Obligations” (under, and as defined in, the Existing Credit Agreement) outstanding on the Amendment Effective Date as contemplated hereby; and
		

		
			WHEREAS, all QVC Obligations are and shall continue to be secured by all Credit Facilities Collateral after giving effect to the amendments made on the Amendment Effective Date.
		

		
			NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree to amend and restate the Existing Credit Agreement, and the Existing Credit Agreement is hereby amended and restated in its entirety as follows:
		

		
			ARTICLE I
		

		
			Definitions
		

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

		
			
		

		
			

		 

 

		

			2

		

“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.
		

		
			“Acquisition-Related Incremental Term Loans” has the meaning assigned to such term in Section 2.02(b).
		

		
			“Act” has the meaning specified in Section 9.15.
		

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

		
			“Administrative Agent” means JPMorgan Chase Bank, N.A. in its capacity as administrative agent for the Lenders hereunder and, as applicable, as Collateral Agent.
		

		
			“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 Lenders” has the meaning specified in Section 9.02(c).
		

		
			“Affiliated Persons” mean, 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, an amount equal to the sum of (a) the aggregate then outstanding principal amount of such Lender’s Incremental Term Loans, and (b) the amount of such Lender’s Revolving Commitments then in effect or, with respect to any Revolving Facility for which the Revolving Commitments have been terminated, such Lender’s Outstanding Revolving Credit under such Revolving Facility.
		

		
			“Agreement Currency” has the meaning specified in Section 9.14.
		

		
			“Alternate Base Rate” means, for any day, a rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1% and (c) the LIBO Rate that would be calculated as of such day (or, if such day is not a Business Day, as of the next preceding Business Day) in respect of a proposed Eurocurrency Borrowing in Dollars with a one-month Interest Period plus 1.00%.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or such LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or such LIBO Rate, respectively.
		

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

		
			
		

		
			

		 

 

		

			3

		

“Amendment Agreement” means that certain Third Amendment and Restatement Agreement, dated as of the date hereof among the Borrowers, QVC Parent, zulily Parent, the Subsidiary Guarantors, the Administrative Agent and the Lenders party thereto to which this Agreement is attached.
		

		
			“Amendment Effective Date” means the Closing Date.
		

		
			“Anti-Corruption Laws” means, with respect to any Person, all laws, rules and regulations of any jurisdiction applicable to such Person or its Affiliates from time to time concerning or relating to bribery or corruption.
		

		
			“Applicable Rate” means (a) for each Type of Loan other than Incremental Term Loans, (i) prior to the first Adjustment Date occurring after the Closing Date, 1.50% for Eurocurrency Loans and 0.50% for ABR Loans and (ii) on and after the first Adjustment Date occurring after the Closing Date, a percentage determined in accordance with the Pricing Grid, and (b) for each Type of Incremental Term Loan, such per annum rates as shall be agreed to by QVC and the applicable Incremental Term Lenders as shown in the applicable Incremental Term Facility Activation Notice.
		

		
			“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.
		

		
			“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 the form of Exhibit A or any other form approved by the Administrative Agent and the applicable Borrower (or Borrowers) (such approval of the applicable Borrower (or Borrowers) not to be unreasonably withheld or delayed).
		

		
			“Available Revolving Commitment” means, as to any Revolving Lender, its Available Tranche 1 Revolving Commitment, Available Tranche 2 Revolving Commitment or Available Tranche 3 Revolving Commitment.
		

		
			“Available Tranche 1 Revolving Commitment” means, as to any Tranche 1 Revolving Lender at any time, an amount equal to the excess, if any, of (a) such Lender’s Tranche 1 Revolving Commitment then in effect at such time over (b) such Lender’s Tranche 1 Outstanding Revolving Credit.
		

		
			“Available Tranche 2 Revolving Commitment” means, as to any Tranche 2 Revolving Lender at any time, an amount equal to the excess, if any, of (a) such Lender’s Tranche 2 Revolving Commitment then in effect at such time over (b) such Lender’s Tranche 2 Outstanding Revolving Credit.
		

		
			“Available Tranche 3 Revolving Commitment” means, as to any Tranche 3 Revolving Lender at any time, an amount equal to the excess, if any, of (a) such Lender’s Tranche 3 Revolving Commitment then in effect at such time over (b) such Lender’s Tranche 3 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.
		

		
			
		

		
			

		 

 

		

			4

		

“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 Borrowers 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 Borrowers 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” has the meaning assigned to such term in the definition of Change in Law.
		

		
			“beneficial owner” shall be determined in accordance with Rule 13d-3 and Rule 13d-5 under the Exchange Act, as in effect on the Closing Date.  “Beneficially own,” “beneficially owned” and “beneficial ownership” have meanings correlative to that of beneficial owner.
		

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

		
			“Borrowers” means (a) QVC, Inc., a Delaware corporation, and (b) zulily llc, a Delaware limited liability company.
		

		
			“Borrowing” means a group of Loans of the same Type under a single Facility with the same Borrower, 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 a Borrower as a date on which such 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) a Eurocurrency Loan denominated in Euros, the term “Business Day” shall also exclude any day that is not a TARGET Day and (c) a Eurocurrency Loan denominated in an Alternative Currency other than Euros, 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 capital city of the country whose lawful currency is such Alternative Currency.
		

		
			
		

		
			

		 

 

		

			5

		

“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.
		

		
			“Cash Equivalents” means (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, in each case 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 or any state thereof; (c) 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 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, 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; (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; (g) money market mutual or similar funds that invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition; (h) 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 (i) 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.
		

		
			“CDOR Screen Rate” has the meaning assigned to such term in the definition of “LIBO Rate”.
		

		
			“Change in Control”  means any Change in Control Transaction that is not a Permitted Change in Control Transaction.
		

		
			“Change in Control Transaction” means the acquisition of beneficial ownership by any person or group (such person or group, the “Transferee”) (excluding any Permitted Holder or group Controlled by any Permitted Holder) of more than 30% of the aggregate voting power of all outstanding classes or series of QVC’s voting stock and such aggregate voting power exceeds the aggregate voting power of all outstanding classes or series of QVC’s voting stock beneficially owned by the Permitted Holders collectively.
		

		
			“Change in Law” means (a) the adoption of any law, rule or regulation after the Closing Date, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the Closing 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 
		

		
			
		

		
			

		 

 

		

			6

		

made or issued after the Closing Date; provided that notwithstanding anything in this Agreement to the contrary, (i) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or by United States or foreign regulatory authorities, in each case pursuant to Basel III (“Basel III”), and (ii) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder or issued in connection therewith or in implementation thereof (“Dodd-Frank”), shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, issued or implemented.
		

		
			“Class”, (i) when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Tranche 1 Revolving Loans, Tranche 2 Revolving Loans, Tranche 3 Revolving Loans or Incremental Term Loans; (ii) when used in reference to any Revolving Commitment, refers to whether such Revolving Commitment is a Tranche 1 Revolving Commitment, Tranche 2 Revolving Commitment or Tranche 3 Revolving Commitment; provided that, when used in Section 2.15 only (x) Tranche 1 Revolving Loans and Tranche 3 Revolving Loans shall be deemed to be the same “Class” of Revolving Loans or Borrowing and (y) the Tranche 1 Revolving Commitments and Tranche 3 Revolving Commitments shall be deemed to be the same “Class” of Revolving Commitments.
		

		
			“Closing Date” means the date on which the conditions precedent set forth in Section 4.01 shall have been satisfied (or waived in accordance with Section 9.02).
		

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

		
			“Collateral”  means the Credit Facilities Collateral and the Tranche 2 Revolving Facility Collateral.
		

		
			“Collateral Agent” means JPMorgan Chase Bank, N.A. in its capacity as collateral agent under the Subsidiary Guarantees and the Pledge Agreements for the Lenders and certain other holders of obligations of the Loan Parties.
		

		
			“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.
		

		
			“Commitment Fee Rate” means (a) prior to the first Adjustment Date occurring after the Closing Date, 0.250% and (b) on and after the first Adjustment Date occurring after the Closing Date, a rate determined in accordance with the Pricing Grid.
		

		
			“Consolidated EBITDA” means, for any period, Consolidated QVC EBITDA plus Consolidated zulily EBITDA.
		

		
			“Consolidated Leverage Ratio” means, as at any day, the ratio of (a) Consolidated Total Debt on such day to (b) Consolidated EBITDA for the most recent four fiscal quarter period for which financial statements have been delivered pursuant to Section 5.01.
		

		
			“Consolidated QVC EBITDA” means, for any period, operating income as reported in QVC’s consolidated financial statements and determined in a manner substantially consistent with QVC’s historical practices as of the Closing Date plus, to the extent deducted in calculating such operating income, (a) depreciation, (b) amortization, (c) stock compensation and (d) any restructuring, non-recurring or other unusual item of loss or expense (including write-offs and write-downs of assets), other than any write-off or write-down of inventory or accounts receivable; provided that the aggregate amount of any such losses or expenses which are cash items shall not exceed $25,000,000 from the Closing Date through the term of 
		

		
			
		

		
			

		 

 

		

			7

		

this Agreement, in each case as reported in QVC’s consolidated financial statements, and adjusted to give pro forma effect in accordance with Regulation S-X to each acquisition, disposition (other than dispositions in the ordinary course of business) and merger that occurred during such period as if each had occurred on the first day of such period; provided that Unrestricted Subsidiaries shall be disregarded for purposes of calculating Consolidated QVC EBITDA.
		

		
			“Consolidated QVC Leverage Ratio” means, as at any day, the ratio of (a) Consolidated QVC Total Debt on such day to (b) Consolidated QVC EBITDA for the most recent four fiscal quarter period for which financial statements have been delivered pursuant to Section 5.01.
		

		
			“Consolidated QVC Total Debt” means, at any date, the aggregate principal amount of all Indebtedness of QVC and its Restricted Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP, less, to the extent included therein, Indebtedness in respect of the Tranche 2 Revolving Loans made to zulily.
		

		
			“Consolidated Total Debt” means, at any date, without duplication, the sum of (a) the aggregate principal amount of all Indebtedness of QVC and its Restricted Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP, plus (b) the aggregate principal amount of all Indebtedness of zulily and its Restricted Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP (it being understood and agreed that to the extent Indebtedness in respect of the Tranche 2 Revolving Facility may be attributable to both QVC and zulily, such Indebtedness shall be counted only once for purposes of calculating Consolidated Total Debt).
		

		
			“Consolidated zulily EBITDA” means, for any period, operating income as reported in zulily’s consolidated financial statements and determined in a manner substantially consistent with zulily’s historical practices as of the Closing Date plus, to the extent deducted in calculating such operating income, (a) depreciation, (b) amortization, (c) stock compensation, (d) any restructuring, non-recurring or other unusual item of loss or expense (including write-offs and write-downs of assets), other than any write-off or write-down of inventory or accounts receivable; provided that the aggregate amount of any such losses or expenses which are cash items shall not exceed $25,000,000 from the Closing Date through the term of this Agreement, in each case as reported in zulily’s consolidated financial statements, and adjusted to give pro forma effect in accordance with Regulation S-X to each acquisition, disposition (other than dispositions in the ordinary course of business) and merger that occurred during such period as if each had occurred on the first day of such period, and (e) without duplication with respect to items in clause (d) above, and only if incurred during fiscal quarters ending in the 12 months prior to the Closing Date, costs and expenses incurred during such period associated with the acquisition of zulily by zulily Parent; provided that Unrestricted Subsidiaries shall be disregarded for purposes of calculating Consolidated zulily EBITDA.
		

		
			“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.  “Controlling” and “Controlled” have meanings correlative thereto.
		

		
			“Credit Facilities Collateral" means any “Collateral” under and as defined in the QVC Parent Pledge Agreement.
		

		
			“Credit Parties” means the collective reference to the Loan Parties and the “Pledgors” party to the Pledge Agreements.
		

		
			“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.
		

		
			
		

		
			

		 

 

		

			8

		

“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 other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative Agent and the applicable 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 (specifically identified and including the particular default, if any) 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 any 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 (specifically identified and including the particular default, if any) 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 (and is financially able to meet such 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; or (d) has become the subject of (A) a Bankruptcy Event or (B) a Bail-In Action. Subject to Section 9.18, 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.
		

		
			“Disclosed Matters” means the actions, suits and proceedings and the environmental matters disclosed in Schedule 3.06.
		

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

		
			“Dodd-Frank” has the meaning assigned to such term in the definition of Change in Law.
		

		
			“Dollar Amount” means, at any date, (a) with respect to any Loan or Revolving Commitment denominated in Dollars, the principal amount thereof then outstanding and (b) with respect to any Loan denominated in an Alternative Currency, the principal amount thereof then outstanding in the relevant Alternative Currency, converted to Dollars at the Exchange Rate on such date.
		

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

		
			“Domestic Subsidiary” means, with respect to either Borrower, any Restricted Subsidiary of such Borrower organized under the laws of any jurisdiction within the United States.
		

		
			“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 institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent;
		

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

		
			
		

		
			

		 

 

		

			9

		

“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 Laws” 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), directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
		

		
			“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest.
		

		
			“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 a 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 either Borrower or any ERISA Affiliate to make any required contribution to a Multiemployer Plan; (e) the incurrence by either Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan, including but not limited to 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 either 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 either Borrower or any of its 
		

		
			
		

		
			

		 

 

		

			10

		

ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (i) the receipt by such Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from either Borrower or any of its ERISA Affiliates 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 States introduced in accordance with EMU Legislation.
		

		
			“EURIBOR Screen Rate” has the meaning assigned to such term in the definition of “LIBO Rate”.
		

		
			“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 LIBO Rate.
		

		
			“Event of Default” has the meaning assigned to such term in Article VII.
		

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

		
			“Exchange Rate” means, on any day with respect to any two currencies, the rate at which the first such currency may be exchanged into the other such currency, as set forth at approximately 11:00 a.m., London time, on such day on the applicable Reuters World Spot Page.  In the event that any such rate does not appear on any Reuters World Spot Page, the Exchange Rate shall be determined by reference to such other publicly available service for displaying exchange rates reasonably selected by the Administrative Agent or, at the discretion of the Administrative Agent, such Exchange Rate shall instead be the spot rate of the Administrative Agent in a market reasonably selected by it where it customarily conducts foreign currency exchange operations at or about 11:00 a.m., London time, on such day for exchange of such first currency for such other currency.
		

		
			“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 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) (a) by virtue of 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 at the time the Guarantee of such Subsidiary Guarantor becomes or would become effective with respect to such Swap Obligation 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) the Commodity Exchange Act (or any successor provision thereto), in each case, at the time the Guarantee of such Subsidiary Guarantor becomes or would become effective with respect to such related Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee is or becomes illegal.
		

		
			“Excluded Taxes” means (a) in the case of each Lender and the Administrative Agent, Taxes imposed on its overall net income, and franchise and branch profits Taxes imposed on it in lieu of 
		

		
			
		

		
			

		 

 

		

			11

		

net income Taxes, by the jurisdiction under the laws of which such Lender or the Administrative Agent, as the case may be, is organized or any political subdivision thereof; (b) in the case of each Lender, Taxes imposed on its overall net income, and franchise and branch profits Taxes imposed on it in lieu of net income Taxes, by the jurisdiction of such Lender’s applicable lending office or any political subdivision thereof; (c) in the case of each Lender and the Administrative Agent, Taxes that are Other Connection Taxes; (d) in the case of each Lender and the Administrative Agent, Taxes imposed by the United States by means of withholding if and to the extent that such Taxes shall be in effect and shall be applicable on the Closing Date to payments to be made to such Lender’s applicable lending office; (e) in the case of an assignment by a Lender, any Taxes that exceed the amount of Taxes that are imposed prior to such assignment, unless such assignment and acceptance resulted from the request of a Borrower pursuant to Section 2.16(b); (f) in the case of each Lender, any Tax that is attributable to such Lender’s failure to comply with Section 2.14(f) or failure to maintain a Participant Register as required by Section 9.05(c)(ii); and (g) in the case of each Lender any Taxes imposed by the United States by means of withholding as a result of the failure of such Lender to comply with its obligations under FATCA, other than obligations that are added to FATCA after the Closing Date to the extent compliance with such new obligations would violate any law applicable to such Lender.
		

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

		
			“Existing Letters of Credit” means the letters of credit described on Schedule 1.01E.
		

		
			“Existing Notes” means the 5.125% Senior Secured Notes due 2022 issued by QVC on July 2, 2012, the 4.375% Senior Secured Notes due 2023 and the 5.950% Senior Secured Notes due 2043 issued by QVC on March 18, 2013, the 3.125% Senior Secured Notes due 2019 and the 4.850% Senior Secured Notes due 2024 issued by QVC on March 18, 2014, the 4.45% Senior Secured Notes due 2025 and the 5.45% Senior Secured Notes due 2034 issued by QVC on August 21, 2014 and, in each case, any Refinancing Indebtedness in respect thereof.
		

		
			“Facility” means any of (a) the credit facility constituted by the Tranche 1 Revolving Commitments and the extensions of credit thereunder (the “Tranche 1 Revolving Facility”), (b) the credit facility constituted by the Tranche 2 Revolving Commitments and the extensions of credit thereunder (the “Tranche 2 Revolving Facility”), (c) the credit facility constituted by the Tranche 3 Revolving Commitments and the extensions of credit thereunder (the “Tranche 3 Revolving Facility” and, together with the Tranche 1 Revolving Facility and the Tranche 2 Revolving Facility, the “Revolving Facilities”) and (d) each incurrence of Incremental Term Loans pursuant to an Incremental Term Facility Activation Notice (each, an “Incremental Term Facility”).
		

		
			“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 or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any intergovernmental agreements between the United States and another country that modify the provisions of the foregoing.
		

		
			“Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) charged to the Administrative Agent on such day on such transactions from three Federal funds brokers of recognized standing selected by it; provided that if the Federal Funds Effective Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
		

		
			
		

		
			

		 

 

		

			12

		

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

		
			“Foreign Subsidiary” means, with respect to either Borrower, any Restricted Subsidiary of such Borrower that is not a Domestic Subsidiary.
		

		
			“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time.
		

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

		
			“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other similar obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other similar obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other similar obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other similar obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or similar obligation; provided, that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.
		

		
			“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.
		

		
			“Incremental Revolving Commitment” means an increased or new Revolving Commitment incurred in connection with an Incremental Revolving Commitment Activation Notice.
		

		
			“Incremental Revolving Commitment Activation Notice” means a notice substantially in the form of Exhibit F-3.
		

		
			“Incremental Revolving Commitment Closing Date” means any Business Day designated as such in an Incremental Revolving Facility Activation Notice.
		

		
			“Incremental Term Facility” has the meaning assigned to such term in the definition of “Facility”.
		

		
			“Incremental Term Facility Activation Notice” means a notice substantially in the form of Exhibit F-2 or in such other form as is reasonably acceptable to the Administrative Agent.
		

		
			“Incremental Term Facility Closing Date” means any Business Day designated as such in an Incremental Term Facility Activation Notice.
		

		
			
		

		
			

		 

 

		

			13

		

“Incremental Term Lenders” means (a) on any Incremental Term Facility Closing Date relating to Incremental Term Loans, the Lenders signatory to the relevant Incremental Term Facility Activation Notice and (b) thereafter, each Lender that is a holder of an Incremental Term Loan.
		

		
			“Incremental Term Loans” means any term loans borrowed in connection with an Incremental Term Facility Activation Notice.
		

		
			“Incremental Term Maturity Date” means, with respect to the Incremental Term Loans to be made pursuant to any Incremental Term Facility Activation Notice, the final maturity date specified in such Incremental Term Facility Activation Notice, which date shall not be prior to the fifth anniversary of the Closing Date.
		

		
			“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements constituting liens hereunder relating to property acquired by such Person (excluding obligations arising from inventory transactions in the ordinary course of business), (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty and (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances.  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 provide that such Person is not liable therefor.  “Indebtedness” shall not include (i) any amounts payable under any deferred compensation plans of any Person relating to its or its subsidiaries’ directors, management, employees or consultants or (ii) for the purposes of Section 6.01 and the term “Material Indebtedness” only, (x) with respect to QVC and its Restricted Subsidiaries, any amounts owed to QVC or any of its Restricted Subsidiaries and (y) with respect to zulily and its Restricted Subsidiaries, any amounts owed to zulily or any of its Restricted Subsidiaries.
		

		
			“Indemnified Taxes” means Taxes other than Excluded Taxes.
		

		
			“Information” has the meaning specified in Section 9.13.
		

		
			“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 copyrights, copyright licenses, patents, patent licenses, trademarks, trade names, domain names and other source indicators, trademark licenses, technology, trade secrets, know-how and processes, 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 Election Request” means a request by the applicable Borrower to convert or continue a Borrowing in accordance with Section 2.05.
		

