Document:

wgoamendedandrestatedcre

                                                                                                                                              EXHIBIT 10.1                                                           EXECUTION VERSION                                                                                                                         AMENDED AND RESTATED                              CREDIT AGREEMENT                                    dated as of                                  October 22, 2019                                      among                           WINNEBAGO INDUSTRIES, INC.                           WINNEBAGO OF INDIANA, LLC                              GRAND DESIGN RV, LLC                           The Other Loan Parties Party Hereto                               The Lenders Party Hereto                           JPMORGAN CHASE BANK, N.A.                              as Administrative Agent                                       and                              BMO HARRIS BANK N.A.                               as Syndication Agent                           _____________________________                           JPMORGAN CHASE BANK, N.A.                       as Sole Bookrunner and Sole Lead Arranger                                      ASSET BASED LENDING                        US-DOCS\110011973.10 

 

                            TABLE OF CONTENTS                                                                          Page   ARTICLE I DEFINITIONS ................................................................................................................... 1         SECTION 1.01.     Defined Terms .................................................................................... 1        SECTION 1.02.     Classification of Loans and Borrowings ........................................... 47        SECTION 1.03.     Terms Generally ............................................................................... 47        SECTION 1.04.     Accounting Terms; GAAP; Pro Forma Calculations ........................ 48        SECTION 1.05.     Status of Obligations ......................................................................... 49        SECTION 1.06.     Interest Rates; LIBOR Notifications ................................................. 49        SECTION 1.07.     Amendment and Restatement of the Existing Credit Agreement ..... 49   ARTICLE II THE CREDITS ................................................................................................................ 50         SECTION 2.01.     Commitments .................................................................................... 50        SECTION 2.02.     Loans and Borrowings ...................................................................... 51        SECTION 2.03.     Requests for Borrowings .................................................................. 51        SECTION 2.04.     Protective Advances ......................................................................... 52        SECTION 2.05.     Swingline Loans and Overadvances ................................................. 53        SECTION 2.06.     Letters of Credit ................................................................................ 54        SECTION 2.07.     Funding of Borrowings ..................................................................... 59        SECTION 2.08.     Interest Elections .............................................................................. 59        SECTION 2.09.     Termination  and  Reduction  of  Commitments;  Increase  in                          Commitments .................................................................................... 61        SECTION 2.10.     Repayment of Loans; Evidence of Debt ........................................... 62        SECTION 2.11.     Prepayment of Loans ........................................................................ 63        SECTION 2.12.     Fees ................................................................................................... 64        SECTION 2.13.     Interest .............................................................................................. 65        SECTION 2.14.     Alternate Rate of Interest; Illegality ................................................. 65        SECTION 2.15.     Increased Costs ................................................................................. 67        SECTION 2.16.     Break Funding Payments .................................................................. 68        SECTION 2.17.     Taxes ................................................................................................. 68        SECTION 2.18.     Payments  Generally;  Allocation  of  Proceeds;  Pro  Rata  Treatment;                          Sharing of Set-offs ............................................................................ 72        SECTION 2.19.     Mitigation Obligations; Replacement of Lenders ............................. 74        SECTION 2.20.     Defaulting Lenders ........................................................................... 75        SECTION 2.21.     Returned Payments ........................................................................... 77        SECTION 2.22.     Banking Services and Swap Agreements ......................................... 78   ARTICLE III REPRESENTATIONS AND WARRANTIES .............................................................. 78         SECTION 3.01.     Organization; Powers ........................................................................ 78        SECTION 3.02.     Authorization; Enforceability ........................................................... 78        SECTION 3.03.     Governmental Approvals; No Conflicts ........................................... 78        SECTION 3.04.     Financial Condition; No Material Adverse Change .......................... 79        SECTION 3.05.     Properties .......................................................................................... 79        SECTION 3.06.     Litigation and Environmental Matters .............................................. 79        SECTION 3.07.     Compliance with Laws and Agreements; No Default ...................... 80        SECTION 3.08.     Investment Company Status ............................................................. 80        SECTION 3.09.     Taxes ................................................................................................. 80        SECTION 3.10.     ERISA ............................................................................................... 80        SECTION 3.11.     Disclosure ......................................................................................... 80        SECTION 3.12.     Material Agreements......................................................................... 81                                        i   

 

      SECTION 3.13.     Margin Stock .................................................................................... 81        SECTION 3.14.     Liens ................................................................................................. 81        SECTION 3.15.     Capitalization and Subsidiaries ......................................................... 81        SECTION 3.16.     No Burdensome Restrictions ............................................................ 81        SECTION 3.17.     Solvency ........................................................................................... 81        SECTION 3.18.     Insurance ........................................................................................... 82        SECTION 3.19.     Security Interest in Collateral ........................................................... 82        SECTION 3.20.     Employment Matters ........................................................................ 82        SECTION 3.21.     Anti-Corruption Laws and Sanctions ............................................... 82        SECTION 3.22.     EEA Financial Institutions ................................................................ 82        SECTION 3.23.     Use of Proceeds ................................................................................ 82        SECTION 3.24.     Plan Assets; Prohibited Transactions ................................................ 83   ARTICLE IV CONDITIONS ............................................................................................................... 83         SECTION 4.01.     Effective Date ................................................................................... 83        SECTION 4.02.     Each Other Credit Event ................................................................... 84   ARTICLE V AFFIRMATIVE COVENANTS ..................................................................................... 84         SECTION 5.01.     Financial Statements; Borrowing Base and Other Information ........ 84        SECTION 5.02.     Notices of Material Events ............................................................... 87        SECTION 5.03.     Existence; Conduct of Business ........................................................ 88        SECTION 5.04.     Payment of Obligations .................................................................... 88        SECTION 5.05.     Maintenance of Properties ................................................................ 88        SECTION 5.06.     Books and Records; Inspection Rights ............................................. 88        SECTION 5.07.     Compliance with Laws and Material Contractual Obligations ......... 89        SECTION 5.08.     Use of Proceeds ................................................................................ 89        SECTION 5.09.     Insurance ........................................................................................... 89        SECTION 5.10.     Casualty and Condemnation ............................................................. 89        SECTION 5.11.     Appraisals ......................................................................................... 90        SECTION 5.12.     Field Examinations ........................................................................... 90        SECTION 5.13.     Accuracy of Information ................................................................... 90        SECTION 5.14.     Additional Collateral; Further Assurances........................................ 90   ARTICLE VI NEGATIVE COVENANTS .......................................................................................... 92         SECTION 6.01.     Indebtedness ..................................................................................... 92        SECTION 6.02.     Liens ................................................................................................. 95        SECTION 6.03.     Fundamental Changes ....................................................................... 97        SECTION 6.04.     Investments, Loans, Advances, Guarantees and Acquisitions .......... 99        SECTION 6.05.     Asset Sales ...................................................................................... 102        SECTION 6.06.     Sale and Leaseback Transactions ................................................... 104        SECTION 6.07.     Swap Agreements ........................................................................... 104        SECTION 6.08.     Transactions with Affiliates ............................................................ 104        SECTION 6.09.     Restricted Payments ........................................................................ 106        SECTION 6.10.     Subordinated  Indebtedness  and  Amendments  to  Subordinated                          Indebtedness Documents ................................................................ 107        SECTION 6.11.     Restrictive Agreements ................................................................... 108        SECTION 6.12.     Fixed Charge Coverage Ratio ......................................................... 110        SECTION 6.13.     [Intentionally Omitted] ................................................................... 110        SECTION 6.14.     Depository Banks ............................................................................ 110                                         ii   

 

ARTICLE VII EVENTS OF DEFAULT ............................................................................................ 110   ARTICLE VIII THE ADMINISTRATIVE AGENT ......................................................................... 113         SECTION 8.01.     Authorization and Action................................................................ 113        SECTION 8.02.     Administrative Agent’s Reliance, Indemnification, Etc. ................ 115        SECTION 8.03.     Posting of Communications ............................................................ 116        SECTION 8.04.     The Administrative Agent Individually .......................................... 118        SECTION 8.05.     Successor Administrative Agent ..................................................... 118        SECTION 8.06.     Acknowledgements of Lenders and Issuing Bank .......................... 119        SECTION 8.07.     Collateral Matters ........................................................................... 120        SECTION 8.08.     Credit Bidding ................................................................................ 120        SECTION 8.09.     Certain ERISA Matters ................................................................... 121        SECTION 8.10.     Flood Laws ..................................................................................... 122   ARTICLE IX MISCELLANEOUS .................................................................................................... 123         SECTION 9.01.     Notices ............................................................................................ 123        SECTION 9.02.     Waivers; Amendments .................................................................... 124        SECTION 9.03.     Expenses; Indemnity; Damage Waiver ........................................... 127        SECTION 9.04.     Successors and Assigns .................................................................. 129        SECTION 9.05.     Survival ........................................................................................... 134        SECTION 9.06.     Counterparts; Integration; Effectiveness; Electronic Execution ..... 134        SECTION 9.07.     Severability ..................................................................................... 135        SECTION 9.08.     Right of Setoff ................................................................................ 135        SECTION 9.09.     Governing Law; Jurisdiction; Consent to Service of Process ......... 135        SECTION 9.10.     WAIVER OF JURY TRIAL........................................................... 136        SECTION 9.11.     Headings ......................................................................................... 136        SECTION 9.12.     Confidentiality ................................................................................ 136        SECTION 9.13.     USA PATRIOT Act ........................................................................ 137        SECTION 9.14.     Several Obligations; Nonreliance; Violation of Law ...................... 138        SECTION 9.15.     Disclosure ....................................................................................... 138        SECTION 9.16.     Appointment for Perfection ............................................................ 138        SECTION 9.17.     Interest Rate Limitation .................................................................. 138        SECTION 9.18.     Release of Loan Guarantors ............................................................ 138        SECTION 9.19.     Intercreditor Agreements ................................................................ 139        SECTION 9.20.     Marketing Consent .......................................................................... 139        SECTION 9.21.     Acknowledgement  and  Consent  to  Bail-In  of  EEA  Financial                          Institutions ...................................................................................... 139        SECTION 9.22.     No Fiduciary Duty, etc.................................................................... 140        SECTION 9.23.     Acknowledgement Regarding Any Supported QFCs ..................... 140   ARTICLE X LOAN GUARANTY .................................................................................................... 141         SECTION 10.01.    Guaranty ......................................................................................... 141        SECTION 10.02.    Guaranty of Payment ...................................................................... 141        SECTION 10.03.    No Discharge or Diminishment of Loan Guaranty ......................... 141        SECTION 10.04.    Defenses Waived ............................................................................ 142        SECTION 10.05.    Rights of Subrogation ..................................................................... 142        SECTION 10.06.    Reinstatement; Stay of Acceleration ............................................... 143        SECTION 10.07.    Information ..................................................................................... 143        SECTION 10.08.    Termination ..................................................................................... 143        SECTION 10.09.    Taxes ............................................................................................... 143        SECTION 10.10.    Maximum Liability ......................................................................... 143        SECTION 10.11.    Contribution .................................................................................... 143                                       iii   

 

      SECTION 10.12.    Liability Cumulative ....................................................................... 144        SECTION 10.13.    Keepwell ......................................................................................... 144   ARTICLE XI THE BORROWER REPRESENTATIVE ................................................................... 145         SECTION 11.01.    Appointment; Nature of Relationship ............................................. 145        SECTION 11.02.    Powers............................................................................................. 145        SECTION 11.03.    Employment of Agents ................................................................... 145        SECTION 11.04.    Notices ............................................................................................ 145        SECTION 11.05.    Successor Borrower Representative ............................................... 145        SECTION 11.06.    Execution of Loan Documents; Borrowing Base Certificate ......... 145        SECTION 11.07.    Reporting ........................................................................................ 146    SCHEDULES:   Commitment Schedule  Schedule 3.15 –   Capitalizations and Subsidiaries  Schedule 3.18 –   Insurance  Schedule 6.01 –   Existing Indebtedness  Schedule 6.02 –   Existing Liens  Schedule 6.04 –   Existing Investments  Schedule 6.05  –  Dispositions  Schedule 6.08 –   Transactions with Affiliates  Schedule 6.11 –   Restrictive Agreements   EXHIBITS:   Exhibit A   –     Form of Assignment and Assumption  Exhibit B-1 –     Form of Borrowing Base Certificate  Exhibit B-2 –     Form Aggregate Borrowing Base Certificate  Exhibit C   –     Form of Compliance Certificate  Exhibit D   –     List of Closing Documents  Exhibit E   –     Form of Joinder Agreement  Exhibit F-1 –     U.S. Tax Certificate (For Foreign Lenders that are not Partnerships for                     U.S. Federal Income Tax Purposes)  Exhibit F-2 –     U.S. Tax  Certificate  (For  Foreign  Participants  that  are  not  Partnerships  for                    U.S. Federal Income Tax Purposes)  Exhibit F-3 –     U.S. Tax  Certificate  (For  Foreign  Participants  that  are  Partnerships  for                    U.S. Federal Income Tax Purposes)  Exhibit F-4 –     U.S. Tax Certificate (For Foreign that are Partnerships for U.S. Federal Income                    Tax Purposes)  Exhibit G-1 –     Form of Borrowing Request  Exhibit G-2 –     Form of Interest Election Request                                           iv   

 

      AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) dated as of October  22, 2019 among Winnebago Industries, Inc., Winnebago of Indiana, LLC and GRAND DESIGN RV, LLC,  as Borrowers, the other LOAN PARTIES from time to time party hereto, the LENDERS from time to time  party hereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent.         WHEREAS, the Loan Parties, certain of the Lenders and the Administrative Agent are currently  party to the Credit Agreement, dated as of November 8, 2016 (as amended prior to the date hereof, the  “Existing Credit Agreement”);         WHEREAS, the Borrowers, the other Loan Parties, the Lenders and the Administrative Agent have  agreed to enter into this Agreement in order to (i) amend and restate the Existing Credit Agreement in its  entirety;  (ii)  modify  and  re-evidence  the  “Obligations”  under,  and  as  defined  in,  the  Existing  Credit  Agreement, which shall be repayable in accordance with the terms of this Agreement and the other Loan  Documents; and (iii) set forth the terms and conditions under which the Lenders will, from time to time,  make loans and extend other financial accommodations to or for the benefit of the Loan Parties;         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 or be deemed to evidence  or constitute full repayment of such obligations and liabilities, but that this Agreement amend and restate  in its entirety the Existing Credit Agreement and re-evidence the obligations and liabilities of the Borrowers  and the other Loan Parties outstanding thereunder, which shall be payable in accordance with the terms  hereof; and         WHEREAS, it is also the intent of the Borrowers and the “Loan Guarantors” (as referred to and  defined in the Existing Credit Agreement) to confirm that all obligations under the “Loan Documents” (as  referred to and defined in the Existing Credit Agreement) shall continue in full force and effect as modified  and/or restated by the Loan Documents and that, from and after the Effective Date, all references to the  “Credit Agreement” contained in any such existing “Loan Documents” shall be deemed to refer to this  Agreement;         NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,  the  parties  hereto  hereby  agree  that  the  Existing  Credit  Agreement  is  hereby  amended  and  restated  as  follows:                                     ARTICLE I                                                                             Definitions         SECTION 1.01. Defined  Terms.  As  used  in  this  Agreement,  the  following  terms  have  the  meanings specified below:         “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the  Loans comprising such Borrowing, bear interest at a rate determined by reference to the REVLIBOR30  Rate.         “ABL Priority Collateral” has the meaning assigned thereto in the ABL/Term Loan Intercreditor  Agreement, and is intended to indicate that portion of the Collateral subject to a prior Lien in favor of the  Administrative Agent on behalf of the Secured Parties.         “ABL/Term  Loan  Intercreditor  Agreement”  means  the  Intercreditor  Agreement,  dated  as  of  November 8, 2016, by and among the Administrative Agent, as ABL Representative, the Term Loan Agent,  as Term Loan Representative, and each of the Loan Parties party thereto.     US-DOCS\110011973.10 

 

      “Acceptable  Field  Examination”  means,  with  respect  to  any  assets  of  any  Loan  Party,  a  field  examination conducted by the Administrative Agent or its designee of such assets and related working  capital matters and of such Loan Party’s related data processing and other systems, the results of which  shall be satisfactory to the Administrative Agent in its Permitted Discretion.         “Acceptable  Inventory  Appraisal”  means,  with  respect  to  any  Inventory,  an  appraisal  of  such  Inventory  from  one  or  more  firms  satisfactory  to  the  Administrative  Agent,  which  appraisals  shall  be  satisfactory to the Administrative Agent in its Permitted Discretion.         “Account” has the meaning assigned to such term in the Security Agreement.         “Account Debtor” means any Person obligated on an Account.         “Acquisition” means any transaction, or any series of related transactions, consummated on or after  the Effective Date, by which any Loan Party (a) acquires any going business or all or substantially all of  the  assets  of  any  Person,  whether  through purchase  of  assets,  merger  or  otherwise  or  (b) directly  or  indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a  majority (in number of votes) of the Equity Interests of a Person which has ordinary voting power for the  election of directors or other similar management personnel of a Person (other than Equity Interests having  such power only by reason of the happening of a contingency) or a majority of the outstanding Equity  Interests of a Person.         “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period or  for any ABR Borrowing, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of  1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.         “Administrative Agent” means JPMorgan Chase Bank, N.A. (including its successors, branches  and affiliates), in its capacity as administrative agent for the Lenders hereunder.         “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.         “Agent Indemnitee” has the meaning assigned to it in Section 9.03(c).         “Agent Party” has the meaning assigned to such term in Section 9.01(d).         “Aggregate Availability” means, at any time, the aggregate Availability of all the Borrowers.         “Aggregate Borrowing Base” means the aggregate of the Borrowing Bases of all the Borrowers.         “Aggregate Borrowing Base Certificate” means a certificate, signed and certified as accurate and  complete by a Financial Officer of the Borrower Representative, in substantially the form of Exhibit B-2 or  another form which is acceptable to the Administrative Agent in its sole discretion.         “Aggregate  Commitment”  means  the  aggregate  of  the  Commitments  of  all  of  the  Lenders,  as  reduced or increased from time to time pursuant to the terms and conditions hereof. Subject to the other  terms set forth herein, as of the Effective Date, the Aggregate Commitment is $192,500,000.                                          2   

 

      “Aggregate Revolving Exposure” means, at any time, the aggregate Revolving Exposures of all the  Lenders at such time.         “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime  Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (c) the Adjusted  LIBO Rate for a one month Interest Period in Dollars on such day (or if such day is not a Business Day, the  immediately  preceding  Business  Day) plus 1%, provided that,  for  the  purpose  of  this  definition,  the  Adjusted LIBO Rate for any day shall be based on the LIBO Screen Rate (or if the LIBO Screen Rate is  not available for such one month Interest Period, the Interpolated Rate) at approximately 11:00 a.m. London  time on such day, subject to the interest rate floors set forth therein. Any change in the Alternate Base Rate  due to a change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate shall be effective from and  including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate,  respectively. If the Alternate Base Rate is being used as an alternate rate of interest pursuant to Section 2.14  hereof, then the Alternate Base Rate shall be the greater of clause (a) and (b) above and shall be determined  without reference to clause (c) above. For the avoidance of doubt, if the Alternative Base Rate as determined  pursuant to the foregoing would be less than 1.00%, such rate shall be deemed to be 1.00% for purposes of  this Agreement.         “Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the  Company or its Subsidiaries from time to time concerning or relating to bribery or corruption.         “Applicable Percentage” means, with respect to any Lender, a percentage equal to a fraction the  numerator  of  which  is  such  Lender’s  Commitment  and  the  denominator  of  which  is  the  Aggregate  Commitment; provided that, if the Commitments have terminated or expired, the Applicable Percentage  with respect to any Lender shall be determined based upon such Lender’s share of the Aggregate Revolving  Exposure at such time. Notwithstanding the foregoing, in accordance with Section 2.20, so long as any  Lender shall be a Defaulting Lender, such Defaulting Lender’s Commitment shall be disregarded in the  foregoing calculations.         “Applicable  Pledge  Percentage”  means  (a)  in  the  case  of  a  pledge  by  the  Company  or  any  Subsidiary  of  its  voting  Equity  Interests  in  an  Excluded  Domestic  Subsidiary  or  an Excluded  Foreign  Subsidiary, 65%, and (b) in all other cases, 100%.         “Applicable Rate” means, for any day, with respect to any Loan, the applicable rate per annum set  forth below under the caption “Eurodollar or REVLIBOR30 Spread” or “Alternate Base Rate Spread”, as  the case  may be,  based upon the  Average  Quarterly Availability during the  most recently ended fiscal  quarter of the Company (it being understood and agreed, for purposes of clarity, that the “Eurodollar or  REVLIBOR30 Spread” shall be applicable to ABR Loans at all times that ABR Loans bear interest by  reference to the REVLIBOR30 Screen Rate and the “Alternate Base Rate Spread” shall be applicable to  ABR Loans at all times that ABR Loans bear interest by reference to the Alternate Base Rate); provided  that, the “Applicable Rate” shall be the applicable rates per annum set forth below in Category 1 during the  period from the Effective Date to, but excluding, the first day following the end of the first full fiscal quarter  of the Company ending after the Effective Date:                                          3   

 

                                        Eurodollar or      Alternate Base Rate       Average Quarterly Availability REVLIBOR30 Spread           Spread               Category 1     66% of the Aggregate Commitment       1.25%                 0.25%               Category 2   < 66% of the Aggregate Commitment but >      33% of the Aggregate Commitment       1.50%                 0.50%               Category 3     < 33% of the Aggregate Commitment      1.75%                 0.75%          For purposes of the foregoing, each change in the Applicable Rate shall be effective during the period  commencing on and including the first day of each fiscal quarter of the Company and ending on the last  day of such fiscal quarter, it being understood and agreed that, for purposes of determining the Applicable  Rate on the first day of any fiscal quarter of the Company, the Average Quarterly Availability during the  most recently ended fiscal quarter of the Company shall be used.   Notwithstanding the foregoing, the Average Quarterly Availability shall be deemed to be in Category 3 at  the option of the Administrative Agent or at the request of the Required Lenders if the Borrowers fail to  deliver any Aggregate Borrowing Base Certificate or Borrowing Base Certificate required to be delivered  by them pursuant to Section 5.01, during the period from the expiration of the time for delivery thereof until  five (5) days after the date each such Aggregate Borrowing Base Certificate or Borrowing Base Certificates,  as applicable, are so delivered.         “Approved Electronic Platform” has the meaning assigned to it in Section 8.03(a).         “Approved Fund” has the meaning assigned to such term in Section 9.04(b).         “Assignment and Assumption” means an assignment and assumption agreement entered into by a  Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and  accepted by the Administrative Agent, in the form of Exhibit A or any other form (including electronic  records generated by the use of an electronic platform) approved by the Administrative Agent.         “Availability” means, at any time:         (a)   with respect to the Company, an amount equal to the lesser of (i) an amount equal to (x)  the Aggregate Commitment minus (y) the Aggregate Revolving Exposure and (ii) an amount equal to (x)  the Aggregate Borrowing Base minus (y) the Aggregate Revolving Exposure;         (b)   with respect to Winnebago of Indiana, an amount equal to the lesser of (i) an amount equal  to (x) the Aggregate Commitment minus (y) the Aggregate Revolving Exposure and (ii) an amount equal  to (x) the sum of Winnebago of Indiana’s Borrowing Base plus the Company’s Borrowing Base minus (y)  the sum of (A) the Winnebago of Indiana Revolving Exposures of all Lenders plus (B) the excess, if any,  of the aggregate Company Revolving Exposures of all Lenders over the Excess Grand Design Borrowing  Base plus (C) the Grand Design Utilization; and         (c)   with respect to Grand Design, an amount equal to the lesser of (i) an amount equal to (x)  the Aggregate Commitment minus (y) the Aggregate Revolving Exposure and (ii) an amount equal to (x)  the sum of Grand Design’s Borrowing Base plus the Company’s Borrowing Base minus (y) the sum of (A)  the Grand Design Revolving Exposures of all Lenders plus (B) the excess, if any, of the aggregate Company                                         4   

 

Revolving Exposures of all Lenders over the Excess Winnebago of Indiana Borrowing Base plus (C) the  Winnebago of Indiana Utilization.         “Availability Period” means the period from and including the Effective Date to but excluding the  earlier of the Maturity Date and the date of termination of the Commitments.         “Available  Commitment” means,  with  respect  to  any  Lender  at  any  time,  such  Lender’s  Commitment minus such Lender’s Revolving Exposure.         “Average Quarterly Availability” means, for any fiscal quarter of the Company, an amount equal  to the average daily Aggregate Availability during such fiscal quarter, as determined by the Administrative  Agent; provided that,  in  order  to  determine  Aggregate  Availability  on  any  day  for  purposes  of  this  definition, the  Aggregate Borrowing Base  and  each Borrower’s  Borrowing Base  for such day shall be  determined  by  reference to  the  most  recent  Aggregate  Borrowing  Base  Certificate  and  each  other  Borrowing Base Certificate delivered to the Administrative Agent pursuant to Section 5.01(f) as of such  day.         “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable  EEA Resolution Authority in respect of any liability of an EEA Financial Institution.         “Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55  of  Directive  2014/59/EU  of  the  European  Parliament  and  of  the  Council  of  the  European  Union,  the  implementing law for such EEA Member Country from time to time which is described in the EU Bail-In  Legislation Schedule.         “Banking Services” means each and any of the following bank services provided to the Company  or  any  Subsidiary  by  any  Lender  or  any  of  its  Affiliates:  (a) credit  cards  for  commercial  customers  (including, without limitation, commercial credit cards and purchasing cards), (b) stored value cards, (c)  merchant processing services, (d) treasury management services (including, without limitation, controlled  disbursement, automated clearinghouse transactions, return items, any direct debit scheme or arrangement,  overdrafts and interstate depository network services) and (e) Lease Financing.         “Banking  Services Agreement”  means  any  agreement  entered  into  by  the  Company  or  any  Subsidiary in connection with Banking Services.         “Banking Services Obligations” means any and all obligations of the Company and its Subsidiaries,  whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired  (including all renewals, extensions and modifications thereof and substitutions therefor) in connection with  Banking Services; provided, however, that Banking Services Obligations in respect of Lease Financing  shall be limited to Lease Deficiency Obligations.         “Banking Services Reserves” means all Reserves which the Administrative Agent from time to  time establishes in its Permitted Discretion for Banking Services then provided or outstanding.         “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as now and  hereafter in effect, or any successor statute.         “Bankruptcy Event” means, with respect to any Person, when such Person becomes the subject of  a voluntary or involuntary bankruptcy or insolvency proceeding, or 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, in the good faith determination of the  Administrative Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or                                         5   