		
			
		

		
			

		 

 

		

			14

		

“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 relevant Facility, twelve months) thereafter, as selected by the applicable 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 available to all Lenders under the relevant Facility, twelve months or such other, shorter period) thereafter, as selected by the applicable 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)     a Borrower may not select an Interest Period for (i) a Revolving Loan that would extend beyond the applicable Revolving Termination Date or (ii) an Incremental Term Loan that would extend beyond the date the final payment is due on such Incremental 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.
		

		
			“Interpolated Rate” means, at any time and with respect to any currency, the rate per annum (rounded to the same number of decimal places as the relevant Screen Rate) 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 the applicable 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 applicable Screen Rate is available, the Screen Rate for purposes of clause (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.
		

		
			“Issuing Bank” means (i) with respect to Tranche 1-3 Letters of Credit, each of JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., BNP Paribas, Royal Bank of Canada, the Bank of Nova Scotia 
		

		
			
		

		
			

		 

 

		

			15

		

and Mizuho Bank, Ltd., in its capacity as an issuer of Tranche 1-3 Letters of Credit, and their respective successors in such capacity as provided in Section 2.17(j) and (ii) with respect to Tranche 2 Letters of Credit, each of JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., BNP Paribas, Royal Bank of Canada and the Bank of Nova Scotia in its capacity as an issuer of Tranche 2 Letters of Credit, and their respective successors in such capacity as provided in Section 2.17(j).  Either Borrower may, with the consent of the Administrative Agent (which consent shall not be unreasonably withheld), arrange for one or more Letters of Credit to be issued by other Lenders, in which case the term “Issuing Bank” shall include such Lender with respect to the Letters of Credit issued by such Lender; provided that no such Lender shall have any obligation to be an Issuing Bank unless it agrees to do so in its sole discretion.
		

		
			“Judgment Currency” has the meaning specified in Section 9.14.
		

		
			“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 the Tranche 1-3 LC Exposure or the Tranche 2 LC Exposure, as applicable.
		

		
			“Lead Arranger” means JPMorgan Chase Bank, N.A., acting in such capacity.
		

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

		
			“Letter of Credit” means any Tranche 1-3 Letter of Credit or Tranche 2 Letter of Credit.
		

		
			“LIBO Rate” means a rate per annum equal to (a) with respect to any Eurocurrency Loan denominated in Canadian Dollars for any Interest Period, the average rate for Canadian Dollar bankers acceptances administered by the Investment Industry Regulatory Organization of Canada (or any other Person which takes over the administration of such rate) for bankers acceptances with a period equal in length to such Interest Period as displayed on page CDOR 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 from time to time as selected by the Administrative Agent in its reasonable discretion; in each case, the “CDOR Screen Rate”), (b) with respect to any Eurocurrency Loan denominated in Euros for any Interest Period, the interbank offered rate administered by the Banking Federation of the European Union (or any other Person which takes over the administration of such rate) for Euros for a period equal in length to such Interest Period as displayed on page EURIBOR01 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 from time to time as selected by the Administrative Agent in its reasonable discretion; in each case, the “EURIBOR Screen Rate”) and (c) with respect to any Eurocurrency Loan for any Interest Period (other than Eurocurrency Loans denominated in Canadian Dollars or Euros) the LIBO Screen Rate; provided, that, if the applicable Screen Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement; provided,  further, that if the applicable Screen Rate shall not be available at such time for such Interest Period (an “Impacted Interest Period”) with respect to the relevant currency, then the LIBO Rate shall be the Interpolated Rate at such time (provided that if the Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement).
		

		
			“LIBO Screen Rate” means, for any day and time, with respect to any Eurocurrency Borrowing for any Interest Period, the London interbank offered rate as administered by the ICE 
		

		
			
		

		
			

		 

 

		

			16

		

Benchmark Administration (or any other Person that takes over the administration of such rate) for the relevant currency for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters Screen that displays such rate (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 from time to time as selected by the Administrative Agent in its reasonable discretion), in each case as of the Specified Time on the Quotation Day for such Interest Period; provided that if the LIBO Screen Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
		

		
			“LIC” means Liberty Interactive Corporation, a Delaware corporation, and any successor (by merger, consolidation, transfer or otherwise) to all or substantially all of its assets; and any subsequent successor (by merger, consolidation, transfer or otherwise) to all or substantially all of a successor’s assets, provided, that if a Transferee Parent becomes the beneficial owner of all or substantially all of the equity securities of QVC then beneficially owned by LIC as to which LIC has dispositive power, the term “LIC” shall also mean such Transferee Parent and any successor (by merger, consolidation, transfer or otherwise) to all or substantially all of its assets.  “Transferee Parent” for this purpose means, in the event of any transaction or series of related transactions involving the direct or indirect transfer (or relinquishment of control) by LIC of a Person or Persons (a “Transferred Person”) that hold equity securities of QVC beneficially owned by LIC, such Transferred Person or its successor in such transaction or any ultimate parent entity (within the meaning of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended) of such Transferred Person or its successor if immediately after giving effect to such transaction or the last transaction in such series, voting securities representing at least a majority of the voting power of the outstanding voting securities of such Transferred Person, successor or ultimate parent entity are beneficially owned by any combination of LIC, Persons who prior to such transaction were beneficial owners of a majority of, or a majority of the voting power of, the outstanding voting securities of LIC (or of any publicly traded class or series of voting securities of LIC designed to track the economic performance of a specified group of assets or businesses) or Persons who are Control Persons as of the date of such transaction or the last transaction in such series.  “Control Person” for this purpose means each of (a) the Chairman of the Board of LIC, (b) the President of LIC, (c) any Senior Vice President of LIC, (d) each of the directors of LIC and (e) the respective Affiliated Persons of the Persons referred to in clauses (a) through (d).
		

		
			“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset and (b) the interest of a vendor or a lessor under 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 a 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 any Borrower or any of its Restricted Subsidiaries.
		

		
			“Limited Conditionality Acquisition” means any acquisition by QVC or any of its Restricted Subsidiaries of all or substantially all of the equity or assets or business of another Person or assets constituting a business unit, line of business or division of such Person (a) that is permitted by this Agreement and (b) for which QVC has determined, in good faith, that limited conditionality is reasonably necessary.
		

		
			“Limited Conditionality Acquisition Agreement” means, with respect to any Limited Conditionality Acquisition, the definitive acquisition documentation in respect thereof.
		

		
			
		

		
			

		 

 

		

			17

		

“Loan Documents” means the collective reference to this Agreement, the Amendment Agreement, the Subsidiary Guarantees and the Pledge Agreements.
		

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

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

		
			“Majority Facility Lenders” means, as to any Revolving Facility, the holders of more than 50% of the aggregate unpaid principal amount of the Outstanding Revolving Credit under such Facility.
		

		
			“Material Adverse Effect” means a material adverse effect on (a) the business, operations, property or condition, financial or otherwise, of (i) QVC and its Restricted Subsidiaries, taken as a whole, or (ii) QVC and zulily and their respective Restricted Subsidiaries, taken as a whole, that results in a material impairment of the ability of the applicable Borrower (or Borrowers) 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, (i) with respect to QVC, any Domestic Subsidiary of QVC, as of the last day of the fiscal quarter of QVC most recently ended for which financial statements have been delivered pursuant to Section 5.01, that has assets (including Equity Interests in Restricted Subsidiaries) or revenues (including both third party and intercompany revenues)  with a value in excess of 7.50% of the consolidated assets of QVC and its Domestic Subsidiaries or 7.50% of the consolidated revenues of QVC and its Domestic Subsidiaries; provided, that in the event Domestic Subsidiaries that would otherwise not be Material Domestic Subsidiaries of QVC shall in the aggregate account for a percentage in excess of 7.50% of the sum of the consolidated assets of QVC and its Domestic Subsidiaries or 7.50% of the sum of the consolidated revenues of QVC and its Domestic Subsidiaries as of the end of such fiscal quarter, then one or more of such Domestic Subsidiaries of QVC designated by QVC (or, if QVC shall make no designation, one or more of such Domestic Subsidiaries in descending order based on their respective contributions to the sum of the consolidated assets of QVC and its Domestic Subsidiaries) shall be included as Material Domestic Subsidiaries to the extent necessary to eliminate such excess and (ii) with respect to zulily, any Domestic Subsidiary of zulily, as of the last day of the fiscal quarter of the Borrowers most recently ended for which financial statements have been delivered pursuant to Section 5.01, that has assets (including Equity Interests in Restricted Subsidiaries) or revenues (including both third party and intercompany revenues) with a value in excess of 7.50% of the sum of the consolidated assets of QVC and its Domestic Subsidiaries and the consolidated assets of zulily and its Domestic Subsidiaries or 7.50% of the sum of the consolidated revenues of QVC and its Domestic Subsidiaries and the consolidated revenues of zulily and its Domestic Subsidiaries; provided, that in the event Domestic Subsidiaries of zulily that would otherwise not be Material Domestic Subsidiaries of zulily shall in the aggregate account for a percentage in excess of 7.50% of the sum of the consolidated assets of QVC and its Domestic Subsidiaries and the consolidated assets of zulily and its Domestic Subsidiaries or 7.50% of the sum of the consolidated revenues of QVC and its Domestic Subsidiaries and the consolidated revenues of zulily and its Domestic Subsidiaries as of the end of such fiscal quarter, then one or more of such Domestic Subsidiaries designated by zulily (or, if zulily shall make no designation, one or more of such Domestic Subsidiaries in descending order based on their respective contributions to the sum of the consolidated assets of QVC and its Domestic Subsidiaries and the consolidated assets of zulily and its Domestic Subsidiaries), shall be included as Material Domestic Subsidiaries to the extent necessary to eliminate such excess.  As of the Closing Date, Schedule 1.01D lists all Material Domestic Subsidiaries of each Borrower.
		

		
			
		

		
			

		 

 

		

			18

		

“Material Indebtedness” means Indebtedness (other than the Loans), or obligations in respect of a Swap Agreement, of any one or more of the Borrowers and their Restricted Subsidiaries in an aggregate principal amount exceeding $100,000,000.  For purposes of determining Material Indebtedness, the “principal amount” of the obligations of a Borrower or any of its Restricted Subsidiaries in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that such Borrower or such Restricted Subsidiary would be required to pay if such Swap Agreement were terminated at such time.
		

		
			“Material Subsidiary” means, (i) with respect to QVC, any Restricted Subsidiary of QVC, as of the last day of the fiscal quarter of QVC most recently ended for which financial statements have been delivered pursuant to Section 5.01, that has assets or revenues (on a consolidated basis including its Restricted Subsidiaries) with a value in excess of 1.0% of the sum of the consolidated assets of QVC or 1.0% of the sum of the consolidated revenues of QVC; provided, that in the event Restricted Subsidiaries that would otherwise not be Material Subsidiaries of QVC shall in the aggregate account for a percentage in excess of 5.0% of the sum of the consolidated assets of QVC or 5.0% of the consolidated revenues of QVC as of the end of and for the most recently completed fiscal quarter, then one or more of such Restricted Subsidiaries designated by QVC (or, if QVC shall make no designation, one or more of such Restricted Subsidiaries in descending order based on their respective contributions to the sum of the consolidated assets of QVC), shall be included as Material Subsidiaries to the extent necessary to eliminate such excess and (ii) with respect to zulily, any Restricted Subsidiary of zulily, as of the last day of the fiscal quarter of zulily most recently ended for which financial statements have been delivered pursuant to Section 5.01, that has assets or revenues (on a consolidated basis including its Restricted Subsidiaries) with a value in excess of 1.0% of the sum of the consolidated assets of QVC and the consolidated assets of zulily or 1.0% of the sum of the consolidated revenues of QVC and the consolidated revenues of zulily; 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 5.0% of the sum of the consolidated assets of QVC and the consolidated assets of zulily or 5.0% of the consolidated revenues of QVC and the consolidated revenues of zulily as of the end of and for the most recently completed fiscal quarter, then one or more of such Restricted Subsidiaries designated by zulily (or, if zulily shall make no designation, one or more of such Restricted Subsidiaries in descending order based on their respective contributions to the sum of the consolidated assets of QVC and the consolidated assets of zulily), shall be included as Material Subsidiaries to the extent necessary to eliminate such excess.
		

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

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

		
			“New Lender” has the meaning assigned to such term in Section 2.02(c).
		

		
			“New Lender Supplement” has the meaning assigned to such term in Section 2.02(c).
		

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

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

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

		
			“Original Commitment” means each “Revolving Commitment” (as defined in the Existing Credit Agreement as in effect immediately prior to the Amendment Effective Date) as in effect immediately prior to the Amendment Effective Date.
		

		
			
		

		
			

		 

 

		

			19

		

“Other Connection Taxes” means with respect to any Lender or the Administrative Agent, Taxes imposed as a result of a present or former connection between such Lender or the Administrative Agent and the jurisdiction imposing such Tax (other than connections arising from such Lender or the Administrative Agent having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to, or enforced, any Loan Document, or sold or assigned an interest in any Loan or Loan Document).
		

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

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

		
			“Parent” means, with respect to QVC, the QVC Parent and, with respect to zulily, the zulily Parent.
		

		
			“Pari Passu Indebtedness” means (i) with respect to QVC, Secured Indebtedness of QVC under Specified Swap Agreements and other Secured Indebtedness of QVC (other than the QVC Obligations) and (ii) with respect to zulily, Secured Indebtedness of zulily under Specified Swap Agreements and other Secured Indebtedness of zulily (other than the QVC/zulily Obligations) so long as (a)(1) in the case of Secured Indebtedness of QVC under Specified Swap Agreements and other Secured Indebtedness of QVC (other than the QVC Obligations), the QVC Obligations are secured equally and ratably with (or better than) such Indebtedness and the QVC Obligations are guaranteed to at least the same extent by any Restricted Subsidiary of QVC that has guaranteed such Indebtedness and (2) in the case of Secured Indebtedness of zulily under Specified Swap Agreements and other Secured Indebtedness of zulily (other than the QVC/zulily Obligations) the QVC/zulily Obligations are secured equally and ratably with (or better than) such Indebtedness and the QVC/zulily Obligations are guaranteed to at least the same extent by any Restricted Subsidiary of QVC or zulily that has guaranteed such Indebtedness, (b) such Secured Indebtedness has a final maturity date occurring after the date that is six months after the latest final maturity date applicable to the Loans at the time such Secured Indebtedness is incurred or, in the case of Secured Indebtedness under Specified Swap Agreements, a final maturity date occurring on or after the latest final maturity date applicable to the Loans whose interest rates are being hedged, (c) such Secured Indebtedness does not have scheduled amortization payments (excluding the final installment thereof) in excess of 1% per annum of the original aggregate outstanding principal amount of such Secured Indebtedness, (d) such Secured Indebtedness has no financial maintenance covenants of a different type than those in this Agreement, and no financial maintenance covenants that are more restrictive than those in this Agreement, and (e) such Secured Indebtedness does not have negative covenants and/or default provisions that are materially more restrictive than those contained in this Agreement (as certified, in the case of this clause (e), by a Financial Officer pursuant to a certificate reasonably acceptable to the Administrative Agent, which certificate, upon acceptance by the Administrative Agent, shall be conclusive as to compliance with this clause (e)).
		

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

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

		
			
		

		
			

		 

 

		

			20

		

“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.
		

		
			“Permitted Change in Control Transaction” means any Change in Control Transaction in which the following conditions are satisfied:
		

		
			(a)        the applicable Transferee has on the date of such Change in Control Transaction or within 45 days thereafter either (i) an investment grade corporate family rating by Moody’s or Standard & Poor’s or (ii) a corporate family rating equal to or better than LIC’s rating with Moody’s or Standard & Poor’s on the date of such Change in Control Transaction;
		

		
			(b)        the applicable Transferee is not a Sanctioned Person;
		

		
			(c)        such Change in Control Transaction does not violate any Anti-Corruption Laws applicable to the applicable Transferee or Sanctions applicable to the applicable Transferee or to any party hereto; and
		

		
			(d)        each of the Administrative Agent and each Lender shall have received all documentation and other information reasonably requested by such Person in writing and that such Person reasonably determines is required by United States bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the Act;
		

		
			provided that no Change in Control Transaction shall be a Permitted Change in Control Transaction if on any day prior to the date that is six months after the date of such Change in Control Transaction, QVC is rated by one of Moody’s or Standard & Poor’s and the rating assigned by either of them is not an investment grade rating.
		

		
			“Permitted Encumbrances” means:
		

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

		
			(b)    carriers’, warehousemen’s, mechanics’, 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 bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds, letters of credit and other obligations of a like nature, in each case in the ordinary course of business;
		

		
			(e)    judgment liens in respect of judgments that do not constitute an Event of Default under clause (j) of Article VII;
		

		
			
		

		 

 

		

			21

		

		
			(f)    easements, zoning restrictions, rights-of-way 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 any Borrower or any Restricted Subsidiary;
		

		
			(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; and
		

		
			(h)    other Liens secured by property or assets with an aggregate value of up to $5,000,000 at any time.
		

		
			“Permitted Holders” means any one or more of (a) LIC, (b) John C. Malone, (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) (it being understood that any successor to Liberty Interactive Corporation and any Transferee Parent shall only be a Permitted Holder to the extent the requirements applicable to Transferees and Change of Control Transactions in clauses (b), (c) and (d) of the definition of Permitted Change in Control Transaction shall be satisfied as to such Person and the transaction pursuant to which such Person acquires shares of QVC's voting stock).
		

		
			“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 natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
		

		
			“Plan” means an employee pension 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 applicable Borrower or 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.
		

		
			“Pledge Agreements” means the QVC Parent Pledge Agreement and the zulily Parent Pledge Agreement.
		

		
			“Pricing Grid” means: 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Consolidated Leverage Ratio

					
					
						  

					
					
						  

					
					
						Commitment Fee Rate

					
					
						  

					
					
						  

					
					
						Applicable Rate for
Eurocurrency Loans

					
					
						  

					
					
						  

					
					
						Applicable Rate for
ABR Loans

				
	
					
						>2.75:1.00

					
					
						 

					
					
						 

					
					
						0.30%

					
					
						 

					
					
						 

					
					
						1.75%

					
					
						 

					
					
						 

					
					
						0.75%

				
	
					
						>1.75:1.00 and ≤2.75:1.00

					
					
						 

					
					
						 

					
					
						0.25%

					
					
						 

					
					
						 

					
					
						1.50%

					
					
						 

					
					
						 

					
					
						0.50%

				
	
					
						≤1.75:1.00

					
					
						 

					
					
						 

					
					
						0.20%

					
					
						 

					
					
						 

					
					
						1.25%

					
					
						 

					
					
						 

					
					
						0.25%

				

		
			 
		

		
			For the purposes of the Pricing Grid, changes in the Applicable Rate and Commitment Fee Rate resulting from changes in the Consolidated 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 
		

		
			
		

		
			

		 

 

		

			22

		

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 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 per annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.
		

		
			“Priority Indebtedness” means (i) Indebtedness of any Restricted Subsidiary (whether secured or unsecured) and (ii) any Secured Indebtedness of a Borrower, but excluding in the case of clauses (i) and (ii) Indebtedness permitted pursuant to clauses (a), (b), (c) and (f) of Section 6.01.
		

		
			“Quotation Day” means (a) with respect to any Eurocurrency Loan denominated in Canadian Dollars or Sterling for any Interest Period, the first day of such Interest Period, (b) with respect to any Eurocurrency Loan denominated in Euros for any Interest Period, two TARGET Days before the first day of such Interest Period and (c) with respect to any Eurocurrency Loan denominated in any currency, other than Canadian Dollars, Sterling or Euros, for any Interest Period, two Business Days prior to the commencement of such Interest Period (unless, in each case, market practice differs in the relevant market where the LIBO 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)).
		

		
			“QVC Obligations” means the unpaid principal of and interest on (including interest accruing after the maturity of the Loans borrowed by QVC or zulily and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to QVC or zulily, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Loans borrowed by QVC or zulily, the obligations of QVC or zulily to reimburse the Issuing Bank for demands for payment or drawings under a Letter of Credit, and all other obligations and liabilities of QVC or zulily to the Administrative Agent or to any Lender (or, in the case of Specified Swap Agreements, any affiliate of any Lender), 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 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 Arranger or to any Lender that are required to be paid by QVC or zulily pursuant hereto); provided however, that the definition of “QVC Obligations” shall not create any guarantee by any Subsidiary Guarantor of (or grant of security interest by any Subsidiary Guarantor to support, as applicable) any Excluded Swap Obligation for purposes of determining any obligations of any Subsidiary Guarantor.
		

		
			“QVC Parent” means Liberty QVC Holding, LLC.
		

		
			“QVC Parent Pledge Agreement” means the Pledge Agreement by QVC Parent in favor of Collateral Agent, dated as of June 16, 2009, as amended and restated as of September 25, 2009, March 23, 
		

		
			
		

		
			

		 

 

		

			23

		

2010, September 2, 2010, July 2, 2012, March 1, 2013, March 18, 2013, March 18, 2014, August 21, 2014, March 9, 2015 and the Closing Date.
		