 

acquiescence in, any such proceeding or appointment or has had any order for relief in such proceeding  entered  in  respect  thereof, provided that  a  Bankruptcy  Event  shall  not  result  solely  by  virtue  of  any  ownership  interest,  or  the  acquisition  of  any  ownership  interest,  in  such  Person  by  a  Governmental  Authority or instrumentality thereof, unless such ownership interest results in or provides such Person with  immunity from the jurisdiction of courts within the U.S. or from the enforcement of judgments or writs of  attachment on its assets or permits such Person (or such Governmental Authority or instrumentality), to  reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.         “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in Section 3(3) of ERISA)  that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code to which Section 4975  of the Code applies, and (c) any Person whose assets include (for purposes of the Plan Asset Regulations  or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee  benefit plan” or “plan”.         “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted  in accordance with, 12 U.S.C. 1841(k)) of such party.         “Board” means the Board of Governors of the Federal Reserve System of the United States of  America.         “Bond Hedge Transaction” has the meaning assigned to such term in the definition of “Permitted  Call Spread Swap Agreement”.         “Borrower” or “Borrowers” means, individually or collectively, (a) the Company, (b) Winnebago  of Indiana and (c) Grand Design.         “Borrower Representative” has the meaning assigned to such term in Section 11.01.         “Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued on the  same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect, (b) Loans  of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as  to which a single Interest Period is in effect, (c) a Swingline Loan, (d) a Protective Advance and (e) an  Overadvance.         “Borrowing Base” means, at any time, with respect to each Borrower, the sum of (a) 90% (less the  Dilution Percentage then in effect) of an amount equal to (i) such Borrower’s Eligible Accounts at such  time minus (ii) the Specified Reserves with respect to such Borrower at such time plus (b) the lesser of (i)  75%  of  such  Borrower’s  Eligible  Inventory  (other than  any  Eligible  Non-Perpetual  Inventory  and  any  Eligible Non-U16 Inventory), at such time, valued at the lower of cost or market value, determined on a  first-in-first-out  basis  and  (ii) the  product  of  85% multiplied  by the  Net  Orderly  Liquidation  Value  percentage identified in the most recent inventory appraisal ordered by the Administrative Agent multiplied  by such Borrower’s Eligible Inventory (other than any Eligible Non-Perpetual Inventory and any Eligible  Non-U16 Inventory), valued at the lower of cost or market value, determined on a first-in-first-out basis  plus (c) the lesser of (i) 55% of such Borrower’s Eligible Non-Perpetual Inventory and Eligible Non-U16  Inventory, at such time, valued at the lower of cost or market value, determined on a first-in-first-out basis  and (ii) the product of 65% multiplied by the Net Orderly Liquidation Value percentage identified in the  most  recent  inventory  appraisal  ordered  by  the  Administrative  Agent multiplied  by such  Borrower’s  Eligible Non-Perpetual Inventory and Eligible Non-U16 Inventory, valued at the lower of cost or market  value, determined on a first-in-first-out basis minus (d) Reserves (other than the Specified Reserves or any  Reserves related to dilution of Accounts that are captured in the definition of Dilution Percentage) related  to such Borrower, such Eligible Accounts or such Eligible Inventory.                                         6   

 

      Notwithstanding the foregoing, no assets acquired pursuant to any Acquisition shall be included in  the calculation of any Borrowing Base until such time as the Administrative Agent shall have received an  Acceptable  Inventory Appraisal and  an  Acceptable  Field Examination shall have  been completed  with  respect to such assets; provided that, Eligible Accounts and Eligible Inventory acquired pursuant to any  Acquisition but for which no Acceptable Inventory Appraisal has been received or no Acceptable Field  Examination has been completed may be included in a Borrowing Base for a period of up to ninety (90)  days following such Acquisition (or such longer period as the Administrative Agent may agree to in its sole  discretion), so long as (i) the aggregate amount of such acquired assets included in such Borrowing Base  shall not exceed an amount equal to 20% of such Borrowing Base (prior to giving effect to such acquired  assets) at any time and (ii) subject to clause (i) of this proviso, such Eligible Accounts and Eligible Inventory  shall be included in such Borrowing Base with the following adjustments: (A) the advance rate set forth in  clause (a) shall be 75% and (B) in lieu of including such Eligible Inventory in any Borrowing Base in  accordance with clauses (b) and (c) above, the applicable Borrowing Base shall include an amount equal to  50%  of  such  Eligible  Inventory,  valued  at  the  lower  of  cost  or  market  value,  determined  on  a  first-in-first-out basis. For purposes of clarity, any such assets included in any Borrowing Base pursuant to  the  proviso  of  the  preceding  sentence  shall  be  subject  to  all  future  appraisals  and  field  examinations  conducted pursuant to Section 5.11 or 5.12, as applicable, after the acquisition thereof.         “Borrowing Base Certificate” means a certificate, signed and certified as accurate and complete by  a Financial Officer of the Borrower Representative, in substantially the form of Exhibit B-1 or another form  which is acceptable to the Administrative Agent in its sole discretion.         “Borrowing  Request”  means  a  request  by  the  Borrower  Representative  for  a  Borrowing  in  accordance with Section 2.03.         “Burdensome Restrictions” means any consensual encumbrance or restriction of the type described  in clause (a) or (b) of Section 6.11 (without giving effect to any exceptions described in clauses (i) and  (ii) of the proviso to Section 6.11).         “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 Eurodollar Loan or a Loan accruing interest at REVLIBOR30 Rate without giving effect  to the proviso contained in the definition for “REVLIBOR30 Rate, the term “Business Day” shall also  exclude any day on which banks are not open for general business in London.         “Canadian Dollars” and “Cdn.$” means dollars in the lawful currency of Canada.         “Capital Expenditures” means, for any period, (a) the additions to property, plant and equipment  and other capital expenditures of the Company and its Subsidiaries that are (or should be) set forth in a  consolidated statement of cash  flows  of the Company and  its  Subsidiaries for such period prepared in  accordance with GAAP, excluding (i) any such expenditures made to restore, replace or rebuild assets to  the condition of such assets immediately prior to any casualty or other insured damage to, or any taking  under power of eminent domain or by condemnation or similar proceeding of, such assets to the extent such  expenditures  are  made  with  insurance  proceeds,  condemnation  awards  or  damage  recovery  proceeds  relating  to  any  such  casualty,  damage,  taking,  condemnation  or  similar  proceeding,  (ii)  any  such  expenditures constituting Permitted Acquisitions or any other acquisition of all the Equity Interests in, or  all or substantially all the assets of (or the assets constituting a business unit, division, product line or line  of business of), any Person and related costs and expenses and (iii) any such expenditures in the form of a  substantially  contemporaneous  exchange  of  similar  property,  plant,  equipment  or  other  capital  assets,  except to the extent of cash or other consideration (other than the assets so exchanged), if any, paid or  payable by the Company and its Subsidiaries, and (b) such portion of principal payments on Capital Lease  Obligations made by the Company and its Subsidiaries during such period as is attributable to additions to                                         7   

 

property, plant and equipment that have not otherwise been reflected on the consolidated statement of cash  flows as additions to property, plant and equipment for such period.         “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 lease  obligations 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.         “CFC” means any Subsidiary organized under the laws of any jurisdiction other than the United  States of America, any state thereof or the District of Columbia, that is a “controlled foreign corporation”  for purposes of Section 957 of the Code.         “Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or  of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules  of the SEC thereunder as in effect on the date hereof), of Equity Interests representing more than 35% of  the  aggregate  ordinary  voting power represented  by the  issued  and  outstanding  Equity  Interests  of the  Company; (b) occupation at any time of a majority of the seats (other than vacant seats) on the board of  directors  of  the  Company  by  Persons  who  were  neither  (i)  nominated,  appointed or  approved  for  consideration by shareholders for election by the board of directors of the Company nor (ii) appointed by  the directors of the Company so nominated, appointed or approved; (c) the acquisition of direct or indirect  Control of the Company by any Person or group; (d) the occurrence of a change in control, or other similar  provision, as defined in any agreement or instrument evidencing any Material Indebtedness (triggering a  default or mandatory prepayment, which default or mandatory prepayment has not been waived in writing);  or (e) the Company ceases to own, directly or indirectly, and Control 100% (other than directors’ qualifying  shares) of the ordinary voting and economic power of any Borrower.         “Change in Law” means the occurrence, after the date of this Agreement (or with respect to any  Lender, if later, the date on which such Lender becomes a Lender), of any of the following: (a) the adoption  or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty  or  in  the  administration,  interpretation,  implementation  or  application  thereof  by  any  Governmental  Authority, or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section 2.15(b), by  any lending office of such Lender or by such Lender’s or such Issuing Bank’s holding company, if any)  with any request, rules, guideline, requirement or directive (whether or not having the force of law) by any  Governmental Authority; provided however, that notwithstanding anything herein to the contrary, (i) the  Dodd-Frank  Wall  Street  Reform  and  Consumer  Protection  Act  and  all  requests,  rules,  guidelines,  requirements and directives thereunder, issued in connection therewith or in implementation thereof, and  (ii) 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 the  United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be  deemed to be a “Change in Law” regardless of the date enacted, adopted, issued or implemented.         “Charges” has the meaning assigned to such term in Section 9.17.         “Class” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the  Loans  comprising  such  Borrowing,  are  Revolving  Loans,  Swingline  Loans,  Protective  Advances  or  Overadvances.         “Code” means the Internal Revenue Code of 1986, as amended from time to time.         “Collateral” means any and all property owned by a Person covered by the Collateral Documents  and any and all other property of any Loan Party, now existing or hereafter acquired, that may at any time                                         8   

 

be or become subject to a security interest or Lien in favor of the Administrative Agent, on behalf of itself  and the Secured Parties, to secure the Secured Obligations; provided that in no case shall the “Collateral”  include any Excluded Assets.         “Collateral Access Agreement” has the meaning assigned to such term in the Security Agreement.         “Collateral Documents” means, collectively, the Security Agreement, the Mortgages and all other  agreements, instruments and documents executed in connection with this Agreement that are intended to  create, perfect or evidence Liens to secure the Secured Obligations, including, without limitation, all other  security agreements, pledge  agreements, mortgages, deeds of trust, loan agreements,  notes, guarantees,  subordination  agreements,  pledges,  powers  of  attorney,  consents,  assignments,  contracts,  fee  letters,  notices, leases, financing statements  and  all other written  matter whether heretofore,  now, or hereafter  executed by the Company or any of its Subsidiaries and delivered to the Administrative Agent.         “Collection Account” has the meaning assigned to such term in the Security Agreement.         “Commercial LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of  all outstanding commercial Letters of Credit plus (b) the aggregate amount of all LC Disbursements relating  to commercial Letters of Credit that have not yet been reimbursed by or on behalf of the Borrowers. The  Commercial LC Exposure of any Lender at any time shall be its Applicable Percentage of the aggregate  Commercial LC Exposure at such time.         “Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to  make  Revolving  Loans  and  to  acquire  participations  in  Letters  of  Credit,  Overadvances,  Protective  Advances and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate  permitted amount of such Lender’s Revolving Exposure hereunder, as such commitment may be reduced  or increased from time  to  time  pursuant to (a) Section 2.09 and  (b) assignments  by or to such Lender  pursuant to Section 9.04. The initial amount of each Lender’s Commitment is set forth on the Commitment  Schedule, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its  Commitment, as applicable.         “Commitment Schedule” means the Schedule attached hereto identified as such.         “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.         “Communications” has the meaning assigned to such term in Section 9.01(d).         “Company” means Winnebago Industries, Inc., an Iowa corporation.         “Company  Revolving Exposures”  means,  with respect to any Lender at any time,  and  without  duplication, the sum of (a) the outstanding principal amount of the Revolving Loans made by such Lender  to the Company at such time plus (b) such Lender’s LC Exposure with respect to Letters of Credit issued  for the account of the Company at such time plus (c) such Lender’s Swingline Exposure with respect to  Swingline Loans made to the Company at such time plus (d) an amount equal to its Applicable Percentage  of the aggregate principal amount of outstanding Protective Advances made to the Company at such time  plus (e) an amount equal to its Applicable Percentage of the aggregate principal amount of outstanding  Protective Advances made to the Company at such time.          “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by  net income (however denominated) or that are franchise Taxes or branch profits Taxes.                                          9   

 

      “Consolidated  EBITDA”  means  Consolidated  Net  Income plus,  to  the  extent  deducted  from  revenues in determining Consolidated Net Income, (i) Consolidated Interest Expense, (ii) expense for taxes  paid  or  accrued,  (iii) depreciation, (iv) amortization, (v)  extraordinary  losses incurred  other than  in the  ordinary course of business, (vi) non-cash charges, expenses or losses, (vii) any losses for such period  attributable to early extinguishment of Indebtedness or obligations under any Swap Agreement, (viii) any  unrealized losses for such period attributable to the application of “mark to market” accounting in respect  of Swap Agreements, (ix) the cumulative effect for such period of a change in accounting principles, (x)  non-recurring out-of-pocket transactional fees, costs and expenses relating to Permitted Acquisitions (or  any failed Acquisitions), Investments, Indebtedness, securities offerings and Dispositions, including legal  fees, advisory fees and upfront financing fees, (xi) non-recurring out-of-pocket fees, costs and expenses  relating  to  the  incurrence,  refinancing,  amendment  or  modification  of  Indebtedness  on  or  prior  to  the  Effective Date, (xii) (A) non-recurring restructuring charges (including, without limitation, relocation costs  and costs relating to the opening, closure and/or consolidation of facilities) that are paid or to be paid in  cash  and  (B)  with  respect  to  any  acquisition or  disposition,  or  issuance,  incurrence  or  assumption  of  Indebtedness, or other transaction occurring during such period, (1) any projected  cost savings  (net of  continuing associated expenses) expected to be realized as a result of such event, to the extent such cost  savings would be permitted to be reflected in financial statements prepared in compliance with Article 11  of Regulation S-X under the Securities Act and (2) any other demonstrable cost-savings (net of continuing  associated expenses) not included in the foregoing subclause (B)(1) of this clause (xii) that are reasonably  projected in good faith by the Borrower Representative to be achieved in connection with any such event  within the 18-month period following the consummation of such event, that are reasonably identifiable,  quantifiable and factually supportable in the good faith judgment of the Company and that are set forth in  reasonable detail in a certificate of a Financial Officer of the Company (in the case of each of the foregoing  subclauses (B)(1) and (B)(2), calculated on a pro forma basis as though such cost savings had been realized  on the first day of such period, net of the amount of actual benefits realized during such period from such  event); provided that, (x) for purposes of determining Consolidated EBITDA for any period of four (4)  consecutive fiscal quarters, the aggregate amount added back under subclauses (A) and (B)(2) of this clause  (xii) in respect of such period shall not exceed fifteen percent (15%) of Consolidated EBITDA (as calculated  without giving effect to subclauses (A) and (B)(2) of this clause (xii)), (y) all adjustments pursuant to the  foregoing subclause (B) of this clause (xii) will be without duplication of any amounts that are otherwise  included or added back in computing Consolidated EBITDA in accordance with this definition and (z) with  respect to the foregoing subclause (B)(2) of this clause (xii), if any cost savings included in any pro forma  calculations based on the anticipation that such cost savings will be achieved within such 18-month period  shall at any time cease to be reasonably anticipated by the Company to be so achieved, then on and after  such time, such cost savings shall no longer be added to Consolidated EBITDA pursuant to this clause (xii)  and (xiii) fees, costs and expenses incurred in connection with the Company’s implementation of enterprise  resource planning (ERP); provided that, for purposes of determining Consolidated EBITDA for any period  of four (4) consecutive fiscal quarters of the Company, the aggregate amount added back under this clause  (xiii) in respect of such period shall not exceed $8,000,000 minus, to the extent included in Consolidated  Net  Income,  (1) interest  income,  (2) any  cash  payments  made  during  such  period  in  respect  of items  described in clause (vi) above subsequent to the fiscal quarter in which the relevant non-cash expenses or  losses were incurred, (3) extraordinary gains realized other than in the ordinary course of business, (4) any  non-cash gains for such period, including with respect to write-ups of assets or goodwill, determined on a  consolidated basis in accordance with GAAP, (5) any gains attributable to the early extinguishment of  Indebtedness or obligations under any Swap Agreement, determined on a consolidated basis in accordance  with GAAP, (6) the cumulative effect for such period of a change in accounting principles and (7) any  unrealized gains for such period attributable to the application of “mark to market” accounting in respect  of Swap Agreements, all calculated for the Company and its Subsidiaries in accordance with GAAP on a  consolidated  basis.  For  the  purposes  of  calculating  Consolidated  EBITDA  for  any  period  of  four  consecutive fiscal quarters (each such period, a “Reference Period”), (i) if at any time during such Reference  Period  the  Company  or  any  Subsidiary  shall  have  made  any  Material  Disposition,  the  Consolidated                                         10   

 

EBITDA for such Reference Period shall be reduced by an amount equal to the Consolidated EBITDA (if  positive) attributable to the property that is the subject of such Material Disposition for such Reference  Period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for  such Reference Period, and (ii) if during such Reference Period the Company or any Subsidiary shall have  made a Material Acquisition, Consolidated EBITDA for such Reference Period shall be calculated after  giving pro forma effect thereto (in the manner described in Section 1.04(b)) as if such Material Acquisition  occurred on the first day of such Reference Period. As used in this Agreement, “Material Acquisition”  means any acquisition of property or series of related acquisitions of property that (a) constitutes (i) assets  comprising all or substantially all or any significant portion of a business or operating unit of a business, or  (ii) all or substantially all of the common stock or other Equity Interests of a Person, and (b) involves the  payment of consideration by the Company and its Subsidiaries in excess of $10,000,000; and “Material  Disposition”  means  any  Disposition  of  property  or  series  of  related  sales,  transfers,  or  dispositions  of  property that yields gross proceeds to the Company or any of its Subsidiaries in excess of $10,000,000.         “Consolidated  Interest  Expense”  means,  with  reference  to  any  period,  the  interest  expense  (including without limitation interest expense under Capital Lease Obligations that is treated as interest in  accordance with GAAP) of the Company and its Subsidiaries calculated on a consolidated basis for such  period with respect to all outstanding Indebtedness of the Company and its Subsidiaries allocable to such  period in accordance with GAAP (including, without limitation, all commissions, discounts and other fees  and charges owed with respect to letters of credit and bankers’ acceptance financing and net costs under  interest rate Swap Agreements to the extent such net costs are allocable to such period in accordance with  GAAP). In the event that the Company or any Subsidiary shall have completed a Material Acquisition or a  Material Disposition since the beginning of the relevant period, Consolidated Interest Expense shall be  determined  for  such  period  on a  pro  forma  basis  as  if  such  acquisition  or  disposition,  and any  related  incurrence or repayment of Indebtedness, had occurred at the beginning of such period.         “Consolidated Net Income” means, with reference to any period, the net income (or loss) of the  Company  and  its  Subsidiaries  calculated  in  accordance  with  GAAP  on  a  consolidated  basis  (without  duplication) for such period; provided that, there shall be excluded any income (or loss) of any Person other  than the Company or a Subsidiary, but any such income so excluded may be included in such period or any  later period to the extent of any cash dividends or distributions actually paid in the relevant period to the  Company or any Subsidiary of the Company.         “Consolidated Total Assets” means, as of the date of any determination thereof, total assets of the  Company and its Subsidiaries calculated in accordance with GAAP on a consolidated basis as of the last  day of the most recent Test Period, determined on a pro forma basis.         “Consolidated  Total  Indebtedness”  means  at  any  time  the  sum,  without  duplication,  of  (a) the  aggregate Indebtedness of the Company and its Subsidiaries calculated on a consolidated basis as of such  time  in  accordance  with  GAAP,  (b) the  aggregate  amount  of  Indebtedness  of  the  Company  and  its  Subsidiaries relating to the maximum drawing amount of all letters  of credit outstanding and  bankers’  acceptances  and  (c) Indebtedness  of  the  type  referred  to  in clauses (a) or (b) hereof  of  another  Person  guaranteed by the Company or any of its Subsidiaries; provided that Consolidated Total Indebtedness shall  exclude the aggregate amount of Indebtedness of the Company and its Subsidiaries in respect of undrawn  performance  and  commercial  letters  of  credit,  Guarantees  related  thereto,  obligations  with  respect  to  deposits  and  advances  in  the  ordinary  course  of  business,  and  obligations  in  respect  of  Repurchase  Agreements.         “Consolidated  Total  Secured  Indebtedness”  means,  as  of  any  date  of  determination,  any  Consolidated Total Indebtedness that is secured by Liens on any assets or property of the Company or any  of its Subsidiaries.                                         11   

 

      “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.         “Covered Entity” means any of the following:               (i)   a “covered entity” as that term is defined in, and interpreted in accordance with,        12 C.F.R. § 252.82(b);               (ii)  a “covered bank” as that term is defined in, and interpreted in accordance with,        12 C.F.R. § 47.3(b); or               (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with,        12 C.F.R. § 382.2(b).         “Covered Party” has the meaning assigned to it in Section 9.23.         “Credit Event” means a Borrowing, the issuance, amendment, renewal or extension of a Letter of  Credit, an LC Disbursement or any of the foregoing.         “Credit Party” means the Administrative Agent, each Issuing Bank, the Swingline Lender or any  other Lender.         “DDA Access Product” means the bank service provided to any Loan Party by JPMCB in its sole  discretion consisting of direct access to schedule payments from the Funding Account by electronic, internet  or other access mechanisms that may be agreed upon from time to time by JPMCB and the funding of such  payments under the Loan Borrowing Option in the DDA Access Product Agreement.         “DDA Access Product Agreement” means JPMCB’s Treasury Services End of Day Investment &  Loan Sweep Service Terms, as in effect on the date of this Agreement, as the same may be amended from  time to time.         “Default” means any event or condition which constitutes an Event of Default or which upon notice,  lapse of time or both would, unless cured or waived, become an Event of Default.         “Defaulting Lender” means any Lender that (a) has failed, within two (2) 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 Swingline Loans or (iii) pay over to any Credit 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 in writing that such failure is the result of such Lender’s good faith determination that a condition  precedent  to  funding  (specifically  identified  and  including the  particular  default,  if  any)  has  not  been  satisfied, (b) has notified the Company or any Credit Party in writing, or has made a public statement to the  effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement  (unless such writing or public statement indicates that such position is based on such Lender’s good faith  determination that a condition precedent (specifically identified and including the particular default, if any)  to funding a loan under this Agreement cannot be satisfied) or generally under other agreements in which  it commits to extend credit, (c) has failed, within three (3) Business Days after request by a Credit Party,  acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it  will comply with its obligations (and is financially able to meet such obligations) to fund prospective Loans  and  participations  in  then  outstanding  Letters  of  Credit  and  Swingline  Loans  under  this  Agreement,  provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Credit                                          12   

 

Party’s receipt of such certification in form and substance satisfactory to it and the Administrative Agent,  or (d) has become the subject of (A) a Bankruptcy Event or (B) a Bail-In Action.         “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance  with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.         “Dilution Percentage” means, with respect to each Borrower at any time, for any twelve-month  period, a percentage (rounded to the nearest tenth of one percent) determined by the Administrative Agent,  based on information contained in the most recent field examination conducted by or on behalf of the  Administrative  Agent  (or,  in  the  Permitted  Discretion  of  the  Administrative  Agent,  based  on  updated  information provided to the Administrative Agent by the Borrowers), that reflects the amount of dilution  of such Borrower’s Accounts expressed as a percentage of gross sales for the applicable twelve-month  measurement period.         “Disposition” has the meaning assigned to such term in Section 6.05.         “Disqualified Equity Interest” means, with respect to any Person, any Equity Interest in such Person  that by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable,  either mandatorily or at the option of the holder thereof), or upon the happening of any event or condition:         (a)   matures or is mandatorily redeemable (other than solely for Equity Interests in such Person  that do not constitute Disqualified Equity Interests and cash in lieu of fractional shares of such Equity  Interests), whether pursuant to a sinking fund obligation or otherwise;         (b)   is or becomes convertible or exchangeable, either mandatorily or at the option of the holder  thereof, for Indebtedness or Equity Interests (other than solely for Equity Interests in such Person that do  not constitute Disqualified Equity Interests and cash in lieu of fractional shares of such Equity Interests);  or         (c)   is redeemable (other than solely for Equity Interests in such Person that do not constitute  Disqualified Equity Interests and cash in lieu of fractional shares of such Equity Interests) or is required to  be repurchased by the Company or any Subsidiary, in whole or in part, at the option of the holder thereof;   in each case, on or prior to the date that is ninety one (91) days after the Maturity Date (determined as of  the date of issuance thereof or, in the case of any such Equity Interests outstanding on the Effective Date,  the Effective Date); provided, however, that (i) an Equity Interest in any Person that would not constitute a  Disqualified Equity Interest but for terms thereof giving holders thereof the right to require such Person to  redeem or purchase such Equity Interest upon the occurrence of an “asset sale” or a “change of control” (or  similar  event,  however  denominated)  shall  not  constitute  a  Disqualified  Equity  Interest  if  any  such  requirement  becomes  operative  only  after  repayment  in  full  of  all  the  Loans  and  all  other  Secured  Obligations that are accrued and payable, the cancellation or expiration of all Letters of Credit and the  termination or expiration of the Commitments and (ii) an Equity Interest in any Person that is issued to any  employee or to any plan for the benefit of employees or by any such plan to such employees shall not  constitute a Disqualified Equity Interest solely because it may be required to be repurchased by such Person  or any of its subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of  such employee’s termination, death or disability.         “Disqualified Lenders” means (a) entities that have been specifically identified by the Company to  the  Administrative  Agent  in  writing  prior  to  October 2,  2016,  or  after  October 2,  2016  and  prior  to  November 8,  2016  with  the  reasonable  consent  of  the  Lead  Arranger,  (b) entities  that  are  reasonably  determined by the Company to be competitors of the Company or its subsidiaries (including Grand Design  and its subsidiaries) and which are specifically identified by the Company to the Administrative Agent in                                         13   