		
			“QVC Subsidiary Guarantee” means the Amended and Restated Subsidiary Guarantee by the Subsidiary Guarantors that are subsidiaries of QVC in favor of the Collateral Agent, dated as of September 2, 2010 (as supplemented by the Assumption Agreement dated as of June 9, 2011) and as amended and restated as of March 1, 2013, March 9, 2015 and the Closing Date.
		

		
			“QVC/zulily Obligations” means the unpaid principal of and interest on (including interest accruing after the maturity of the Tranche 2 Loans and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrowers, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Tranche 2 Loans, the obligations of the Borrowers to reimburse the Issuing Bank for demands for payment or drawings under a Tranche 2 Letter of Credit, and all other obligations and liabilities of the Borrowers with respect to the Tranche 2 Revolving Facility to the Administrative Agent or to any Tranche 2 Lender (or, in the case of Specified Swap Agreements, any affiliate of any Tranche 2 Lender), 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 to which zulily or any of its subsidiaries is a party 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 Arranger or to any Lender that are required to be paid by the Borrowers with respect to the Tranche 2 Revolving Facility pursuant hereto), in each case, solely with respect to the Tranche 2 Revolving Facility; provided however, that the definition of “QVC/zulily Obligations” shall not create any guarantee by any Subsidiary Guarantor of (or grant of security interest by any Subsidiary Guarantor to support, as applicable) any Excluded Swap Obligation for purposes of determining any obligations of any Subsidiary Guarantor.
		

		
			“Refinancing Indebtedness” means Indebtedness of a 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 such Borrower or any of its Restricted Subsidiaries (the “Refinanced Indebtedness”); provided that:
		

		
			(a)        the principal amount of the Refinancing Indebtedness does not exceed the principal amount of the Refinanced Indebtedness (or, if less, the portion of the principal amount required to be paid in connection with the refinancing) plus the amount of accrued and unpaid interest on the Refinanced Indebtedness, any reasonable premium paid to the holders of the Refinanced Indebtedness and reasonable expenses incurred in connection with the incurrence of the Refinancing Indebtedness;
		

		
			(b)        the obligor of Refinancing Indebtedness does not include any Person (other than such Borrower or any of its Restricted Subsidiaries) that is not an obligor of the Loans;
		

		
			(c)        if the Refinanced Indebtedness was subordinated in right of payment to the Loans or either Subsidiary Guarantee, as the case may be, then such Refinancing Indebtedness, by its terms, is subordinate in right of payment to the Loans or such Subsidiary Guarantee, 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 repaid or amended or (b) after the date that is six months after the last maturity date applicable to the Loans at the time the Refinancing Indebtedness is incurred; and
		

		
			
		

		
			

		 

 

		

			24

		

(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 repaid 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, serial maturity dates or other required payments of principal of up to 1% of the aggregate principal amount per annum).
		

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

		
			“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.
		

		
			“Required Lenders” means, subject to Section 2.18(b), at any time, the holders of more than 50% of the sum of (i) the aggregate unpaid principal amount of the Incremental Term Loans then outstanding, if any, and (ii) the Revolving Commitments of all Revolving Lenders then in effect or, with respect to any Revolving Facility for which the Revolving Commitments have been terminated, the Outstanding Revolving Credit of all Lenders under such Revolving Facility.
		

		
			“Requirement of Law” means, as to any Person, any law, treaty, rule or regulation 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, with respect to either Borrower, any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests in such Borrower or any of its Restricted Subsidiaries, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests or any option, warrant or other right to acquire any such Equity Interests.
		

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

		
			“Revolving Commitment” means, as to any Revolving Lender, such Revolving Lender’s Tranche 1 Revolving Commitment, Tranche 2 Revolving Commitment and Tranche 3 Revolving Commitment.
		

		
			“Revolving Commitment Percentage” means, with respect to any Revolving Lender at any time, such Lender’s Tranche 1 Revolving Commitment Percentage, Tranche 2 Revolving Commitment Percentage, Tranche 3 Revolving Commitment Percentage or Tranche 1-3 Revolving Commitment Percentage, as applicable.
		

		
			“Revolving Commitment Period” means the period from and including the Closing Date to the applicable Revolving Termination Date.
		

		
			
		

		
			

		 

 

		

			25

		

“Revolving Facilities” has the meaning assigned to such term in the definition of “Facility”.
		

		
			“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 Lenders” means the Tranche 1 Revolving Lenders, the Tranche 2 Revolving Lenders and the Tranche 3 Revolving Lenders.
		

		
			“Revolving Loans” means the Tranche 1 Revolving Loans, the Tranche 2 Revolving Loans and the Tranche 3 Revolving Loans.
		

		
			“Revolving Termination Date” means (i) with respect to the Tranche 1 Revolving Facility and the Tranche 2 Revolving Facility, the fifth anniversary of the Closing Date and (ii) with respect to the Tranche 3 Revolving Facility, March 9, 2020.
		

		
			“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 OFAC or the U.S. Department of State or by the United Nations Security Council, the European Union, any European Union member state or Her Majesty’s Treasury of the United Kingdom, (b) any 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 OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union, any European Union member state or Her Majesty’s Treasury of the United Kingdom.
		

		
			“Secured Indebtedness” means Indebtedness of a Borrower secured by any Lien on the assets of such Borrower.
		

		
			“Screen Rate” means the CDOR Screen Rate, the EURIBOR Screen Rate and the LIBO Screen Rate, collectively and individually, as the context may require.
		

		
			“Specified Swap Agreement” means any Swap Agreement listed on Schedule 1.01C and any other Swap Agreement in respect of interest rates or currency exchange rates entered into by a Borrower or any Subsidiary Guarantor and any Person that is a Lender or an affiliate of a Lender at the time such Swap Agreement is entered into.
		

		
			“Specified Time” means (a) in relation to a Loan in Canadian Dollars, 11:00 a.m., Toronto, Ontario time and (b) otherwise, 11:00 a.m., London time.
		

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

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

		
			
		

		
			

		 

 

		

			26

		

“Stock Compensation Plans” means compensation plans in connection with which a Borrower or any of its Restricted Subsidiaries make payments to LIC or any of its Affiliates in consideration for securities of LIC issued to employees of a Borrower or any of its Restricted Subsidiaries.
		

		
			“Stockholders’ Equity” means, as of any date of determination, the sum of the consolidated stockholders’ equity of QVC and the consolidated stockholders’ equity of zulily as of that date, in each case determined in accordance with GAAP.
		

		
			“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, Controlled or held by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.
		

		
			“Subsidiary Guarantees” means the QVC Subsidiary Guarantee and the zulily Subsidiary Guarantee.
		

		
			“Subsidiary Guarantor” means each Domestic Subsidiary that is a party to a Subsidiary Guarantee (it being understood that neither zulily nor any of its subsidiaries shall guaranty the QVC Obligations unless and until it becomes a Material Domestic Subsidiary of QVC pursuant to Section 5.09).
		

		
			“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 either Borrower or its Restricted Subsidiaries shall be a Swap Agreement.
		

		
			“Swap Obligation” means, with respect to any Person, 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.
		

		
			“Swiss Franc” means the lawful currency of Switzerland.
		

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

		
			“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
		

		
			“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.
		

		
			
		

		
			

		 

 

		

			27

		

“Tranche 1 Outstanding Revolving Credit” means, with respect to any Tranche 1 Revolving Lender at any time, an amount equal to the sum of (a) the aggregate then outstanding principal amount of such Lender’s Tranche 1 Revolving Loans, and (b) such Lender’s Tranche 1-3 LC Exposure.
		

		
			“Tranche 1 Revolving Commitment” means, as to any Tranche 1 Revolving Lender, the obligation of such Lender to make Tranche 1 Revolving Loans and purchase participation interests in Tranche 1-3 Letters of Credit in an aggregate principal amount not to exceed the amount set forth under the heading “Tranche 1 Revolving Commitment” opposite such Lender’s name on Schedule 1.01A or in the Assignment and Assumption or New Lender Supplement pursuant to which such Lender became a party hereto, as the same may be changed from time to time pursuant to the terms of this Agreement.  The aggregate Dollar Amount of all Tranche 1 Revolving Commitments on the Closing Date is $2,110,000,000.00.
		

		
			“Tranche 1 Revolving Commitment Percentage” means, with respect to any Tranche 1 Revolving Lender at any time, the ratio (expressed as a percentage) of such Lender’s Tranche 1 Revolving Commitment at such time to the Tranche 1 Revolving Commitments of all Tranche 1 Revolving Lenders at such time.
		

		
			“Tranche 1 Revolving Facility” has the meaning assigned to such term in the definition of “Facility”.
		

		
			“Tranche 1 Revolving Lender” means each Lender that has a Tranche 1 Revolving Commitment or that holds Tranche 1 Revolving Loans.
		

		
			“Tranche 1 Revolving Loans” has the meaning assigned to such term in Section 2.01(a).
		

		
			“Tranche 1-3 Alternative Currency Revolving Sublimit” means, as of any day and with respect to all Alternative Currencies, a Dollar Amount equal to 50% of the sum of the Tranche 1 Revolving Commitments and Tranche 3 Revolving Commitments as of such day.
		

		
			“Tranche 1-3 LC Disbursement” means a payment made by the Issuing Bank pursuant to a demand for payment or drawing under a Tranche 1-3 Letter of Credit.
		

		
			“Tranche 1-3 LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Tranche 1-3 Letters of Credit at such time plus (b) the aggregate amount of all Tranche 1-3 LC Disbursements that have not yet been reimbursed by or on behalf of QVC at such time.  The Tranche 1-3 LC Exposure of any Lender at any time shall be its Tranche 1-3 Revolving Commitment Percentage of the total Tranche 1-3 LC Exposure at such time.
		

		
			“Tranche 1-3 Letters of Credit” has the meaning assigned to such term in Section 2.17(a).
		

		
			“Tranche 1-3 Revolving Commitment Percentage” means, with respect to any Tranche 1 Revolving Lender or Tranche 3 Revolving Lender at any time, the ratio (as expressed as a percentage) of such Lender’s Tranche 1 Revolving Commitment and Tranche 3 Revolving Commitment, to the sum of (x) the Tranche 1 Revolving Commitments of all Tranche 1 Revolving Lenders and (y) the Tranche 3 Revolving Commitments of all Tranche 3 Revolving Lenders at such time.
		

		
			“Tranche 2 Alternative Currency Revolving Sublimit” means, as of any day and with respect to all Alternative Currencies, a Dollar Amount equal to 50% of the Tranche 2 Revolving Commitments as of such day.
		

		
			
		

		
			

		 

 

		

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“Tranche 2 LC Disbursement” means a payment made by the Issuing Bank pursuant to a demand for payment or drawing under a Tranche 2 Letter of Credit.
		

		
			“Tranche 2 LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Tranche 2 Letters of Credit at such time plus (b) the aggregate amount of all Tranche 2 LC Disbursements that have not yet been reimbursed by or on behalf of the applicable Borrower at such time.  The Tranche 2 LC Exposure of any Lender at any time shall be its Tranche 2 Revolving Commitment Percentage of the total Tranche 2 LC Exposure at such time.
		

		
			“Tranche 2 Letters of Credit” has the meaning assigned to such term in Section 2.17(a).
		

		
			“Tranche 2 Outstanding Revolving Credit” means, with respect to any Tranche 2 Revolving Lender at any time, an amount equal to the sum of (a) the aggregate then outstanding principal amount of such Lender’s Tranche 2 Revolving Loans, and (b) such Lender’s Tranche 2 LC Exposure.
		

		
			“Tranche 2 Revolving Commitment” means, as to any Tranche 2 Revolving Lender, the obligation of such Lender to make Tranche 2 Revolving Loans and purchase participation interests in Tranche 2 Letters of Credit in an aggregate principal amount not to exceed the amount set forth under the heading “Tranche 2 Revolving Commitment” opposite such Lender’s name on Schedule 1.01A or in the Assignment and Assumption or New Lender Supplement pursuant to which such Lender became a party hereto, as the same may be changed from time to time pursuant to the terms of this Agreement.  The aggregate Dollar Amount of all Tranche 2 Revolving Commitments on the Closing Date is $400,000,000.
		

		
			“Tranche 2 Revolving Commitment Percentage” means, with respect to any Tranche 2 Revolving Lender at any time, the ratio (expressed as a percentage) of such Lender’s Tranche 2 Revolving Commitment at such time to the Tranche 2 Revolving Commitments of all Tranche 2 Revolving Lenders at such time.
		

		
			“Tranche 2 Revolving Facility” has the meaning assigned to such term in the definition of “Facility”.
		

		
			“Tranche 2 Revolving Facility Collateral” means any “Collateral” under and as defined in the zulily Parent Pledge Agreement.
		

		
			“Tranche 2 Revolving Lender” means each Lender that has a Tranche 2 Revolving Commitment or that holds Tranche 2 Revolving Loans.
		

		
			“Tranche 2 Revolving Loans” has the meaning assigned to such term in Section 2.01(a).
		

		
			“Tranche 3 Outstanding Revolving Credit” means, with respect to any Tranche 3 Revolving Lender at any time, an amount equal to the sum of (a) the aggregate then outstanding principal amount of such Lender’s Tranche 3 Revolving Loans, and (b) such Lender’s Tranche 1-3 LC Exposure.
		

		
			“Tranche 3 Revolving Commitment” means, as to any Tranche 3 Revolving Lender, the obligation of such Lender to make Tranche 3 Revolving Loans and purchase participation interests in Tranche 1-3 Letters of Credit in an aggregate principal amount not to exceed the amount set forth under the heading “Tranche 3 Revolving Commitment” opposite such Lender’s name on Schedule 1.01A or in the Assignment and Assumption or New Lender Supplement pursuant to which such Lender became a party hereto, as the same may be changed from time to time pursuant to the terms of this Agreement.  The aggregate Dollar Amount of all Tranche 3 Revolving Commitments on the Closing Date is $140,000,000.00.
		

		
			
		

		
			

		 

 

		

			29

		

“Tranche 3 Revolving Commitment Percentage” means, with respect to any Tranche 3 Revolving Lender at any time, the ratio (expressed as a percentage) of such Lender’s Tranche 3 Revolving Commitment at such time to the Tranche 3 Revolving Commitments of all Tranche 3 Revolving Lenders at such time.
		

		
			“Tranche 3 Revolving Facility” has the meaning assigned to such term in the definition of “Facility”.
		

		
			“Tranche 3 Revolving Lender” means each Lender that has a Tranche 3 Revolving Commitment or that holds Tranche 3 Revolving Loans.
		

		
			“Tranche 3 Revolving Loans” has the meaning assigned to such term in Section 2.01(a).
		

		
			“Transactions” means the execution, delivery and performance by the Borrowers of this Agreement, the execution, delivery and performance by the Credit Parties of the other Loan Documents, the borrowing of Loans and the use of proceeds thereof.
		

		
			“Transferee” has the meaning assigned to such term in the definition of “Change in Control Transaction”.
		

		
			“Transferee Parent” has the meaning assigned to such term in the definition of “LIC”.
		

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

		
			“Unrestricted Subsidiary” with respect to a Borrower, means (a) any subsidiary of such Borrower listed on Schedule 1.01B, (b) any subsidiary of such Borrower that is designated as an Unrestricted Subsidiary by such Borrower after the Closing 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, in each case, (i) at no time shall any creditor of any such subsidiary have any claim (whether pursuant to a Guarantee or otherwise) against such 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 any such subsidiary (collectively, “Unrestricted Subsidiary Support Obligations”), except pursuant to Investments permitted by Section 6.11; (ii) neither such Borrower nor any of its Restricted Subsidiaries shall become a general partner of any such subsidiary; (iii) no default with respect to any Indebtedness of any such subsidiary (including any right which the holders thereof may have to take enforcement action against any such subsidiary), shall permit solely as a result of such Indebtedness being in default or accelerated (upon notice, lapse of time or both) any holder of any Indebtedness of such Borrower or its Restricted Subsidiaries to declare a default on such other Indebtedness or cause the payment thereof to be accelerated or payable prior to its final scheduled maturity; (iv) no such subsidiary shall own any Equity Interests of, or own or hold any Lien on any property of, such Borrower or any of its Restricted Subsidiaries; (v) no Investments may be made in any such subsidiary by such Borrower or any of its Restricted Subsidiaries except to the extent permitted under Section 6.11(f) or (h) (it being understood that, if a subsidiary is designated as an Unrestricted Subsidiary after the Closing Date, the aggregate fair market value of all outstanding Investments owned by such 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(f) or (h), as applicable); (vi) such Borrower shall not directly own any Equity Interests in such subsidiary; (vii) at the time of such designation, no Default shall have occurred and be continuing or would result therefrom; and (viii) at the time of such designation, after giving pro forma effect thereto, the Consolidated Leverage Ratio shall be less than or equal to the Consolidated Leverage Ratio then required to be maintained by the Borrowers pursuant to Section 6.10.  It 
		

		
			
		

		
			

		 

 

		

			30

		

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 such Borrower.
		

		
			If a Borrower has designated a subsidiary as an Unrestricted Subsidiary, such Borrower may revoke such designation pursuant to a written notice to the Administrative Agent so long as, after giving pro forma effect to such revocation, (i) the Borrowers shall be in compliance with Section 6.10, and (ii) no Default shall be in existence.  In addition, if any of the requirements specified in the first sentence of this definition ceases at any time to be complied with as to any Unrestricted Subsidiary, the designation thereof shall automatically be deemed to be revoked without requirement of any action by any Person on the date that is 30 days after such Borrower or any of its Subsidiaries has obtained knowledge of such noncompliance, unless such noncompliance has been cured prior to such date.  Any revocation described in the preceding two sentences is referred to herein as a “Revocation”.  Upon any Revocation, such Unrestricted Subsidiary shall constitute a Restricted Subsidiary for all purposes of this Agreement and such 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(f) or (h), as applicable, to be utilized by an amount equal to the aggregate fair market value of all outstanding Investments owned by such Borrower and its Restricted Subsidiaries in the subsidiary so designated (the amount so utilized, the “Designation Amount”), then, effective upon such Revocation, the relevant 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 such Borrower and its Restricted Subsidiaries in such subsidiary at the time of such Revocation.  Any subsidiary as to which any Revocation has been made may not subsequently be designated as an Unrestricted Subsidiary.
		

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

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

		
			“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.
		

		
			“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.
		

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

		
			“zulily Subsidiary Guarantee” means a Subsidiary Guarantee by the Subsidiary Guarantors that are subsidiaries of zulily in favor of the Collateral Agent, substantially in the form of Exhibit H.
		

		
			
		

		
			

		 

 

		

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“zulily Parent” means Liberty Interactive Corporation, a Delaware corporation.
		

		
			“zulily Parent Pledge Agreement” means the Pledge Agreement by zulily Parent in favor of Collateral Agent, dated as of the Closing Date.
		

		
			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 “Tranche 1 Revolving Loan”) or by Type (e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency Tranche 1 Revolving Loan”).  Borrowings also may be classified and referred to by Class (e.g., a “Tranche 1 Revolving Borrowing”) or by Type (e.g., a “Eurocurrency Borrowing”) or by Class and Type (e.g., a “Eurocurrency Tranche 1 Revolving Borrowing”).
		

		
			SECTION 1.03.   Pro Forma Determinations.  Whether or not specified elsewhere herein, in order to determine that no Default shall have occurred and be continuing after giving effect to a particular transaction or event, such determination shall require, without limitation, a determination that the Borrowers would be in compliance with Section 6.10 after giving effect thereto.
		

		
			SECTION 1.04.   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 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 1.05.   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 QVC EBITDA, Consolidated zulily EBITDA, Indebtedness, the Consolidated Leverage Ratio and the Consolidated QVC Leverage Ratio shall be determined based on generally accepted accounting principles in the United States of America in effect on the Closing Date; provided further that, if the Borrowers notify the Administrative Agent that the Borrowers request an amendment to any provision hereof to eliminate the effect of any change occurring after the Closing Date in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrowers 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.
		

		
			
		

		
			

		 

 

		

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SECTION 1.06.   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 Borrowers 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 1.07.   Currency Equivalents Generally.  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 a 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 a Borrower and any Restricted Subsidiary, the exchange rate of currencies shall be measured as of the date of such calculation.
		

		
			ARTICLE II
		

		
			The Credits
		

		
			SECTION 2.01.   Revolving Commitments.
		