 

writing prior to November 8, 2016 and (c) in the case of the foregoing clauses (a) and (b), any of such  entities’ Affiliates to the extent such Affiliates (x)(i) are clearly identifiable as Affiliates of such entities  based solely on the similarity of such Affiliates’ and such entities’ names and (ii) are not bona fide debt  investment funds or (y)(i) upon reasonable notice to the Administrative Agent after the Effective Date, are  identified as Affiliates in writing after the Effective Date in a written supplement to the list of “Disqualified  Lenders”,  which  supplement  shall  become  effective  three  (3)  Business  Days  after delivery  to  the  Administrative Agent and the Lenders, but which shall not apply retroactively to disqualify any parties that  have previously acquired an assignment or participation interest in the Loans and (ii) are not bona fide debt  investment  funds.  It is  understood  and  agreed  that  (i)  any  supplement  to  the  list  of  Persons  that  are  Disqualified Lenders contemplated by the foregoing clause (c) shall not apply retroactively to disqualify  any Persons that have previously acquired an assignment or participation interest in the Loans (but solely  with  respect  to  such  Loans),  (ii)  the  Administrative  Agent  shall  have  no  responsibility  or  liability  to  determine or monitor whether any Lender or potential Lender is a Disqualified Lender, (iii) the Company’s  failure to deliver such list (or supplement thereto) in accordance with Section 9.01 shall render such list (or  supplement) not received and not effective and (iv) “Disqualified Lender” shall exclude any Person that the  Company has designated as no longer being a “Disqualified Lender” by written notice delivered to the  Administrative Agent from time to time in accordance with Section 9.01.         “Dividing Person” has the meaning assigned to it in the definition of “Division.”         “Division” means the division of the assets, liabilities and/or obligations of a Person (the “Dividing  Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement),  which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may  not survive.         “Division Successor” means any Person that, upon the consummation of a Division of a Dividing  Person, holds all or any portion of the assets, liabilities and/or obligations previously held by such Dividing  Person immediately prior to the consummation of such Division. A Dividing Person which retains any of  its assets, liabilities and/or obligations after a Division shall be deemed a Division Successor upon the  occurrence of such Division.         “Document” has the meaning assigned to such term in the Security Agreement.         “Dollars” or “$” refers to lawful money of the United States of America.         “Domestic Foreign Holdco Subsidiary” means any Domestic Subsidiary substantially all of the  assets of which consist of the Equity Interests (or Equity Interests and Indebtedness) of one or more CFCs.         “Domestic Subsidiary” means a Subsidiary organized under the laws of a jurisdiction located in the  United States of America.         “DQ List” has the meaning assigned to such term in Section 9.04(e)(iv).         “ECP” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity  Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity  Futures Trading Commission and/or the SEC.         “EEA Financial Institution” means (a) any institution established in any EEA Member Country  which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA  Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any  institution established in an EEA Member Country which is a subsidiary of an institution described in  clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.                                         14   

 

      “EEA  Member  Country”  means  any  of  the  member  states  of  the  European  Union,  Iceland,  Liechtenstein, and Norway.         “EEA Resolution Authority” means any public administrative authority or any Person entrusted  with public  administrative  authority  of  any  EEA  Member  Country  (including  any  delegee)  having  responsibility for the resolution of any EEA Financial Institution.         “Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or  waived in accordance with Section 9.02).         “Electronic Signature” means an electronic sound, symbol, or process attached to, or associated  with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such  contract or record.         “Electronic System” means any electronic system, including e-mail, e-fax, web portal access for  any Borrower, Intralinks®, ClearPar®, Debt Domain, Syndtrak and any other Internet or extranet-based  site, whether such electronic system is owned, operated or hosted by the Administrative Agent and the  Issuing Bank and any of its respective Related Parties or any other Person, providing for access to data  protected by passcodes or other security system.         “Eligible Accounts” means, at any time, the Accounts of any Borrower which the Administrative  Agent determines in its Permitted Discretion are eligible as the basis for the extension of Revolving Loans  and Swingline Loans and the issuance of Letters of Credit. Without limiting the Administrative Agent’s  discretion provided herein, Eligible Accounts shall not include any Account of a Borrower:         (a)   other than to the extent a Reserve is established pursuant to clause (b), which is not subject  to a first priority perfected security interest in favor of the Administrative Agent;         (b)   which is subject to any Lien, unless (i) such Lien constitutes (x) a Lien in favor of the  Administrative Agent, (y) a Permitted Encumbrance which does not have priority over the Lien in favor of  the Administrative Agent or (z) a Lien permitted under Section 6.02(a)(ii) or (ii) the Administrative Agent  shall have established a Reserve in its Permitted Discretion for liabilities of such Borrower that are secured  by such Lien;         (c)   (i) which is unpaid more than ninety (90) days after the date of the original invoice therefor  or more than sixty (60) days after the original due date therefor (“Overage”) (when calculating the amount  under this clause (i), for the same Account Debtor, the Administrative Agent shall include the net amount  of such Overage and add back any credits, but only to the extent that such credits do not exceed the total  gross receivables from such Account Debtor), or (ii) which has been written off the books of such Borrower  or otherwise designated as uncollectible;         (d)   which is owing by an Account Debtor for which more than 50% of the Accounts owing  from such Account Debtor and its Affiliates are ineligible under clause (c) above;         (e)   which is owing by an Account Debtor to the extent the aggregate amount of Accounts  owing  from  such  Account  Debtor  and  its  Affiliates  to  the  Borrowers  exceeds  20%  or  such  greater  percentage as the Administrative Agent may determine from time to time in its Permitted Discretion of the  aggregate amount of Eligible Accounts of all Borrowers (but will only be ineligible to the extent of such  excess);         (f)   with respect to  which  any  covenant, representation or  warranty  contained  in  any  Loan  Document  has  been  breached  or  is  not  true  in  any  material  respect  (or,  with  respect  to  any  covenant,                                         15   

 

representation or warranty which is subject to any materiality qualifier, has been breached or is not true in  any respect);         (g)   which (i) does not arise from the sale of goods or performance of services in the ordinary  course of business, (ii) is not evidenced by an invoice or other documentation reasonably satisfactory to the  Administrative Agent which has been sent to the Account Debtor, (iii) represents a progress billing, (iv) is  contingent  upon  such  Borrower’s  completion  of  any  further  performance,  (v) represents  a  sale  on  a  bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment or cash-on-delivery basis  (other than general product warranties given in the ordinary course of business) or (vi) relates to payments  of interest (but only to the extent thereof);         (h)   for which the goods giving rise to such Account have not been shipped to the Account  Debtor or for which the services giving rise to such Account have not been performed by such Borrower or  if such Account was invoiced more than once;         (i)   with  respect  to  which  any  check  or  other  instrument  of  payment  has  been  returned  uncollected for any reason;         (j)   which is owed by an Account Debtor which has (i) applied for, suffered, or consented to  the  appointment  of  any  receiver,  custodian,  trustee,  administrative  receiver,  administrator,  compulsory  manager, liquidator or other similar officer of its assets, (ii) had possession of all or a material part of its  property  taken  by  any  receiver,  custodian,  trustee,  administrative  receiver,  administrator,  compulsory  manager, liquidator or other similar officer, (iii) filed, or had filed against it, any request or petition for  liquidation, reorganization,  arrangement,  adjustment of  debts,  adjudication  as  bankrupt, administration,  winding-up, or voluntary or involuntary case under any Federal, state or foreign bankruptcy, insolvency,  receivership or similar law, (iv) admitted in writing its inability, or is generally unable to, pay its debts as  they become due or has had a moratorium declared in respect of it, (v) become insolvent, or (vi) ceased  operation of its business (other than, in any such case, post-petition accounts payable of an Account Debtor  that is a debtor-in-possession under the United States Bankruptcy Code and reasonably acceptable to the  Administrative Agent);         (k)   which is owed by any Account Debtor which has sold all or substantially all of its assets;         (l)   which is owed by an Account Debtor which (i) does not maintain its chief executive office  in the U.S. or Canada or (ii) is not organized under applicable laws of the U.S., any state of the U.S., Canada  or any province of Canada, unless, in any such case, such Account is backed by a letter of credit or bank  guarantee reasonably acceptable to the Administrative Agent;         (m)   which is owed in any currency other than U.S. dollars or Canadian Dollars;         (n)   which is owed by (i) any Governmental Authority of any country other than Canada (or  any province or territory thereof) or the U.S. unless such Account is backed by a letter of credit or bank  guarantee reasonably acceptable to the Administrative Agent or (ii) any Governmental Authority of the  U.S.,  or  any  department,  agency,  public  corporation,  or  instrumentality  thereof,  unless  the  Federal  Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et seq.), and  any  other steps  necessary to  perfect the  Lien  of  the  Administrative  Agent  in  such  Account  have  been  complied with to the Administrative Agent’s satisfaction;         (o)   which is owed by any Affiliate of any Loan Party or any employee, officer, or director of  any Loan Party or any of its Affiliates;                                          16   

 

      (p)   which is owed by an Account Debtor or any Affiliate of such Account Debtor to which any  Loan Party is indebted, but only to the extent of such indebtedness, or is subject to any security, deposit,  progress payment, retainage or other similar advance made by or for the benefit of an Account Debtor, in  each case to the extent thereof;         (q)   which is subject to any counterclaim, deduction, defense, setoff or dispute, but only to the  extent of any such counterclaim, deduction, defense, setoff or dispute;         (r)   which is evidenced by any promissory note, chattel paper or instrument;         (s)   which is owed by an Account Debtor (i) located in any State of the U.S. which requires  filing of a “Notice of Business Activities Report” or other similar report in order to permit such Borrower  to seek judicial enforcement in such jurisdiction of payment of such Account, unless such Borrower has  filed such report or qualified to do business in such jurisdiction (or may do so at a later date without material  penalty or prejudice and without affecting the collectability of such Account) or (ii) which is a Sanctioned  Person;         (t)   with respect to which such Borrower has made any agreement with the Account Debtor for  any reduction thereof, other than discounts and adjustments given in the ordinary course of business (but  only to the extent of any such reduction), or any Account which was partially paid and such Borrower  created a new receivable for the unpaid portion of such Account;         (u)   which does not comply in all material respects with the requirements of all applicable laws  and regulations, whether Federal, state, foreign, provincial or local, including without limitation the Federal  Consumer Credit Protection Act, the Federal Truth in Lending Act and Regulation Z of the Board;         (v)   unless  the  Administrative  Agent  has  established  a  Reserve  in  its  Permitted  Discretion,  which is for goods that have been sold under a purchase order or pursuant to the terms of a contract or other  agreement or understanding (written or oral) that indicates or purports that any Person other than such  Borrower has or has had  an ownership interest in such  goods  (including but not limited to by way of  retention of title), or which indicates any party other than such Borrower as payee or remittance party;         (w)   which was created on cash on delivery terms; or         (x)   which is subject to any limitation on assignment or other restriction (whether arising by  operation of law, by agreement or otherwise) which would under the local governing law of the contract  have the effect of restricting the assignment for or by way of security or the creation of security, in each  case, unless the Administrative Agent has determined that such limitation is not enforceable.         In the event that an Account of a Borrower which was previously an Eligible Account ceases to be  an  Eligible  Account  hereunder,  such  Borrower  or  the  Borrower  Representative  shall  notify  the  Administrative Agent thereof on and at the time of submission to the Administrative Agent of the next  Aggregate  Borrowing  Base  Certificate and  the  Borrowing  Base  Certificate  of  such  Borrower.  In  determining the amount of an Eligible Account of a Borrower, the face amount of an Account may, in the  Administrative  Agent’s  Permitted  Discretion, be reduced by, without duplication and  to the  extent not  reflected in such face amount, (i) the amount of all accrued and actual discounts, claims, credits or credits  pending,  promotional  program  allowances,  price  adjustments,  finance  charges  or  other  allowances  (including any amount that such Borrower may be obligated to rebate to an Account Debtor pursuant to the  terms of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash received  in respect of such Account but not yet applied by such Borrower to reduce the amount of such Account.  Notwithstanding  the  foregoing,  the  eligibility  criteria  for  “Eligible  Accounts”  may  not  be  made  more  restrictive or newly established after the Effective Date (i) without at least three (3) Business Days’ prior                                         17   

 

notice to the Borrower Representative and (ii) in response to circumstances or events in existence on the  Effective Date and disclosed to the Administrative Agent prior to the Effective Date (including under any  field  examinations  or  appraisals  conducted  prior  to  the  Effective  Date); provided that,  the  foregoing  limitation in clause (ii) shall not apply in the event of a material change in the scope or magnitude of any  such circumstances or events.         “Eligible Inventory” means, at any time, the Inventory of any Borrower which the Administrative  Agent determines in its Permitted Discretion is eligible as the basis for the extension of Revolving Loans  and Swingline Loans and the issuance of Letters of Credit. Without limiting the Administrative Agent’s  discretion provided herein, Eligible Inventory of a Borrower shall not include any Inventory:         (a)   other than to the extent a Reserve is established pursuant to clause (b), which is not subject  to a first priority perfected security interest in favor of the Administrative Agent;         (b)   which is subject to any Lien, unless (i) such Lien constitutes (x) a Lien in favor of the  Administrative Agent, (y) a Permitted Encumbrance which does not have priority over the Lien in favor of  the Administrative Agent or (z) a Lien permitted under Section 6.02(a)(ii) or (ii) the Administrative Agent  shall have established a Reserve in its Permitted Discretion for liabilities of such Borrower that are secured  by such Lien;         (c)   which  is,  in  the  Administrative  Agent’s  Permitted  Discretion,  slow  moving,  obsolete,  unmerchantable, defective, used, unfit for sale, not salable at prices approximating at least the cost of such  Inventory in the ordinary course of business or unacceptable due to age, type, category and/or quantity;         (d)   with respect to  which  any  covenant, representation or  warranty  contained  in  any  Loan  Document  has  been  breached  or  is  not  true  in  any  material  respect  (or,  with  respect  to  any  covenant,  representation or warranty which is subject to any materiality qualifier, has been breached or is not true in  any  respect)  and which  does  not  conform  to  all  applicable  standards  imposed  by  any  Governmental  Authority;         (e)   in  which  any  Person  other  than  such  Borrower  shall  (i) have  any  direct  or  indirect  ownership, interest or title (including, without limitation, any interest that a customer may have in any  chassis included in such Inventory that were acquired by such customer using financing provided by any  Loan Party) or (ii) be indicated on any purchase order or invoice with respect to such Inventory as having  or purporting to have an interest therein;         (f)   which constitutes work-in-process (other than U16 Inventory), spare or replacement parts,  subassemblies, packaging and shipping material, manufacturing supplies, samples, prototypes, displays or  display items, bill-and-hold or ship-in-place goods, goods that are returned or marked for return (unless  undamaged and able to be resold in the ordinary course of business), repossessed goods, repurchased goods,  defective or damaged goods, goods held by such Borrower on consignment, or goods which are not of a  type held for sale in the ordinary course of business; provided that up to $70,000,000 of work-in-process  Inventory (other than U16 Inventory) of the Borrowers that otherwise constitutes “Eligible Inventory” may  be included as Eligible Inventory (such Inventory (subject to such cap), “Eligible Non-U16 Inventory”)  despite the foregoing provisions of this clause (f);         (g)   which is not located in the U.S. (including any territory thereof) or Canada or in transit  with a common carrier from vendors and suppliers, provided that, up to $7,500,000 of Inventory in transit  from vendors and suppliers may be included as Eligible Inventory despite the foregoing provision of this  clause (g) so long as:                                          18   

 

            (i)   the Administrative Agent shall have received (1) a true and correct copy of the bill        of lading and other shipping documents for such Inventory and (2) evidence of satisfactory casualty        insurance naming the Administrative Agent as lender loss payee and otherwise covering such risks        as the Administrative Agent may reasonably request,               (ii)  if the bill of lading is non-negotiable, the Inventory must be in transit within the        U.S., and the Administrative Agent shall have received, if requested, a duly executed Collateral        Access  Agreement,  in  form  and  substance  satisfactory  to the  Administrative  Agent,  from  the        applicable customs broker, freight forwarder or carrier for such Inventory,               (iii) if the bill of lading is negotiable, the Inventory must be in transit from outside the        U.S., and the Administrative Agent shall have received (1) confirmation that the bill is issued in        the  name  of  such  Borrower  and  consigned  to  the  order  of  the  Administrative  Agent,  and  an        acceptable  agreement  has  been  executed  with  such  Borrower’s  customs  broker,  in  which  the        customs broker agrees that it holds the negotiable bill as agent for the Administrative Agent and        has granted the Administrative Agent access to the Inventory, (2) confirmation that such Borrower        has paid for the goods, and (3) an estimate from such Borrower of the customs duties and customs        fees associated with the Inventory in order to establish an appropriate Reserve,               (iv)  the common carrier is not an Affiliate of the applicable vendor or supplier, and               (v)   the customs broker is not an Affiliate of such Borrower;         (h)   which is located in any location leased by such Borrower unless (i) the lessor has delivered  to the Administrative Agent a Collateral Access Agreement or (ii) a Reserve for rent, charges and other  amounts due or to become due with respect to such facility has been established by the Administrative  Agent in its Permitted Discretion;         (i)   which is located in any third party warehouse or is in the possession of a bailee (other than  a third party processor) and is not evidenced by a Document, unless (i) such warehouseman or bailee has  delivered to the Administrative Agent a Collateral Access Agreement and such other documentation as the  Administrative Agent may require or (ii) an appropriate Reserve has been established by the Administrative  Agent in its Permitted Discretion;         (j)   which is being processed offsite at a third party location or outside processor, or is in-transit  to or from such third party location or outside processor, unless (i) such processor has delivered to the  Administrative Agent a Collateral Access Agreement and such other documentation as the Administrative  Agent may require or (ii) an appropriate Reserve has been established by the Administrative Agent in its  Permitted Discretion;         (k)   which is a discontinued product or component thereof (unless such discontinuance does  not adversely impact the salability of the remaining Inventory);         (l)   which  is  the  subject  of  a  consignment  by  such  Borrower  as  consignor; provided that,  consigned Inventory may be eligible if the applicable consignee has delivered to the Administrative Agent  a Collateral Access Agreement and such other documentation and the Administrative Agent may reasonably  require;         (m)   which contains or bears any intellectual property rights licensed to such Borrower unless  the  Administrative  Agent  is  satisfied  that  it  may  sell  or  otherwise  dispose  of  such  Inventory  without  (i) infringing the rights of such licensor, (ii) violating any contract with such licensor, or (iii) incurring any                                         19   

 

liability with respect to payment of royalties other than royalties incurred pursuant to sale of such Inventory  under the current licensing agreement;         (n)   which is not reflected in a current perpetual inventory report of such Borrower (unless such  inventory (i) is reflected in a report to the Administrative Agent as “in transit” inventory or (ii) constitutes  Eligible Non-U16 Inventory); provided that, notwithstanding the foregoing provisions of this clause (n), up  to $20,000,000 of Inventory of the Borrowers not reflected in a current perpetual inventory report, which  $20,000,000  limitation  shall  not  apply  to  Eligible  Non-U16  Inventory  or  “in-transit”  inventory,  and  otherwise constituting “Eligible Inventory” may be included as Eligible Inventory (such Inventory (subject  to such cap), “Eligible Non-Perpetual Inventory”);         (o)   for which reclamation rights have been asserted by the seller;         (p)   for  which  any  contract or related  documentation (such  as invoices  or  purchase  orders)  relating  to  such  Inventory  includes  retention  of  title  rights  in  favor  of  the  vendor  or  supplier  thereof;  provided that, Inventory of a Borrower which may be subject to any rights of retention of title shall not be  excluded from Eligible Inventory solely pursuant to this clause (p) in the event that (A) the Administrative  Agent shall have received evidence satisfactory to it that the full purchase price of such Inventory has or  will have been paid or (B) a Letter of Credit has been issued under and in accordance with the terms of this  Agreement for the purchase of such Inventory;         (q)   which has been acquired from a Sanctioned Person; or         (r)   other than to the extent permitted by the Administrative Agent in its Permitted Discretion,  which constitutes raw materials of Winnebago of Indiana.         In the event that Inventory of any Borrower which was previously Eligible Inventory ceases to be  Eligible Inventory hereunder, such Borrower or the Borrower Representative shall notify the Administrative  Agent  thereof  on  and  at  the  time  of  submission  to  the  Administrative  Agent  of  the  next  Aggregate  Borrowing Base Certificate and the Borrowing Base Certificate of such Borrower. Notwithstanding the  foregoing,  the  eligibility  criteria  for  “Eligible  Inventory”  may  not  be  made  more  restrictive  or  newly  established after the Effective Date (i) without at least three (3) Business Days’ prior notice to the Borrower  Representative  and  (ii)  in  response  to  circumstances  or  events  in  existence  on  the  Effective  Date  and  disclosed to the Administrative Agent prior to the Effective Date (including under any field examinations  or appraisals conducted prior to the Effective Date); provided that, the foregoing limitation in clause (ii)  shall not apply in the event of a material change in the scope or magnitude of any such circumstances or  events.         “Eligible Non-Perpetual Inventory” has the meaning assigned to such term in clause (n) of the  definition of “Eligible Inventory”.         “Eligible Non-U16 Inventory” has the meaning assigned to such term in clause (f) of the definition  of “Eligible Inventory”.         “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 or to health and safety  matters.         “Environmental Liability” means any liability, contingent or otherwise (including any liability for  damages,  costs  of  environmental  remediation,  fines,  penalties  or  indemnities),  of  the  Company  or  any                                         20   

 

Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law,  (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials,  (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials  into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which  liability is assumed or imposed with respect to any of the foregoing.         “Equipment” has the meaning assigned to such term in the Security Agreement.         “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 of the foregoing.         “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to  time, and the rules and regulations promulgated thereunder.         “ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with  the Company, is treated as a single employer under Section 414(b) or (c) of the Code or Section 4001(14)  of ERISA 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 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) the failure to satisfy the “minimum funding standard” (as defined in Section 412 of the Code  or Section 302 of ERISA), 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 incurrence by the Company or any of its ERISA Affiliates of any liability under Title IV  of  ERISA  with  respect  to  the  termination  of  any  Plan;  (e) the  receipt by  the  Company  or  any  ERISA  Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan  or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Company or any of its  ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal of the Company or  any of its ERISA Affiliates from any Plan or Multiemployer Plan; or (g) the receipt by the Company or any  ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Company or any ERISA  Affiliate of any notice, concerning the imposition upon the Company or any of its ERISA Affiliates of  Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent, in  critical status or in reorganization, within the meaning of Title IV 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.         “Eurodollar” when used in reference to any Loan or Borrowing, means that such Loan, or the Loans  comprising such Borrowing, bears interest at a rate determined by reference to the Adjusted LIBO Rate.         “Event of Default” has the meaning assigned to such term in Article VII.         “Excess  Grand  Design  Borrowing  Base”  means,  at  any  time,  the  excess,  if  any,  of  (a)  Grand  Design’s Borrowing Base at such time over (b) the aggregate Grand Design Revolving Exposures of all  Lenders at such time.         “Excess  Winnebago  of  Indiana  Borrowing  Base”  means,  at  any  time,  the  excess,  if  any,  of  (a) Winnebago of Indiana’s Borrowing Base at such time over (b) the aggregate Winnebago of Indiana  Revolving Exposures of all Lenders at such time.                                         21   

 

      “Excluded Accounts” means, collectively, (a) payroll accounts, trust accounts, employee benefit  accounts and zero-balance disbursement accounts (that are not collection accounts) and (b) deposit accounts  that have balances of no more than $250,000 individually or $1,000,000 in the aggregate for any period of  thirty (30) consecutive days.         “Excluded Assets” means, collectively:         (a)   any  fee-owned  real  property  that  does  not  constitute  Material  Real  Property  and  all  leasehold interests in real property;         (b)   any “intent-to-use” application for registration of a trademark filed pursuant to Section 1(b)  of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to Section 1(d)  of the Lanham Act or an “Amendment to Allege Use” pursuant to Section 1(c) of the Lanham Act with  respect thereto, solely to the extent, if any, that, and solely during the period, if any, in which, the grant of  a security interest therein would impair the validity or enforceability of any registration that issues from  such intent-to-use application under applicable federal law;         (c)   assets  in  respect  of  which  pledges  and  security  interests  are  prohibited  by  applicable  U.S. law, rule or regulation or agreements with any U.S. governmental authority (other than to the extent  that such prohibition would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408, 9-409 or other  applicable provisions of the UCC of any relevant jurisdiction or any other applicable law); provided that,  immediately  upon  the  ineffectiveness,  lapse  or  termination  of  any  such  prohibitions,  such  assets  shall  automatically cease to constitute Excluded Assets;         (d)   margin stock (within the meaning of Regulation U issued by the Board);         (e)   Equity Interests in any entity other than wholly-owned Material Subsidiaries and, to the  extent not requiring the consent of one or more unaffiliated third parties or prohibited by the terms of any  applicable organizational documents, joint venture agreement or shareholders’ agreement, other Material  Subsidiaries and joint ventures;         (f)   letter of credit rights with a value of less than $5,000,000 (other than to the extent the  security interest in such letter of credit right may be perfected by the filing of UCC financing statements)  and commercial tort claims with a value of less than $5,000,000;         (g)   any lease, license, capital lease obligation or other agreement or any property subject to a  purchase money security interest, similar agreement or other contractual restriction to the extent that a grant  of a  security interest therein would violate  or invalidate  such lease, license, capital lease obligation or  agreement or purchase money arrangement or other contraction restriction or create a right of termination  in favor of any other party thereto (other than a Loan Party) (other than (x) proceeds and receivables thereof,  the assignment of which is expressly deemed effective under the UCC notwithstanding such prohibition,  (y) to the extent that any such term has been waived or (z) to the extent that any such term would be rendered  ineffective pursuant to Sections 9-406, 9-407, 9-408, 9-409 or other applicable provisions of the UCC of  any relevant jurisdiction or any other applicable law); provided that, immediately upon the ineffectiveness,  lapse or termination of any such term, such assets shall automatically cease to constitute Excluded Assets;         (h)   any  foreign  assets  (including  foreign  intellectual  property)  (other  than  pledges  of  the  Applicable  Pledge  Percentage  of  the  issued and  outstanding  Equity  Interests  in  any  First Tier  Foreign  Subsidiary which is a Material Foreign Subsidiary as contemplated by this Agreement) or credit support;                                          22   

 

      (i)   those assets as to which the Administrative Agent and the Company reasonably agree that  the cost of obtaining such a security interest or perfection thereof are excessive in relation to the benefit to  the Lenders of the security to be afforded thereby;         (j)   any aircrafts and aircraft engines; and         (k)   Excluded Accounts.   Notwithstanding the foregoing, “Excluded Assets” shall not include any proceeds, products, substitutions  or replacements of Excluded Assets (unless such proceeds, products, substitutions or replacements would  otherwise constitute Excluded Assets).         “Excluded Domestic Subsidiary” means (a) any Domestic Subsidiary whose Equity Interests are  owned directly or indirectly by a CFC and (b) any Domestic Foreign Holdco Subsidiary.         “Excluded Foreign Subsidiary” means a Foreign Subsidiary which is (a) a CFC or (b) a direct or  indirect Foreign Subsidiary owned by a CFC or Domestic Foreign Holdco Subsidiary.         “Excluded  Swap Obligation”  means,  with  respect  to  any  Loan  Party,  any  Specified  Swap  Obligation if, and to the extent that, all or a portion of the Guarantee of such Loan Party of, or the grant by  such Loan Party of a security interest to secure, such Specified Swap Obligation (or any Guarantee thereof)  is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity  Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such  Loan Party’s failure for any reason to constitute an ECP at the time the Guarantee of such Loan Party or  the grant of such security interest becomes effective with respect to such Specified Swap Obligation. If a  Specified Swap Obligation arises under a master agreement governing more than one swap, such exclusion  shall apply only to the portion of such Specified Swap Obligation that is attributable to swaps for which  such Guarantee or security interest is or becomes illegal.         “Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or  required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by  net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as  a result of such Recipient being organized under the laws of, or having its principal office or, in the case of  any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political  subdivision  thereof)  or  (ii) that  are  Other  Connection  Taxes,  (b) in  the  case  of  a  Lender,  U.S. Federal  withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an  applicable interest in a Loan, Letter of Credit or Commitment pursuant to a law in effect on the date on  which  (i) such  Lender  acquires  such  interest  in  the  Loan,  Letter  of  Credit or Commitment  (other than  pursuant to an assignment request by any Borrower under Section 2.19(b)) or (ii) such Lender changes its  lending office, except in each case to the extent that, pursuant to Section 2.17, amounts with respect to such  Taxes  were  payable  either  to  such  Lender’s  assignor  immediately  before  such  Lender  acquired  the  applicable interest in a Loan, Letter of Credit or Commitment or to such Lender immediately before it  changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.17(f)  and (d) any U.S. Federal withholding Taxes imposed under FATCA.         “Extenuating  Circumstance”  means  any  period  during  which  the  Administrative  Agent  has  determined  in  its  sole  discretion  (a)  that  due  to  unforeseen  and/or  nonrecurring  circumstances,  it  is  impractical and/or not feasible to submit or receive a Borrowing Request or Interest Election Request by  email or fax or through Electronic System, and (b) to accept a Borrowing Request or Interest Election  Request telephonically.                                          23   

 

      “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  fiscal  or  regulatory  legislation,  rules  or  practices  adopted  pursuant  to  any  intergovernmental  agreement,  treaty  or  convention  among  Governmental  Authorities and implementing such Sections of the Code.         “FCCR Test Period” means any period (a) commencing on the last day of the most recently ended  Test Period on or prior to the date Aggregate Availability is less than the greater of $16,500,000 and 10%  of the Aggregate Commitment at any time and (b) ending on the day after Aggregate Availability has  exceeded the greater of $16,500,000 and 10% of the Aggregate Commitment for thirty (30) consecutive  days.         “Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB based on  such  day’s  federal  funds  transactions  by  depositary  institutions  (as  determined  in  such  manner  as  the  NYFRB shall set forth on its  public  website from time  to time) and published on the  next succeeding  Business Day by the NYFRB as the effective federal funds rate, provided that, if the Federal Funds Effective  Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this  Agreement.         “Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the  United States of America.         “Final Release Conditions” has the meaning assigned to such term in Section 9.19(c).         “Financial  Officer”  means  the  chief  financial  officer,  principal  accounting  officer,  treasurer  or  controller of the Company.         “First Lien Net Leverage Ratio” means, as of any date of determination, the ratio of (a) an amount  equal to (i) Consolidated Total Secured Indebtedness, but excluding any secured indebtedness to the extent  the Liens with respect thereto are subordinated to the Liens securing the Secured Obligations or the Term  Loan Obligations, as of the last day of the most recent Test Period on or prior to such date of determination  minus (ii) the aggregate amount of unrestricted and unencumbered cash and Permitted Investments included  in the consolidated balance sheet of the Company and its Subsidiaries as of such date, which aggregate  amount shall be determined without giving pro forma effect to the proceeds of Indebtedness incurred on  such date to (ii) Consolidated EBITDA of the Company and its Subsidiaries for such Test Period.         “First Tier Foreign Subsidiary” means each Foreign Subsidiary with respect to which any one or  more  of  the  Company  and  its  Domestic  Subsidiaries  directly  owns  more  than  50%  of  such  Foreign  Subsidiary’s issued and outstanding Equity Interests.         “Fixed  Charge  Coverage  Ratio”  means,  for  any  period,  the  ratio  of (a)  Consolidated  EBITDA  minus Capital Expenditures (other than Capital Expenditures (i) financed with Indebtedness (other than  Revolving Loans), (ii) made to restore, replace or rebuild assets subject to casualty or condemnation events  to the extent made with the cash proceeds of insurance or condemnation awards, (iii) to the extent made  with the cash proceeds of permitted asset dispositions and/or (iv) constituting capital assets acquired in a  Permitted  Acquisition)  to (b)  Fixed  Charges,  all  calculated  for the  Company and  its  Subsidiaries  on  a  consolidated basis in accordance with GAAP.         “Fixed Charges” means, for any period, without duplication, (a) cash Consolidated Interest Expense  plus (b) to the extent positive, expenses for income taxes paid in cash plus (c) scheduled cash principal  payments made on Indebtedness for borrowed money plus (d) cash dividends paid by the Company, plus                                         24   

 

(e)  cash  contributions  to  any  Plan  (to  the  extent  not  accounted  for  in  the  calculation  of  Consolidated  EBITDA), all calculated  for the  Company and  its  Subsidiaries  (except as provided in clause (d)) on a  consolidated basis in accordance with GAAP; provided that, for purposes of determining satisfaction of the  Payment Condition, “Fixed Charges” shall also include, without duplication (i) all Restricted Payments  paid in cash by the Company and its Subsidiaries on a consolidated basis during such period pursuant to  Section 6.09(g) and (ii) cash payments of earn-out obligations.         “Flood Laws” has the meaning assigned to such term in Article VIII.         “Foreign Lender” means (a) if the applicable Borrower is a U.S. Person, a Lender, with respect to  such Borrower, that is not a U.S. Person, and (b) if the applicable Borrower is not a U.S. Person, a Lender,  with respect to such Borrower, that is resident or organized under the laws of a jurisdiction other than that  in which such Borrower is resident for tax purposes.         “Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary.         “Funding Account” has the meaning assigned to such term in Section 4.01(f).         “GAAP” means generally accepted accounting principles in the United States of America.         “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.         “Grand Design” means Grand Design RV, LLC, an Indiana limited liability company.         “Grand Design Revolving Exposures” means, with respect to any Lender at any time, and without  duplication, the sum of (a) the outstanding principal amount of the Revolving Loans made by such Lender  to Grand Design at such time plus (b) such Lender’s LC Exposure with respect to Letters of Credit issued  for the account of Grand Design at such time plus (c) such Lender’s Swingline Exposure with respect to  Swingline Loans made to Grand Design at such time plus (d) an amount equal to its Applicable Percentage  of the aggregate principal amount of outstanding Protective Advances made to Grand Design at such time  plus (e) an amount equal to its Applicable Percentage of the aggregate principal amount of outstanding  Protective Advances made to Grand Design at such time.         “Grand Design Utilization” means, at any time, the excess, if any, of (a) the aggregate Grand Design  Revolving Exposures of all Lenders over (b) the Grand Design Borrowing Base.         “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  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 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 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  obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support  such  Indebtedness  or obligation; provided,  that the  term  Guarantee  shall  not  include  endorsements  for  collection or deposit in the ordinary course of business.                                         25   

 

      “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.         “Hostile Acquisition” means (a) the acquisition of the Equity Interests of a Person through a tender  offer or similar solicitation of the owners of such Equity Interests which has not been approved (prior to  such acquisition) by the board of directors (or any other applicable governing body) of such Person or by  similar action if such Person is not a corporation and (b) any such acquisition as to which such approval  has been withdrawn.         “IBA” has the meaning assigned to such term in Section 1.06.         “Impacted Interest Period” has the meaning assigned to such term in the definition of “LIBO Rate”.          “Incremental Term Loan Amount” means, at any time, an amount of Indebtedness such that, as of  the most recently completed Test Period ending prior to the date of the incurrence of such Indebtedness,  after giving pro forma effect to such incurrence and such acquisition in accordance with Section 1.04(b),  the First Lien Net Leverage Ratio calculated is less than or equal to 2.50 to 1.00.         “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 relating to property acquired by such Person, (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, (j) all obligations, contingent or otherwise, of such Person in respect of  bankers’ acceptances and (k) obligations of such Person under Sale and Leaseback Transactions (other than  such obligations constituting operating lease obligations). 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. Notwithstanding the foregoing, the term “Indebtedness” shall not include (i) purchase  price  adjustments,  earnouts,  holdbacks  or  deferred  payments  of  a  similar  nature  (including  deferred  compensation representing consideration or other contingent obligations incurred in connection with an  acquisition),  except  in  each  case  to  the  extent  that  such  amount  payable  is,  or  becomes,  reasonably  determinable and contingencies have been resolved or such amount would otherwise be required to be  reflected on a balance sheet prepared in accordance with GAAP; (ii) current accounts payable incurred in  the ordinary course of business; (iii) obligations in respect of non-competes and similar agreements; (iv)  Swap Obligations; (v) Banking Services Obligations; (vi) licenses and operating leases; or (vii) Permitted  Call Spread Swap Agreements, and any obligations thereunder.         “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to  any payment made by or on account of any obligation of any Loan Party under any Loan Document and  (b) to the extent not otherwise described in clause (a), Other Taxes.         “Indemnitee” has the meaning assigned to such term in Section 9.03(b).                                         26   

 

      “Ineligible Institution” has the meaning assigned to such term in Section 9.04(b).         “Information” has the meaning assigned to such term in Section 9.12.         “Intercreditor Agreement” means (a) in respect of the Term Loan Facility, the ABL/Term Loan  Intercreditor Agreement (b) in respect of any other Indebtedness intended to be secured by some or all of  the Collateral on a pari passu basis with the Obligations, an intercreditor agreement reasonably acceptable  to  the  Administrative  Agent,  the  terms  of  which  are  consistent  with  market  terms  governing  security  arrangements for the sharing of Liens on a pari passu basis at the time such intercreditor agreement is  proposed to be established in light of the type of Indebtedness to be secured by such Liens, as reasonably  determined by the Administrative Agent and the Borrower Representative and (c) in respect of any other  Indebtedness intended to be secured by some or all of the Collateral on a junior priority basis with the  Obligations, an intercreditor agreement reasonably acceptable to the Administrative Agent the terms of  which are consistent with market terms governing security arrangements for the sharing of Liens on a junior  basis  at  the  time  such  intercreditor  agreement  is  proposed  to  be  established  in  light  of  the  type  of  Indebtedness to be secured by such Liens, as reasonably determined by the Administrative Agent and the  Borrower Representative.         “Interest Election Request” means a request by the Borrower Representative to convert or continue  a Revolving Borrowing in accordance with Section 2.08.         “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline Loan),  the first Business Day of January, April, July and October and the Maturity Date and (b) with respect to  any Eurodollar 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  Eurodollar  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 and the Maturity Date of the Facility under which such  Eurodollar Loan was made.         “Interest Period” means with respect to any Eurodollar Borrowing, the period commencing on the  date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one,  two, three or six months thereafter, as the Borrower Representative may elect; provided, that (i) if any  Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the  next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar  month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest  Period that commences on the last Business Day of a calendar month (or on a day for which there is no  numerically corresponding day in the last calendar month of such Interest Period) shall end on the last  Business  Day  of  the  last  calendar  month  of  such  Interest  Period.  For  purposes  hereof,  the  date  of  a  Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective  date of the most recent conversion or continuation of such Borrowing.         “Interpolated Rate” means, at any time, for any Interest Period, the rate per annum (rounded to the  same number of decimal places as the LIBO Screen Rate) determined by the Administrative Agent (which  determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from  interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period (for which the  LIBO Screen Rate is available) that is shorter than the Impacted Interest Period and (b) the LIBO Screen  Rate for the shortest period (for which the LIBO Screen Rate is available) that exceeds the Impacted Interest  Period, in each case, at such time. Notwithstanding the foregoing, if any Interpolated Rate shall be less than  zero, such rate shall be deemed to be zero for purposes of this Agreement.         “Inventory” has the meaning assigned to such term in the Security Agreement.                                         27   

 

      “Investment” means, with respect to a specified Person, (a) any direct or indirect acquisition of or  investment by such Person in any Equity Interests, evidences of Indebtedness or other securities (including  any option, warrant or other right to acquire any of the foregoing) of, or any capital contribution or loans  or  advances  (other  than  advances  made  in  the  ordinary  course  of  business  that  would  be  recorded  as  accounts receivable on the balance sheet of the specified Person prepared in accordance with GAAP) to,  Guarantees of any Indebtedness or other obligations of, or any other investment in, any other Person that  are held or made by the specified Person and (b) the purchase or acquisition (in one transaction or a series  of related transactions) of all or substantially all the property and assets or business of another Person or  assets constituting a  business unit, line of business, division or product line of such other Person. The  amount, as of any date of determination, of (i) any Investment in the form of a loan or an advance shall be  the  principal  amount  thereof  outstanding  on  such  date  (excluding  any  portion  thereof  representing  paid-in-kind  interest  or  principal  accretion),  without  any  adjustment  for  write-downs  or  write-offs  (including as a result of forgiveness of any portion thereof) with respect to such loan or advance after the  date thereof, (ii) any Investment in the form of a Guarantee shall be determined in accordance with the  definition of the term “Guarantee”, (iii) any Investment in the form of a transfer of Equity Interests or other  non-cash  property  by  the  investor  to  the  investee, including  any  such transfer  in  the  form  of  a  capital  contribution,  shall  be  the  fair  value  (as  determined  reasonably  and  in  good  faith  by  the  Company  in  accordance with GAAP) of such Equity Interests or other property as of the time of the transfer, minus any  payments  actually  received  in  cash,  or  other  property  that  has  been  converted  into  cash  or  is  readily  marketable for cash, by such specified Person representing a return of capital of, or dividends or other  distributions in respect of, such Investment, but without any adjustment for increases or decreases in value  of, or write-ups, write-downs or write-offs with respect to, such Investment after the date of such transfer,  (iv) any Investment (other than any Investment referred to in clause (i), (ii) or (iii) above) by the specified  Person  in  the  form  of  a  purchase  or  other  acquisition  for  value  of  any  Equity  Interests,  evidences  of  Indebtedness, other securities or assets of any other Person shall be the original cost of such Investment  (including any Indebtedness assumed in connection therewith), plus the cost of all additions, as of such  date, thereto, and minus the amount, as of such date, of any portion of such Investment repaid to the investor  in cash as a repayment of principal or a return of capital, and of any payments or other amounts actually  received by such investor representing dividends, returns, interest, profits, distributions, income or similar  amount, in respect of such Investment, as the case may be, but without any other adjustment for increases  or decreases in value of, or write-ups, write-downs or write-offs with respect to, such Investment after the  date of such Investment, and (v) any Investment (other than any Investment referred to in clause (i), (ii),  (iii) or (iv) above) by the specified Person in any other Person resulting from the issuance by such other  Person of its Equity Interests to the specified Person shall be the fair value (as determined reasonably and  in good faith by a Financial Officer of the Company) of such Equity Interests at the time of the issuance  thereof. For purposes of Section 6.04, if an Investment involves the acquisition of more than one Person,  the amount of such Investment shall be allocated among the acquired Persons in accordance with GAAP;  provided that pending the final determination of the amounts to be so allocated in accordance with GAAP,  such allocation shall be as reasonably determined by a Financial Officer of the Company.         “IRS” means the United States Internal Revenue Service.         “Issuing Bank” means, individually and collectively, each of JPMCB, in its capacity as the issuer  of  Letters  of  Credit  hereunder,  and  any  other  Lender  from  time  to  time  designated  by  the  Borrower  Representative as an Issuing Bank, with the consent of such Lender and the Administrative Agent, and their  respective  successors  in  such  capacity  as  provided  in Section 2.06(i).  Any  Issuing  Bank  may,  in  its  discretion, arrange for one or more Letters of Credit to be issued by its Affiliates, in which case the term  “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate (it  being agreed that such Issuing Bank shall, or shall cause such Affiliate to, comply with the requirements of  Section 2.06 with respect to such Letters of Credit). At any time there is more than one Issuing Bank, all  singular references to the Issuing Bank shall mean any Issuing Bank, either Issuing Bank, each Issuing                                         28   

 

Bank, the Issuing Bank that has issued the applicable Letter of Credit, or both (or all) Issuing Banks, as the  context may require.         “Issuing Bank Sublimits” means, as of the Effective Date, (i) in the case of JPMCB, $5,000,000  and (ii) in the case of any other Issuing Bank, such amount as shall be designated to the Administrative  Agent and the Borrower Representative in writing by such Issuing Bank; provided that, any Issuing Bank  shall be permitted at any time, with the consent of the Borrower Representative and the Administrative  Agent, to increase or reduce its Issuing Bank Sublimit in its discretion (it being understood and agreed that  any such increase may be limited to the issuance of a particular Letter of Credit).         “Joinder Agreement” means a Joinder Agreement in substantially the form of Exhibit E.         “JPMCB” means JPMorgan Chase Bank, N.A., a national banking association, in its individual  capacity, and its successors.         “LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).         “LC Disbursement” means a payment made by an Issuing Bank pursuant to a Letter of Credit.         “LC Exposure” means, at any time, the sum of the Commercial LC Exposure and the Standby LC  Exposure at such time. The LC Exposure of any Lender at any time shall be its Applicable Percentage of  the total LC Exposure at such time.         “Lead Arranger” means JPMorgan Chase Bank, N.A. in its capacity as the sole lead arranger and  bookrunner for the credit facility evidenced by this Agreement.         “Lease Deficiency Obligation” means after default, repossession and disposition of the Equipment  which is the subject of or which secures a Lease Financing, the amount, if any, by which (i) any and all  obligations of the Loan Parties or their Subsidiaries to a Lessor, arising, evidenced or acquired (including  all renewals, extensions and modifications thereof and substitutions therefor) in connection with a specific  Lease Financing, exceeds (ii) the Net Proceeds realized by the Lessor upon the disposition of the Equipment  which is the subject of or which secures the specific Lease Financing.         “Lease Financing” means (i) a lease of specific Equipment as defined in Article 2-A of the UCC,  and (ii) a secured financing transaction secured by specific Equipment, whether that transaction is called a  lease or a loan, entered into by any Loan Party or its Subsidiaries with any Lender or any of its Affiliates  (in this context, the “Lessor”).         “Lender Parent” means, with respect to any Lender, any Person as to which such Lender is, directly  or indirectly, a subsidiary.         “Lenders” means the Persons listed on the Commitment Schedule and any other Person that shall  have  become  a  Lender  hereunder  pursuant  to Section 2.09 or  Assignment  and  Assumption  or  other  documentation contemplated hereby, other than any such Person that ceases to be a party hereto pursuant  to  an  Assignment  and  Assumption  or  other  documentation  contemplated  hereby.  Unless  the  context  otherwise requires, the term “Lenders” includes the Swingline Lender and each Issuing Bank.         “Lessor” has the meaning assigned to such term in the definition of “Lease Financing”.         “Letter of Credit” means any letter of credit issued pursuant to this Agreement.         “Letter of Credit Agreement” has the meaning assigned to it in Section 2.06(b).                                         29   

 

      “LIBO Rate” means, with respect to any Eurodollar Borrowing for any applicable Interest Period  or  for  any  ABR  Borrowing,  the  London  interbank  offered  rate  as  administered  by  ICE  Benchmark  Administration (or any other Person that takes over the administration of such rate for Dollars) for a period  equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen  that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any  successor or substitute page on such screen that displays such rate, or on the appropriate page of such other  information service that publishes such rate from time to time as shall be selected by the Administrative  Agent in its reasonable discretion, in each case (the “LIBO Screen Rate”) at approximately 11:00 a.m.,  London time, two (2) Business Days prior to the commencement of such Interest Period; provided that, (x)  if the LIBO Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of  this Agreement and (y) if the LIBO Screen Rate shall not be available at such time for a period equal in  length to such Interest Period (an “Impacted Interest Period”), then the LIBO Rate shall be the Interpolated  Rate at such time, subject to Section 2.14 in the event that the Administrative Agent shall conclude that it  shall not be possible to determine such Interpolated Rate (which conclusion shall be conclusive and binding  absent manifest error); provided further, that, if any Interpolated Rate shall be less than zero, such rate shall  be deemed to be zero for purposes of this Agreement. Notwithstanding the above, to the extent that “LIBO  Rate”  or  “Adjusted  LIBO  Rate”  is  used  in  connection  with  an  ABR  Borrowing,  such  rate  shall  be  determined as modified by the definition of Alternate Base Rate.         “LIBO Screen Rate” has the meaning assigned to such term in the definition of “LIBO Rate”.         “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, (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 and (c) in  the  case  of  securities,  any purchase  option,  call  or  similar  right  of  a  third  party  with  respect  to  such  securities.         “Loan Borrowing Option” has the meaning assigned to such term in the DDA Access Product  Agreement.         “Loan  Documents”  means,  collectively,  this  Agreement,  the  Collateral  Documents,  the  Loan  Guaranty,  the  Intercreditor  Agreements,  any  promissory  notes  executed  and  delivered  pursuant  to  Section 2.10(e), any Letter of Credit applications and any agreements between the Borrower Representative  and  the  Issuing  Bank  regarding  the  Issuing  Bank’s  Issuing  Bank  Sublimit or the  respective  rights  and  obligations between any Borrower and the Issuing Bank in connection with the issuance of Letters of Credit,  and any and all other instruments and documents executed and delivered in connection with any of the  foregoing.         “Loan Guarantor” means each Loan Party.         “Loan Guaranty” means Article X of this Agreement.         “Loan Parties” means, collectively, the Borrowers, the Company’s Material Domestic Subsidiaries  and any other Person who becomes a party to this Agreement pursuant to a Joinder Agreement and their  successors and assigns, and the term “Loan Party” shall mean any one of them or all of them individually,  as the context may require.         “Loans” means the loans and advances made by the Lenders pursuant to this Agreement, including  Swingline Loans, Overadvances and Protective Advances.         “Margin Stock” means margin stock within the meaning of Regulations T, U and X, as applicable.                                         30   

 

      “Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations,  or financial condition of the Company and the Subsidiaries taken as a whole, (b) the ability of the Loan  Parties, taken as a whole, to perform any of their respective payment obligations under this Agreement, (c)  the validity or enforceability of this Agreement or any and all other Loan Documents, or (d) the material  rights or remedies of the Administrative Agent or the Lenders under the Loan Documents.         “Material  Domestic  Subsidiary”  means  each  Domestic  Subsidiary  (other  than  an  Excluded  Domestic Subsidiary) that constitutes a Material Subsidiary.         “Material  Foreign  Subsidiary”  means  each  Foreign  Subsidiary  that  constitutes  a  Material  Subsidiary.         “Material Indebtedness” means any Indebtedness (other than the Loans and Letters of Credit), or  obligations  in respect  of  one  or  more  Swap  Agreements,  of  any  one  or  more  of  the  Company  and  its  Subsidiaries  in  an  aggregate  principal  amount  exceeding  $15,000,000.  For  purposes  of  determining  Material Indebtedness, the “principal amount” of the obligations of the Company or any Subsidiary in  respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any  netting agreements) that the Company or such Subsidiary would be required to pay if such Swap Agreement  were terminated at such time.         “Material Real Property” means real property located in the United States with a book value (as  reflected in the financial statements delivered pursuant to Section 5.01(a) or 5.01(b) (or, prior to the delivery  of any  such  financial  statements,  the  financial  statements  referred  to  in Section 3.04))  of  more  than  $7,500,000 that is owned by the Company or any Domestic Subsidiary that is a Loan Party.         “Material Subsidiary” means each Subsidiary (i) which, as of the most recent fiscal quarter of the  Company during the Test Period, contributed greater than five percent (5%) of the Company’s Consolidated  EBITDA for such period or (ii) which contributed greater than five percent (5%) of Consolidated Total  Assets as of such date; provided that, if at any time the aggregate amount of Consolidated EBITDA or  Consolidated Total Assets attributable to all Subsidiaries that are not Material Subsidiaries exceeds twenty  percent (20%) of Consolidated EBITDA for any such period or twenty percent (20%) of Consolidated Total  Assets as of the end of any such fiscal quarter, the Company (or, in the event the Company has failed to do  so  within  ten  days,  the  Administrative  Agent)  shall  designate  sufficient  Subsidiaries  as  “Material  Subsidiaries”  to  eliminate  such  excess,  and  such  designated  Subsidiaries  shall  for  all  purposes  of  this  Agreement constitute Material Subsidiaries.         “Maturity Date” means the earliest to occur of (i) October 22, 2024, (ii) the date on which the  Commitments are reduced to zero or otherwise terminated pursuant to the terms hereof, (iii) the date that is  ninety-one (91) days prior to the maturity date of the Term Loan Facility, if any Term Loans are outstanding  on such date, (iv) the date that is ninety-one (91) days prior to the earliest maturity date of any outstanding  Incremental  Equivalent  Debt  (as  defined  in  the  Term  Loan  Agreement  as  of  the  date  hereof),  if  any  Incremental Equivalent Debt is outstanding on such date and (v) the date that is ninety-one (91) days prior  to the earliest maturity date of any outstanding Permitted Convertible Notes, if any Permitted Convertible  Notes are outstanding on such date; provided further that, in each case, if such date is not a Business Day,  the Maturity Date shall be the immediately preceding Business Day.         “Maximum Rate” has the meaning assigned to such term in Section 9.17.         “MNPI”  means  material  information  concerning  the  Company  and  the  Subsidiaries  and  their  securities that has not been disseminated in a manner making it available to investors generally, within the  meaning of Regulation FD under the Securities Act and the Securities Exchange Act of 1934.                                         31   

 