		
			(a)        Subject to the terms and conditions hereof, from time to time during the Revolving Commitment Period, (i) each Tranche 1 Revolving Lender severally agrees to make to QVC revolving credit loans denominated in Dollars or an Alternative Currency (“Tranche 1 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 Tranche 1 Outstanding Revolving Credit exceeding such Lender’s Tranche 1 Revolving Commitment or (B) the Dollar Amount of Tranche 1 Revolving Loans and Tranche 3 Revolving Loans in Alternative Currencies exceeding the Tranche 1-3 Alternative Currency Revolving Sublimit, (ii) each Tranche 2 Revolving Lender severally agrees to make to QVC or zulily revolving credit loans denominated in Dollars or an Alternative Currency (“Tranche 2 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 Tranche 2 Outstanding Revolving Credit exceeding such Lender’s Tranche 2 Revolving Commitment or (B) the Dollar Amount of Tranche 2 Revolving Loans in Alternative Currencies exceeding the Tranche 2 Alternative Currency Revolving Sublimit and (iii) each Tranche 3 Revolving Lender severally agrees to make to QVC revolving credit loans denominated in Dollars or an Alternative Currency (“Tranche 3 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 Tranche 3 Outstanding Revolving Credit exceeding such Lender’s Tranche 3 Revolving Commitment or (B) the Dollar Amount of Tranche 1 Revolving Loans and Tranche 3 Revolving Loans in Alternative Currencies exceeding the Tranche 1-3 Alternative Currency Revolving Sublimit.  During the Revolving Commitment Period (i) QVC may use the Tranche 1 Revolving Commitments and Tranche 3 Revolving Commitments by borrowing, prepaying the Tranche 1 Revolving Loans and Tranche 3 Revolving Loans, respectively, in whole or in part, and reborrowing, and (ii) QVC and zulily may each use the Tranche 2 Revolving Commitments by borrowing, prepaying the Tranche 2 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 applicable Borrower and notified to the Administrative Agent in accordance with Sections 2.03 and 2.05.
		

		
			(b)        Each Revolving Loan under a Revolving Facility 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 under such Revolving Facility.  The failure of any Revolving 
		

		
			
		

		 

 

		

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			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.
		

		
			(c)        At the commencement of each Interest Period for any Eurocurrency Revolving Borrowing, such Borrowing shall be in an aggregate 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 Revolving 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 Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Revolving Commitments under the Tranche 1 Revolving Facility, Tranche 2 Revolving Facility or Tranche 3 Revolving Facility, as applicable.  Borrowings of more than one 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 Revolving Borrowings outstanding.
		

		
			SECTION 2.02.   Incremental Revolving Commitments and Incremental Term Loans.
		

		
			(a)        QVC, with respect to the Tranche 1 Revolving Facility, and QVC and zulily, with respect to the Tranche 2 Revolving Facility, and one or more Lenders (including New Lenders reasonably acceptable to the Administrative Agent) may from time to time agree that such Lenders shall incur Incremental Revolving Commitments with respect to the Tranche 1 Revolving Facility (“Tranche 1 Incremental Revolving Commitments”) or the Tranche 2 Revolving Facility (“Tranche 2 Incremental Revolving Commitments”), as applicable, by executing and delivering to the Administrative Agent an Incremental Revolving Commitment Activation Notice specifying (i) the amount of the Incremental Revolving Commitments, (ii) the Revolving Facility with respect to which such Incremental Revolving Commitments will be incurred, and (iii) the applicable Incremental Revolving Commitment Closing Date.  Notwithstanding the foregoing, (1) (A) the aggregate amount of Incremental Revolving Commitments plus the aggregate amount of Incremental Term Loans shall not exceed $1,500,000,000 minus the outstanding principal amount of Pari Passu Indebtedness (other than the Existing Notes) incurred pursuant to Section 6.01(b), (B) without limiting the foregoing clause (1)(A), the aggregate amount of Tranche 2 Incremental Revolving Commitments shall not exceed $300,000,000, (C) no Incremental Revolving Commitments may be incurred if a Default would be in existence immediately before or after giving pro forma effect thereto and to any concurrent transactions and any substantially concurrent use of the proceeds thereof, (D) after giving pro forma effect thereto (assuming the full drawing of such Incremental Revolving Commitments and after giving effect to other concurrent transactions permitted hereunder), the Borrowers shall be in compliance with Section 6.10 and (E) the representations and warranties set forth in Article III shall be true and correct in all material respects (or in all respects if qualified by materiality) immediately prior to, and after giving effect to, the incurrence of such Incremental Revolving Commitments, and (2) unless otherwise agreed by the Administrative Agent, (A) each Tranche 1 Incremental Revolving Commitment effected pursuant to this paragraph shall be in a minimum amount of at least $100,000,000, (B) each Tranche 2 Incremental Revolving Commitment effected pursuant to this paragraph shall be in a minimum amount of at least $20,000,000 and (C) no more than four Incremental Revolving Commitment Activation Notices may be delivered by the Borrowers (in the aggregate) after the Closing Date.  No existing Lender shall have any obligation to incur any Incremental Revolving Commitments unless it agrees to do so in its sole discretion.
		

		
			(b)        QVC and any one or more Lenders (including New Lenders) may from time to time agree that such Lenders shall make Incremental Term Loans by executing and delivering to the Administrative Agent an Incremental Term Facility Activation Notice specifying (i) the amount of such Incremental Term Loans, (ii) the applicable Incremental Term Facility Closing Date, (iii) the applicable 
		

		
			
		

		 

 

		

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			Incremental Term Maturity Date, (iv) the amortization schedule for such Incremental Term Loans, which shall comply with Section 2.07(a), (v) the Applicable Rate for such Incremental Term Loans, (vi) the proposed original issue discount applicable to such Incremental Term Loans, if any, (vii) if applicable, the manner in which prepayments of such Incremental Term Loans shall be applied to the installments thereof, and (viii) any other terms (including mandatory prepayment provisions, if any) applicable to such Incremental Term Loans acceptable to QVC and the Administrative Agent that are consistent with the terms of this Section 2.02(b) and Section 2.07(a).  Notwithstanding the foregoing, (1) (A) the aggregate amount of Incremental Revolving Commitments plus the aggregate amount of Incremental Term Loans shall not exceed $1,500,000,000 minus the outstanding principal amount of Pari Passu Indebtedness (other than the Existing Notes) incurred pursuant to Section 6.01(b), (B) no Incremental Term Loans may be incurred if a Default would be in existence immediately before or after giving pro forma effect thereto and to any concurrent transactions and any substantially concurrent use of the proceeds thereof; provided that, with respect to any Incremental Term Loans incurred for the primary purpose of financing a Limited Conditionality Acquisition (“Acquisition-Related Incremental Term Loans”), such Incremental Term Loans may be incurred so long as (i) as of the date of effectiveness of the applicable Limited Conditionality Acquisition Agreement, no Default is in existence or would result from entry into such documentation and (ii) as of the date of the Borrowing of such Incremental Term Loans, no Event of Default under clauses (a), (b), (h) or (i) of Article VII is in existence immediately before or after giving pro forma effect to such Borrowing and to any concurrent transactions and any substantially concurrent use of proceeds thereof, (C) after giving pro forma effect thereto and to any concurrent transactions, the Borrowers shall be in compliance with Section 6.10, (D) the covenants and events of default applicable to any Incremental Term Loan shall be no more favorable to the Incremental Term Lenders (or more restrictive on QVC and its Restricted Subsidiaries) than those applicable to the Revolving Loans and (E) the representations and warranties set forth in Article III shall be true and correct in all material respects (or in all respects if qualified by materiality) immediately prior to, and after giving effect to, the incurrence of such Incremental Term Loans; provided that, with respect to any Acquisition-Related Incremental Term Loans, such Incremental Term Loans may be incurred so long as (i) the representations and warranties set forth in Article III shall be true and correct in all material respects (or in all respects if qualified by materiality) as of the date of effectiveness of the applicable Limited Conditionality Acquisition Agreement and (ii) as of the date of the Borrowing of such Incremental Term Loans, customary “Sungard” representations and warranties (with such representations and warranties to be reasonably determined by the Administrative Agent and the Lenders providing such Incremental Term Loans) shall be true and correct in all material respects (or in all respects if qualified by materiality) immediately prior to, and after giving effect to, the incurrence of such Incremental Term Loans; and (2) unless otherwise agreed by the Administrative Agent, (A) each increase effected pursuant to this paragraph shall be in a minimum amount of at least $100,000,000 and (B) no more than four Incremental Term Facility Activation Notices may be delivered by QVC after the Closing Date.   No existing Lender shall have any obligation to make any Incremental Term Loans unless it agrees to do so in its sole discretion.
		

		
			(c)        Any additional bank, financial institution or other entity which, with the consent of the Borrower, elects to become a “Lender” under this Agreement in connection with any transaction described in Section 2.02(a) or 2.02(b) shall execute a New Lender Supplement (each, a “New Lender Supplement”), substantially in the form of Exhibit F-1, whereupon such bank, financial institution or other entity (a “New Lender”) shall become a Lender for all purposes and to the same extent as if originally a party hereto and shall be bound by and entitled to the benefits of this Agreement and the other Loan Documents.
		

		
			(d)        With respect to Incremental Revolving Commitments, each Lender that is acquiring an Incremental Revolving Commitment for a Revolving Facility on an Incremental Revolving Commitment Closing Date shall make a Revolving Loan, the proceeds of which will be used to prepay the Revolving Loans of the Revolving Lenders in such Revolving Facility (other than such Lender and the 
		

		
			
		

		 

 

		

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			other Lenders acquiring an Incremental Revolving Commitment) outstanding immediately prior to such Incremental Revolving Commitment Closing Date, so that, after giving effect thereto, each Revolving Lender in such Revolving Facility (including each Lender that is acquiring an Incremental Revolving Commitment) holds its Revolving Commitment Percentage of the Revolving Loans outstanding under such Revolving Facility after giving effect to such Incremental Revolving Commitment on such Incremental Revolving Commitment Closing Date.  If there is a new Revolving Borrowing under such Revolving Facility on such Incremental Revolving Commitment Closing Date, the Revolving Lenders in such Revolving Facility after giving effect to such Incremental Revolving Commitments shall make such Revolving Loans in accordance with Section 2.01.
		

		
			SECTION 2.03.   Procedure for Revolving Loan Borrowing.
		

		
			(a)        To request a Revolving Borrowing on any Business Day, QVC (or, with respect to a Tranche 2 Revolving Borrowing, QVC or zulily, as applicable) shall notify the Administrative Agent of such request by telephone (which notice must be received by the Administrative Agent prior to 12:00 noon, New York City time (or in the case of an Alternative Currency, 11:00 a.m., London time) (x) not less than three Business Days prior to the requested Borrowing Date, in the case of Eurocurrency Loans or (y) on the requested Borrowing Date, in the case of ABR Loans).  Each such telephonic borrowing request shall be irrevocable and shall be confirmed promptly in writing.  Each such telephonic and written borrowing request shall specify the Borrower, amount, Facility, currency and Type of Borrowing to be borrowed, the requested Borrowing Date and the account of the applicable Borrower to be credited.  Upon receipt of such notice, the Administrative Agent shall promptly notify each relevant Revolving Lender thereof.  For the avoidance of doubt, all Revolving Loans made in Alternative Currencies shall be Eurocurrency Loans.
		

		
			(b)        If no election as to the Type of Revolving Borrowing is specified for a Revolving Borrowing in Dollars, then the requested Revolving Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with respect to any requested Eurocurrency Revolving Borrowing, then the applicable Borrower shall be deemed to have selected an Interest Period of one month’s duration.  If no currency is specified, 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 applicable 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 by 2:00 p.m., New York City time, in the case of any Loan denominated in Dollars, and by the Applicable Time specified by the Administrative Agent, in the case of any Loan denominated in an Alternative Currency, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders.  Each Lender may, at its option, make any Loan available to any Borrower by causing any foreign or domestic branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of such Borrower to repay such Loan in accordance with the terms of this Agreement.  The Administrative Agent will make such Loans available to the applicable Borrower by promptly crediting the amounts so received, in like funds, to the account specified in the borrowing request.
		

		
			(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 
		

		
			
		

		 

 

		

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			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 applicable Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the applicable 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 applicable 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 applicable Borrower, the interest rate applicable to such Loans in the case of a Loan in Dollars or the applicable LIBO Rate in the case of a 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.
		

		
			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 applicable Borrower may elect to convert any Borrowing denominated in Dollars of any Class 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 an Alternative Currency, all as provided in this Section.  The applicable 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 applicable Borrower shall notify the Administrative Agent of such election by telephone by the time that a request for a Revolving Borrowing would be required under Section 2.03, if such 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 applicable 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 a 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 
		

		
			
		

		 

 

		

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			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 Borrowers, then, so long as an Event of Default is continuing (i) no outstanding Borrowing in Dollars may be converted to or continued as a 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.  (i) QVC shall have the right, upon not less than three Business Days’ notice to the Administrative Agent, to terminate, or, from time to time, reduce the aggregate amount of the Tranche 1 Revolving Commitments  and the Tranche 3 Revolving Commitments (with such reduction to be applied pro rata between the Tranche 1 Revolving Commitments and the Tranche 3 Revolving Commitments according to the respective Revolving Commitments thereunder) and (ii) QVC and zulily shall, acting together, have the right upon not less than three Business Days’ notice to the Administrative Agent, to terminate, or, from time to time, reduce the amount of the Tranche 2 Revolving Commitments; provided that no such termination or reduction of such applicable Revolving Commitments shall be permitted if, after giving effect thereto and to any prepayments of the applicable Revolving Loans made on the effective date thereof, the Outstanding Revolving Credits with respect to such Revolving Facility being terminated or reduced would exceed the Revolving Commitments with respect thereto.  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 Revolving Commitments then in effect.
		

		
			SECTION 2.07.   Repayment of Loans; Evidence of Debt.
		

		
			(a)        The Incremental Term Loans of each Incremental Term Lender shall mature in one or more installments as specified in the Incremental Term Facility Activation Notice pursuant to which such Incremental Term Loans were made, provided that except in the case of the final installment, (i) such installments shall be no more frequent than quarterly and (ii) the aggregate amount of such installments for any four consecutive fiscal quarters shall not exceed $150,000,000 in the aggregate for all outstanding Incremental Term Loans and any Pari Passu Indebtedness (other than the Existing Notes) issued pursuant to Section 6.01(b).
		

		
			(b)         (i) QVC shall repay the then unpaid principal amount of each Tranche 1 Revolving Loan and Tranche 3 Revolving Loan on the applicable Revolving Termination Date and (ii) QVC and zulily shall repay the then unpaid principal amount of each Tranche 2 Revolving Loan on the applicable Revolving Termination Date. QVC and zulily shall be jointly and severally liable for all obligations in respect of the Tranche 2 Revolving Facility.
		

		
			(c)        Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the applicable 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.
		

		
			(d)        The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the currency, Class 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 each 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.
		

		
			
		

		 

 

		

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			(e)        The entries made in the accounts maintained pursuant to paragraph (c) or (d) of this Section shall be prima facie evidence 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 applicable Borrower to repay the Loans in accordance with the terms of this Agreement.
		

		
			SECTION 2.08.   Prepayments.
		

		
			(a)        The Borrowers may at any time and from time to time prepay Loans, in whole or in part, without premium or penalty, upon irrevocable 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, and 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 applicable thereto, the applicable Borrower shall also pay any amounts owing pursuant to Section 2.13.  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 (except in the case of Revolving Loans that are ABR Loans) accrued interest to such date on the amount prepaid.  Partial prepayments of Loans shall be in an aggregate amount that is an integral multiple of $1,000,000 (or comparable amounts determined by the Administrative Agent in the case of Alternative Currency) and not less than $5,000,000 (or comparable amounts determined by the Administrative Agent in the case of Alternative Currency).
		

		
			(b)         (i) If at any time for any reason the sum of (x) the Dollar Amount of Tranche 1 Outstanding Revolving Credit and Tranche 3 Outstanding Revolving Credit exceeds the sum of (y) the Tranche 1 Revolving Commitments of all Tranche 1 Revolving Lenders and the Tranche 3 Revolving Commitments of all Tranche 3 Revolving Lenders, QVC shall, upon learning thereof, or upon the request of the Administrative Agent, immediately prepay Tranche 1 Revolving Loans and Tranche 3 Revolving Loans in an aggregate principal amount at least equal to the amount of such excess, with such prepayment allocated pro rata according to the respective outstanding principal amounts of the Tranche 1 Revolving Loans and Tranche 3 Revolving Loans and (ii) if at any time for any reason the sum of the Dollar Amount of Tranche 2 Outstanding Revolving Credit exceeds the Tranche 2 Revolving Commitments of all Tranche 2 Revolving Lenders, the Borrowers shall, upon learning thereof, or upon the request of the Administrative Agent, immediately prepay the Tranche 2 Revolving Loans in an aggregate principal amount at least equal to the amount of such excess; provided that solely with respect to any excess described in the foregoing clauses (i) and (ii) 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 Borrowers, the Dollar Amount of Tranche 1 Outstanding Revolving Credit, Tranche 2 Outstanding Revolving Credit or Tranche 3 Outstanding Revolving Credit, as applicable, exceeds the Tranche 1 Revolving Commitments of all Tranche 1 Revolving Lenders, Tranche 2 Revolving Commitments of all Tranche 2 Revolving Lenders or Tranche 3 Revolving Commitments of all Tranche 3 Revolving Lenders, respectively, by more than 2.5% as a result of such fluctuations.
		

		
			SECTION 2.09.   Fees.
		

		
			(a)         (i) QVC agrees to pay to the Administrative Agent for the account of each Tranche 1 Revolving Lender and Tranche 3 Revolving Lender a commitment fee in Dollars for the period from and including the Closing Date to the last day of the applicable Revolving Commitment Period, computed at the applicable Commitment Fee Rate on the average daily Dollar Amount of the Available Tranche 1 Revolving Commitment or Available Tranche 3 Revolving Commitment, respectively, of such 
		

		
			
		

		 

 

		

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			Lender during the period for which payment is made and (ii) QVC and zulily agree to pay to the Administrative Agent for the account of each Tranche 2 Revolving Lender a commitment fee in Dollars for the period from and including the Closing 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 Tranche 2 Revolving Commitment of such Lender during the period for which payment is made, in the case of each of clauses (i) and (ii), payable quarterly in arrears on each Revolving Fee Payment Date, commencing on the first such date to occur after the Closing Date.
		

		
			(b)         (i) QVC agrees to pay (x) to the Administrative Agent for the account of each Tranche 1 Revolving Lender and Tranche 3 Revolving Lender a participation fee with respect to its participations in Tranche 1-3 Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurocurrency Tranche 1 Revolving Loans or Eurocurrency Tranche 3 Revolving Loans, respectively, on the average daily Dollar Amount of such Revolving Lender’s Tranche 1-3 LC Exposure (excluding any portion thereof attributable to unreimbursed Tranche 1-3 LC Disbursements) during the period from and including the Closing Date to but excluding the later of the date on which such Revolving Lender’s Tranche 1 Revolving Commitment or Tranche 3 Revolving Commitment, as applicable, terminates and the date on which such Revolving Lender ceases to have any Tranche 1-3 LC Exposure, and (y) to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the Tranche 1-3 LC Exposure of the Tranche 1-3 Letters of Credit issued by it (excluding any portion thereof attributable to unreimbursed Tranche 1-3 LC Disbursements) during the period from and including the Closing Date to but excluding the later of the date of termination of the Tranche 1 Revolving Commitments (in the case of a Tranche 1 Revolving Lender) or Tranche 3 Revolving Commitments (in the case of a Tranche 3 Revolving Lender), and the date on which there ceases to be any such Tranche 1-3 LC Exposure, as well as the fees agreed by the Issuing Bank and QVC with respect to the issuance, amendment, renewal or extension of any Tranche 1-3 Letter of Credit or processing of drawings thereunder and (ii) QVC and zulily agree to pay (x) to the Administrative Agent for the account of each Tranche 2 Revolving Lender a participation fee with respect to its participations in Tranche 2 Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurocurrency Revolving Loans on the average daily Dollar Amount of such Revolving Lender’s Tranche 2 LC Exposure (excluding any portion thereof attributable to unreimbursed Tranche 2 LC Disbursements) during the period from and including the Closing Date to but excluding the later of the date on which such Revolving Lender’s Tranche 2 Revolving Commitment terminates and the date on which such Revolving Lender ceases to have any Tranche 2 LC Exposure, and (y) to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the Tranche 2 LC Exposure of the Tranche 2 Letters of Credit issued by it (excluding any portion thereof attributable to unreimbursed Tranche 2 LC Disbursements) during the period from and including the Closing Date to but excluding the later of the date of termination of the Tranche 2 Revolving Commitments and the date on which there ceases to be any such Tranche 2 LC Exposure, as well as the fees agreed by the Issuing Bank and the applicable Borrower with respect to the issuance, amendment, renewal or extension of any Tranche 2 Letter of Credit or processing of drawings thereunder.  Participation fees and fronting fees will be payable quarterly in arrears on each Revolving Fee Payment Date, commencing on the first such date to occur after the Closing Date; provided that any such fees accruing after the date on which the applicable 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 Borrowers agree 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.
		

		
			
		

		 

 

		

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			(d)        All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent for distribution, in the case of commitment fees, to the applicable Revolving 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.
		