      “Moody’s” means Moody’s Investors Service, Inc.         “Monthly Reporting Period” means any period of time commencing on any day that the Aggregate  Revolving Exposure (other than the aggregate LC Exposure) has exceeded $50,000,000 for more than five  (5) consecutive days and continuing until such subsequent day, if any, on which the Aggregate Revolving  Exposure (other than the aggregate LC Exposure) has not exceeded $0 for more than sixty (60) consecutive  days.         “Mortgage” means each mortgage, deed of trust or other agreement which conveys or evidences a  Lien in favor of the Administrative Agent, for the benefit of the Administrative Agent and the Secured  Parties,  on  real  property  of  a  Loan  Party,  including  any  amendment,  restatement,  modification  or  supplement thereto; provided that no Mortgage shall contain any defaults other than by reference to the  defaults set forth in this Agreement; and further provided, in the event the Mortgage shall be recorded in a  jurisdiction which charges mortgage recording taxes, intangible taxes or documentary taxes or other similar  taxes and/or charges, such Mortgage shall only secure such an amount not to exceed the fair market value  (as reasonably determined by Borrower Representative and as reasonably acceptable to the Administrative  Agent) of the Material Real Property secured by such Mortgage.         “Mortgage Instruments” means with respect to any Material Real Property for which a Mortgage  is being recorded, (a) such title reports and ALTA title insurance policies (or unconditional commitment to  issue such policy or policies) reasonably acceptable to Administrative Agent, in an amount not to exceed  110% of the fair market value (as reasonably acceptable to the Administrative Agent) of such Material Real  Property (with endorsements reasonably requested by Administrative Agent and as are available in the  applicable  jurisdiction)  and  with  all  premiums  fully paid,  (b)  either  (i) an  ALTA  survey  reasonably  acceptable to Administrative Agent or (ii) previously obtained ALTA survey and affidavits of “no-change”  with  respect  to  each  such  survey,  such  survey  and  affidavit  to  be  in  form  and  substance  reasonably  acceptable  to  the  Administrative  Agent  and  to  be  sufficient  to  issue  title  insurance  policies  to  the  Administrative  Agent providing all reasonably required  survey coverage  and  survey endorsements  and  zoning endorsements, (c) acquisition of FEMA standard life-of-loan flood hazard determinations for such  Material Real Property, and if any building located on such Material Real Property is determined to be in a  special hazard area, delivery of (i) a notice with respect to such flood insurance and (ii) evidence of flood  insurance, (d) a local counsel opinion as to the enforceability of each Mortgage in the state in which the  Material Real Property described in such Mortgage is located and other matters customarily covered in real  estate enforceability opinions in form and substance reasonably acceptable to Administrative Agent, except   with respect to the Material Real Property located in Oregon, written confirmation from local counsel that  is in form and substance reasonably acceptable to Administrative Agent that such Mortgage Instrument  satisfies the basic requirements for amending a deed of trust under Oregon law and is suitable for recording,  (e) mortgage tax affidavits and declarations and other similar information and related certifications that are  required in the jurisdiction in which a  Mortgage  is being filed in order to permit such filing and such  affidavits and certificates as are required to issue the title insurance policies, provided, appraisals shall not  be required to be delivered in connection with any Mortgage (in each case, other than such documentation  already in the possession of any Loan Party) and (f) environmental assessments and reports and zoning  reports in form and substance reasonably acceptable to the Administrative Agent.         “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.         “Net  Orderly  Liquidation  Value”  means,  with  respect  to  Inventory  of  any  Person,  the  orderly  liquidation value thereof as determined in a manner reasonably acceptable to the Administrative Agent by  an appraiser acceptable to the Administrative Agent, net of all costs of liquidation thereof.         “Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(e).                                         32   

 

      “NYFRB” means the Federal Reserve Bank of New York.         “NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on  such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a  Business  Day,  for  the  immediately  preceding  Business  Day); provided that  if  none  of  such  rates  are  published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds  transaction quoted at 11:00 a.m., New York City time, on such day received by the Administrative Agent  from a Federal funds broker of recognized standing selected by it; provided, further, that if any of the  aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.         “Obligated Party” has the meaning assigned to such term in Section 10.02.         “Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all LC  Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations  and indebtedness (including interest and fees accruing during the pendency of any bankruptcy, insolvency,  receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding),  obligations and liabilities of any of the Loan Parties to any of the Lenders, the Administrative Agent any  Issuing Bank or any indemnified party, individually or collectively, existing on the Effective Date or arising  thereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or  unliquidated, secured or unsecured, arising by contract, operation of law or otherwise, arising or incurred  under this Agreement or any of the  other Loan  Documents  or in respect of any of the  Loans  made or  reimbursement or other obligations incurred or any of the Letters of Credit or other instruments at any time  evidencing any thereof.         “OFAC” means the Office of Foreign Assets Control of the U.S. Department of Treasury.         “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a  present or former connection between such Recipient and the jurisdiction imposing such Tax (other than  connections  arising  from  such  Recipient  having  executed,  delivered,  become  a  party  to,  performed  its  obligations under, received payments under, received or perfected a security interest under, engaged in any  other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan,  Letter of Credit or Loan Document).         “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing  or  similar Taxes that  arise  from  any  payment  made  under, from  the  execution,  delivery,  performance,  enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with  respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with  respect to an assignment (other than an assignment made pursuant to Section 2.19).         “Overadvance” has the meaning assigned to such term in Section 2.05(b).         “Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal  funds and overnight eurodollar borrowings by U.S.-managed banking offices of depository institutions (as  such composite rate shall be determined by the NYFRB as set forth on its public website from time to time)  and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate.         “Participant” has the meaning set forth in Section 9.04.         “Participant Register” has the meaning set forth in Section 9.04(c).         “Patriot  Act”  means  the  USA  PATRIOT  Act  (Title  III  of  Pub.  L.  107-56  (signed  into  law  October 26, 2001)).                                         33   

 

      “Payment  Condition”  means,  with  respect  to  any  proposed  designated  action  on  any  date,  a  condition that is satisfied if (a) after giving effect to such proposed designated action as if it occurred on  the first day of the applicable Pro Forma Period, the pro forma Aggregate Availability shall be greater than  the greater of $33,000,000 and 20% of the Aggregate Commitment at all times during such Pro Forma  Period or (b) both (i) after giving effect to such proposed designated action as if it occurred on the first day  of  such  Pro  Forma  Period,  the  pro  forma  Aggregate  Availability  shall  be  greater  than  the  greater  of  $24,750,000 and 15% of the Aggregate Commitment at all times during such Pro Forma Period and (ii) the  Fixed Charge Coverage Ratio, computed on a pro forma basis for the period of four consecutive fiscal  quarters ending on the most recent fiscal quarter of the Company for which financial statements have been  delivered pursuant to Section 5.01, shall be greater than 1.10 to 1.00.         “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and  any successor entity performing similar functions.         “Permitted Acquisition” means any Acquisition by any Loan Party or Subsidiary in a transaction  that satisfies each of the following requirements:         (a)   such Acquisition is not a Hostile Acquisition;         (b)   such Person or division or line of business is engaged  in the same  or a similar line of  business as the Company or any of its Subsidiaries or any business activities reasonably related or ancillary  thereto;         (c)   no Default exists at the time of such Acquisition or would result therefrom;         (d)   if such Acquisition constitutes a Material Acquisition, the Administrative Agent shall have  received a description of the material terms of such Acquisition and the audited financial statements (or, if  unavailable, management-prepared financial statements) of such Person or division or line of business of  such Person for its two most recently ended fiscal years and for any fiscal quarters ended within the fiscal  year to-date for which such financial statements are available;         (e)   if  such  Acquisition  involves  a  merger,  amalgamation  or  a  consolidation  involving  the  Company or any other Loan Party, the Company or a Loan Party, as applicable, shall be the surviving entity  in compliance with Section 6.03 (subject to any grace periods specified in Section 5.14); and         (f)   the  Company  shall  have  delivered  to the  Administrative  Agent  final executed material  documentation relating to such Acquisition promptly after request therefor by the Administrative Agent.         “Permitted Call Spread Swap Agreements” means (a) any Swap Agreement (including, but not  limited to, any bond hedge transaction or capped call transaction) pursuant to which the Company acquires  an option requiring the counterparty thereto to deliver to the Company shares of common stock of the  Company (or other securities or property following a merger event or other change of the common stock of  the Company), the cash value thereof or a combination thereof from time to time upon exercise of such  option entered into by the Company in connection with the issuance of Permitted Convertible Notes (such  transaction, a “Bond Hedge Transaction”) and (b) any Swap Agreement pursuant to which the Company  issues to the counterparty thereto warrants to acquire common stock of the Company (or other securities or  property following a merger event or other change of the common stock of the Company) (whether such  warrant is settled in shares, cash or a combination thereof) entered into by the Company in connection with  the issuance of Permitted Convertible Notes (such transaction, a “Warrant Transaction”); provided that (i)  the terms, conditions and covenants of each such Swap Agreement shall be acceptable to the Administrative  Agent  in  its  Permitted  Discretion),  (ii)  the  purchase  price  for  such  Bond  Hedge  Transaction,  less  the  proceeds received by the Company from the sale of any related Warrant Transaction, does not exceed the                                         34   

 

net proceeds received by the Company from the issuance of the related Permitted Convertible Notes and  (iii) in the case of clause (b) above, such Swap Agreement would be classified as an equity instrument in  accordance with GAAP.         “Permitted  Convertible  Notes”  means  any  unsecured  notes  issued  by  the  Company  that  are  convertible into a fixed number (subject to customary anti-dilution adjustments, “make-whole” increases  and other customary changes thereto) of shares of common stock of the Company (or other securities or  property following a merger event or other change of the common stock of the Company), cash or any  combination thereof (with the amount of such cash or such combination determined by reference to the  market price of such common stock or such other securities); provided that, the Indebtedness thereunder  must satisfy each of the following conditions: (i) both immediately prior to and after giving effect (including  pro  forma  effect)  thereto,  no  Default  or  Event  of  Default  shall  exist  or  result  therefrom,  (ii)  such  Indebtedness  matures  after,  and  does  not  require  any  scheduled  amortization  or  other  scheduled  or  otherwise required payments of principal prior to, and does not permit any Loan Party to elect optional  redemption or optional acceleration that would be settled on a date prior to, the date that is ninety-one (91)  days  after  the  Maturity  Date  (it  being  understood  that  neither  (x)  any  provision  requiring  an  offer  to  purchase such Indebtedness as a result of change of control or other fundamental change nor (y) any early  conversion of any Permitted Convertible Notes in accordance with the terms thereof, in either case, shall  violate  the  foregoing  restriction),  (iii)  such  Indebtedness  is  not  guaranteed  by  any  Subsidiary  of  the  Company  other  than  a  Loan  Party  (which  guarantees,  if  such  Indebtedness  is  subordinated,  shall  be  expressly subordinated  to the  Secured  Obligations  on terms  not less  favorable to the  Lenders than  the  subordination terms of such Subordinated Indebtedness) and (iv) the terms, conditions and covenants of  such Indebtedness must be customary for convertible Indebtedness of such type (as determined by the board  of directors of the Company, or a committee thereof, in good faith).         “Permitted Discretion” means a determination made in good faith and in the exercise of reasonable  (from the perspective of a secured asset-based lender) business judgment.         “Permitted Encumbrances” means:         (a)   Liens  imposed  by  law  for  Taxes  that are  not  yet  delinquent  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 sixty (60) days or are being contested in compliance with Section 5.04;         (c)   (i) pledges  and  deposits  made  in  the  ordinary  course  of  business  in  compliance  with  workers’  compensation,  unemployment  insurance  and  other  social  security laws  or  regulations  and  (ii) pledges  and  deposits  in  the  ordinary  course  of  business  securing  liability  for  reimbursement  or  indemnification obligations of (including obligations in respect of letters of credit or bank guarantees for  the benefit of) insurance carriers providing property, casualty or liability insurance to the Company or any  Subsidiary;         (d)   deposits to secure the performance of bids, trade contracts, leases, statutory obligations,  surety, stay, customs and appeal bonds, performance bonds and other obligations of a like nature (including  (i) those to secure health, safety and environmental obligations and (ii) letters of credit and bank guarantees  required or requested by any Governmental Authority in connection with any contract or law), 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 (k) of Article VII;                                         35   

 

      (f)   matters of record affecting title to any real or leased property and any survey exceptions,  encroachments, rights of parties in possession under written leases or occupancy agreements, title defects,  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 that are substantial  in amount and do not materially detract from the value of the affected property or interfere in any material  respect with the ordinary conduct of business of the Company or any Subsidiary;         (g)   Liens in favor of a banking or other financial institution arising as a matter of law or in the  ordinary course of business under customary general terms and conditions encumbering deposits or other  funds maintained with a financial institution (including the right of set-off) and that are within the general  parameters customary in the banking industry or arising pursuant to such banking institution’s general terms  and conditions;         (h)   Liens on specific items of inventory or other goods and proceeds thereof of any Person  securing such Person’s obligations in respect of bankers’ acceptances or letters of credit issued or created  for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other  goods in the ordinary course of business;         (i)   Liens encumbering reasonable customary initial deposits and margin deposits and similar  Liens attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary course  of business and not for speculative purposes;         (j)   (i) leases, licenses, subleases or sublicenses granted to others in the ordinary course of  business  that  do  not  (A) interfere  in  any  material  respect  with  the  business  of  the  Company  and  its  Subsidiaries, taken as a whole or (B) secure any Indebtedness or (ii) the rights reserved or vested in any  Person (including any Governmental Authority) by the terms of any lease, license, franchise, grant or permit  held by the Company or any of its Subsidiaries or by a statutory provision, to terminate any such lease,  license,  franchise,  grant  or  permit,  or  to  require  annual  or  periodic  payments  as  a  condition  to  the  continuance thereof;         (k)   ground leases or subleases, licenses or sublicenses in respect of real property on which  facilities owned or leased by the Company or any Subsidiary are located;         (l)   (i) zoning,  building,  entitlement  and  other  land  use  regulations  by  Governmental  Authorities with which the normal operation of the business complies, and (ii) any zoning or similar law or  right reserved to or vested in any Governmental Authority to control or regulate the use of any real property  that  does  not  materially  interfere  with  the  ordinary  conduct  of  the  business  of  the  Company  and  its  Subsidiaries, taken as a whole;         (m)   Liens arising from precautionary UCC financing statement or similar filings;         (n)   licenses, sublicenses and cross-licenses of Intellectual Property in the ordinary course of  business; and         (o)   any interest or title of a lessor, sublessor, lessee or sublessee under any lease in existence  on the day hereof or permitted by this Agreement and the Collateral Documents.         “Permitted Investments” means:         (a)   direct  obligations  of,  or  obligations  the  principal  of  and  interest  on  which  are  unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such                                          36   

 

obligations are backed by the full faith and credit of the United States of America), in each case maturing  within one year from the date of acquisition thereof;         (b)   investments in commercial paper maturing within 270 days from the date of acquisition  thereof and  having, at such date of acquisition, the highest credit rating obtainable from S&P or from  Moody’s;         (c)   investments in certificates of deposit, banker’s acceptances and time  deposits maturing  within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money  market deposit accounts issued or offered by, any domestic office of any commercial bank organized under  the laws of the United States of America or any State thereof which has a combined capital and surplus and  undivided profits of not less than $500,000,000;         (d)   fully collateralized repurchase agreements with a term of not more than thirty (30) days for  securities described in clause (a) above and entered into with a financial institution satisfying the criteria  described in clause (c) above;         (e)   money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the  Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio  assets of at least $5,000,000,000;         (f)   other investments made in accordance with the Company’s investment policy as disclosed  to the Administrative Agent prior to the Effective Date and with such amendments or modifications thereto  as are from time to time approved by the Administrative Agent;         (g)   investments in Indebtedness that is (x) issued by Persons with (i) a short term credit rating  of “P-1” or higher from Moody’s or “A-1” or higher from S&P or (ii) a long term rating of “A2” or higher  from Moody’s or “A” or higher from S&P, in each case for clauses (i) and (ii) with maturities not more  than twelve (12) months after the date of acquisition and (y) of a type customarily used by companies for  cash management purposes;         (h)   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  of  America,  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) receive at least (i) a short term credit rating of “P-1” or higher from  Moody’s or “A-1” or higher from S&P or (ii) a long term rating of “A2” or higher from Moody’s or “A”  or higher from S&P;         (i)   investments in money market funds substantially all the assets of which are comprised of  securities of the types described in clauses (a) through (h) above;         (j)   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  (c) above; and         (k)   in the case of any Foreign Subsidiary, other short-term investments that are analogous to  the foregoing, are of comparable credit quality and are customarily used by companies in the jurisdiction  of such Foreign Subsidiary for cash management purposes.         “Permitted Unsecured Indebtedness” means Indebtedness of the Company or any Subsidiary (a)  that is not (and any Guarantees thereof by the Company or Subsidiaries are not) secured by any collateral                                         37   

 

(including the Collateral), (b) that does not mature earlier than the date that is ninety-one (91) days after  the Maturity Date, and has a Weighted Average Life to Maturity no shorter than the Maturity Date in effect  at the time of incurrence of such Indebtedness, (c) that, in the case of such Indebtedness in the form of  bonds,  debentures,  notes  or  similar  instrument,  does  not  provide  for  any  amortization,  mandatory  prepayment,  redemption  or  repurchase  (other  than  upon  a  change  of  control,  fundamental  change,  customary asset sale or event of loss mandatory offers to purchase and customary acceleration rights after  an event of default and, for the avoidance of doubt, rights to convert or exchange in the case of convertible  or exchangeable Indebtedness) prior to the Maturity Date, (d) that contains covenants, events of default,  guarantees and other terms that are customary for similar Indebtedness in light of then-prevailing market  conditions  (it  being  understood  and  agreed  that  such  Indebtedness  shall  not  include  any  financial  maintenance  covenants  and  that  applicable  negative  covenants  shall  be  incurrence-based  to  the  extent  customary for similar Indebtedness) and, when taken as a whole (other than interest rates, rate floors, fees  and optional prepayment or redemption terms), are not more favorable (as reasonably determined by the  Company in good faith) to the lenders or investors providing such Permitted Unsecured Indebtedness, as  the case may be, than those set forth in the Loan Documents are with respect to the Lenders (other than  covenants or other provisions applicable only to periods after the Maturity Date); provided that a certificate  of a Financial Officer of the Company delivered to the Administrative Agent at least five (5) Business Days  prior  to  the  incurrence  of  such  Indebtedness  or  the  modification,  refinancing,  refunding,  renewal  or  extension thereof (or such shorter period of time as may reasonably be agreed by the Administrative Agent),  together  with  a  reasonably  detailed  description  of  the  material  terms  and  conditions  of  such  resulting  Indebtedness or drafts of the material definitive documentation relating thereto, stating that the Company  has determined in good faith that such terms and conditions satisfy the foregoing requirements shall be  conclusive, and (e) that is not guaranteed by any Person other than on an unsecured basis by the Company  and/or Subsidiaries that are Loan Parties.         “Person” means any natural person, corporation, limited liability company, trust, joint venture,  association, company, partnership, Governmental Authority or other entity.         “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the  provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of  which the Company or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069  of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.         “Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of  ERISA, as amended from time to time.         “Platform”  means  Debt  Domain,  Intralinks,  Syndtrak  or  a  substantially  similar  electronic  transmission system.         “Pledge  Subsidiary”  means  (i) each  Domestic  Subsidiary  and  (ii) each  First  Tier  Foreign  Subsidiary which is a Material Subsidiary.         “Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate”  in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate  published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest  Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted  therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board  (as determined by the Administrative Agent). Each change in the Prime Rate shall be effective from and  including the date such change is publicly announced or quoted as being effective.         “Pro Forma Period” means the period commencing thirty (30) days prior to the date of any proposed  designated action and ending on the date of such proposed designated action.                                         38   

 

      “Projections” has the meaning assigned to such term in Section 3.11.         “Protective Advance” has the meaning assigned to such term in Section 2.04.         “PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as  any such exemption may be amended from time to time.         “QFC”  has  the  meaning  assigned  to  the  term  “qualified  financial  contract”  in,  and  shall  be  interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).         “QFC Credit Support” has the meaning assigned to it in Section 9.23.         “Qualified Equity Interests” means Equity Interests of the Company other than Disqualified Equity  Interests.         “Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has  total assets exceeding $10,000,000 at the time the relevant Loan Guaranty or grant of the relevant security  interest becomes or would become effective with respect to such Swap Obligation or such other person as  constitutes  an  “eligible  contract  participant”  under  the  Commodity  Exchange  Act  or  any  regulations  promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such  time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.         “Recipient” means, as applicable, (a) the Administrative Agent, (b) any Lender and (c) any Issuing  Bank, or any combination thereof (as the context requires).         “Refinancing Convertible Notes” has the meaning assigned to such term in Section 6.09.         “Refinancing Indebtedness” means, in respect of any Indebtedness (the “Original Indebtedness”),  any  Indebtedness  that  extends,  renews  or  refinances  such  Original  Indebtedness  (or  any  Refinancing  Indebtedness in respect thereof); provided that (a) the principal amount (or accreted value, if applicable) of  such Refinancing Indebtedness shall not exceed the principal amount (or accreted value, if applicable) of  such Original Indebtedness except by an amount no greater than accrued and unpaid interest with respect  to such Original Indebtedness and any reasonable fees, premium and expenses relating to such extension,  renewal or refinancing; (b) the stated final maturity of such Refinancing Indebtedness shall not be earlier  than that of such Original Indebtedness, and such stated final maturity shall not be subject to any conditions  that could result in such stated final maturity occurring on a date that precedes the stated final maturity of  such Original Indebtedness; (c) such Refinancing Indebtedness shall not be required to be repaid, prepaid,  redeemed, repurchased or defeased, whether on one or more fixed dates, upon the occurrence of one or  more events or at the option of any holder thereof (except, in each case, upon the occurrence of an event of  default  or  a  change  in  control,  fundamental  change,  or  upon  conversion  or  exchange  in  the  case  of  convertible or exchangeable Indebtedness or as and to the extent such repayment, prepayment, redemption,  repurchase or defeasance would have been required pursuant to the terms of such Original Indebtedness)  prior to (i) if such Refinancing Indebtedness is secured on a pari passu basis with the Revolving Loans, the  maturity of such Original Indebtedness or (ii) otherwise, the date that is ninety one (91) days after the  Maturity Date; (d) the Weighted Average Life to Maturity of such Refinancing Indebtedness shall be longer  than the Weighted Average Life to Maturity of such Original Indebtedness remaining as of the date of such  extension, renewal or refinancing; (e) such Refinancing  Indebtedness shall not constitute  an obligation  (including pursuant to a Guarantee) of any Subsidiary, in each case that shall not have been (or, in the case  of after-acquired Subsidiaries, shall not have been required to become pursuant to the terms of the Original  Indebtedness) an obligor in respect of such Original Indebtedness, and shall not constitute an obligation of  any Borrower if such Borrower shall not have been an obligor in respect of such Original Indebtedness,  and, in each case, shall constitute an obligation of such Subsidiary or of such Borrower only to the extent                                         39   

 

of their obligations in respect of such Original Indebtedness; (f) if such Original Indebtedness shall have  been subordinated  to  the  Obligations,  such  Refinancing  Indebtedness  shall  also  be  subordinated  to  the  Obligations  on  terms  not  less  favorable  in  any  material  respect  to the  Lenders;  (g) if  secured  by  the  Collateral on a junior lien basis or if unsecured, such Refinancing Indebtedness does not provide for any  amortization,  mandatory  prepayment,  redemption  or  repurchase  (other  than  upon  a  change  of  control,  fundamental change, customary asset sale or event of loss mandatory offers to purchase and customary  acceleration rights after an event of default and, for the avoidance of doubt, rights to convert or exchange  in the case of convertible or exchangeable Indebtedness) prior to the latest maturity date of the Indebtedness  being refinanced, (h) such Refinancing Indebtedness does not contain covenants, events of default and other  terms customary for similar Indebtedness in light of then-prevailing market conditions that, when taken as  a whole (other than interest rates, rate floors, fees and optional prepayment or redemption terms), are more  favorable (as reasonably determined by the Borrower Representative in good faith) to the lenders, holders  or investors, as the case may be, providing such Refinancing Indebtedness than those applicable to the  relevant  Original  Indebtedness  (provided that  a  certificate  of  a  Financial  Officer  delivered  to  the  Administrative  Agent  at  least  five  (5)  Business  Days  prior  to  the  incurrence  of  such  Refinancing  Indebtedness, together with a reasonably detailed description of the material terms and conditions of such  Refinancing Indebtedness or drafts of the material definitive documentation relating thereto, stating that the  Borrower  Representative  has determined  in  good  faith  that  such  terms  and  conditions  satisfy  the  requirement of this clause (h) shall be conclusive evidence that such terms and conditions satisfy such  requirement unless the Administrative Agent notifies the Borrower Representative within such five (5)  Business Day period that it disagrees with such determination (including a description of the basis upon  which it disagrees)), and (i) such Refinancing Indebtedness shall not be secured by any Lien on any asset  other than the assets that secured such Original Indebtedness (or would have been required to secure such  Original  Indebtedness  pursuant  to  the  terms  thereof)  or,  in  the  event  Liens  securing  such  Original  Indebtedness shall have been contractually subordinated to any Lien securing the Obligations, by any Lien  that  shall  not  have  been  contractually  subordinated  to  at  least  the  same  extent  (and,  if  such  Original  Indebtedness is subject to an Intercreditor Agreement, such Refinancing Indebtedness shall, if secured, be  subject to an Intercreditor Agreement).         “Register” has the meaning set forth in Section 9.04.         “Regulation D” means Regulation D of the Federal Reserve Board, as in effect from time to time  and all official rulings and interpretations thereunder or thereof.         “Regulation T” means Regulation T of the Federal Reserve Board, as in effect from time to time  and all official rulings and interpretations thereunder or thereof.         “Regulation U” means Regulation U of the Federal Reserve Board, as in effect from time to time  and all official rulings and interpretations thereunder or thereof.         “Regulation X” means Regulation X of the Federal Reserve Board, as in effect from time to time  and all official rulings and interpretations thereunder or thereof.         “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the  respective directors, officers, partners, members, trustees, employees, agents, administrators, managers,  representatives and advisors of such Person and such Person’s Affiliates.         “Release”  means  any releasing,  spilling,  leaking,  pumping,  pouring,  emitting,  emptying,  discharging,  injecting,  escaping,  leaching,  migrating,  disposing  or  dumping  of  any  substance  into  the  environment.                                          40   

 

      “Report”  means  reports  prepared  by  the  Administrative  Agent  or  another  Person  showing  the  results of appraisals, field examinations or audits pertaining to the assets of the Borrowers from information  furnished  by  or  on  behalf of  the  Borrowers,  after  the  Administrative  Agent  has  exercised its  rights  of  inspection  pursuant  to  this  Agreement,  which  Reports  may  be  distributed  to  the  Lenders  by  the  Administrative Agent.         “Repurchase Agreements” means, collectively, repurchase agreements, by and among one or more  Loan Parties and a financial institution that provides financing to a dealer who purchases vehicles from one  or more Loan Parties, which repurchase agreements (i) provide that, in the event of default by a dealer in  its obligation to such financial institution, such Loan Party or Loan Parties will repurchase vehicles sold to  the dealer that have not been purchased by customers and (ii) are entered into by the applicable Loan Parties  in the ordinary course of business consistent with past practices (or are otherwise customarily entered into  in the ordinary course of business generally by manufacturers of recreational vehicles).         “Required  Lenders”  means,  subject  to Section 2.20,  at  any  time,  Lenders  having  Revolving  Exposures  and  unused  Commitments  representing  at  least  66  2/3%  of  the  sum  of  the  total  Revolving  Exposures and unused Commitments at such time; provided that, at any time that there are two (2) or more  Lenders, “Required Lenders” must include at least two (2) Lenders (that are not Affiliates of one another).         “Requirement of Law” means, with respect to any Person, (a) the charter, articles or certificate of  organization or incorporation and bylaws or operating, management or partnership agreement, or other  organizational or governing documents of such Person and (b) any statute, law (including common law),  treaty, rule, regulation, code, ordinance, order, decree, writ, judgment, injunction or determination of any  arbitrator  or  court  or  other  Governmental  Authority  (including  Environmental  Laws),  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         “Reserves” means any and all reserves which the Administrative Agent deems necessary, in its  Permitted Discretion, to maintain (including, without limitation, reserves for accrued and unpaid interest  on the Secured Obligations, Banking Services Reserves, Specified Reserves, Specified Reporting Reserves,  reserves for rent at locations leased by any Loan Party and for consignee’s, warehousemen’s and bailee’s  charges, reserves for dilution of Accounts, reserves for Inventory shrinkage, reserves for customs charges  and shipping charges related to any Inventory in transit, reserves for Swap Agreement Obligations, reserves  for contingent liabilities of any Loan Party, reserves for uninsured losses of any Loan Party, reserves for  uninsured, underinsured, un-indemnified or under-indemnified liabilities or potential liabilities with respect  to any litigation and reserves for taxes, fees, assessments, and other governmental charges) with respect to  the Collateral or any Loan Party; provided that, notwithstanding the foregoing, (i) the Administrative Agent  may not implement any new reserves or increase the amount of any existing Reserves without at least three  (3) Business Days’ prior notice to the Borrower Representative and (ii) Reserves shall not be in duplication  of eligibility criteria.         “Responsible Officer” means the chief executive officer, president, a Financial Officer or a member  of the senior management team of the Company or any other Person designated by any such Person in  writing to the Administrative Agent and reasonably acceptable to the Administrative Agent.         “Restricted Payment” means any dividend or other distribution (whether in cash, securities or other  property) with respect to any Equity Interests in the Company or any Subsidiary, 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 in  the Company or any option, warrant or other right to acquire any such Equity Interests in the Company.                                          41   