		
			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 LIBO 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 either 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 under the relevant Facility 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 under the relevant Facility 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 applicable 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 (other than a prepayment of an ABR Revolving Loan prior to the end of the Revolving Commitment Period), 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 interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate and Eurocurrency Loans in Sterling shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case 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 LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.
		

		
			SECTION 2.11.   Market Disruption; Inability to Determine Interest Rate.  If prior to the commencement of any Interest Period for a Eurocurrency Borrowing:
		

		
			(a)        the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the LIBO Rate for such Interest Period; or
		

		
			
		

		 

 

		

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			(b)        the Administrative Agent is advised by the Required Lenders that the LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period;
		

		
			then the Administrative Agent shall give notice thereof to the applicable Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the applicable Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing in Dollars as, a Eurocurrency Borrowing shall be ineffective and the Loans shall be converted to an ABR Borrowing and (ii) 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 Alternate 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 applicable 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 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); or
		

		
			(ii)   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, converting to, continuing or maintaining any Eurocurrency Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or otherwise), then the applicable 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 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 or liquidity), then from time to time the applicable 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; provided that no Lender shall be entitled to request payment of any such amounts with respect to a Change in Law relating to Dodd-Frank or Basel III unless such Lender is generally demanding payment under comparable provisions of its agreements with similarly situated borrowers.
		

		
			(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 
		

		
			
		

		 

 

		

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			this Section shall be delivered to the applicable Borrower and shall be conclusive absent manifest error.  The applicable 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 applicable 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 applicable 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 either Borrower pursuant to Section 2.16, then, in any such event, such applicable 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 LIBO 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 LIBO rate quoted for the LIBO 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 LIBO interest period, the lower of the LIBO rates quoted for the closest LIBO 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 applicable Borrower and shall be conclusive absent manifest error.  The applicable 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)        Any and all payments by or on account of any Loan Party under any Loan Document hereunder shall be made free and clear of and without deduction for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax from any such payment by a withholding agent, then the applicable withholding agent shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that, after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.14(a)), the amounts received with respect to this Agreement equal the sum which would have been received had no such deduction or withholding been made.
		

		
			
		

		 

 

		

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			(b)        In addition, the applicable Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for Other Taxes.
		

		
			(c)        The applicable Borrower shall indemnify the Administrative Agent and each Lender, within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other 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 the Loan Parties hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto (excluding penalties and interest attributable to actions or omissions of the Administrative Agent or such Lender), 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 applicable 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.  The applicable Borrower shall be entitled to contest with the relevant Governmental Authority, pursuant to applicable law and at its own expense, any Indemnified Taxes or Other Taxes that it is ultimately obligated to pay, and the Administrative Agent or Lender shall reasonably cooperate with any such contest.  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 applicable Borrower or any other Person.  The Administrative Agent and each Lender shall give prompt notice of any Indemnified Taxes or Other Taxes imposed or asserted on it, provided however that the Administrative Agent or such Lender’s failure to give such prompt notice to the applicable Borrower shall not constitute a defense to any claim for indemnification by the Administrative Agent’s or such Lender unless, and only to the extent that, such failure materially prejudices such Borrower.
		

		
			(d)        As soon as practicable after any payment of Indemnified Taxes or Other Taxes by a Borrower to a Governmental Authority, such Borrower shall deliver to the Administrative Agent a copy, or if reasonably available to such 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)        Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for such Taxes and without limiting the obligation of the Loan Parties to do so) and (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 9.05(c)(ii) relating to the maintenance of a Participant Register, in either case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).
		

		
			(f)         (i) Any Lender that is entitled to an exemption from or reduction of withholding with respect to any payments under any Loan Document shall deliver to the applicable Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by such Borrower or the Administrative Agent as will permit such payments to be made without withholding or at 
		

		
			
		

		 

 

		

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			a reduced rate of withholding.  In addition, any Lender, if reasonably requested by a Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by such Borrower or the Administrative Agent to determine whether such Lender is subject to withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.14(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.
		

		
			(ii)  Without limiting the generality of the foregoing,
		

		
			(A) any Lender that is a U.S. Person shall deliver to the applicable Borrower (or Borrowers) 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 any such Borrower or the Administrative Agent), 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 entitled to do so, deliver to the applicable Borrower (or Borrowers) and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of any such Borrower or the Administrative Agent), whichever of the following is applicable:
		

		
			(1)        in the case of a Non-U.S. Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or IRS W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. Federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. Federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;
		

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

		
			(3)        in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit G-1 to the effect that such Non-U.S. Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the applicable Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "U.S. Tax Compliance Certificate") and (y) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable; or
		

		
			(4)        to the extent a Non-U.S. Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate 
		

		
			
		

		 

 

		

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			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 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 each such direct and indirect partner;
		

		
			(C) any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the applicable Borrower (or Borrowers) and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of such Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. Federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit any such Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and
		

		
			(D) if a payment made to a Lender under any Loan Document would be subject to U.S. Federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the applicable Borrower (or Borrowers) and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by such 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 such Borrower or the Administrative Agent as may be necessary for such Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendment made to FATCA after the date of this Agreement.
		

		
			Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the applicable Borrower (or Borrowers) and the Administrative Agent in writing of its legal inability to do so.
		

		
			For purposes of determining withholding Taxes imposed under FATCA, from and after the Closing Date, the Borrowers and the Administrative Agent shall treat (and the Lenders hereby authorize the Borrowers and the Administrative Agent to treat) this Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).
		

		
			(g)        If the Administrative Agent or a Lender determines, in its sole discretion, that it has received a refund of or credit against any Taxes or Other Taxes as to which it has been indemnified by a Borrower or with respect to which a Borrower has paid additional amounts pursuant to this Section 2.14, it shall pay over such refund or credit to such Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by such Borrower 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 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 or credit); provided, that such Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to such Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority (but 
		

		
			
		

		 

 

		

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			excluding any penalties, interest or other charges attributable to actions or omissions of the Administrative Agent or such Lender)) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund or credit to such Governmental Authority.  The Administrative Agent and each Lender will pursue any such refund or credit against Taxes or Other Taxes if the Administrative Agent or such Lender reasonably determines that it is likely to receive such refund or credit.  Notwithstanding anything to the contrary in this paragraph (g), in no event will the Administrative Agent or Lender be required to pay any amount to such Borrower pursuant to this paragraph (g) the payment of which would place the Administrative Agent or Lender in a less favorable net after-Tax position than the Administrative Agent or Lender would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This 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 such Borrower or any other Person.
		

		
			SECTION 2.15.   Pro Rata Treatment and Payments.
		

		
			(a)        Each borrowing of a particular Class of Revolving Loans by a Borrower and any reduction of the Revolving Commitments of a particular Class shall be made pro rata among the Revolving Lenders according to their respective Revolving Commitments in such Class.  Each payment by a Borrower on account of any commitment fee or any letter of credit fee owing with respect to a particular Revolving Facility shall be paid ratably to the Revolving Lenders in such Facility.
		

		
			(b)        Each prepayment by a Borrower on account of principal of the Revolving Loans of a particular Class shall be made pro rata according to the respective outstanding principal amounts of the Revolving Loans of such Class then held by the Revolving Lenders, except that Tranche 3 Revolving Loans may be repaid on the Revolving Termination Date with respect to the Tranche 3 Revolving Facility without prepaying any Tranche 1 Revolving Loans.  All repayments of principal of the Revolving Loans of a particular Class at stated maturity or upon acceleration shall be allocated pro rata according to the respective outstanding principal amounts of the matured or accelerated Revolving Loans of such Class then held by the relevant Revolving Lenders.  All payments of interest in respect of the Revolving Loans of a particular Class shall be allocated pro rata according to the outstanding interest payable on the Revolving Loan of such Class then owed to the relevant Revolving 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 Revolving Loan or LC Disbursement required by this Agreement, as determined by the Administrative Agent, (3) third, if so determined by the Administrative Agent and the applicable Borrower (or Borrowers), 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 Borrowers 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 Revolving Loans of a particular Class, such payment shall be applied solely to prepay the Revolving Loans of such Class held by all non-Defaulting Lenders pro rata (based on the amounts owing to each) prior to being applied to the prepayment of any Revolving Loan of such Class held by any Defaulting Lender.
		

		
			
		

		 

 

		

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			(c)        All payments (including prepayments) to be made by either 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 Revolving Loans in an Alternative Currency), on the date when due.  Except as otherwise expressly provided herein, all payments by either Borrower hereunder with respect to principal and interest on Revolving 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 applicable 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 thereon.  All such payments shall be made to the Administrative Agent at its offices at 1111 Fannin Street, Houston, Texas 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 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 applicable 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 of a particular Class resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and accrued interest thereon than the proportion received by any other Lender that has made Loans of the same Class, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans of such Class made by other Lenders to the extent necessary so that the benefit of all such payments shall be shared by such Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans 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 either Borrower pursuant to and in accordance with the express terms of this Agreement 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.
		

		
			
		

		
			

		 

 

		

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SECTION 2.16.   Mitigation Obligations; Replacement of Lenders.
		

		
			(a)        If any Lender requests compensation under Section 2.12, or if a 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, 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 applicable Borrower (or Borrowers) hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
		

		
			(b)        If any Lender requests compensation under Section 2.12, or if a 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 such 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) such 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 Borrowers (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 such Borrower to require such assignment and delegation cease to apply.
		

		
			(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 Borrowers 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 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 Borrowers, Administrative Agent, such Non-Consenting Lender and the replacement Lender shall otherwise comply with Section 9.05; provided that such Non-Consenting Lender need not be party to the Assignment and Assumption in order for such assignment to be effective.
		

		
			SECTION 2.17.   Letters of Credit.
		

		
			(a)        General.  Subject to the terms and conditions set forth herein, (i) QVC may request that standby letters of credit be issued under the Tranche 1 Revolving Facility and Tranche 3 
		

		
			
		

		 

 

		

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			Revolving Facility for its own account or the account of any of its Restricted Subsidiaries (“Tranche 1-3 Letters of Credit”) and (ii) each of QVC and zulily may request that standby letters of credit be issued under the Tranche 2 Revolving Facility for its own account or the account of any of its Restricted Subsidiaries (“Tranche 2 Letters of Credit”), in the case of each of clauses (i) and (ii), 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 applicable Borrower to, or entered into by the applicable Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.  On the Closing Date, the parties hereto agree that the Existing Letters of Credit shall be deemed issued and outstanding pursuant to, and shall constitute “Tranche 1-3 Letters of Credit” for all purposes of, this Agreement and the other Loan Documents.
		

		
			(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 applicable 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 (five Business Days in advance (or such shorter time as may be agreed by the applicable Issuing Bank) of the requested date of issuance, amendment, renewal or extension) 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 Revolving Facility under which such Letter of Credit shall be issued, 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 requesting 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, (x) after giving effect to such issuance, amendment, renewal or extension (i) the Tranche 1-3 LC Exposure shall not exceed $250,000,000, (ii) the Tranche 2 LC Exposure shall not exceed $50,000,000, (iii) the Dollar Amount of the Tranche 1 Outstanding Revolving Credits shall not exceed the Tranche 1 Revolving Commitments of all Tranche 1 Revolving Lenders, (iv) the Dollar Amount of the Tranche 2 Outstanding Revolving Credits shall not exceed the Tranche 2 Revolving Commitments of all Tranche 2 Revolving Lenders, (v) the Dollar Amount of the Tranche 3 Outstanding Revolving Credits shall not exceed the Tranche 3 Revolving Commitments of all Tranche 3 Revolving Lenders, (vi) the Tranche 1-3 LC Exposure of the Tranche 1-3 Letters of Credit issued by any Issuing Bank that is an Issuing Bank on the Closing Date shall not exceed $50,000,000, (vii) (A) the Tranche 2 LC Exposure of the Tranche 2 Letters of Credit issued by JPMorgan Chase Bank, N.A. shall not exceed $30,000,000 and (B) the Tranche 2 LC Exposure of the Tranche 2 Letters of Credit issued by each of Wells Fargo Bank, N.A., BNP Paribas, the Bank of Nova Scotia and Royal Bank of Canada shall not exceed $20,000,000 and (viii) with respect to any Issuing Bank that is not an Issuing Bank on the Closing Date, the LC Exposure of the Letters of Credit issued by such Issuing Bank shall not exceed an amount to be agreed between the applicable Borrower and such Issuing Bank, and (y) the issuance, amendment, renewal or extensions of such Letter of Credit does not violate the applicable Issuing Bank’s internal policies.
		

		
			(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 that is applicable to the Tranche 1 Revolving Facility; provided that at the request of the applicable Borrower and in the sole discretion of any Issuing Lender, a Letter of Credit may have an expiry date of greater than one year (but in no event shall the final expiry of such Letter of Credit extend beyond the date referred to in clause (ii) above).
		

		
			
		

		 

 

		

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			(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, (i) subject to Section 2.17(e), in the case of a Tranche 1-3 Letter of Credit, the Issuing Bank hereby grants to each Tranche 1 Revolving Lender and Tranche 3 Revolving Lender, and each such Tranche 1 Revolving Lender and Tranche 3 Revolving Lender hereby acquires from the Issuing Bank, a participation in such Tranche 1-3 Letter of Credit equal to such Revolving Lender’s Tranche 1-3 Revolving Commitment Percentage of the aggregate amount available to be drawn under such Tranche 1-3 Letter of Credit and (ii) in the case of a Tranche 2 Letter of Credit, the Issuing Bank hereby grants to each Tranche 2 Revolving Lender, and each such Tranche 2 Revolving Lender hereby acquires from the Issuing Bank, a participation in such Tranche 2 Letter of Credit equal to such Revolving Lender’s Tranche 1-3 Revolving Commitment Percentage of the aggregate amount available to be drawn under such Tranche 2 Letter of Credit.  In consideration and in furtherance of the foregoing, subject to Section 2.17(e), (i) each Tranche 1 Revolving Lender and Tranche 3 Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Revolving Lender’s Tranche 1-3 Revolving Commitment Percentage of each Tranche 1-3 LC Disbursement with respect thereto made by the Issuing Bank and not reimbursed by QVC on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to QVC for any reason and (ii) each Tranche 2 Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Revolving Lender’s Tranche 2 Revolving Commitment Percentage of each Tranche 2 LC Disbursement with respect thereto made by the Issuing Bank and not reimbursed by the applicable Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the applicable Borrower for any reason.  Subject to Section 2.17(e), 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 (i) the Tranche 1 Revolving Commitments or Tranche 3 Revolving Commitments in the case of Tranche 1-3 Letters of Credit or (ii) the Tranche 2 Revolving Commitments in the case of Tranche 2 Letters of Credit, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.
		

		
			(e)        If, on the Revolving Termination Date with respect to the Tranche 3 Revolving Facility any Tranche 1-3 Letters of Credit exist, then on the Revolving Termination Date for the Tranche 3 Revolving Facility, (i) each Tranche 3 Revolving Lender’s Tranche 1-3 LC Exposure shall be reallocated among the Tranche 1 Revolving Lenders in accordance with the respective remaining Tranche 1 Revolving Commitment Percentages of such Tranche 1 Revolving Lenders up to an aggregate amount not to exceed the Available Tranche 1 Revolving Commitments of such Tranche 1 Revolving Lenders (it being understood that (A) the participations therein of the Tranche 3 Revolving Lenders shall be correspondingly released and (B) no partial face amount of any Tranche 1-3 Letter of Credit may be so reallocated) and (ii) outstanding Tranche 1 Revolving Loans shall be repaid pursuant to Section 2.08(a) in an amount sufficient to permit the reallocation of the Tranche 1-3 LC Exposure contemplated by the immediately preceding clause (i). To the extent the Tranche 1-3 Letters of Credit are unable to be reallocated pursuant to this clause (e), but without limiting the obligations with respect thereto and any resulting Default, QVC shall 100% cash collateralize, back-stop with a satisfactory letter of credit issued by a financial institution reasonably satisfactory to the applicable Issuing Bank and the Administrative Agent or otherwise collateralize to the reasonable satisfaction of such Issuing Bank and the Administrative Agent the then undrawn and unexpired amount of any such Letter of Credit (without limiting QVC’s obligations in respect of LC Disbursements).
		

		
			(f)        Reimbursement.  If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the applicable Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York City 
		

		
			
		

		 

 

		

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			time, on the date that such LC Disbursement is made, if such Borrower shall have received notice of such LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been received by such 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 such Borrower receives such notice; provided that such 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, such Borrower’s obligation to make such payment shall be discharged and replaced by the resulting ABR Revolving Borrowing.  If such Borrower fails to make such payment when due, the Administrative Agent shall notify each applicable Revolving Lender of the applicable LC Disbursement, the payment then due from such Borrower in respect thereof and such Revolving Lender’s applicable Revolving Commitment Percentage thereof.  Promptly following receipt of such notice, each such Revolving Lender shall pay to the Administrative Agent such Revolving Commitment Percentage of the payment then due from such 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 applicable 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 Revolving Loans as contemplated above) shall not constitute a Loan and shall not relieve the applicable Borrower of its obligation to reimburse such LC Disbursement.
		

		
			(g)        Obligations Absolute.  Each Borrower’s obligation to reimburse applicable 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, such Borrower’s obligations hereunder; provided that reimbursement obligations of such Borrower with respect to a Letter of Credit may be subject to avoidance by such Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by such Borrower to the extent permitted by applicable law) suffered by such 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 any applicable Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by such Borrower to the extent permitted by applicable law) suffered by such Borrower that are caused by the Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented 
		

		
			
		

		 

 

		

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			under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in the absence of gross negligence 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.
		

		
			(h)        Disbursement Procedures.  The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit.  The Issuing Bank shall promptly notify the Administrative Agent and the applicable 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 such Borrower of its obligation to reimburse the Issuing Bank and the applicable Revolving Lenders with respect to any such LC Disbursement.
		

		
			(i)        Interim Interest.  If the Issuing Bank shall make any LC Disbursement, then, unless the applicable 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 such 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 applicable 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.
		

		
			(j)        Replacement of the Issuing Bank.  An Issuing Bank may be replaced at any time by written agreement among the Borrowers, 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 an Issuing Bank.  At the time any such replacement shall become effective, the Borrowers 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 an 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.
		

		
			(k)        Cash Collateralization.  If any Event of Default shall occur and be continuing, on the Business Day that (i) QVC receives notice from the Administrative Agent or Tranche 1 Revolving Lenders and/or Tranche 3 Revolving Lenders with Tranche 1-3 LC Exposure representing greater than 50% of the total Tranche 1-3 LC Exposure demanding the deposit of cash collateral pursuant to this paragraph, QVC shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Tranche 1 Revolving Lenders and Tranche 3 Revolving Lenders, an amount in cash equal to the Tranche 1-3 LC Exposure as of such date plus any accrued and unpaid interest thereon or (ii) the Borrowers receive notice from the Administrative Agent or Tranche 2 Revolving Lenders with Tranche 2 LC Exposure representing greater than 50% of the total Tranche 2 LC Exposure demanding the 
		

		
			
		

		 

 

		

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			deposit of cash collateral pursuant to this paragraph, the Borrowers shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Tranche 2 Revolving Lenders, an amount in cash equal to the Tranche 2 LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral pursuant to the foregoing clauses (i) and (ii) 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 a Borrower described in clause (h) or (i) of Article VII.  Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of the applicable Borrower under this Agreement with respect to the applicable 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 applicable 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 applicable Borrower for the LC Exposure at such time or, if the maturity of the Revolving Loans has been accelerated (but subject to the consent of Lenders with Tranche 1-3 LC Exposure or Tranche 2 LC Exposure, as applicable, representing greater than 50% of the total Tranche 1-3 LC Exposure or Tranche 2 LC Exposure, respectively), be applied to satisfy other obligations of the applicable Borrower under this Agreement with respect to the applicable Revolving Facility.  If either 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 such Borrower within three Business Days after all Events of Default have been cured or waived.
		

		
			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 Tranche 1 Revolving Commitment, Available Tranche 2 Revolving Commitments and Available Tranche 3 Revolving Commitment, as applicable, of such Defaulting Lender pursuant to Section 2.09(a).
		

		
			(b)        The Revolving Commitments and Outstanding Revolving Credit of such Defaulting Lender shall not be included in determining whether the Required Lenders or Majority Facility Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or other modification pursuant to Section 9.02); 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 any of such Defaulting Lender’s Revolving Commitments 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)    (A) Such Defaulting Lender’s Tranche 1-3 LC Exposure shall be reallocated among the non-Defaulting Tranche 1 Revolving Lenders and Tranche 3 Revolving Lenders in accordance with their respective Tranche 1-3 Revolving Commitment Percentages (but excluding the Tranche 1 Revolving Commitments and Tranche 3 Revolving Commitments, as the case may be, of all the Defaulting Lenders from both the numerator and the denominator) and (B) such Defaulting Lender’s Tranche 2 LC Exposure shall be reallocated among the non-Defaulting Tranche 2 Revolving Lenders in accordance with 
		

		
			
		

		 

 

		

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			their respective Tranche 2 Revolving Commitment Percentages (but excluding the Tranche 2 Revolving Commitments of all the Defaulting Lenders from both the numerator and the denominator); provided that (x) (I) in the case of clause (A) the sum of all the Tranche 1 Outstanding Revolving Credits and Tranche 3 Outstanding Revolving Credits owed to all non-Defaulting Lenders does not exceed the total of all non-Defaulting Lenders’ Available Tranche 1 Revolving Commitments and Available Tranche 3 Revolving Commitments and (II) in the case of clause (B) the sum of all the Tranche 2 Outstanding Revolving Credits owed to all non-Defaulting Lenders does not exceed the total of all non-Defaulting Lenders’ Available Tranche 2 Revolving Commitments, (y) the representations and warranties of each Credit 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)(A) or (B) above cannot, or can only partially, be effected, the applicable Borrower (or Borrowers) shall, within one Business Day following notice by the Administrative Agent, cash collateralize for the benefit of the Issuing Bank such Defaulting Lender’s applicable LC Exposure (after giving effect to any partial reallocation pursuant to clause (i)(A) or (B) above, as applicable) for so long as any Letters of Credit are outstanding;
		

		
			(iii)   If a Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure under a Resolving Facility pursuant to clause (ii) above, the Borrowers 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 under such Revolving Facility during the period such Defaulting Lender’s LC Exposure is cash collateralized by such Borrower;
		

		
			(iv)   If LC Exposures of the non-Defaulting Lenders are reallocated pursuant to clause (i) above, then the fees payable to the applicable 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 (x) the sum of the Available Tranche 1 Revolving Commitments and the Available Tranche 3 Revolving Commitments or (y) the Available Tranche 2 Revolving Commitments, as applicable, of the applicable non-Defaulting Lenders and/or cash collateral will be provided by the applicable Borrower (or Borrowers) in accordance with Section 2.18(c)(ii), and the LC Exposure in any such newly issued or increased Letter of Credit shall be allocated among applicable 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 the Borrowers may have against such Defaulting Lender with respect to any funding default and that 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 applicable Borrower (or Borrowers) 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 (i) the Tranche 1 Revolving Commitments shall be readjusted to reflect the inclusion of such Lender’s Available Tranche 1 Revolving Commitment, 
		

		
			
		

		
			

		 

 

		

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(ii) the Tranche 2 Revolving Commitments shall be readjusted to reflect the inclusion of such Lender’s Available Tranche 2 Revolving Commitment, and (iii) the Tranche 3 Revolving Commitments shall be readjusted to reflect the inclusion of such Lender’s Available Tranche 3 Revolving Commitment, and on such date such Lender shall purchase at par such of the Revolving Loans of the other Lenders as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Tranche 1 Revolving Loans, Tranche 2 Revolving Loans and/or Tranche 3 Revolving Loans, as applicable, in accordance with its Tranche 1 Revolving Commitment Percentage, Tranche 2 Revolving Commitment Percentage or Tranche 3 Revolving Commitment Percentage, respectively.  Except as set forth in this Agreement, neither Borrower shall be excused from its obligations under this Agreement and the other Loan Documents to which it is a party as a result of any Lender becoming a Defaulting Lender.
		

		
			 
		

		
			ARTICLE III
		

		
			Representations and Warranties
		

		
			Each of the Borrowers represents and warrants to the Lenders that:
		

		
			SECTION 3.01.   Organization; Powers.  Each of such Borrower, its Material Subsidiaries and its Subsidiary Guarantors 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, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required.
		

		
			SECTION 3.02.   Authorization; Enforceability.  The Transactions to be performed by such Borrower and its Subsidiary Guarantors (excluding use of proceeds) are within the corporate or other organizational powers of such Loan Parties and have been duly authorized by all necessary corporate or other organizational and, if required, stockholder action.  Each Loan Document to which such Borrower or any of its Subsidiary Guarantors are party has been duly executed and delivered by each such Loan Party and constitutes a legal, valid and binding obligation of each such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights 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 to be performed by such Borrower and its Subsidiary Guarantors (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 and (ii) the filings referred to in Section 3.12, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of such Borrower or any of its Material Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a default under any indenture, agreement or other instrument binding upon such Borrower or any of its Material Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by such Borrower or any of its Material Subsidiaries, and (d) will not result in the creation or imposition of any Lien on any asset of such Borrower or any of its Material Subsidiaries (other than Liens securing the QVC Obligations and/or QVC/zulily Obligations, as applicable).
		

		
			SECTION 3.04.   Financial Position. Such Borrower has heretofore furnished to the Lenders its consolidated balance sheet and statements of income, stockholders’ equity and cash flows as of and for the fiscal year ended December 31, 2015, reported on (in the case of QVC only) by KPMG, 
		

		
			
		

		
			

		 

 

		

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independent public accountants.  Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of such Borrower and its consolidated subsidiaries as of such date and for such period in accordance with GAAP (except in connection with changes in accounting related to customer deliveries).
		

		
			SECTION 3.05.   Properties.
		

		
			(a)        Each of such 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 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 such Borrower and its Material Subsidiaries owns, or is licensed to use, all Intellectual Property used by such entities, and the use thereof by such Borrower and its Material Subsidiaries does not infringe upon the rights of any other Person, except for any such Intellectual Property or infringements that, individually or in the aggregate, could 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 (including labor matters) by or before any arbitrator or Governmental Authority pending against or, to the knowledge of such Borrower, threatened in writing against or affecting such Borrower or any of its Restricted Subsidiaries (i) as to which would reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve this Agreement or the Transactions (excluding use of proceeds).
		

		
			(b)        Except for the Disclosed Matters and except with respect to any other matters that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect, neither such 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 notice of any claim against it with respect to any Environmental Liability or (iv) knows of any basis for it being subject to any Environmental Liability.
		

		
			(c)        Since the Closing Date, there has been no change in the status of the Disclosed Matters that, individually or in the aggregate, has resulted in, or would reasonably be expected to result in, a Material Adverse Effect.
		

		
			SECTION 3.07.   Compliance with Laws and Agreements.  Each of such Borrower and its Material Subsidiaries is in compliance with all laws, regulations and orders (including labor 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.  Neither such Borrower nor any of its Restricted Subsidiaries is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.
		

		
			
		

		
			

		 

 

		

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SECTION 3.09.   Taxes.  Each of such 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 such Borrower or such Material Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so would not reasonably be expected to 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 FASB (ASC) 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, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of all such underfunded Plans by an amount which, if it were to become due, would cause a Material Adverse Effect.
		

		
			SECTION 3.11.   Disclosure.  To the best of such Borrower’s knowledge, as of the Closing Date, none of the reports, financial statements, certificates or other written information furnished by or on behalf of such 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 written information so furnished), taken as a whole, contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that with respect to projected financial information, other forward-looking information and information of a general economic or industry-specific nature, such Borrower represents only that such information was prepared in good faith based upon assumptions believed by such Borrower to be reasonable at the time furnished.
		

		
			SECTION 3.12.   Pledge Agreements.
		

		
			(a)        The QVC Parent Pledge Agreement is effective to create in favor of the Collateral Agent, for the benefit of the Lenders, a legal, valid and enforceable security interest in the Credit Facilities Collateral.  In the case of the certificated pledged stock constituting securities described in the QVC Parent Pledge Agreement, when stock certificates representing such pledged stock are delivered to the Collateral Agent (together with a properly completed and signed stock power or endorsement), and in the case of the other Credit Facilities Collateral, when financing statements specified on Schedule 3.12 in appropriate form are filed in the offices specified on Schedule 3.12, the QVC Parent Pledge Agreement shall constitute (as of the Closing Date) a fully perfected Lien on, and security interest in, all right, title and interest of the QVC Parent in such Collateral to the extent perfection of such security interest can be perfected by control of securities or the filing of financing statement, as security for the QVC Obligations, in each case prior and superior in right to any other Person (except Liens expressly permitted by Section 6.02).
		

		
			(b)        The zulily Parent Pledge Agreement is effective to create in favor of the Collateral Agent, for the benefit of the Tranche 2 Revolving Lenders, a legal, valid and enforceable security interest in the Tranche 2 Revolving Facility Collateral.  In the case of the certificated pledged stock constituting securities described in the zulily Parent Pledge Agreement, when stock certificates representing such pledged stock are delivered to the Collateral Agent (together with a properly completed and signed stock power or endorsement), and in the case of the other Tranche 2 Revolving Facility Collateral, when financing statements specified on Schedule 3.12 in appropriate form are filed in the offices specified on 
		

		
			
		

		
			

		 

 

		

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Schedule 3.12, the zulily Parent Pledge Agreement shall constitute (as of the Closing Date) a fully perfected Lien on, and security interest in, all right, title and interest of the zulily Parent in such Collateral to the extent perfection of such security interest can be perfected by control of securities or the filing of financing statement, as security for the QVC/zulily Obligations, in each case prior and superior in right to any other Person (except Liens expressly permitted by Section 6.02).
		

		
			SECTION 3.13.   Material Domestic Subsidiaries.  All of such Borrower’s Material Domestic Subsidiaries, if any, are party to a Subsidiary Guarantee.
		

		
			SECTION 3.14.   Existing Liens.  As of the Closing Date, there are no Liens on the assets of such Borrower or its Subsidiary Guarantors that secure the Existing Notes.
		

		
			SECTION 3.15.   Anti-Corruptions Laws and Sanctions. Such Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by such Borrower, its subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and such Borrower, its subsidiaries and their respective officers and employees (in each case, in such roles), and to the knowledge of such Borrower its directors and agents (in each case, in such roles), are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected to result in such Borrower being designated as a Sanctioned Person.  None of (a) such Borrower, any of its subsidiaries or, to the knowledge of such Borrower or any such subsidiary, any of their respective directors, officers or employees, or (b) to the knowledge of such Borrower, any agent of such Borrower or any of its subsidiaries that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Loan or Letter of Credit incurred by such Borrower, use of proceeds thereof or other transaction contemplated by this Agreement will violate Anti-Corruption Laws applicable to such Borrower or its subsidiaries or applicable Sanctions.
		

		
			SECTION 3.16.   EEA Financial Institution. Neither such Borrower nor any of its Subsidiary Guarantors is an EEA Financial Institution.
		

		
			ARTICLE IV
		

		
			Conditions
		

		
			SECTION 4.01.   Closing Date.  The amendment and restatement of the Existing Credit Agreement 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) a counterpart of the (i) Amendment Agreement signed on behalf of the Borrowers, the QVC Parent, the zulily Parent, each Subsidiary Guarantor and the Lenders party thereto (which Lenders shall constitute all Lenders (as defined in the Existing Credit Agreement) and (ii) zulily Parent Pledge Agreement signed on behalf of zulily Parent.
		

		
			(b)        The Administrative Agent and the Lead Arranger shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Closing Date) of Sherman & Howard L.L.C., special counsel for the Credit Parties, substantially in the form of Exhibit B.  The Borrowers hereby requests such counsel to deliver such opinion.
		

		
			(c)        The Administrative Agent and the Lead Arranger shall have received (i) audited consolidated balance sheets and statements of income, stockholders’ equity and cash flows, for each 
		

		
			
		

		
			

		 

 

		

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Borrower, as of and for the fiscal years ended December 31, 2013, December 31, 2014 and December 31, 2015 (provided that such financial statements of zulily for the fiscal year ended December 31, 2015 may be unaudited), (ii) unaudited interim consolidated financial statements of each Borrower for each fiscal quarter ended after the date of the latest applicable financial statements delivered pursuant to clause (i) of this paragraph as to which such financial statements are available and (iii) a certificate signed by a Financial Officer of QVC setting forth reasonably detailed calculations demonstrating compliance with the Consolidated Leverage Ratio (including supporting calculations with respect thereto) and the Consolidated QVC Leverage Ratio as of the last day of the most recent period covered by the financial statements delivered pursuant to clauses (i) and (ii) above.
		

		
			(d)        The Administrative Agent and the Lead Arranger 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 Credit Parties, the authorization of the Transactions (excluding use of proceeds) and any other legal matters relating to the Credit Parties, this Agreement or the Transactions (excluding use of proceeds), including a certificate of each Credit Party substantially in the form of Exhibit E, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.
		

		
			(e)        The Administrative Agent and the Lead Arranger shall have received a certificate of each Borrower, dated the Closing Date and signed by the President, a Vice President or a Financial Officer thereof, confirming that (a) the representations and warranties of such Borrower and its Subsidiary Guarantors set forth in the Loan Documents are true and correct in all material respects (and in all respects if qualified by materiality) as of the Closing Date and (b) as of the Closing Date, no Default by such Borrower, its Subsidiary Guarantors or its Parent has occurred and is continuing.
		

		
			(f)        Accrued interest and accrued commitment fees under the Existing Credit Agreement shall have been paid in full.
		

		
			(g)        The Administrative Agent and the Lead Arranger shall have received all fees and other amounts due and payable on or prior to the Closing Date, including, to the extent invoiced in detail reasonably acceptable to the Borrowers, reimbursement or payment of all out‐of‐pocket expenses required to be reimbursed or paid by the Borrowers hereunder.
		

		
			(h)        Since December 31, 2015, 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 Credit 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 Equity Interests pledged pursuant to each Pledge 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 Pledge Agreements shall be in proper form for filing.
		

		
			(l)        All governmental and third party approvals necessary in connection with the financing contemplated by this Agreement shall have been obtained and shall be in full force and effect.  Each Credit Party shall have provided the documentation and other information requested by the Lenders 
		

		
			
		

		
			

		 

 

		

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that is required by regulatory authorities under applicable “know your customer” and anti-money-laundering rules and regulations, including without limitation, the Act.
		

		
			The Administrative Agent shall notify the Borrowers and the Lenders of the Closing Date, and such notice shall be conclusive and binding.
		

		
			SECTION 4.02.   Each Credit Event.  The obligation of each Lender to make a Loan to a Borrower on the occasion of any Borrowing (other than a continuation or conversion of an existing Borrowing and other than a Borrowing of Acquisition-Related Incremental Term Loans) 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 of such Borrower, its Subsidiary Guarantors and its Parent set forth in the Loan Documents to which it is a party shall be true and correct in all material respects (or in all respects if qualified by materiality) 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 be true and correct as of such earlier date).
		

		
			(b)        At the time of and immediately after giving effect to such Borrowing, no 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 (other than a continuation or conversion of an existing Borrowing and other than a Borrowing of Acquisition-Related Incremental Term Loans) by a Borrower shall be deemed to constitute a representation and warranty by such Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.
		

		
			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, each Borrower covenants and agrees with the Lenders that:
		

		
			SECTION 5.01.   Financial Statements; Other Information.  Such Borrower will furnish to the Administrative Agent and each Lender (and, in the case of clauses (a) through (d) below, will use commercially reasonable efforts to furnish such items on the same day as the other Borrower):
		

		
			(a)        within 120 days after the end of each fiscal year of such Borrower (or, if earlier, no later than five Business Days after the latest date on which applicable Requirements of Law require the relevant financial statements to be made publicly available), 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 KPMG 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) to the effect that such consolidated financial statements present fairly in all material respects the financial position and results of operations of such Borrower and its consolidated subsidiaries on a consolidated basis 
		

		
			
		

		
			

		 

 

		

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in accordance with GAAP consistently applied, and a schedule eliminating Unrestricted Subsidiaries and reconciling to the financial statements;
		

		
			(b)        within 60 days after the end of each of the first three fiscal quarters of each fiscal year of such Borrower (or, if earlier, no later than five Business Days after the latest date on which applicable Requirements of Law require the relevant financial statements to be made publicly available), its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and 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 such Borrower and its consolidated subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes, and a schedule eliminating Unrestricted Subsidiaries and reconciling to the financial statements;
		

		
			(c)        concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of such Borrower (i) 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, (ii) setting forth a description of any change in the jurisdiction of organization of such Borrower or any of its Subsidiary Guarantors since the date of the most recent certificate delivered pursuant to this paragraph (c) (or, in the case of the first such certificate so delivered, since the Closing Date) and (iii) (A) 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 and (B) only in the case of such certificate of a Financial Officer of QVC, (x) setting forth reasonably detailed calculations demonstrating compliance with Sections 6.01(e) and 6.10 (including, with respect to the Consolidated Leverage Ratio, supporting calculations with respect thereto) and (y) setting forth a calculation in reasonable detail indicating which of Domestic Subsidiaries are Material Domestic Subsidiaries;
		

		
			(d)        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);
		

		
			(e)        promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by such Borrower or any of its Restricted Subsidiaries with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all of the functions of said Commission, or with any national securities exchange, as the case may be;
		

		
			(f)        promptly following receipt thereof, copies of any documents described in Section 101(k) or 101(l) of ERISA that such Borrower or any ERISA Affiliate may request with respect to any Multiemployer Plan; provided that if such Borrower 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, such Borrower and/or its ERISA Affiliates shall promptly make a request for such documents or notices from such administrator or sponsor and such Borrower shall provide copies of such documents and notices to the Administrative Agent (on behalf of each requesting Lender) promptly after receipt thereof; and
		

		
			
		

		
			

		 

 

		

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

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

		
			(a)        the occurrence of any Default by such Borrower, any of its Subsidiary Guarantors or its Parent;
		

		
			(b)        the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting such Borrower or any Restricted Subsidiary thereof as to which there is a reasonable possibility of an adverse determination, that, if adversely determined, 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 such ERISA Events that have occurred, would reasonably be expected to result in liability of such Borrower or its Restricted Subsidiaries in an amount which would constitute a Material Adverse Effect; and
		

		
			(d)        any other development related to such Borrower or any of its Restricted Subsidiaries 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 such 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.
		

		
			(a)        Such 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; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03.
		

		
			(b)        Such Borrower will, and will cause each of its subsidiaries to, maintain in effect and enforce policies and procedures designed to ensure compliance by such Borrower, its subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.
		

		
			SECTION 5.04.   Payment of Obligations.  Such Borrower will, and will cause each of its Restricted Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, would 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) such 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 result in a Material Adverse Effect.
		

		
			SECTION 5.05.   Maintenance of Properties; Insurance.  Such Borrower will, and will cause each of its Restricted Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, and (b) maintain, with 
		

		
			
		

		
			

		 

 

		

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financially sound and reputable insurance companies or in accordance with acceptable self insurance practices, insurance in such amounts and against such risks as are customarily maintained by companies of similar size engaged in the same or similar businesses operating in the same or similar locations.
		

		
			SECTION 5.06.   Books and Records; Inspection Rights.  Such 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 are made of all dealings and transactions in relation to its business and activities.  Such 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, 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 quarter on a date to be determined by, and shall be coordinated by, such Borrower and the Administrative Agent.
		

		
			SECTION 5.07.   Compliance with Laws.  Such 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.  The proceeds of the Loans incurred by such Borrower will be used only to (a) make Restricted Payments and loans to LIC and its subsidiaries, (b) repay Indebtedness, (c) pay fees and expenses associated with the Facilities and the refinancing described in clause (b), and (d) finance the working capital needs and general corporate purposes of such Borrower and its Restricted Subsidiaries.  No part of the proceeds of any Loan incurred by such Borrower 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 5.09.   Additional Guarantors and Collateral.  With respect to any Person that becomes a Material Domestic Subsidiary of such Borrower (including, for the avoidance of doubt, zulily or any of its subsidiaries becoming a Material Domestic Subsidiary of QVC) after the Closing Date, such Borrower will promptly (i) (A) cause such Material Domestic Subsidiary to become a party to the applicable Subsidiary Guarantee (and, in the case of the first such Material Domestic Subsidiary of zulily, to cause the zulily Subsidiary Guarantee to be executed and delivered to the Administrative Agent) and (B) cause such Material Domestic Subsidiary to deliver to the Administrative Agent a certificate of such Material Domestic Subsidiary, substantially in the form of Exhibit E, with appropriate insertions and attachments, and (ii) if 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.
		