 

      “REVLIBOR30 Rate” means the London interbank offered rate administered by ICE Benchmark  Administration (or any other Person that takes over the administration of such rate for Dollars) for a one  (1) month 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 a Reuters page or screen, on any successor or substitute page  on such screen that displays such rate, or on the appropriate page of such other information service that  publishes such rate from time to time as shall be selected by the Administrative Agent in its reasonable  discretion; in each case, the “REVLIBOR30 Screen Rate”) at approximately 11:00 a.m., London time, two  (2) Business Days prior to the first (1st) Business Day of each month, adjusted monthly on the first (1st)  Business Day of each month; provided that, (x) if the REVLIBOR30 Screen Rate shall be less than zero,  such rate shall be deemed to be zero for purposes of this Agreement and (y) if the REVLIBOR30 Screen  Rate shall not be available at such time for such a period, then the REVLIBOR30 Rate shall be equal to the  Alternate Base Rate.         “Revolving Exposure” means, with respect to any Lender at any time, the sum of (a) the outstanding  principal amount of such Lender’s Revolving Loans, its LC Exposure and its Swingline Exposure at such  time plus (b) an amount equal to its Applicable Percentage of the aggregate principal amount of Protective  Advances outstanding at such time plus (c) an amount equal to its Applicable Percentage of the aggregate  principal amount of Overadvances outstanding at such time.         “Revolving Exposure Limitations” has the meaning set forth in Section 2.01.         “Revolving Loan” means a Loan made pursuant to Section 2.01(a).         “Sale and Leaseback Transaction” means any sale or other transfer of any property or asset by any  Person with the intent to lease such property or asset as lessee.         “S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC  business.         “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 and Syria).         “Sanctioned  Person”  means,  at  any  time,  (a) any  Person  listed  in  any  Sanctions-related  list  of  designated  Persons  maintained  by  OFAC,  the  U.S. Department  of  State,  the  United  Nations  Security  Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United  Kingdom  or  other  relevant  sanctions  authority,  (b)  any  Person  operating,  organized  or  resident  in  a  Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons described in the  foregoing clauses (a) or (b) or (d) any Person otherwise the subject of any Sanctions.         “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, Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority.         “SEC” means the United States Securities and Exchange Commission.         “Secured Obligations” means all Obligations, together with all (i) Banking Services Obligations  and (ii) Swap Agreement Obligations owing to one or more Lenders or their respective Affiliates; provided,  however, that the definition of “Secured Obligations” shall not create any guarantee by any Loan Guarantor  of  (or  grant  of  security  interest  by  any  Loan  Guarantor to support, as applicable) any  Excluded  Swap  Obligations of such Loan Guarantor for purposes of determining any obligations of any Loan Guarantor.                                         42   

 

      “Secured Parties” means (a) the Administrative Agent, (b) the Lenders, (c) the Issuing Bank, (d)  each  provider  of  Banking  Services,  to  the  extent  the  Banking  Services  Obligations  in  respect  thereof  constitute Secured Obligations, (e) each counterparty to any Swap Agreement, to the extent the obligations  thereunder  constitute  Secured  Obligations,  (f)  the  beneficiaries  of  each  indemnification  obligation  undertaken by any Loan Party under any Loan Document, and (g) the successors and assigns of each of the  foregoing.         “Securities Act” means the United States Securities Act of 1933, as amended from time to time.         “Security  Agreement”  means  the  Amended  and  Restated  Pledge  and  Security  Agreement  (including any and all supplements thereto), dated as of the date hereof, between the Loan Parties and the  Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, as the  same may be amended, restated or otherwise modified from time to time.         “Settlement” has the meaning assigned to such term in Section 2.05(d).         “Settlement Date” has the meaning assigned to such term in Section 2.05(d).         “Specified Reporting Reserve” means a Reserve established by the Administrative Agent during  each fiscal quarter (the “current fiscal quarter”) of the Company (other than during a Monthly Reporting  Period or Weekly Reporting Period) in an amount equal to $10,000,000 on the 45th day following the end  of the immediately preceding fiscal quarter (the “prior fiscal quarter”), which amount shall be increased to  $20,000,000 on the 75th day following the end of the prior fiscal quarter and subsequently decreased to $0  upon the Administrative Agent’s receipt of an Aggregate Borrowing Base Certificate and a Borrowing Base  Certificate for each Borrower for the current fiscal quarter.         “Specified  Reserves”  means,  with  respect  to  any  Borrower,  Reserves  established  by  the  Administrative Agent in its Permitted Discretion from time to time for (a) repurchase obligations of such  Borrower, (b) warranty obligations of such Borrower, (c) accrued sales rebates provided by such Borrower  and (d) free on board (FOB) destination delivery terms provided by such Borrower.         “Specified  Swap  Obligation”  means,  with respect  to any  Loan  Party,  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 or any rules or regulations promulgated thereunder.         “Standby LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all  standby Letters of Credit outstanding at such time plus (b) the aggregate amount of all LC Disbursements  relating to standby Letters of Credit that have not yet been reimbursed by or on behalf of the Borrowers at  such time. The Standby LC Exposure of any Lender at any time shall be its Applicable Percentage of the  aggregate Standby LC Exposure at such time.         “Statements” has the meaning assigned to such term in Section 2.18(g).         “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the  number one and the denominator of which is the number one minus the aggregate of the maximum reserve  percentage (including any marginal, special, emergency or supplemental reserves) established by the Board  to which the Administrative Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency  funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve  percentages shall include those imposed pursuant to such Regulation D of the Board. Eurodollar Loans  shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without  benefit of or credit for proration, exemptions or offsets that may be available from time to time to any                                         43   

 

Lender under such Regulation D of the Board or any comparable regulation. The Statutory Reserve Rate  shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.         “Subordinated  Indebtedness”  means  any  Indebtedness  of  the  Company  or  any Subsidiary  the  payment of which is subordinated to payment of the obligations under the Loan Documents.         “Subordinated  Indebtedness  Documents”  means  any  document,  agreement  or  instrument  evidencing  any  Subordinated  Indebtedness  or  entered  into  in  connection with  any  Subordinated  Indebtedness.         “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  (a) 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, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the  parent or by the parent and one or more subsidiaries of the parent.         “Subsidiary” means any subsidiary of the Company.         “Supported QFC” has the meaning assigned to it in Section 9.23.         “Swap Agreement” means any agreement with respect to any swap, forward, spot, future, credit  default or derivative transaction or option or similar agreement involving, or settled by reference to, one or  more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or  pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any  combination of these transactions; provided that no phantom stock or similar plan providing for payments  only on account of services provided by current or former directors, officers, employees or consultants of  the Borrowers or the Subsidiaries shall be a Swap Agreement.         “Swap  Agreement  Obligations”  means  any and  all  obligations  of  the  Loan  Parties  and  their  Subsidiaries, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or  acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a)  any and all Swap Agreements permitted hereunder with a Lender or an Affiliate of a Lender, and (b) any  and  all  cancellations,  buy  backs,  reversals,  terminations  or  assignments  of  any  such  Swap  Agreement  transaction permitted hereunder with a Lender or an Affiliate of a Lender.         “Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under  any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the  Commodity Exchange Act or any rules or regulations promulgated thereunder.         “Swingline  Exposure”  means,  at  any  time,  the  sum  of  the  aggregate  principal  amount  of  all  outstanding Swingline Loans. The Swingline Exposure of any Lender at any time shall be its Applicable  Percentage of the aggregate Swingline Exposure.         “Swingline Lender” means JPMCB, in its capacity as lender of Swingline Loans hereunder. Any  consent required of the Administrative Agent or the Issuing Bank shall be deemed to be required of the  Swingline Lender and any consent given by JPMCB in its capacity as Administrative Agent or Issuing  Bank shall be deemed given by JPMCB in its capacity as Swingline Lender.                                         44   

 

      “Swingline Loan” has the meaning assigned to such term in Section 2.05(a).         “Syndication Agent” means BMO Harris Bank N.A.          “Target Balance” has the meaning assigned to such term in the DDA Access Product Agreement.         “Taxes”  means  all  present  or  future  taxes,  levies,  imposts,  duties,  deductions,  withholdings  (including backup withholding), value added taxes, or any other goods and services, use or sales taxes,  assessments,  fees  or  other  charges  imposed  by  any  Governmental  Authority,  including  any  interest,  additions to tax or penalties applicable thereto.         “Term Loan Agent” means JPMCB, in its capacity as administrative agent under the Term Loan  Agreement (or any successor agent thereunder or under any replacement thereof).         “Term Loans” has the meaning assigned to it in the Term Loan Agreement (as in effect on the  Effective Date).         “Term  Loan  Agreement”  means  that  certain  Loan  Agreement,  dated  as  of  November 8,  2016,  among Octavius Corporation, as borrower, the other Loan Parties from time to time party thereto, the Term  Loan  Agent  and  the  lenders  from  time  to  time  party  thereto,  as  the  same  may  be  amended,  restated,  supplemented or otherwise modified from time to time and as replaced or refinanced in whole or in part  (whether with the same group of lenders or a different group of lenders) in accordance with the terms hereof  and of the ABL/Term Loan Intercreditor Agreement.         “Term Loan Documents” means, collectively, the Term Loan Agreement and all other agreements,  instruments, documents and certificates executed and/or delivered in connection therewith, as the same may  be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms  hereof and of the ABL/Term Loan Intercreditor Agreement.         “Term Loan Facility” means the term loan facility incurred pursuant to the terms of the Term Loan  Agreement.         “Term Loan Obligations” means the Indebtedness and other obligations of the Company and its  Subsidiaries under the Term Loan Documents.         “Test Period” means, for any date of determination under this Agreement, a single period consisting  of the most recent four consecutive fiscal quarters of the Company for which financial statements have been  required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), as applicable (or, if prior to the date  of the delivery of the first financial statements to be delivered pursuant to Section 5.01(a) or (b), the most  recent financial statements referred to in Section 3.04(a)).         “Total Commitment Utilization” means, at any time, a percentage equal to a fraction the numerator  of which is the Aggregate Revolving Exposure at such time and the denominator of which is the Aggregate  Commitment at such time.         “Total Net Leverage Ratio” means, as of any date of determination, the ratio of (a) an amount equal  to (i) Consolidated Total Indebtedness as of the last day of the most recently ended Test Period minus (ii)  the aggregate amount of unrestricted and unencumbered cash and Permitted Investments included in the  consolidated  balance  sheet  of  the  Company  and  its  Subsidiaries  as  of  such  date  of  determination  to  (b) Consolidated EBITDA for such Test Period, all calculated for the Company and its Subsidiaries on a  consolidated basis in accordance with GAAP.                                          45   

 

      “Transaction Costs” means any fees or expenses incurred or paid by the Company or any Subsidiary  in connection with the Transactions, this Agreement and the other Loan Documents and the transactions  contemplated hereby and thereby.         “Transactions” means, collectively, (a) the execution, delivery and performance by the Loan Parties  of this Agreement, the borrowing of Loans, the use of the proceeds thereof and the granting of Liens by the  Loan Parties under the Loan Documents, (b) the consummation of any other transactions in connection with  the foregoing and (c) the payment of the fees and expenses incurred in connection with any of the foregoing.         “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on  such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO  Rate or the Alternate Base Rate.         “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New  York  or  any  other  state  the  laws  of  which  are  required  to  be  applied  in  connection  with  the  issue  of  perfection of security interests.         “U16  Inventory”  mean  work-in-process  Inventory  of  a  Borrower  constituting  near-complete  finished units that are categorized as “U16” (or such other designation assigned to such near-complete  finished  units  with  notice  to  the  Administrative  Agent  after  completion  of  the  Company’s  ERP  implementation) in accordance with the Company’s accounting practices in the ordinary course of business  consistent with past practice prior to the Effective Date or otherwise acceptable to the Administrative Agent  in its Permitted Discretion.         “Unliquidated Obligations” means, at any time, any Secured Obligations (or portion thereof) that  are  contingent  in nature  or  unliquidated  at  such  time,  including  any  Secured  Obligation  that  is:  (i) an  obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (ii) any other  obligation (including any guarantee) that is contingent in nature at such time; or (iii) an obligation to provide  collateral to secure any of the foregoing types of obligations.         “U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30) of the  Code.         “U.S. Special Resolution Regime” has the meaning assigned to it in Section 9.23.         “U.S. Tax  Compliance  Certificate”  has  the  meaning  assigned  to  such  term  in  Section 2.17(f)(ii)(B)(3).         “USA PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate  Tools Required to Intercept and Obstruct Terrorism Act of 2001.         “Warrant Transaction” has the meaning assigned to such term in the definition of “Permitted Call  Spread Swap Agreement”.         “Weekly Reporting Period” means any period of time (a) when an Event of Default has occurred  and is continuing or (b) commencing on any day that the Aggregate Availability is less than the greater of  $16,500,000 and 10% of the Aggregate Commitment and continuing until such subsequent date, if any, as  when  the  Aggregate  Availability  has  exceeded  the greater  of  $16,500,000  and  10%  of  the  Aggregate  Commitment for thirty (30) consecutive days.         “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the  number of years obtained by dividing: (i) the sum of the products obtained by multiplying (a) the amount                                         46   

 

of each then remaining installment, sinking fund, serial maturity or other required payments of principal,  including payment at final maturity, in respect thereof, by (b) the number of years (calculated to the nearest  one-twelfth) that will elapse between such date and the making of such payment; by (ii) the then outstanding  principal amount of such Indebtedness.         “Winnebago of Indiana” means Winnebago of Indiana, LLC, an Iowa limited liability company.         “Winnebago of Indiana Revolving Exposures” means, with respect to any Lender at any time, and  without duplication, the sum of (a) the outstanding principal amount of the Revolving Loans made by such  Lender to Winnebago of Indiana at such time plus (b) such Lender’s LC Exposure with respect to Letters  of Credit issued for the account of Winnebago of Indiana at such time plus (c) such Lender’s Swingline  Exposure with respect to Swingline Loans made to Winnebago of Indiana at such time plus (d) an amount  equal to its Applicable Percentage of the aggregate principal amount of outstanding Protective Advances  made to Winnebago of Indiana at such time plus (e) an amount equal to its Applicable Percentage of the  aggregate principal amount of outstanding Protective Advances made to Winnebago of Indiana at such  time.         “Winnebago of Indiana Utilization” means, at any time, the excess, if any, of (a) the aggregate  Winnebago of Indiana Revolving Exposures of all Lenders over (b) the Borrowing Base of Winnebago of  Indiana.         “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.         “Withholding Agent” means any Loan Party or the Administrative Agent.         “Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the  write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In  Legislation  for  the  applicable  EEA  Member  Country,  which  write-down  and  conversion  powers  are  described in the EU Bail-In Legislation Schedule.         SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans  may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”)  or by Class and Type (e.g., a “Eurodollar Revolving Loan”). Borrowings also may be classified and referred  to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by Class and  Type (e.g., a “Eurodollar Revolving Borrowing”).         SECTION 1.03. Terms  Generally.  The  definitions  of  terms  herein  shall  apply  equally  to  the  singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include  the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including”  shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to  have the same meaning and effect as the word “shall”. The word “law” shall be construed as referring to  all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder  having the force of law or with which affected Persons customarily comply), and all judgments, orders and  decrees, of all Governmental Authorities. 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,  restated,  supplemented  or  otherwise  modified  (subject  to  any  restrictions  on  such  amendments,  restatements,  supplements  or  modifications set forth herein), (b) any definition of or reference to any statute, rule or regulation shall be  construed  as  referring  thereto  as  from  time  to  time  amended,  supplemented  or  otherwise  modified  (including by succession of comparable successor laws), (c) any reference herein to any Person shall be                                         47   

 

construed to include such Person’s successors and assigns (subject to any restrictions on assignment set  forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall  have succeeded to any or all functions thereof, (d) 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, (e) 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, (f) any reference in any  definition to the phrase “at any time” or “for any period” shall refer to the same time or period for all  calculations or determinations within such definition and (g) 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.         SECTION 1.04. Accounting Terms; GAAP; Pro Forma Calculations.          (a)   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, if the  Borrower Representative notifies the Administrative Agent that the Company requests an amendment to  any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in  the  application thereof  on the  operation  of  such  provision  (or if  the  Administrative  Agent  notifies  the  Company 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. Notwithstanding any other provision contained herein, (i) all  terms of an accounting or financial nature used herein shall be construed, and all computations of amounts  and  ratios  referred  to  herein  shall  be  made  (x) without  giving  effect  to  any  election  under  Financial  Accounting  Standards  Board  Accounting  Standards  Codification  825-10-25  (or  any  other  Accounting  Standards Codification or Financial Accounting Standard having a similar result or effect) to value any  Indebtedness or other liabilities of the Company or any Subsidiary at “fair value”, as defined therein and  (y) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under  Financial  Accounting  Standards  Board  Accounting  Standards  Codification  470-20  (or  any  other  Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to  value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness  shall  at  all  times  be  valued  at  the  full  stated  principal  amount  thereof  and  (ii)  notwithstanding  the  Company’s adoption of Financial Accounting Standards Board Accounting Standards Update No. 2016-02,  Leases (Topic 842) (“FAS 842”) any lease (or similar arrangement conveying the right to use) that was not  required  to  be  treated  as  a  capital  lease  under  GAAP  as  in  effect  on  December 31,  2015  shall  not  be  considered a capital lease, and all calculations and deliverables under this Agreement or any other Loan  Document shall be made or delivered, as applicable, in accordance with the foregoing. For the avoidance  of doubt, and without limitation of the foregoing, Permitted Convertible Notes shall at all times be valued  at the full stated principal amount thereof and shall not include any reduction or appreciation in value of  the shares deliverable upon conversion thereof.         (b)   All pro forma computations required to be made hereunder giving effect to any acquisition  or disposition, or issuance, incurrence or assumption of Indebtedness, or other transaction shall in each case  be calculated after giving pro forma effect thereto (and, in the case of any pro forma computation made  hereunder,  to  determine  whether  such  acquisition,  disposition,  issuance,  incurrence  or  assumption  of  Indebtedness or other transaction is permitted to be consummated  hereunder) immediately after giving  effect  to  such  acquisition,  disposition,  issuance,  incurrence  or  assumption  of  Indebtedness  or  other  transaction consummated since the first day of the period for which such pro forma computation is being  made and on or prior to the date of such computation, as if such transaction had occurred on the first day  of the  most recent Test Period, and, to the  extent applicable, to the  historical earnings  and  cash flows                                         48   

 

associated with the assets acquired or disposed of (but without giving effect to any synergies or cost savings,  except as set forth in the definition of “Consolidated EBITDA”) and any related incurrence or reduction of  Indebtedness,  all  in  accordance  with  Article 11  of  Regulation  S-X  under  the  Securities  Act.  If  any  Indebtedness  bears  a  floating  rate  of interest  and  is  being  given  pro  forma  effect,  the  interest  on  such  Indebtedness shall be calculated as if the rate in effect on the date of determination had been the applicable  rate for the entire period for which such pro forma computation is being made (taking into account any  Swap Agreement applicable to such Indebtedness).         SECTION 1.05. Status of Obligations. In the event that the Company or any other Loan Party shall  at any time issue or have outstanding any Subordinated Indebtedness, the Company shall take or cause such  other Loan Party to take all such actions as shall be necessary to cause the Secured Obligations to constitute  senior indebtedness (however denominated) in respect of such Subordinated Indebtedness and to enable the  Administrative  Agent  and the  Lenders  to  have  and  exercise  any  payment  blockage  or  other  remedies  available or potentially available to holders of senior indebtedness under the terms of such Subordinated  Indebtedness. Without limiting the foregoing, the Secured Obligations are hereby designated as “senior  indebtedness” and as “designated senior indebtedness” and words of similar import under and in respect of  any indenture or other agreement or instrument under which such Subordinated Indebtedness is outstanding  and  are  further  given  all  such  other  designations  as  shall  be  required  under  the  terms  of  any  such  Subordinated Indebtedness in order that the Lenders may have and exercise any payment blockage or other  remedies  available  or  potentially  available  to  holders  of  senior  indebtedness  under  the  terms  of  such  Subordinated Indebtedness.         SECTION 1.06. Interest  Rates;  LIBOR  Notifications. The interest  rate  on  Eurodollar  Loans  is  determined by reference to the LIBO Rate, which is derived from the London interbank offered rate. The  London interbank offered rate is intended to represent the rate at which contributing banks may obtain  short-term borrowings from each other in the London interbank market. In July 2017, the U.K. Financial  Conduct  Authority  announced  that,  after  the  end  of  2021,  it  would  no longer  persuade  or  compel  contributing banks to make rate submissions to the  ICE Benchmark Administration (together with any  successor to the ICE Benchmark Administrator, the “IBA”) for purposes of the IBA setting the London  interbank offered rate. As a result, it is possible that commencing in 2022, the London interbank offered  rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to  determine  the  interest  rate  on  Eurodollar  Loans.  In  light  of  this  eventuality,  public  and  private  sector  industry initiatives are currently underway to identify new or alternative reference rates to be used in place  of the  London interbank offered  rate.  In the  event that the  London interbank offered  rate  is  no longer  available  or  in  certain  other  circumstances  as  set  forth  in Section 2.14(c) of  this  Agreement,  such  Section 2.14(c) provides a mechanism for determining an alternative rate of interest. The Administrative  Agent will notify the Borrower Representative, pursuant to Section 2.14, in advance of any change to the  reference rate upon which the interest rate on Eurodollar Loans is based. However, the Administrative  Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the  administration, submission or any other matter related to the London interbank offered rate or other rates  in the definition of “LIBO Rate” or with respect to any alternative or successor rate thereto, or replacement  rate thereof, including without limitation, whether the composition or characteristics of any such alternative,  successor or replacement reference rate, as it may or may not be adjusted pursuant to Section 2.14(c), will  be similar to, or produce the same value or economic equivalence of, the LIBO Rate or have the same  volume or liquidity as did the London interbank offered rate prior to its discontinuance or unavailability.         SECTION 1.07. Amendment and Restatement of the Existing Credit Agreement. The parties to  this Agreement agree that, on the Effective Date, the terms and provisions of the Existing Credit Agreement  shall be and hereby are amended, superseded and restated in their entirety by the terms and provisions of  this Agreement. This Agreement is not intended to and shall not constitute a novation. All loans made and  obligations incurred under the Existing Credit Agreement which are outstanding on the Effective Date shall                                         49   

 

continue as Loans and Secured Obligations under (and shall be governed by the terms of) this Agreement  and  the  other  Loan  Documents.  Without  limiting  the  foregoing,  upon  the  effectiveness  hereof:  (a)  all  references in the “Loan Documents” (as defined in the Existing Credit Agreement) to the “Administrative  Agent,” the “Credit Agreement” and the “Loan Documents” shall be deemed to refer to the Administrative  Agent, this Agreement and the Loan Documents, (b) Letters of Credit which remain outstanding on the  Effective  Date  shall  continue  as  Letters  of  Credit  under  (and  shall  be  governed  by  the  terms  of)  this  Agreement, (c) all obligations constituting “Obligations” with any Lender or any Affiliate of any Lender  which are outstanding on the Effective Date shall continue as Obligations under this Agreement and the  other Loan Documents, (d) the liens and security interests in favor of the Administrative Agent for the  benefit  of  the  Secured  Parties  securing  payment  of  the  Secured  Obligations  (and  all  filings  with  any  Governmental Authority in connection therewith) are in all respects continuing and in full force and effect  with  respect  to  all  Secured  Obligations,  (e)  the  Administrative  Agent  shall,  in  consultation  with  the  Borrowers, make such reallocations, sales, assignments or other relevant actions in respect of each Lender’s  credit and loan exposure under the Existing Credit Agreement as are necessary in the judgment of the  Administrative Agent in order that each such Lender’s outstanding Revolving Loans hereunder reflect such  Lender’s ratable share of the outstanding Revolving Loans on the Effective Date and (f) each of the Loan  Parties reaffirms the terms and conditions of the “Loan Documents” (as referred to and defined in the  Existing  Credit  Agreement)  executed  by  it,  as  modified  and/or  restated  by  the  “Loan  Documents”  (as  referred to and defined herein), and acknowledges and agrees that each “Loan Document” (as referred to  and defined in the Existing Credit Agreement) executed by it, as modified and/or restated by the “Loan  Documents” (as referred to and defined herein), remains in full force and effect and is hereby ratified,  reaffirmed and confirmed.                                     ARTICLE II                                                                             The Credits         SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein, each Lender  (severally and not jointly) agrees to make Revolving Loans to the Borrowers in Dollars from time to time  during the Availability Period if, after giving effect thereto:               (i)   such Lender’s Revolving Exposure would not exceed such Lender’s Commitment;               (ii)  the aggregate Company Revolving Exposures would not exceed an amount equal        to (x) the Aggregate Borrowing Base minus (y) the sum of the Winnebago of Indiana Revolving        Exposures of all Lenders plus the Grand Design Revolving Exposures of all Lenders;               (iii) the aggregate Winnebago of Indiana Revolving Exposures would not exceed an        amount  equal to (x) the  sum  of  Winnebago  of  Indiana’s  Borrowing  Base plus the  Company’s        Borrowing Base minus (y) the sum of (A) the excess, if any, of the aggregate Company Revolving        Exposures of all Lenders over the Excess Grand Design Borrowing Base plus (B) the Grand Design        Utilization; and               (iv)  the aggregate Grand Design Revolving Exposures would not exceed an amount        equal to (x) the sum of Grand Design’s Borrowing Base plus the Company’s Borrowing Base minus        (y) the sum of (A) the excess, if any, of the aggregate Company Revolving Exposures of all Lenders        over  the  Excess  Winnebago  of  Indiana  Borrowing  Base plus (B)  the  Winnebago  of  Indiana        Utilization;   subject, in each case, to the Administrative Agent’s authority, in its sole discretion, to make Protective  Advances and Overadvances pursuant to the terms of Sections 2.04 and 2.05. Within the foregoing limits                                         50   