		
			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, each Borrower covenants and agrees with the Lenders that:
		

		
			SECTION 6.01.   Indebtedness.  Such Borrower will not, and will not permit any of its Restricted Subsidiaries to, create, incur, assume or permit to exist any Indebtedness, except:
		

		
			
		

		
			

		 

 

		

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(a)        Indebtedness incurred under the Loan Documents;
		

		
			(b)        the Existing Notes and Pari Passu Indebtedness, so long as after giving pro forma effect to the incurrence of such Existing Notes or Pari Passu Indebtedness and, in either case, any substantially concurrent use of the proceeds thereof, (i) no Default shall have occurred and be continuing and (ii) the Borrowers shall be in compliance with Section 6.10;
		

		
			(c)        Capital Lease Obligations so long as after giving pro forma effect to the incurrence of such Capital Lease Obligations and any substantially concurrent use of the proceeds thereof, (i) no Default shall have occurred and be continuing and (ii) the Borrowers shall be in compliance with Section 6.10;
		

		
			(d)        Indebtedness of such Borrower that is not secured by any Lien on the assets of either Borrower or any of their respective Restricted Subsidiaries so long as after giving pro forma effect to the incurrence of such Indebtedness and any substantially concurrent use of the proceeds thereof, (i) no Default shall have occurred and be continuing and (ii) the Borrowers shall be in compliance with Section 6.10;
		

		
			(e)        Priority Indebtedness so long as after giving pro forma effect to the incurrence of such Priority Indebtedness and any substantially concurrent use of the proceeds thereof, (i) the aggregate principal amount of Priority Indebtedness (without duplication) does not exceed 50% of Consolidated EBITDA for the then most recent four fiscal quarter period for which financial statements have been delivered pursuant to Section 5.01(a) or (b), (ii) no Default shall have occurred and be continuing and (iii) the Borrowers shall be in compliance with Section 6.10; and
		

		
			(f)        Guarantees by any Restricted Subsidiary of any Indebtedness permitted pursuant to clauses (a) through (e) above, in each case so long as in the case of clauses (b) and (d) above (i) with respect to any such Guarantee by any Restricted Subsidiary of QVC, the QVC Obligations are guaranteed by such Restricted Subsidiary to at least the same extent and without subordination to such Guarantee and (ii) with respect to any such Guarantee by any Restricted Subsidiary of zulily, the QVC/zulily Obligations are guaranteed by such Restricted Subsidiary to at least the same extent and without subordinated to such Guarantee.
		

		
			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.
		

		
			SECTION 6.02.   Liens.  Such Borrower will not, and will not permit any of its Restricted Subsidiaries to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, except:
		

		
			(a)        Permitted Encumbrances;
		

		
			(b)        any Lien on any property or asset of such Borrower or any Restricted Subsidiary of such Borrower existing on the Closing Date and set forth in Schedule 6.02; provided that (i) such Lien shall not apply to any other property or asset of such Borrower or any of its Restricted Subsidiaries and (ii) such Lien shall secure only those obligations which it secures on the Closing Date and any Refinancing Indebtedness in respect thereof;
		

		
			(c)        any Lien existing on any property or asset prior to the acquisition thereof by such Borrower or any of its Restricted Subsidiaries or existing on any property or asset of any Person that becomes a Restricted Subsidiary of such Borrower after the Closing Date prior to the time such Person 
		

		
			
		

		
			

		 

 

		

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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 property or assets of such Borrower or any of its Restricted Subsidiaries 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 such Borrower or any of its Restricted Subsidiaries (including Capital Lease Obligations) incurred to finance the acquisition of fixed or capital assets, provided that (i) such Liens shall be created substantially simultaneously 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 such Borrower and its Restricted Subsidiaries;
		

		
			(f)        Liens securing the QVC Obligations and/or the QVC/zulily Obligations and Liens securing the obligations of the Subsidiary Guarantors under the Subsidiary Guarantees;
		

		
			(g)        Liens securing Indebtedness permitted pursuant to Section 6.01(b), so long as (x) in the case of any Pari Passu Indebtedness described in clause (i) of the definition thereof, the QVC Obligations are secured equally and ratably with (or better than) such Liens and (y) in the case of any Pari Passu Indebtedness described in clause (ii) of the definition thereof, the QVC/zulily Obligations are secured equally and ratably with (or better than) such Liens;
		

		
			(h)        Liens securing Indebtedness permitted pursuant to Section 6.01(e); and
		

		
			(i)        Liens securing Guarantees permitted pursuant to Section 6.01(f) other than Guarantees of Indebtedness permitted pursuant to Section 6.01(d), provided that, with respect to any such Liens securing Guarantees of Indebtedness permitted pursuant to Section 6.01(b), the QVC Obligations (in the case of Guarantees by Restricted Subsidiaries of QVC) or the QVC/zulily Obligations (in the case of Guarantees by Restricted Subsidiaries of zulily) are secured equally and ratably with (or better than) such Liens.
		

		
			SECTION 6.03.   Fundamental Changes.  (a) Such Borrower will not, and will not permit any of its Restricted Subsidiaries to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or Dispose of (in one transaction or in a series of transactions) all or 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 into such Borrower in a transaction in which such Borrower is the surviving corporation, (ii) any Person (other than such Borrower) may merge or consolidate with or into any of its Restricted Subsidiaries in a transaction in which the surviving entity is its Restricted Subsidiary or which is permitted as a Disposition under Section 6.04; (iii) any Restricted Subsidiary may Dispose of its assets, and such Borrower or any of its Restricted Subsidiaries may Dispose of any stock of any of its Restricted Subsidiaries, in each case to such Borrower or to another Restricted Subsidiary of such Borrower or in a transaction which is permitted as a Disposition under Section 6.04 and (iv) any of its Restricted Subsidiaries may liquidate or dissolve if such Borrower determines in good faith that such liquidation or dissolution is in the best interests of such Borrower and is not materially disadvantageous to the Lenders; provided that any such merger which is in the nature of a sale of a Person that is not a wholly owned Restricted Subsidiary 
		

		
			
		

		
			

		 

 

		

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of such Borrower immediately prior to such merger shall not be permitted unless also permitted by Section 6.04.
		

		
			(b)        Such Borrower will not, and will not permit any of its Restricted Subsidiaries to, change its line of business from the lines of business conducted by such Borrower and its Restricted Subsidiaries on the date of execution of this Agreement (other than businesses incidental or related thereto).
		

		
			SECTION 6.04.   Disposition of Property.  Neither Borrower will, or will permit any of its Restricted Subsidiaries to, Dispose of any of its property, whether now owned or hereafter acquired other than inventory and obsolete or worn out property in the ordinary course of business and accounts receivable in connection with the collection thereof, or, in the case of any of its Restricted Subsidiaries, issue or sell any shares of such Restricted Subsidiary’s capital stock to any Person, unless at the time of such transaction (or, if earlier, the date of the commitment to enter into such transaction) and after giving effect thereto and to the use of the proceeds thereof, (i) no Default shall have occurred and be continuing on a pro forma basis reflecting such transaction and (ii) the Borrowers shall be in compliance with Section 6.10.
		

		
			SECTION 6.05.   Restricted Payments.  Such Borrower will not, and will not permit any of its Restricted Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except (a) such Borrower may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its common stock, (b) Restricted Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests, (c) such Borrower and its Restricted Subsidiaries may declare, make, agree to pay and agree to make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for directors, management, employees or consultants of such Borrower and its Restricted Subsidiaries, (d) such Borrower may make Restricted Payments to LIC and its subsidiaries to the extent necessary to pay principal and interest when due in respect of the Indebtedness of LIC and its subsidiaries, provided that after giving pro forma effect to such Restricted Payment, no Default shall have occurred and be continuing, and (e) such Borrower may make Restricted Payments to LIC and its subsidiaries to pay any taxes that are due and payable by such Borrower and its Restricted Subsidiaries to LIC or its subsidiaries in accordance with the tax liability allocation and indemnification agreement or arrangement between such Borrower and LIC.  Notwithstanding the foregoing, such Borrower and its Restricted Subsidiaries shall be permitted to declare and make and agree to pay and pay a Restricted Payment, provided that after giving pro forma effect to such Restricted Payment, (i) no Default shall have occurred and be continuing and (ii) the Consolidated Leverage Ratio shall be less than or equal to 3.50 to 1.00.
		

		
			SECTION 6.06.   Transactions with Affiliates.  Such 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, except (a) for transactions at prices and on terms and conditions not less favorable to such Borrower or such Restricted Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among such Borrower and its wholly owned Restricted Subsidiaries not involving any other Affiliate, (c) pursuant to Stock Compensation Plans, (d) any Restricted Payment permitted by Section 6.05 and (e) ordinary course overhead arrangements in which any Restricted Subsidiary or Unrestricted Subsidiary participates.
		

		
			SECTION 6.07.   Changes in Fiscal Periods.  Such 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.
		

		
			
		

		
			

		 

 

		

			67

		

SECTION 6.08.   Sales and Leasebacks.  Such Borrower will not, and will not permit any of its Restricted Subsidiaries to, enter into any arrangement with any Person providing for the leasing by such Borrower or any of its Restricted Subsidiaries of real or personal property that has been or is to be sold or transferred by such Borrower or any of its Restricted Subsidiaries 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 such Borrower or any of its Restricted Subsidiaries unless (i) the lease in such arrangement is a capital lease and such capital lease may be entered into at such time pursuant to Section 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 made by the Borrowers and their Restricted Subsidiaries since the Closing Date do not exceed the greater of (x) $500,000,000 and (y) an amount equal to 15% of Stockholders’ Equity as of the last day of the fiscal quarter of the Borrowers most recently ended at the time of entry into such arrangement for which financial statements have been delivered pursuant to Section 5.01.
		

		
			SECTION 6.09.   Clauses Restricting Subsidiary Distributions.  Such Borrower will not, and will not permit any of its Restricted Subsidiaries to, enter into or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any of its Restricted Subsidiaries to (a) make Restricted Payments in respect of any capital stock of such Restricted Subsidiary held by, or pay any Indebtedness owed to, such Borrower or any other Restricted Subsidiary of such Borrower, (b) make loans or advances to, or other investments in, such Borrower or any other Restricted Subsidiary of such Borrower or (c) transfer any of its assets to such Borrower or any other Restricted Subsidiary of such Borrower, except for such encumbrances or restrictions existing under or by reason of any restrictions (i) existing under this Agreement and the other Loan Documents, (ii) 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) under any agreement governing Capital Lease Obligations or Indebtedness 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) under any agreement listed on Schedule 6.09 and any replacement or refinancing of such agreement, in each case so long as the aggregate amount of the Indebtedness incurred under the relevant agreement or any replacement or refinancing thereof is not increased above the amount outstanding on the Closing Date and the relevant restrictions are not made more restrictive after the Closing Date, (v) 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, and any replacement or refinancing thereof so long as the restrictions are not made more restrictive, (vi) imposed by any Governmental Authority or by reason of applicable law, (vii) arising under customary provisions restricting assignment of any agreement entered into in the ordinary course of business, (viii) arising under customary provisions contained in any agreement relating to a Disposition permitted hereunder pending the consummation of such Disposition, (ix) in the case of any Restricted Subsidiary that is not a wholly-owned Restricted Subsidiary, arising under customary provisions in partnership agreements, limited liability company organizational governance documents and other similar agreements; provided, that such restrictions and conditions apply only to such Restricted Subsidiary and to the Equity Interests of such Restricted Subsidiary and (x) on cash deposits imposed by any supplier, service provider or landlord under contracts entered into in the ordinary course of business.
		

		
			SECTION 6.10.   Financial Covenants.
		

		
			(a)        The Borrowers will not permit the Consolidated Leverage Ratio as at any day to be greater than 3.50:1.00.
		

		
			(b)        QVC will not permit the Consolidated QVC Leverage Ratio as at any day to be greater than 3.50:1.00.
		

		
			
		

		
			

		 

 

		

			68

		

SECTION 6.11.   Investments.  Such 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 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 Equivalents;
		

		
			(c)        loans and advances to employees of such Borrower or any of its Restricted Subsidiaries in the ordinary course of business (including for travel, entertainment and relocation expenses) in an aggregate amount for the Borrowers and their Restricted Subsidiaries not to exceed $10,000,000 at any one time outstanding;
		

		
			(d)        Investments made by such Borrower or any of its Restricted Subsidiaries in such Borrower or any of its Restricted Subsidiaries;
		

		
			(e)        Investments made by such Borrower or any of its Restricted Subsidiaries (other than Investments directly or indirectly in Unrestricted Subsidiaries of such Borrower) at any time if, after giving pro forma effect thereto, (i) the Consolidated Leverage Ratio is less than or equal to 3.50 to 1.00 and (ii) no Default shall have occurred and be continuing;
		

		
			(f)        Investments made by such Borrower or any of its Restricted Subsidiaries in such Borrower’s Unrestricted Subsidiaries in an aggregate amount, together with all other Investments made by the Borrowers or their Restricted Subsidiaries under this clause (f), not to exceed (i) $500,000,000 in any fiscal year and (ii) $1,000,000,000 during the term of this Agreement (starting on the Closing Date), in each case, determined net of any cash recoveries actually received in respect of such Investments (it being understood that, if an Unrestricted Subsidiary becomes a Restricted Subsidiary, there will be deemed to have occurred a cash recovery of all Investments made in such subsidiary on or after the Closing Date); provided that after giving pro forma effect to each such Investment, no Default shall have occurred and be continuing;
		

		
			(g)        Investments made by such Borrower or any of its Restricted Subsidiaries resulting in the acquisition of Equity Interests or assets constituting a business unit of another Person (including by way of merger), in each case using consideration consisting of Equity Interests of any of such Borrower’s Restricted Subsidiaries (it being understood that other forms of consideration may also be used in connection with such Investment to the extent of availability under clause (h) below), so long as (i) in the case of an acquisition of Equity Interests of a Person, such Person becomes a Restricted Subsidiary or (ii) in the case of an acquisition of assets other than Equity Interests, such assets are acquired by a Restricted Subsidiary; provided that after giving pro forma effect to each such Investment, no Default shall have occurred and be continuing;
		

		
			(h)        in addition to Investments otherwise expressly permitted by Section 6.11(a) through (g), Investments made by such Borrower or any of its Restricted Subsidiaries in an aggregate amount, together with all other Investments made by the Borrowers and their Restricted Subsidiaries under this clause (h), not to exceed $250,000,000 during the term of this Agreement (starting on this Closing Date), determined net of any cash recoveries actually received in respect of such Investments, provided that 
		

		
			
		

		
			

		 

 

		

			69

		

after giving pro forma effect to each such Investment, no Default shall have occurred and be continuing; and
		

		
			(i)        Restricted Payments permitted by Section 6.05.
		

		
			SECTION 6.12.   Use of Proceeds.  Such Borrower will not request any Loan or Letter of Credit, and such Borrower shall not use, and shall procure that its subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Loan or Letter of Credit (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country to the extent such activities, businesses or transactions would be prohibited by Sanctions if conducted by a corporation incorporated in the United States or in a European Union member state, or (C) in any manner that would result in the violation of  any Sanctions applicable to any party hereto.
		

		
			ARTICLE VII
		

		
			Events of Default
		

		
			If any of the following events (“Events of Default”) shall occur:
		

		
			(a)        (i) QVC shall fail to pay any principal of any Loan (other than any Tranche 2 Revolving  Loan) or any Tranche 1-3 LC Disbursement or (ii) the Borrowers shall fail to pay any principal of any Tranche 2 Revolving Loan or any Tranche 2 LC Disbursement, in each case, 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)        (i) QVC shall fail to pay any interest on any Loan (other than any Tranche 2 Revolving Loan) or any fee or any other amount (other than an amount referred to in clause (a) of this Article) payable by it under this Agreement, or (ii) the Borrowers shall fail to pay any interest on any Tranche 2 Loan, or zulily shall fail to pay any other amount (other than an amount referred to in clause (a) of this Article) payable by it, in each case set forth in clauses (i) and (ii), when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three Business Days;
		

		
			(c)        any representation or warranty made or deemed made by or on behalf of either Borrower or any other Credit Party in this Agreement or any other Loan Document or any amendment, modification or waiver in respect thereof, or in any certificate or in or as to any financial statements 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 either Borrower’s existence) or 5.08 or in Article VI or any Pledgor (as defined in the QVC Parent Pledge Agreement and the zulily Parent Pledge Agreement) shall fail to observe or perform any of its covenants, conditions or agreements contained in Section 4.5 of the QVC Parent Pledge Agreement or Section 4.5 of the zulily Parent Pledge Agreement;
		

		
			(e)        any Credit 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 Article), and such failure shall continue unremedied for a period 
		

		
			
		

		
			

		 

 

		

			70

		

of 30 days after notice thereof from the Administrative Agent to the Borrowers (which notice will be given at the request of any Lender);
		

		
			(f)        either 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 either Borrower or any Restricted 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 either Borrower or any Restricted Subsidiary or for a 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)        either Borrower or any Restricted 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 Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for such Borrower or any of its Restricted Subsidiaries 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 $100,000,000 shall be rendered against either Borrower, any Restricted Subsidiary or any combination thereof and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of either Borrower or any of its Restricted Subsidiaries to enforce any such judgment;
		

		
			(k)        an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with all other ERISA Events that have occurred, would reasonably be expected to result in a Material Adverse Effect;
		

		
			(l)        (i) any Unrestricted Subsidiary shall fail to satisfy customary formalities with respect to organizational separateness, including, without limitation, (A) the maintenance of separate books and records and (B) the maintenance of separate bank accounts in its own name, or (ii) any Unrestricted Subsidiary, either Borrower or any of its Restricted Subsidiaries shall (x) commingle any money or other assets of any Unrestricted Subsidiary with any money or other assets of such Borrower or any of its Restricted Subsidiaries or (y) take any action, or conduct its affairs in a manner, which could reasonably be 
		

		
			
		

		
			

		 

 

		

			71

		

expected to result in the separate organizational existence of each Unrestricted Subsidiary from such Borrower and its Restricted Subsidiaries being ignored under any circumstance;
		

		
			(m)        the QVC Subsidiary Guarantee (or, following its effectiveness, the zulily Subsidiary Guarantee) shall cease, for any reason, to be in full force and effect or any Loan Party or any Affiliate of any Loan Party shall so assert;
		

		
			(n)        either Pledge Agreement shall cease, for any reason, to be in full force and effect, or any Credit Party or any Affiliate of any Credit Party shall so assert, or any Lien created by either of the QVC Parent Pledge Agreement or the zulily Parent Pledge Agreement shall cease to be enforceable and of the same effect and priority purported to be created thereby (except, in each case, in accordance with Section 9.16, Section 9.19, the QVC Parent Pledge Agreement or the zulily Parent Pledge Agreement);
		

		
			(o)        any Lien is created, incurred, assumed or permitted to exist on any Equity Interests of either Borrower other than (i) Permitted Encumbrances described in clauses (a), (b) and (e) of the definition of “Permitted Encumbrances,” (ii) Liens securing the QVC Obligations and/or the QVC/zulily Obligations and (iii) Liens securing other Indebtedness of any Loan Party so long as the QVC Obligations (in the case of Indebtedness of QVC or its subsidiaries) or QVC/zulily Obligations (in the case of Indebtedness of zulily or its subsidiaries) are secured equally and ratably with (or better than) such Liens;
		

		
			(p)        (i) the Collateral Agent shall cease, for any reason, to have a perfected first priority Lien on all issued and outstanding Equity Interests of either Borrower, or (ii) either Borrower shall issue any of its Equity Interests to any Person other than a Person that is or concurrently becomes a party to the QVC Parent Pledge Agreement (in the case of QVC’s Equity Interests) or zulily Parent Pledge Agreement (in the case of zulily’s Equity Interests), but, in each case, only if such event is an Event of Default under and as defined in the indentures for the then outstanding Existing Notes or the documentation for any then outstanding Pari Passu Indebtedness; or
		

		
			(q)        a Change in Control shall occur;
		

		
			then, and in every such event (other than an event with respect to a Borrower described in clause (h) or (i) of this Article), 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 Borrowers, 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), 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 Borrowers 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 Borrowers 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 a Borrower described in clause (h) or (i) of this Article, the Revolving 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 Borrowers 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 Borrowers.
		

		
			
		

		
			

		 

 

		

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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 Borrowers or any of their respective Restricted Subsidiaries 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), 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 Borrowers or any of their respective 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 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 a 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 
		

		
			
		

		
			

		 

 

		

			73

		

Borrowers), 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.
		

		
			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 Borrowers.  Upon any such resignation, the Required Lenders shall have the right, in consultation with the Borrowers, 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 Borrowers to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor.  After the Administrative Agent’s resignation hereunder, the provisions of this Article 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 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 Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender 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.
		

		
			SECTION 8.08.   Lead Arrangers; Bookrunners; Syndication Agents; Documentation Agents.  Notwithstanding anything to the contrary herein, none of the Lead Arrangers, Bookrunners, Syndication Agents or 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.
		

		
			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 
		

		
			
		

		
			

		 

 

		

			74

		

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 Borrowers (with a copy to LIC) 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:
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						QVC:

					
					
						QVC, Inc.
Studio Park, 1200 Wilson Drive, MC 203
West Chester, Pennsylvania  19382

				
	
					
						 

					
					
						Attention:  Chief Financial Officer

				
	
					
						 

					
					
						Telecopy:  (484) 701-1380

				
	
					
						 

					
					
						Telephone:  (484) 701-1000

				
	
					
						 

					
					
						 

				
	
					
						With a copy to: 

					
					
						QVC, Inc.
Studio Park, 1200 Wilson Drive, MC 207
West Chester, Pennsylvania  19382

				
	
					
						 

					
					
						Attention:  General Counsel

				
	
					
						 

					
					
						Telecopy:  (484) 701-1021

				
	
					
						 

					
					
						Telephone:  (484) 701-1000

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						and

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Liberty Interactive Corporation
12300 Liberty Boulevard
Englewood, Colorado  80112

				
	
					
						 

					
					
						Attention: Treasurer

				
	
					
						 

					
					
						Telecopy:  (720) 875-5915

				
	
					
						 

					
					
						Telephone:  (720) 875-5411

				
	
					
						 

					
					
						 

				
	
					
						zulily:

					
					
						zulily, llc
2601 Elliott Avenue, Suite 200
Seattle, Washington 98121

				
	
					
						 

					
					
						Attention: General Counsel

				
	
					
						 

					
					
						Telecopy: (206) 299-3772

				
	
					
						 

					
					
						Telephone:  (206) 454-3322

				
	
					
						 

					
					
						 

				
	
					
						With a copy to:

					
					
						Liberty Interactive Corporation
12300 Liberty Boulevard
Englewood, Colorado  80112
Attention: Treasurer
Telecopy:  (720) 875-5915
Telephone:  (720) 875-5411

					
						 

					
						and

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						QVC, Inc.
Studio Park, 1200 Wilson Drive, MC 203
West Chester, Pennsylvania  19382

				
	
					
						 

					
					
						Attention:  Chief Financial Officer

				
	
					
						 

					
					
						Telecopy:  (484) 701-1380

				

		
			 
		

		
			
		

		

		 

 

		

			75

		

	
					
						 

					
					
						 

				
	
					
						 

					
					
						Telephone:  (484) 701-1000

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						and

					
						 

					
						QVC, Inc.
Studio Park, 1200 Wilson Drive, MC 207
West Chester, Pennsylvania  19382

				
	
					
						 

					
					
						Attention:  General Counsel

				
	
					
						 

					
					
						Telecopy:  (484) 701-1021

				
	
					
						 

					
					
						Telephone:  (484) 701-1000

				
	
					
						 

					
					
						 

				
	
					
						Administrative Agent:

					
					
						JPMorgan Chase Bank, N.A.
500 Stanton Christiana Road
3rd Floor Ops 2
Newark, DE 19713

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Primary Contact:
Attention: Robert Madak
Telecopy: (302) 634-3301
Telephone: (302) 634-1392
Email address: robert.madak@jpmorgan.com

					
						 

					
						Secondary Contact:
Attention: David Brace
Telecopy: (302) 634-3301

					
						Telephone: (302) 522-6020
Email address: david.e.brace@jpmorgan.com

				
	
					
						 

					
					
						 

					
						J.P. Morgan Europe Ltd.
Loans Agency Department

					
						Floor 6, 25 Bank Street,
Canary Wharf,
London
E14 5JP, United Kingdom

				
	
					
						 

					
					
						Telecopy: 44 207 777 2360

				
	
					
						 

					
					
						Telephone: 44 207 742 9941

					
						 

					
						Primary Contact:
Attention: Graeme Syme
Telecopy: +44 (0)207 777 2360
Telephone: +44 (0)207 134 6553
Email address: graeme.syme@chase.com

					
						Secondary Contact:
Attention: Fatma Mustafa
Telecopy: +44 (0)207 777 2360
Telephone: +44 (0)207 742 1911
Email address: fatma.mustafa@jpmorgan.com

				
	
					
						 

					
					
						 

				

		
			 
		

		
			
		

		

		 

 

		

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						With a copy to: 

					
					
						JPMorgan Chase Bank, N.A.
383 Madison Avenue
New York, New York  10179

				
	
					
						 

					
					
						Attention:  Davide Migliardi

				
	
					
						 

					
					
						Telecopy:  (212) 270-5100

				
	
					
						 

					
					
						Telephone:  (212) 270-2138
Email address: davide.x.migliardi@jpmorgan.com

				
	
					
						 

					
					
						 

				

		
			 
		

		
			(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 either Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications.
		

		
			SECTION 9.02.   Waivers; Amendments.
		

		
			(a)        No failure or delay by the Administrative Agent or any Lender in exercising any right or power hereunder or under any other Loan 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 any Loan Document are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of any Loan Document or consent to any departure by either 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)        No Loan Document or any provision thereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Credit Parties that are party thereto and the Required Lenders or by the Credit Parties that are party thereto and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Revolving 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, reduce the reimbursement obligations of either Borrower hereunder 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 Revolving Commitment, without the written consent of each Lender directly affected thereby, (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 adversely affected thereby, (v) release all or substantially all of the Collateral (except as provided in Section 9.16 or Section 9.19) without the consent of each Lender, (vi) release all or substantially all of the Material Domestic Subsidiaries as Subsidiary Guarantors without the consent of each Lender (except as provided in Section 9.19) or (vii) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or 

		 

 

		

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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; 
		

		
			
		

		
			

		 

 

		

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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 or the Collateral Agent under the QVC Subsidiary Guarantee, the zulily Subsidiary Guarantee, the QVC Parent Pledge Agreement or the zulily Parent Pledge Agreement, without the prior written consent of the Collateral Agent, Administrative Agent or such Issuing Bank, as applicable.
		

		
			(c)        The Revolving Commitments and any Loans held by LIC and its subsidiaries (collectively, the “Affiliated Lenders”) 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 this Section 9.02); provided that the provisions of this sentence shall not apply to any action requiring the consent of all Lenders or each affected Lender.  Affiliated Lenders may not receive information provided solely to Lenders by the Administrative Agent or any Lender, and may not attend or participate in Lender meetings not attended by either Borrower.
		

		
			(d)        Notwithstanding the foregoing, (i) the Administrative Agent, with the consent of the Borrowers, may amend, modify or supplement any Loan Document without the consent of any Lender or the Required Lenders in order to correct, amend or cure any ambiguity, inconsistency or defect or correct any typographical error or other manifest error in any Loan Document, (ii) the QVC Parent Pledge Agreement may be amended or supplemented as provided in Section 7.1(b) thereof with only the consents provided in such Section 7.1(b) and the zulily Parent Pledge Agreement may be amended or supplemented as provided in Section 7.1(b) thereof with only the consents provided in such Section 7.1(b), (iii) subject to Section 9.02(b)(iii) above, the Revolving Termination Date with respect to the Tranche 1 Revolving Facility or Tranche 2 Revolving Facility may be extended with the consent of only the Administrative Agent, the applicable Borrower (or Borrowers) and the Majority Facility Lenders under the Tranche 1 Revolving Facility or Tranche 2 Revolving Facility, respectively and (iv) the Administrative Agent, with the consent of QVC, may amend, modify or supplement any Loan Document without the consent of any Lender or the Required Lenders in order to reflect the provisions of Section 9.19 (it being understood and agreed that no such amendment shall be necessary for Section 9.19 to take effect).
		

		
			SECTION 9.03.   [Reserved].
		

		
			SECTION 9.04.   Expenses; Indemnity; Damage Waiver.
		

		
			(a)        The Borrowers shall pay (i) all reasonable out‐of‐pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the 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 or any Lender or Issuing Bank, including the fees, charges and disbursements of any counsel for the Administrative Agent or any Lender or Issuing Bank, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Loan Document, including its 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)        Each of the Borrowers shall indemnify the Administrative Agent, the Lead Arranger, each Lender and each Issuing Bank, 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 fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby by such Borrower, its Subsidiary 
		

		
			
		

		
			

		 

 

		

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Guarantees and its Parent, the performance by such parties of their respective obligations hereunder or thereunder or the consummation of the Transactions to be performed by such Borrower, its Subsidiary Guarantors and its Parent or any other transactions contemplated hereby or thereby to be performed by such Borrower, its Subsidiary Guarantors or its Parent, (ii) any Loan made to such Borrower 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 such Borrower or any of its Restricted Subsidiaries, or any Environmental Liability related in any way to such 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, any Lender or any Issuing Bank as a result of conduct of such 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; 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 by final and nonappealable judgment to have (x) resulted from the gross negligence or willful misconduct of such Indemnitee or (y) arisen from a material breach of a Loan Document in bad faith by such Indemnitee or (ii) result from a dispute solely among Indemnitees (other than any disputes involving claims against any agent, arranger or bookrunner, in each case in their respective capacities as such) that did not involve actions or omissions of either Borrower or any of its Affiliates.  Each Indemnitee shall give prompt notice to the applicable Borrower (or Borrowers) of any claim that may give rise to a claim against such Borrower hereunder and shall consult with such 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 such Borrower or to seek such consultation with such 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 such Borrower.
		

		
			(c)        To the extent that either 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; provided that nothing contained in this clause (d) shall limit the Borrowers’ indemnification obligations above to the extent such special, indirect, consequential and punitive damages are included in any third party claim in connection with which any Indemnitee is entitled to indemnification hereunder.
		

		
			(e)        All amounts due under this Section shall be payable promptly after written demand therefor.
		

		
			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) neither Borrower may 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 such Borrower without such 
		

		
			
		

		
			

		 

 

		

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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 (other than a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person), except as provided in Section 9.05(e) either Borrower or the Affiliates or subsidiaries of either Borrower, a Defaulting Lender or a Sanctioned Person) 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) QVC and, in the case of Tranche 2 Revolving Commitments and Tranche 2 Revolving Loans, zulily (each such consent not to be unreasonably withheld or delayed, except for certain institutions (and affiliates of such institutions) identified by the Borrowers in writing to the Administrative Agent on or prior to the Closing Date (the “Restricted List”), the identities of which are available to the applicable Lenders upon request to the Administrative Agent), provided that (i) such Borrower (or Borrowers) shall be deemed to have consented to any such assignment unless it (or either of them) shall have objected thereto by written notice to the Administrative Agent within 10 Business Days after having received written notice thereof, (ii) no consent of either Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default under clause (a), (b), (h) or (i) of Article VII has occurred and is continuing, any other assignee (except for institutions (and affiliates of such institutions) on the Restricted List) and (iii) if a Borrower consents to an assignment to any institution (or affiliate of such institution) on the Restricted List, such institution shall be permanently removed from the Restricted List; and
		

		
			(B) the Administrative Agent (such consent not to be unreasonably withheld or delayed), 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 or 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 $5,000,000 or, in the case of any Incremental Term Loan, $1,000,000 (or, in the case of a Loan in an Alternative Currency, an appropriate corresponding amount as shall be consented to by the Administrative Agent (such consent not to be unreasonably withheld)), unless each of the applicable Borrower (or Borrowers) and the Administrative Agent otherwise consent, provided that no such consent of the Borrower (or Borrowers) shall be required if an Event of Default under clause (a), (b), (h) or (i) of Article VII 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, 
		

		
			
		

		
			

		 

 

		

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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 one Class of Revolving Commitments or 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 Wells Fargo 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; and
		

		
			(E)   on the date of such assignment, the assignee of a Revolving Commitment must be able to fund Revolving Loans in all Alternative Currencies.
		

		
			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 Borrowers, 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 Revolving Commitments of, and principal amount 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 Borrowers, the Administrative Agent and the Lenders may 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 any Borrower and any Lender, 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 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.
		

		
			
		

		
			

		 

 

		

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(c)        (i)  Any Lender may, without the consent of the Borrowers, the Administrative Agent or any Issuing Bank, sell participations to one or more banks, institutions or other entities (other than a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person) except as provided in Section 9.05(e), either Borrower or the Affiliates or subsidiaries of either Borrower, a Defaulting Lender or a Sanctioned Person) (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Revolving 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 Borrowers, 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) that affects such Participant.  Subject to paragraph (c)(ii) of this Section, each Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12, 2.13 and 2.14 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section.
		

		
			(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, except (i) to the extent such entitlement to receive a greater payment results from any Change in Law that occurs after the Participant acquired the applicable participation or (ii) if the sale of the participation to such Participant is made with the applicable Borrower’s (or Borrowers’) prior written consent.  A Participant shall not be entitled to the benefits of Section 2.14 unless such Participant complies with Section 2.14(f) as though it were a Lender (it being understood that the documentation required under Section 2.14(f) shall be delivered to the participating Lender). Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the applicable Borrower (or Borrowers), maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any Participant or any information relating to a Participant’s interest in any Revolving Commitments, Loans, Letters of Credit or its other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that such Revolving Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
		

		
			(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 any other central bank or governmental authority, 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.
		

		
			
		

		
			

		 

 

		

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(e)        Revolving Commitments, Revolving Loans and Incremental Term Loans may only be assigned to LIC or any of its subsidiaries as long as (i) no Default or Event of Default shall have then occurred and be continuing, (ii) no proceeds from any Revolving Loans are used, directly or indirectly, to fund such assignment, (iii) each of the Lenders that hold Loans in the same Facility as the Loans being assigned has been offered the chance to participate in such assignment pro rata (in proportion to the Loans in such Facility) pursuant to procedures reasonably satisfactory to the Administrative Agent at the same price (based on a percentage of par), (iv) all assignments made pursuant to such offer shall be made at the same price (based on a percentage of par), (v) in the case of any assignment of Revolving Commitments and/or Revolving Loans, such Revolving Commitments and Revolving Loans shall be contributed to the applicable Borrower (or Borrowers) and permanently extinguished within one Business Day of such assignment, and (vi) no assignment may result in the Affiliated Lenders holding a principal amount of Incremental Term Loans under any Incremental Term Facility exceeding 15% of the principal amount of Incremental Term Loans outstanding under such Incremental Term Facility, unless such excess is contributed to QVC and permanently extinguished within one Business Day of such assignment.
		

		
			(f)        In the event that an Issuing Bank assigns all of its rights and obligations as a Lender under this Agreement pursuant to this Section 9.05, such Issuing Bank may resign by providing 30 days prior written notice to the Borrowers, the Administrative Agent and the Lenders.  For the avoidance of doubt, such resigning Issuing Bank shall retain all rights and obligations provided under this Agreement with respect to any Letters of Credit issued by it and outstanding under this Agreement at the time of such resignation.
		

		
			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 Loans, the expiration or termination of the Revolving Commitments 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 4.01, 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 
		

		
			
		

		
			

		 

 

		

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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 applicable Borrower against any of and all the obligations of such 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; provided that such Lender shall notify the Administrative Agent that it intends to exercise its right of setoff pursuant to this Section 9.09 and shall provide the Administrative Agent with other information that it reasonably requests relating thereto.  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.
		

		
			SECTION 9.10.   Governing Law; Jurisdiction; Consent to Service of Process.  (a)  This Agreement shall be construed in accordance with and governed by the law of the State of New York.
		

		
			(b)        Each party hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Supreme Court 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 sitting in New York County, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally 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 any Lender or Agent may otherwise have to bring any action or proceeding to enforce any award or judgment or exercise any right under the Loan Documents or against any Collateral or any other property of any Loan Party in any other forum in which jurisdiction can be established.
		

		
			(c)        Each 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 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 or any other Loan Document 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 
		

		
			
		

		
			

		 

 

		

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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 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, each Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (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 advisors) to any swap or derivative transaction, or to any credit insurance provider, in each case, relating to a Borrower and its obligations, (g) with the consent of the Borrower to whom the Information pertains, (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 non-confidential basis from a source other than the Borrowers or (i) to data service providers, including league table providers, that serve the lending industry (but, in the case of this clause (i), solely to the extent that (x) such Information is information about the terms of the financing contemplated hereby routinely provided by arrangers to data services providers and (y) such Information is provided to such data service providers no earlier than the fifth Business Day after the Closing Date.  “Information” means all information received from the Borrowers or their Affiliates relating to the Borrowers, their subsidiaries or their businesses, other than any such information that is available to the Administrative Agent, any Issuing Bank or any Lender on a non-confidential basis prior to disclosure by the Borrowers.
		

		
			Each Lender (other than any “public only” Lender) acknowledges that information furnished to it pursuant to this Agreement or the other Loan Documents may include material non-public information concerning the Borrowers and their Affiliates and their related parties or their respective securities, and confirms that it has developed compliance 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.
		

		
			All information, including requests for waivers and amendments, furnished by the Borrowers 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 Borrowers and their Affiliates and their related parties or their respective securities.  Accordingly, each Lender represents to the Borrowers 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.
		

		
			
		

		
			

		 

 

		

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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 each 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 a Borrower in the Agreement Currency, such 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 applicable Borrower (or to any other Person who may be entitled thereto under applicable law).
		

		
			SECTION 9.15.   USA PATRIOT Act.  Each Lender subject to the Act hereby notifies the Borrowers 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”), it is hereby required to obtain, verify and record information that identifies  the Borrowers, which information includes the name and address of the Borrowers and other information that will allow such Lender to identify the Borrowers in accordance with the Act.
		

		
			SECTION 9.16.   Releases of Guarantees and Liens.  (a)  Notwithstanding anything to the contrary contained herein or in any other Loan Document, the Administrative Agent is hereby irrevocably authorized by each Lender (without requirement of notice to or consent of any Lender except as expressly required by Section 9.02) to take any action requested by either Borrower having the effect of releasing any Collateral under the QVC Parent Pledge Agreement or zulily Parent Pledge agreement or obligations under the QVC Subsidiary Guarantee or the zulily Subsidiary Guarantee to the extent necessary to permit consummation of any transaction not prohibited by any Loan Document or that has been consented to in accordance with Section 9.02.
		

		
			(b)  At such time as the Loans and the other Obligations (other than Obligations under or in respect of Specified Swap Agreements and Letters of Credit) shall have been paid in full, the Revolving Commitments have been terminated and all Letters of Credit have expired or been cash collateralized the Collateral shall be released from the Liens created by the Pledge Agreements and all obligations (other than those expressly stated to survive such termination) of the Administrative Agent and each Credit Party under the Pledge Agreements shall terminate, all without delivery of any instrument or performance of any act by any Person.
		

		
			SECTION 9.17.   No Advisory or Fiduciary Responsibility.  In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), each of the Borrowers acknowledges and agrees that: (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent, the Lead Arranger and the Lenders are arm’s-length commercial transactions between the Borrowers and its Affiliates, on the one hand, and the Administrative Agent, the Lead Arranger and the Lenders, on the other hand, (B) such Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) such Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan 
		

		
			
		

		
			

		 

 

		

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Documents; (ii) (A) the Administrative Agent, the Lead Arranger and each Lender is and has 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 such Borrower or any of its Affiliates, or any other Person and (B) neither the Administrative Agent, the Lead Arranger nor any Lender has any obligation to such Borrower or any of its 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, the Lead Arranger and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of such Borrower and its Affiliates, and none of the Administrative Agent, the Lead Arranger or any Lender has any obligation to disclose any of such interests to such Borrowers or its Affiliates.  Each of the Borrowers further agrees that it will not assert any claim against the Administrative Agent, the Lead Arranger or any Lender based on an alleged breach of fiduciary duty by such Person in connection with the Loan Documents or the transactions contemplated hereby.
		

		
			SECTION 9.18.   Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
		

		
			(a)        the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and
		

		
			(b)        the effects of any Bail-In Action on any such liability, including, if applicable:
		

		
			(i)     a reduction in full or in part or cancellation of any such liability;
		

		
			(ii)     a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
		

		
			(iii)     the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.
		

		
			SECTION 9.19.   Removal of zulily.
		

		
			(a)        In the event that all outstanding Tranche 2 Revolving Loans made to zulily are repaid, all outstanding Tranche 2 Letters of Credit issued for the account of zulily or any of its Restricted Subsidiaries are terminated or cash collateralized in a manner satisfactory to the Issuing Bank and all other amounts payable by zulily hereunder or under any other Loan Document have been paid in full, then the Borrowers may notify the Administrative Agent in writing of their election to remove zulily as a party to each Loan Document.  Upon such election, and without any further action on the part of any party hereto, (i) the term “Borrowers” herein and in any other Loan Document shall refer only to QVC and all references to “zulily” herein and in any other Loan Document shall be disregarded, including but not limited to, with respect to all representations, warranties, covenants and events of default (it being understood and agreed that all representations, warranties, covenants and events of default shall continue to apply with respect to any entity that has become a subsidiary of QVC), (ii) the zulily Parent Pledge Agreement shall automatically terminate, (iii) the zulily Subsidiary Guarantee shall automatically terminate, and (iv) for the avoidance of 
		

		
			
		

		
			

		 

 

		

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doubt, all financial calculations and ratios herein shall be calculated without regard to zulily and its subsidiaries (and, for the avoidance of doubt, all references to the Consolidated Leverage Ratio shall be deemed to refer to the Consolidated QVC Leverage Ratio).  Upon such election (or deemed election pursuant to clause (b) below), the Administrative Agent, at such Borrower’s expense, shall take such steps and execute such documents as may reasonable be requested by either Borrower to evidence the foregoing.
		

		
			(b)        In the event that zulily ceases to be a direct or indirect subsidiary of LIC (i) all Tranche 2 Loans made to zulily  and all other amounts payable by zulily hereunder or under any other Loan Document shall automatically become immediately due and payable, and zulily shall terminate or cash collateralize all outstanding Tranche 2 Letters of Credit issued for the account of zulily or any of its Restricted Subsidiaries and (ii) the Borrowers will be deemed to have made an election to remove zulily as a party to each Loan Document as set forth in clause (a) above.

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