 

and subject to the terms and conditions set forth herein, the Borrowers may borrow, prepay and reborrow  Revolving Loans. The limitations on Borrowings referred to in clauses (i) through (iv) above are referred  to collectively as the “Revolving Exposure Limitations”.         SECTION 2.02. Loans and Borrowings.         (a)   Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting  of Loans of the same Class and Type made by the applicable Lenders ratably in accordance with their  respective Commitments of the applicable Class. The failure of any Lender to make any Loan required to  be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments  of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans  as  required.  Any  Protective  Advance,  any  Overadvance  and  any  Swingline  Loan  shall  be  made  in  accordance with the procedures set forth in Sections 2.04 and 2.05.         (b)   Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of ABR  Loans  or  Eurodollar  Loans  as the  Borrower  Representative  may  request in  accordance  herewith.  Each  Swingline Loan shall be an ABR Loan. Each Lender at its option may make any Eurodollar Loan by causing  any domestic  or foreign branch or Affiliate of such Lender to make  such Loan (and in the case  of an  Affiliate, the provisions of Sections 2.14, 2.15, 2.16 and 2.17 shall apply to such Affiliate to the same extent  as to such Lender); provided that any exercise of such option shall not affect the obligation of the relevant  Borrower to repay such Loan in accordance with the terms of this Agreement.         (c)   At the commencement of each Interest Period for any Eurodollar Revolving Borrowing,  such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than  $1,000,000. ABR Borrowings may be in any amount. 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  six  (6) Eurodollar Borrowings outstanding.         (d)   Notwithstanding any other provision of this Agreement, the Borrower Representative shall  not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested  with respect thereto would end after the Maturity Date.         SECTION 2.03. Requests  for  Borrowings.  To  request  a  Revolving  Borrowing,  the  Borrower  Representative shall notify the Administrative Agent of such request either in writing (delivered by hand  or facsimile) in the form attached hereto as Exhibit G-1 or such other form approved by the Administrative  Agent and signed by a Responsible Officer of the Borrower Representative or by telephone or through  Electronic System, if arrangements for doing so have been approved by the Administrative Agent (or if an  Extenuating  Circumstance  shall  exist,  by  telephone),  not  later  than  (a) in  the  case  of  a  Eurodollar  Borrowing, 10:00 a.m., Chicago time, three (3) Business Days before the date of the proposed Borrowing  or (b) in the case of an ABR Borrowing, 10:00 a.m., Chicago time, on the date of the proposed Borrowing;  provided that any such notice of an ABR Revolving Borrowing to finance the reimbursement of an LC  Disbursement as contemplated by Section 2.06(e) may be given not later than 9:00 a.m., Chicago time, on  the date of such proposed Borrowing. Each such Borrowing Request shall be irrevocable and each such  telephonic  Borrowing Request, if permitted, shall be confirmed  immediately upon the  cessation of the  Extenuating Circumstance by hand delivery, facsimile or a communication through Electronic System to  the Administrative Agent of a written Borrowing Request in the form attached hereto as Exhibit G-1 or  such other form approved by the Administrative Agent and signed by a Responsible Officer of the Borrower  Representative.  Each  such  written  (or  if  permitted,  telephonic)  Borrowing  Request  shall  specify  the  following information in compliance with Section 2.02:         (a)   the name of the applicable Borrower;                                         51   

 

      (b)   the aggregate amount of the requested Borrowing and a breakdown of the separate wires  comprising such Borrowing;         (c)   the date of such Borrowing, which shall be a Business Day;         (d)   whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and         (e)   in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto,  which shall be a period contemplated by the definition of the term “Interest Period”.         If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an  ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then  the relevant Borrower shall be deemed to have selected an Interest Period of one month’s duration. Promptly  following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall  advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of  the requested Borrowing.         SECTION 2.04. Protective Advances.         (a)   Subject to the limitations set forth below, the Administrative Agent is authorized by the  Borrowers and the Lenders, from time to time in the Administrative Agent’s sole discretion (but shall have  absolutely  no  obligation  to),  to  make  Loans  to  the  Borrowers,  on  behalf  of  all  Lenders,  which  the  Administrative Agent, in its Permitted Discretion, deems necessary or desirable (i) to preserve or protect  the  Collateral,  or  any  portion  thereof,  (ii)  to  enhance  the  likelihood  of,  or  maximize  the  amount  of,  repayment of the Loans and other Obligations, or (iii) to pay any other amount chargeable to or required to  be paid by the Borrowers pursuant to the terms of this Agreement, including payments of reimbursable  expenses (including costs, fees, and expenses as described in Section 9.03) and other sums payable under  the Loan Documents (any of such Loans are herein referred to as “Protective Advances”); provided that,  the aggregate amount of Protective Advances outstanding at any time, when aggregated with the amount  of Overadvances outstanding at such time, shall not at any time exceed 10% of the Aggregate Commitment;  provided further that, the Aggregate Revolving Exposure after giving effect to the Protective Advances  being made shall not exceed the Aggregate Commitment. Protective Advances may be made even if the  conditions precedent set forth in Section 4.02 have not been satisfied. The Protective Advances shall be  secured by the Liens in favor of the Administrative Agent in and to the Collateral and shall constitute  Obligations hereunder. All Protective Advances shall be ABR Borrowings. The making of a Protective  Advance on any one occasion shall not obligate the Administrative Agent to make any Protective Advance  on any other occasion. The Administrative Agent’s authorization to make Protective Advances may be  revoked at any time by the Required Lenders. Any such revocation must be in writing and shall become  effective prospectively upon the Administrative Agent’s receipt thereof. At any time that there is sufficient  Aggregate  Availability  and  the  conditions  precedent  set  forth  in Section 4.02 have  been  satisfied,  the  Administrative Agent may request the Lenders to make a Revolving Loan to repay a Protective Advance.  At  any  other  time  the  Administrative  Agent  may  require  the  Lenders  to  fund  their  risk  participations  described in Section 2.04(b).         (b)   Upon the making of a Protective Advance by the Administrative Agent (whether before or  after the occurrence of a Default), each Lender shall be deemed, without further action by any party hereto,  to have unconditionally and irrevocably purchased from the Administrative Agent, without recourse or  warranty, an undivided interest and participation in such Protective Advance in proportion to its Applicable  Percentage. From and after the date, if any, on which any Lender is required to fund its participation in any  Protective  Advance  purchased  hereunder,  the  Administrative  Agent  shall  promptly  distribute  to  such                                          52   

 

Lender, such Lender’s Applicable Percentage of all payments of principal and interest and all proceeds of  Collateral received by the Administrative Agent in respect of such Protective Advance.         SECTION 2.05. Swingline Loans and Overadvances.          (a)   The Administrative Agent, the Swingline Lender and the Lenders agree that in order to  facilitate the administration of this Agreement and the other Loan Documents, promptly after the Borrower  Representative  requests an ABR Borrowing, the Swingline  Lender may elect to have the terms  of this  Section 2.05(a) apply to such Borrowing Request by advancing, on behalf of the Lenders and in the amount  requested,  same  day  funds  to  the  Borrowers,  on  the  date  of  the  applicable  Borrowing  to  the  Funding  Account(s)  (each  such  Loan  made  solely  by  the  Swingline  Lender  pursuant  to  this Section 2.05(a) is  referred to in this Agreement as a “Swingline Loan”), with settlement among them as to the Swingline  Loans to take place on a periodic basis as set forth in Section 2.05(d). Each Swingline Loan shall be subject  to  all  the  terms  and  conditions  applicable  to  other  ABR  Loans  funded  by  the  Lenders,  except  that  all  payments thereon shall be payable to the Swingline Lender solely for its own account. In addition, the  Borrower Representative hereby authorizes the Swingline Lender to, and the Swingline Lender may, subject  to the terms and conditions set forth herein (but without any further written notice required), to the extent  that from time to time on any Business Day funds are required under the DDA Access Product to reach the  Target  Balance  (a  “Deficiency  Funding  Date”),  make  available  to  the  Borrowers  the  proceeds  of  a  Swingline Loan in the amount of such deficiency up to the Target Balance, by means of a credit to the  Funding  Account  on  or  before  the  start  of  business  on  the  next  succeeding  Business  Day,  and  such  Swingline  Loan  shall  be  deemed  made  on  such  Deficiency  Funding  Date.  The  aggregate  amount  of  Swingline  Loans  outstanding  at  any  time  shall  not  exceed  an amount  equal  to  10%  of  the  Aggregate  Commitment. The Swingline Lender shall not make any Swingline Loan if the requested Swingline Loan  results in the Borrowers failing to be in compliance with the Revolving Exposure Limitations (before or  after giving effect to such Swingline Loan). All Swingline Loans shall be ABR Borrowings.         (b)   Any provision of this Agreement to the contrary notwithstanding, at the request of the  Borrower  Representative,  the  Administrative  Agent  may  in  its  sole  discretion  (but  with  absolutely  no  obligation), make Revolving Loans to the Borrowers, on behalf of the Lenders, in amounts that exceed  Aggregate  Availability  or  any  Borrower’s  Availability  (any  such  excess  Revolving  Loans  are  herein  referred to collectively as “Overadvances”); provided that, no Overadvance shall result in a Default due to  Borrowers’ failure to comply with Section 2.01 for so long as such Overadvance remains outstanding in  accordance with the terms of this paragraph, but solely with respect to the amount of such Overadvance. In  addition, Overadvances may be made even if the condition precedent set forth in Section 4.02(c) has not  been satisfied. All Overadvances shall constitute ABR Borrowings. The making of an Overadvance on any  one occasion shall not obligate the Administrative Agent to make any Overadvance on any other occasion.  The authority of the Administrative Agent to make Overadvances is limited to an aggregate amount not to  exceed, when aggregated with the aggregate amount of Protective Advances outstanding at such time, 10%  of the Aggregate Commitment at any time, no Overadvance may remain outstanding for more than thirty  (30) days and no Overadvance shall cause any Lender’s Revolving Exposure to exceed its Commitment;  provided that, the Required Lenders may at any time revoke the Administrative Agent’s authorization to  make Overadvances. Any such revocation must be in writing and shall become effective prospectively upon  the Administrative Agent’s receipt thereof.         (c)   Upon the making of a Swingline Loan or an Overadvance (whether before or after the  occurrence of a Default and regardless of whether a Settlement has been requested with respect to such  Swingline Loan or Overadvance), each Lender shall be deemed, without further action by any party hereto,  to have unconditionally and irrevocably purchased from the Swingline Lender or the Administrative Agent,  as the case may be, without recourse or warranty, an undivided interest and participation in such Swingline  Loan or Overadvance in proportion to its Applicable Percentage of the Commitment. The Swingline Lender                                         53   

 

or the Administrative Agent may, at any time, require the Lenders to fund their participations. From and  after the date, if any, on which any Lender is required to fund its participation in any Swingline Loan or  Overadvance purchased hereunder, the Administrative Agent shall promptly distribute to such Lender, such  Lender’s Applicable Percentage of all payments of principal and interest and all proceeds of Collateral  received by the Administrative Agent in respect of such Swingline Loan or Overadvance.         (d)   The Administrative Agent, on behalf of the Swingline Lender, shall request settlement (a  “Settlement”) with the Lenders on at least a weekly basis and on any date that the Administrative Agent  elects, by notifying the Lenders of such requested Settlement by facsimile, telephone, or e-mail no later  than 12:00 noon, Chicago time, on the date of such requested Settlement (the “Settlement Date”). Each  Lender (other than the Swingline Lender, in the case of the Swingline Loans) shall transfer the amount of  such  Lender’s  Applicable  Percentage  of the  outstanding  principal  amount  of the  applicable  Loan  with  respect to which Settlement is requested to the Administrative Agent, to such account of the Administrative  Agent  as  the  Administrative  Agent  may  designate,  not  later  than  2:00 p.m.,  Chicago  time,  on  such  Settlement Date. Settlements may occur during the existence of a Default and whether or not the applicable  conditions precedent set forth in Section 4.02 have then been satisfied. Such amounts transferred to the  Administrative Agent shall be applied against the amounts of the Swingline Lender’s Swingline Loans and,  together  with  Swingline  Lender’s  Applicable  Percentage  of  such  Swingline Loan,  shall  constitute  Revolving Loans of such Lenders, respectively. If any such amount is not transferred to the Administrative  Agent by any Lender on such Settlement Date, the Swingline Lender shall be entitled to recover from such  Lender on demand such amount, together with interest thereon, as specified in Section 2.07.         SECTION 2.06. Letters of Credit.          (a)   General. Subject to the terms and conditions set forth herein, the Borrower Representative  may request the issuance of Letters of Credit for its own account or for the account of another Borrower  denominated in Dollars as the applicant thereof for the support of its or its Subsidiaries’ obligations, in a  form reasonably acceptable to the Administrative Agent and the relevant Issuing Bank, at any time and  from time to time during the Availability 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 Borrowers to, or entered into by the Borrowers with, the relevant Issuing  Bank  relating  to  any  Letter  of  Credit,  the  terms  and  conditions  of  this  Agreement  shall  control.  Notwithstanding anything herein to the contrary, the Issuing Bank shall have no obligation hereunder to  issue, and shall not issue, any Letter of Credit (i) the proceeds of which would be made available to any  Person (A) to fund any activity or business of or with any Sanctioned Person, or in any country or territory  that, at the time of such funding, is the subject of any Sanctions or (B) in any manner that would result in a  violation of any Sanctions by any party to this Agreement, (ii) if any order, judgment or decree of any  Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Bank from  issuing such Letter of Credit, or any Requirement of Law relating to the Issuing Bank or any request or  directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over  the Issuing Bank shall prohibit, or request that the Issuing Bank refrain from, the issuance of letters of credit  generally or such Letter of Credit in particular or shall impose upon the Issuing Bank with respect to such  Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise  compensated hereunder) not in effect on the Effective Date, or shall impose upon the Issuing Bank any  unreimbursed loss, cost or expense which was not applicable on the Effective Date and which the Issuing  Bank in good faith deems material to it, or (iii) if the issuance of such Letter of Credit would violate one or  more policies of the Issuing Bank applicable to letters of credit generally; provided that, notwithstanding  anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and  all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in  the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated  by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor                                         54   

 

or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel  III, shall in each case be deemed not to be in effect on the Effective Date for purposes of clause (ii) above,  regardless of the date enacted, adopted, issued or implemented.         (b)   Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the  issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit),  the Borrower Representative shall hand deliver or telecopy (or transmit through Electronic Systems, if  arrangements for doing so have been approved by the relevant Issuing Bank) to an Issuing Bank and the  Administrative Agent (reasonably in advance of, but in any event no less than three (3) Business Days prior  to, 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 date on which such  Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount 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. In addition, as a condition to any such  Letter of Credit issuance, the applicable Borrower shall have entered into a continuing agreement (or other  letter of credit agreement) for the issuance of letters of credit and/or shall submit a letter of credit application  in each case, as required by the Issuing Bank and using such Issuing Bank’s standard form (each, a “Letter  of Credit Agreement”). If requested by such Issuing Bank, the applicable Borrower also shall submit a letter  of credit application on such 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 (and  upon  issuance,  amendment, renewal or extension of each Letter of Credit the Borrowers shall be deemed to represent and  warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the aggregate LC  Exposure shall not exceed $19,250,000 and (ii) the Borrowers shall be in compliance with the Revolving  Exposure  Limitations.  Notwithstanding  the  foregoing  or  anything  to  the  contrary  contained  herein,  no  Issuing Bank shall be obligated to issue or modify any Letter of Credit if, immediately after giving effect  thereto, the  outstanding  LC  Exposure  in  respect  of all  Letters  of  Credit issued by  such  Person  and  its  Affiliates would exceed such Issuing Bank’s Issuing Bank Sublimit. Without limiting the foregoing and  without  affecting  the  limitations  contained  herein,  it  is  understood  and  agreed  that  the  Borrower  Representative may from time to time request that an Issuing Bank issue Letters of Credit in excess of its  individual Issuing Bank Sublimit in effect at the time of such request, and each Issuing Bank agrees to  consider any such request in good faith. Any Letter of Credit so issued by an Issuing Bank in excess of its  individual  Issuing  Bank  Sublimit  then  in  effect  shall  nonetheless  constitute  a  Letter  of  Credit  for  all  purposes of the Credit Agreement, and shall not affect the Issuing Bank Sublimit of any other Issuing Bank,  subject to the limitations on the aggregate LC Exposure set forth in clause (i) of this Section 2.06(b).         (c)   Expiration  Date.  Each  Letter  of  Credit  shall  expire  (or  be  subject  to  termination  or  non-renewal by notice from the relevant Issuing Bank to the beneficiary thereof) 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,  including,  without  limitation,  any  automatic  renewal  provision, one year after such renewal or extension) and (ii) the date that is five (5) Business Days prior to  the Maturity Date.         (d)   Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit  increasing  the  amount  thereof)  and  without  any further  action  on  the  part  of  any  Issuing  Bank  or  the  Lenders, each Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from each  Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the  aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of  the  foregoing,  each  Lender  hereby  absolutely  and  unconditionally  agrees  to  pay  to  the  Administrative  Agent, for the  account of the  relevant Issuing Bank, such Lender’s  Applicable Percentage  of each LC  Disbursement made by such Issuing Bank and not reimbursed by the Borrowers on the date due as provided                                         55   

 

in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrowers  for any reason. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant  to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by  any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or  the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each  such payment shall be made without any offset, abatement, withholding or reduction whatsoever.         (e)   Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a Letter  of Credit, the Borrowers shall reimburse such LC Disbursement by paying to the Administrative Agent an  amount equal to such LC Disbursement (i) not later than 11:00 a.m., Chicago time, on the date that such  LC  Disbursement  is  made,  if  the  Borrower  Representative  shall  have  received  notice  of  such  LC  Disbursement prior to 9:00 a.m., Chicago time, on such date, or, (ii) if such notice has not been received by  the Borrower Representative prior to such time on such date, then not later than 11:00 a.m., Chicago time,  on (A) the Business Day that the Borrower Representative receives such notice, if such notice is received  prior to 9:00 a.m., Chicago time, on the day of receipt, or (B) the Business Day immediately following the  day that the Borrower Representative receives such notice, if such notice is not received prior to such time  on the day of receipt; provided that, the Borrowers may, subject to the conditions to borrowing set forth  herein,  request  in  accordance  with Section 2.03 or 2.05 that  such  payment  be  financed  with  an  ABR  Revolving  Borrowing  or  Swingline  Loan  in  an  equivalent  amount  and,  to  the  extent  so  financed,  the  Borrowers’  obligation  to  make  such  payment  shall  be  discharged  and  replaced  by  the  resulting  ABR  Revolving  Borrowing  or  Swingline  Loan.  If  the  Borrowers  fail  to  make  such  payment  when  due,  the  Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the payment  then due from the Borrowers in respect thereof and such Lender’s Applicable Percentage thereof. Promptly  following  receipt  of  such  notice,  each  Revolving  Lender  shall  pay  to  the  Administrative  Agent  its  Applicable Percentage of the payment then due from the Borrowers, in the same manner as provided in  Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis,  to the 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 Borrowers 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 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  or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the Borrowers  of their obligation to reimburse such LC Disbursement.         (f)   Obligations  Absolute.  The  Borrowers’  joint  and  several  obligation  to  reimburse  LC  Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable,  and shall be performed 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, any Letter  of Credit Agreement or this Agreement, or any term or provision therein or herein, (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) any payment by an Issuing Bank under  a Letter of Credit against presentation of a draft or other document that does not comply with the terms of  such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of  the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of,  or provide a right of setoff against, the Borrowers’ obligations hereunder. Neither the Administrative Agent,  the Lenders nor any 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                                         56   

 

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 relevant Issuing Bank; provided that the foregoing shall not be construed to excuse  any Issuing Bank from liability to the Borrowers to the extent of any direct damages (as opposed to special,  indirect, consequential or punitive damages, claims in respect of which are hereby waived by the Borrowers  to the extent permitted by applicable law) suffered by any Borrower that are caused by such 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. The  parties  hereto  expressly  agree  that,  in  the  absence  of  gross  negligence  or willful misconduct on the part of any Issuing Bank (as finally determined  by a  court of  competent  jurisdiction),  such  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, each Issuing Bank may, in its sole discretion, either accept and make payment  upon  such  documents  without  responsibility  for  further  investigation,  regardless  of  any  notice  or  information to the contrary, or refuse to accept and make payment upon such documents if such documents  are not in strict compliance with the terms of such Letter of Credit.         (g)   Disbursement Procedures. Each Issuing Bank shall, promptly following its receipt thereof,  examine all documents purporting to represent a demand for payment under a Letter of Credit. Each Issuing  Bank shall promptly notify the Administrative Agent and the applicable Borrower by telephone (confirmed  by fax or through Electronic Systems) of such demand for payment and whether such Issuing Bank has  made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving  such notice shall not relieve the Borrowers of their obligation to reimburse such Issuing Bank and the  Lenders with respect to any such LC Disbursement.         (h)   Interim Interest. If any Issuing Bank shall make any LC Disbursement, then, unless the  Borrowers shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the  unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement  is made to but excluding the date that the Borrowers reimburse such LC Disbursement, at the rate per annum  then  applicable  to  ABR  Revolving  Loans  and  such  interest  shall  be  payable  on  the  date  when  such  reimbursement is due; provided that, if the Borrowers fail to reimburse such LC Disbursement when due  pursuant to paragraph (e) of this Section, then Section 2.13(d) shall apply. Interest accrued pursuant to this  paragraph shall be for the account of such Issuing Bank, except that interest accrued on and after the date  of payment by any Lender pursuant to paragraph (e) of this Section to reimburse such Issuing Bank shall  be for the account of such Lender to the extent of such payment.         (i)   Replacement and Resignation of an Issuing Bank. (A) Any Issuing Bank may be replaced  at  any  time  by  written  agreement  among  the  Borrower  Representative,  the  Administrative  Agent,  the  replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the 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 2.12(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 refer  to such successor or to any previous Issuing Bank, or to 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 then outstanding and issued by it prior to such replacement,  but shall not be required to issue additional Letters of Credit or extend or otherwise amend any existing  Letters of Credit.                                         57   

 

                  (B)   Subject to the appointment and acceptance of a successor Issuing Bank in              accordance with the terms of this Agreement, any Issuing Bank may resign as an Issuing              Bank at any time upon thirty (30) days’ prior written notice to the Administrative Agent,              the Borrower Representative and the Lenders, in which case, such resigning Issuing Bank              shall be replaced in accordance with Section 2.06(i)(A) above.         (j)   Cash  Collateralization.  If  any  Event  of  Default  shall  occur  and  be  continuing,  on  the  Business  Day  that  the  Borrower  Representative  receives  notice  from  the  Administrative  Agent  or  the  Required  Lenders  (or,  if  the  maturity  of  the  Loans  has  been  accelerated,  Revolving  Lenders  with  LC  Exposure representing greater than 66 2/3% of the aggregate LC Exposure) demanding the 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 Revolving Lenders (the “LC  Collateral Account”), an amount in cash equal to 103% of the amount of the LC Exposure as of such date  plus accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall  become  effective  immediately,  and  such  deposit  shall  become  immediately  due  and  payable,  without  demand  or other notice of any kind, upon the  occurrence  of any Event of Default with respect to any  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 Secured Obligations. The Administrative Agent  shall  have  exclusive  dominion  and  control,  including  the  exclusive  right  of  withdrawal,  over  the  LC  Collateral Account and the Borrowers hereby grant the Administrative Agent a security interest in the LC  Collateral Account and all money or other assets on deposit therein or credited thereto. 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 Borrowers’ risk and expense, such deposits shall not bear  interest. Interest or profits, if any, on such investments shall accumulate in the LC Collateral Account.  Moneys in the LC Collateral 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 Borrowers for the LC Exposure at such  time or, if the maturity of the Loans has been accelerated (but subject to the consent of Revolving Lenders  with LC Exposure representing greater than 66 2/3% of the aggregate LC Exposure), be applied to satisfy  other Secured Obligations. If the Borrowers are required to provide an amount of cash collateral hereunder  as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid)  shall be returned to the Borrowers within three (3) Business Days after all such Events of Default have been  cured or waived as confirmed in writing by the Administrative Agent.         (k)   Issuing  Bank  Reports  to  the  Administrative  Agent.  Unless  otherwise  agreed  by  the  Administrative Agent, each Issuing Bank shall, in addition to its notification obligations set forth elsewhere  in  this  Section,  report  in  writing  to  the  Administrative  Agent  (i)  periodic  activity  (for  such  period  or  recurrent periods as shall be requested by the Administrative Agent) in respect of Letters of Credit issued  by such Issuing Bank, including all issuances, extensions, amendments and renewals, all expirations and  cancelations and all disbursements and reimbursements, (ii) reasonably prior to the time that such Issuing  Bank issues, amends, renews or extends any Letter of Credit, the date of such issuance, amendment, renewal  or extension, and the stated amount of the Letters of Credit issued, amended, renewed or extended by it and  outstanding  after  giving  effect  to  such  issuance,  amendment,  renewal  or  extension  (and  whether  the  amounts thereof shall have changed), (iii) on each Business Day on which such Issuing Bank makes any  LC Disbursement, the date and amount of such LC Disbursement, (iv) on any Business Day on which any  Borrower fails to reimburse an LC Disbursement required to be reimbursed to such Issuing Bank on such  day, the date of such failure and the amount of such LC Disbursement, and (v) on any other Business Day,  such other information as the Administrative Agent shall reasonably request as to the Letters of Credit  issued by such Issuing Bank.                                          58   

 

      (l)   LC Exposure Determination. For all purposes of this Agreement, the amount of a Letter of  Credit that, by its terms or the terms of any document related thereto, provides for one or more automatic  increases in the stated amount thereof shall be deemed to be the maximum stated amount of such Letter of  Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at  the time of determination.         (m)   Letters of Credit Issued for Account of Subsidiaries. Notwithstanding that a Letter of Credit  issued or outstanding hereunder supports any obligations of, or is for the account of, a Subsidiary, or states  that a Subsidiary is the “account party,” “applicant,” “customer,” “instructing party,” or the like, of or for  such Letter of Credit, and without derogating from any rights of the Issuing Bank (whether arising by  contract, at law, in equity or otherwise) against such Subsidiary in respect of such Letter of Credit, the  Borrowers (i) shall reimburse, indemnify and compensate the Issuing Bank hereunder for such Letter of  Credit (including to reimburse any and all drawings thereunder) as if such Letter of Credit had been issued  solely for the account of a Borrower and (ii) irrevocably waives any and all defenses that might otherwise  be available to it as a guarantor or surety of any or all of the obligations of such Subsidiary in respect of  such Letter of Credit. Each Borrower hereby acknowledges that the issuance of such Letters of Credit for  its Subsidiaries inures to the benefit of the Borrowers, and that each Borrower’s business derives substantial  benefits from the businesses of such Subsidiaries.         SECTION 2.07. Funding of Borrowings.          (a)   Each Lender shall make each Loan to be made by such Lender hereunder on the proposed  date thereof solely by wire transfer of immediately available funds by 1:00 p.m., Chicago time, to the  account  of the  Administrative  Agent  most  recently  designated  by  it  for  such  purpose  by  notice to  the  Lenders in an amount equal to such Lender’s Applicable Percentage; provided that, Swingline Loans shall  be made as provided in Section 2.05. The Administrative Agent will make such Loans available to the  Borrower  Representative  by  promptly  crediting  the  funds  so  received  in  the  aforesaid  account  of  the  Administrative Agent to the Funding Account; provided that ABR Revolving Loans made to finance the  reimbursement  of  (i)  an  LC  Disbursement  as  provided  in Section 2.06(e) shall  be  remitted  by  the  Administrative Agent to the Issuing Bank and (ii) a Protective Advance or an Overadvance shall be retained  by the Administrative Agent.         (b)   Unless the Administrative Agent shall have received notice from a Lender prior to the  proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such  Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such  share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon  such assumption, make available to the relevant 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 such 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 such Borrower to but excluding the date of payment to the Administrative  Agent, at (i) in the case  of such Lender, the greater of the NYFRB Rate  and a rate determined by the  Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the  case of such Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to the  Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing,  provided,  that  any  interest  received  from  a  Borrower  by  the  Administrative  Agent  during  the  period  beginning when Administrative Agent funded the Borrowing until such Lender pays such amount shall be  solely for the account of the Administrative Agent.         SECTION 2.08. Interest Elections.                                          59   

 

      (a)   Each  Borrowing  initially  shall  be  of  the  Type  specified  in  the  applicable  Borrowing  Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such  Borrowing Request. Thereafter, the Borrower Representative may elect to convert such Borrowing to a  different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest  Periods therefor, all as provided in this Section. The Borrower Representative may elect different options  with respect  to  different  portions  of the  affected  Borrowing,  in  which  case  each  such portion  shall  be  allocated  ratably  among  the  Lenders  holding  the  Loans  comprising  such  Borrowing,  and  the  Loans  comprising each such portion shall be considered a separate Borrowing. This Section shall not apply to  Swingline Borrowings, Overadvances, or Protective Advances, which may not be converted or continued.         (b)   To make an election pursuant to this Section, the Borrower Representative shall notify the  Administrative Agent of such election either in writing (delivered by hand or fax) by delivering an Interest  Election Request signed by a Responsible Officer of the Borrower Representative or through Electronic  System if arrangements for doing so have been approved by the Administrative Agent (or if an Extenuating  Circumstance shall exist, by telephone) by the time that a Borrowing Request would be required under  Section 2.03 if the Borrowers were requesting a Borrowing of the Type resulting from such election to be  made on the effective date of such election. Each such Interest Election Request shall be irrevocable each  such telephonic Interest Election Request, if permitted, shall be confirmed immediately upon the cessation  of the Extenuating Circumstance by hand delivery, Electronic System or facsimile to the Administrative  Agent of a written Interest Election Request in the form attached hereto as Exhibit G-2 (or such other form  approved  by  the  Administrative  Agent)  and  signed  by  a  Responsible  Officer  of  the  Borrower  Representative. Notwithstanding any contrary provision herein, this Section shall not be construed to permit  any Borrower to elect an Interest Period for Eurodollar Loans that does not comply with Section 2.02(d).         (c)   Each  written (or  if  permitted,  telephonic)  Interest  Election  Request  (including  requests  submitted  through  Electronic  System)  shall  specify  the  following  information  in  compliance  with  Section 2.02:               (i)   the name of the applicable Borrower and 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) whether  the  resulting  Borrowing  is  to  be  an  ABR  Borrowing  or  a  Eurodollar        Borrowing; and               (iv)  if the resulting Borrowing is a  Eurodollar Borrowing, the  Interest Period to be        applicable  thereto  after  giving  effect  to  such  election,  which Interest  Period  shall  be  a  period        contemplated by the definition of the term “Interest Period”.         If any such Interest Election Request requests a Eurodollar 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 Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.                                          60   

 

      (e)   If  the Borrower  Representative  fails  to  deliver  a  timely  Interest  Election  Request  with  respect to a Eurodollar 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  converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default  has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so  notifies the Borrower Representative, then, so long as an Event of Default is continuing (i) no outstanding  Borrowing  may  be  converted  to  or  continued  as  a  Eurodollar  Borrowing  and  (ii)  unless  repaid,  each  Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable  thereto.         SECTION 2.09. Termination and Reduction of Commitments; Increase in Commitments.         (a)   Unless previously terminated, the Commitments shall terminate on the Maturity Date.         (b)   The Borrowers may at any time terminate the Commitments upon (i) the payment in full  of all outstanding Loans, together with accrued and unpaid interest thereon and on any Letters of Credit,  (ii) the cancellation and return of all outstanding Letters of Credit (or alternatively, with respect to each  such Letter of Credit, the furnishing to the Administrative Agent of a cash deposit (or at the discretion of  the Administrative Agent a back-up standby letter of credit satisfactory to the Administrative Agent and  Issuing Bank) equal to 103% of the LC Exposure as of such date), (iii) the payment in full of the accrued  and unpaid fees, and (iv) the payment in full of all reimbursable expenses and other Obligations (other than  Unliquidated Obligations), together with accrued and unpaid interest thereon.         (c)   The Borrowers may from time to time reduce the Commitments; provided that (i) each  reduction of the Commitments shall be in an amount that is an integral multiple of $10,000,000 and not less  than $10,000,000; (ii) the Borrowers shall not terminate or reduce the Commitments if, after giving effect  to any concurrent prepayment of the Revolving Loans in accordance with Section 2.10, the Borrowers shall  not  be  in  compliance  with  the  Revolving  Exposure  Limitations;  and  (iii) any  such  reduction  shall  be  permanent.         (d)   The  Borrower  Representative  shall  notify  the  Administrative  Agent  of  any  election  to  terminate  or reduce the  Commitments  under the  foregoing paragraphs of this Section at least three (3)  Business Days prior to the effective date of such termination or reduction, specifying such election and the  effective date thereof. Promptly following receipt of any such notice, the Administrative Agent shall advise  the Lenders of the contents thereof. Each notice delivered by the Borrower Representative pursuant to this  Section shall be irrevocable; provided that a notice of termination of the Commitments delivered by the  Borrower Representative may state that such notice is conditioned upon the effectiveness of other credit  facilities, in which case such notice may be revoked by the Borrower Representative (by notice to the  Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any  termination or reduction of the Commitments shall be permanent. Each reduction of the Commitments shall  be made ratably among the Lenders in accordance with their respective Commitments.         (e)   The Borrowers shall have the right to increase the Commitments by obtaining additional  Commitments, either from one or more of the Lenders or another lending institution provided that (i) any  such request for an increase shall be in a minimum amount of $25,000,000 (or such lesser amount that  represents all remaining availability hereunder), (ii) after giving effect thereto, the sum of the total of the  additional Commitments  does not exceed $100,000,000, (iii) the  Administrative  Agent and the  Issuing  Bank(s)  have  approved  the  identity  of  any  such  new  Lender,  such  approvals  not  to  be  unreasonably  withheld, (iv) any such new Lender assumes all of the rights and obligations of a “Lender” hereunder, and  (v) the procedure described in Section 2.09(f) have been satisfied. Nothing contained in this Section 2.09                                          61   

 

shall constitute, or otherwise be deemed to be, a commitment on the part of any Lender to increase its  Commitment hereunder at any time.         (f)   Any amendment hereto for such an increase or addition shall be in form and substance  reasonably satisfactory to the Administrative Agent and shall only require the written signatures of the  Administrative Agent, the Borrowers and each Lender being added or increasing its Commitment. As a  condition precedent to such an increase or addition, the Borrowers shall deliver to the Administrative Agent  (i) a certificate of each Loan Party signed by an authorized officer of such Loan Party (A) certifying and  attaching the resolutions adopted by such Loan Party approving or consenting to such increase, and (B) in  the case of the Borrowers, certifying that, before and after giving effect to such increase or addition, (1) the  representations and warranties contained in Article III and the other Loan Documents are true and correct  in all material respects (provided that any representation or warranty that is qualified by materiality or  Material Adverse Effect is true and correct in all respects), except to the extent that such representations  and warranties specifically refer to an earlier date, in which case they are true and correct in all material  respects (provided that any representation or warranty that is qualified by materiality or Material Adverse  Effect are true and correct in all respects) as of such earlier date, (2) no Default exists and (3) the Borrowers  are in compliance (on a pro forma basis) with the covenant contained in Section 6.12 (calculated assuming  an FCCR Test Period is then in effect) and (ii) legal opinions and documents consistent with those delivered  on the Effective Date, to the extent reasonably requested by the Administrative Agent.         (g)   On the effective date of any such increase or addition, (i) any Lender increasing (or, in the  case of any newly added Lender, extending) its Commitment shall make available to the Administrative  Agent such amounts in immediately available funds as the Administrative Agent shall determine, for the  benefit of the other Lenders, as being required in order to cause, after giving effect to such increase or  addition and the use of such amounts to make payments to such other Lenders, each Lender’s portion of  the outstanding Revolving Loans of all the Lenders to equal its revised Applicable Percentage of such  outstanding Revolving Loans, and the Administrative Agent shall make such other adjustments among the  Lenders  with  respect  to  the  Revolving  Loans  then  outstanding  and  amounts  of  principal,  interest,  commitment fees  and  other amounts  paid or payable with respect thereto as  shall be  necessary, in the  opinion of the Administrative Agent, in order to effect such reallocation and (ii) the Borrowers shall be  deemed to have repaid and reborrowed all outstanding Revolving Loans as of the date of any increase (or  addition) in the Commitments (with such reborrowing to consist of the Types of Revolving Loans, with  related Interest Periods if applicable, specified in a notice delivered by the Borrower Representative, in  accordance with the requirements of Section 2.03). The deemed payments made pursuant to clause (ii) of  the immediately preceding sentence shall be accompanied by payment of all accrued interest on the amount  prepaid and, in respect of each  Eurodollar Loan, shall be  subject to indemnification by the  Borrowers  pursuant to the provisions of Section 2.16 if the deemed payment occurs other than on the last day of the  related Interest Periods. Within a reasonable time after the effective date of any increase or addition, the  Administrative Agent shall, and is hereby authorized and directed to, revise the Commitment Schedule to  reflect such increase or addition and shall distribute such revised Commitment Schedule to each of the  Lenders and the Borrower Representative, whereupon such revised Commitment Schedule shall replace the  old Commitment Schedule and become part of this Agreement.         SECTION 2.10. Repayment of Loans; Evidence of Debt.          (a)   The Borrowers hereby unconditionally promise to pay (i) to the Administrative Agent for  the account of each Lender the then unpaid principal amount of each Revolving Loan on the Maturity Date,  (ii) to the Administrative Agent the then unpaid amount of each Protective Advance on the earlier of the  Maturity Date and demand by the Administrative Agent and (iii) to the Administrative Agent the then  unpaid principal  amount  of  each  Overadvance  on the  earlier of  the  Maturity  Date  and  demand  by  the  Administrative Agent.                                         62   

 

      (b)   At all times that full cash dominion is in effect pursuant to Section 7.3 of the Security  Agreement, on each Business Day, the Administrative Agent shall apply all funds credited to the Collection  Account  on  such  Business  Day  or  the  immediately  preceding  Business  Day  (at  the  discretion  of  the  Administrative Agent, whether or not immediately available) first to prepay any Protective Advances and  Overadvances that may be outstanding, pro rata, and second to prepay the Revolving Loans (including  Swingline Loans) and to cash collateralize outstanding LC Exposure.         (c)   Each Lender shall maintain in accordance with its usual practice an account or accounts  evidencing the  indebtedness  of the  Borrowers 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 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 the Borrowers to  each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for  the account of the Lenders and each Lender’s share thereof.         (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 Borrowers to repay the Loans in accordance with  the terms of this Agreement.         (f)   Any Lender may request that Loans made by it be evidenced by a promissory note. In such  event, the Borrowers shall prepare, execute and deliver to such Lender a promissory note payable to such  Lender and its registered assigns and in a form approved by the Administrative Agent. Thereafter, the Loans  evidenced  by  such  promissory  note  and  interest  thereon  shall  at  all  times  (including  after  assignment  pursuant to Section 9.04) be represented by one or more promissory notes in such form.         SECTION 2.11. Prepayment of Loans.         (a)   The  Borrowers  shall  have  the  right  at  any  time  and  from  time  to  time  to  prepay  any  Borrowing in whole or in part, subject to prior notice in accordance with paragraph (c) of this Section and,  if applicable, payment of any break funding expenses under Section 2.16.         (b)   Except for Protective Advances and Overadvances permitted under Sections 2.04 and 2.05,  if at any time the Borrowers are not in compliance with the Revolving Exposure Limitations, the Borrowers  shall prepay the Revolving Loans, LC Exposure and/or Swingline Loans or cash collateralize LC Exposure  in an account with the Administrative Agent pursuant to Section 2.06(j), as applicable, in an aggregate  amount equal to such excess.         (c)   The Borrower Representative shall notify the Administrative Agent (and, in the case of  prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by facsimile) or through  Electronic System, if arrangements for doing so have been approved by the Administrative Agent, of any  prepayment  hereunder  not  later  than  10:00 a.m.,  Chicago  time,  (A) in  the  case  of  prepayment  of  a  Eurodollar  Borrowing,  three  (3)  Business  Days  before  the  date  of  prepayment  or  (B) in  the  case  of  prepayment of an ABR Borrowing, on the date of prepayment. Each such notice shall be irrevocable and  shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be  prepaid; provided that  if  a  notice  of  prepayment  is  given  in  connection  with  a  conditional  notice  of  termination of the Commitments as contemplated by Section 2.09, then such notice of prepayment may be                                         63   

 

revoked  if  such  notice  of  termination  is  revoked  in  accordance  with Section 2.09.  Promptly  following  receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the  contents thereof. Each partial prepayment of any Revolving Borrowing shall be in an amount that would be  permitted in the case of an advance of a Revolving Borrowing of the same Type as provided in Section 2.02.  Each prepayment of a Revolving Borrowing shall be applied ratably to the Revolving Loans included in  the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by  Section 2.13 and amounts due under Section 2.16.         SECTION 2.12. Fees.          (a)   The Borrowers agree to pay to the Administrative Agent for the account of each Lender a  commitment fee, which shall accrue at 0.25% per annum on the average daily amount of the Available  Commitment of such Lender during the period from and including the Effective Date to but excluding the  date on which such Lender’s Commitment terminates. Accrued commitment fees shall be payable in arrears  on the first Business Day of January, April, July and October of each year and on the date on which the  Commitments terminate, commencing on the first such date to occur after the date hereof; provided that  any commitment fees accruing after the date on which the Commitments terminate shall be payable on  demand. All commitment fees shall be computed on the basis of a year of 360 days and shall be payable  for the actual number of days elapsed (including the first day but excluding the last day). For purposes of  computing commitment fees, the Commitment of a Lender shall be deemed to be used to the extent of the  outstanding Loans and LC Exposure of such Lender.         (b)   The Borrowers agree to pay (i) to the Administrative Agent for the account of each Lender  a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same  Applicable Rate used to determine the interest rate applicable to Eurodollar Revolving Loans on the average  daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed  LC Disbursements) during the period from and including the Effective Date to but excluding the later of  the date on which such Lender’s Commitment terminates and the date on which such Lender ceases to have  any LC Exposure, and (ii) to the applicable Issuing Bank, for its own account, a fronting fee, which shall  accrue at the rate per annum separately agreed upon by the Company and such Issuing Bank on the average  daily  amount  of  the  LC  Exposure  (excluding  any  portion  thereof  attributable  to  unreimbursed  LC  Disbursements) attributable to Letters of Credit issued by such Issuing Bank during the period from and  including the Effective Date to but excluding the later of the date of termination of the Commitments and  the date on which there ceases to be any LC Exposure, as well as the Issuing Bank’s standard fees and  commissions  with  respect to the  issuance,  amendment,  cancellation,  negotiation,  transfer,  presentment,  renewal or extension of any Letter of Credit or processing of drawings thereunder. Participation fees and  fronting fees accrued through and including the last day of each calendar quarter shall be payable on the  first Business Day of each January, April, July and October following such last day, commencing on the  first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on  which the Commitments terminate and any such fees accruing after the date on which the Commitments  terminate shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to this paragraph  shall  be  payable  within  ten  (10)  days  after  demand.  All  participation  fees  and  fronting  fees  shall  be  computed on the basis of a year of 360 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, for its own account, fees payable  in the amounts and at the times separately agreed upon between the Borrowers and the Administrative  Agent.         (d)   All fees payable hereunder shall be paid on the dates due, in immediately available funds,  to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for distribution, in the                                         64   

 

case of commitment fees and participation fees, to the Lenders. Fees paid shall not be refundable under any  circumstances.         SECTION 2.13. Interest.         (a)   The Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear  interest at the REVLIBOR30 Rate plus the Applicable Rate.         (b)   The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO  Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.         (c)   Each Protective Advance and each Overadvance shall bear interest at the Alternate Base  Rate plus the Applicable Rate for Revolving Loans plus 2%.         (d)   Notwithstanding  the  foregoing,  during  the  occurrence  and  continuance  of  an  Event  of  Default, the Administrative Agent or the Required Lenders may, at their option, by written notice to the  Borrower  Representative  (which  notice  may  be  revoked  at  the  option  of  the  Required  Lenders  notwithstanding any provision of Section 9.02 requiring the consent of “each Lender affected thereby” for  reductions  in interest rates), declare  that (i) all Loans  shall bear interest at 2% plus the  rate  otherwise  applicable to such Loans as provided in the preceding paragraphs of this Section or (ii) in the case of any  other amount outstanding hereunder, such amount shall accrue at 2% plus the rate applicable to such fee or  other obligation as provided hereunder; provided that no notice shall be required and the foregoing rates  shall automatically take effect upon the occurrence of an Event of Default under clause (a), (h), (i) or (j) of  Article VII.         (e)   Accrued interest on each Loan (for ABR Loans, accrued through the last day of the prior  calendar  month)  shall  be  payable  in  arrears  on  each  Interest  Payment  Date  for  such  Loan  and  upon  termination  of  the  Commitments; provided that  (i) interest  accrued  pursuant  to paragraph (d) 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 Availability 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 Eurodollar 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.         (f)   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 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, Adjusted LIBO Rate, REVLIBOR30 Rate or LIBO Rate  shall  be  determined  by  the  Administrative  Agent,  and  such  determination  shall  be  conclusive  absent  manifest error.         SECTION 2.14. Alternate Rate of Interest; Illegality.         (a)   If prior to the commencement of any Interest Period for a Eurodollar Borrowing:               (i)   the Administrative Agent determines (which determination shall be conclusive and        binding absent manifest error) that adequate and reasonable means do not exist for ascertaining the        Adjusted LIBO Rate or the LIBO Rate, as applicable (including, without limitation, by means of        an Interpolated Rate or because the LIBO Screen Rate is not available or published on a current        basis) for such Interest Period; or                                         65   

 

            (ii)  the Administrative Agent is advised by the Required Lenders that the Adjusted        LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and fairly        reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan)        included in such Borrowing for such Interest Period;   then the Administrative Agent shall give notice thereof to the Borrower Representative and the Lenders  through Electronic System as provided in Section 9.01 as promptly as practicable thereafter and, until the  Administrative Agent notifies the Borrower Representative and the Lenders that the circumstances giving  rise to such notice no longer exist, (A) any Interest Election Request that requests the conversion of any  Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and any  such Eurodollar Borrowing shall be repaid or converted into an ABR Borrowing on the last day of the then  current  Interest  Period  applicable  thereto,  and  (B) if  any  Borrowing  Request  requests  a  Eurodollar  Borrowing, such Borrowing shall be made as an ABR Borrowing.         (b)   If any Lender determines that any Requirement of Law has made it unlawful, or if any  Governmental Authority has asserted that it is unlawful, for any Lender or its applicable lending office to  make, maintain, fund or continue any Eurodollar Borrowing, or any Governmental Authority has imposed  material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, dollars in the  London interbank market, then, on notice thereof by such Lender to the Borrower Representative through  the Administrative Agent, any obligations of such Lender to make, maintain, fund or continue Eurodollar  Loans  or  to  convert  ABR  Borrowings  to  Eurodollar  Borrowings  will  be  suspended  until  such  Lender  notifies the Administrative Agent and the Borrower Representative that the circumstances giving rise to  such determination no longer exist. Upon receipt of such notice, the Borrowers will upon demand from  such Lender (with a copy to the Administrative Agent), either convert all Eurodollar Borrowings of such  Lender to ABR Borrowings or prepay all such Eurodollar Borrowings, either on the last day of the Interest  Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Borrowings to such day,  or  immediately,  if  such  Lender  may  not  lawfully  continue  to  maintain  such  Loans.  Upon  any  such  conversion or prepayment, the Borrowers will also pay accrued interest on the amount so converted or  prepaid.         (c)   If  at  any  time  the  Administrative  Agent  determines  (which  determination  shall  be  conclusive absent manifest error) that (i) the circumstances set forth in clause (a)(i) have arisen and such  circumstances are unlikely to be temporary or (ii) the circumstances set forth in clause (a)(i) have not arisen  but either (w) the supervisor for the administrator of the LIBO Screen Rate has made a public statement  that the administrator of the LIBO Screen Rate is insolvent (and there is no successor administrator that  will continue publication of the LIBO Screen Rate), (x) the administrator of the LIBO Screen Rate has  made a public statement identifying a specific date after which the LIBO Screen Rate will permanently or  indefinitely cease to be published by it (and there is no successor administrator that will continue publication  of the LIBO Screen Rate), (y) the supervisor for the administrator of the LIBO Screen Rate has made a  public  statement  identifying  a  specific  date  after  which  the  LIBO  Screen  Rate  will  permanently  or  indefinitely cease to be published or (z) the supervisor for the administrator of the LIBO Screen Rate or a  Governmental Authority having jurisdiction over the Administrative Agent has made a public statement  identifying a specific date after which the LIBO Screen Rate may no longer be used for determining interest  rates for loans, then the Administrative Agent and the Borrower Representative shall endeavor to establish  an alternate rate of interest to the LIBO Rate that gives due consideration to the then prevailing market  convention for determining a rate of interest for syndicated loans in the United States at such time, and shall  enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related  changes to this Agreement as may be applicable (but for the avoidance of doubt, such related changes shall  not include a reduction of the Applicable Rate). Notwithstanding anything to the contrary in Section 9.02,  such amendment shall become effective without any further action or consent of any other party to this  Agreement so long as the Administrative Agent shall not have received, within five (5) Business Days of                                         66   

 

the date notice of such alternate rate of interest is provided to the Lenders, a written notice from the Required  Lenders stating that such Required Lenders object to such amendment. Until an alternate rate of interest  shall be determined in accordance with this clause (c) (but, in the case of the circumstances described in  clause (ii)(w), clause (ii)(x) or clause (ii)(y) of the first sentence of this Section 2.14(c), only to the extent  the LIBO Screen Rate for such Interest Period is not available or published at such time on a current basis),  (x) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any  Borrowing as, a Eurodollar Borrowing shall be ineffective and any such Eurodollar Borrowing shall be  repaid or converted into an ABR Borrowing on the last day of the then current Interest Period applicable  thereto, and (y) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made  as an ABR Borrowing; provided that, if such alternate rate of interest shall be less than zero, such rate shall  be deemed to be zero for the purposes of this Agreement.         SECTION 2.15. Increased Costs.          (a)   If any Change in Law shall:               (i)   impose, modify or deem applicable any reserve, special deposit, liquidity or similar        requirement (including any compulsory loan requirement, insurance charge or other assessment)        against assets of, deposits with or for the account of, or credit extended by, any Lender (except any        such reserve requirement reflected in the Adjusted LIBO Rate) or the Issuing Bank;               (ii)  impose on any Lender or the Issuing Bank or the London interbank market any        other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by        such Lender or any Letter of Credit or participation therein; or               (iii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes        described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income        Taxes)  on  its  loans,  loan  principal,  letters  of  credit,  commitments,  or  other  obligations,  or  its        deposits, reserves, other liabilities or capital attributable thereto;   and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of  making, continuing, converting into or maintaining any Loan (or of maintaining its obligation to make any  such Loan) or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating  in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable  by  such  Lender,  the  Issuing  Bank  or  such  other  Recipient  hereunder (whether of  principal,  interest  or  otherwise), then the Borrowers will pay to such Lender, the Issuing Bank or such other Recipient, as the  case may be, such additional amount or amounts as will compensate such Lender, the Issuing Bank or such  other Recipient, as the case may be, for such additional costs incurred or reduction suffered as reasonably  determined by the Administrative Agent, such Lender or such Issuing Bank (which determination shall be  made in good faith (and not on an arbitrary or capricious basis) and generally consistent with similarly  situated customers of the Administrative Agent, such Lender or such Issuing Bank, as applicable, under  agreements  having  provisions  similar  to  this Section 2.15,  after  consideration  of  such  factors  as  the  Administrative Agent, such Lender or such Issuing Bank, as applicable, then reasonably determines to be  relevant).         (b)   If any Lender or the Issuing Bank determines that any Change in Law regarding capital or  liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or the  Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if any, as  a consequence of this Agreement, the Commitments of, or the Loans made by, or participations in Letters  of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that  which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company could have                                         67   

 

achieved but for such Change in Law (taking into consideration such Lender’s or the Issuing Bank’s policies  and the policies of such Lender’s or the Issuing Bank’s holding company with respect to capital adequacy  and liquidity), then from time to time the Borrowers will pay to such Lender or the Issuing Bank, as the  case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or  such  Lender’s  or  the  Issuing  Bank’s  holding  company  for  any  such  reduction  suffered  as  reasonably  determined by the Administrative Agent or such Lender (which determination shall be made in good faith  (and not on an arbitrary or capricious basis) and generally consistent with similarly situated customers of  the Administrative Agent or such Lender, as applicable, under agreements having provisions similar to this  Section 2.15, after consideration of such factors as the Administrative Agent or such Lender, as applicable,  then reasonably determines to be relevant).         (c)   A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary  to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in  paragraph (a) or (b) of  this  Section shall  be  delivered  to  the  Borrower  Representative  and  shall  be  conclusive absent manifest error. The Borrowers shall pay such Lender or the Issuing Bank, as the case  may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof.         Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant  to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such  compensation; provided that the Borrowers shall not be required to compensate a Lender or the Issuing  Bank pursuant to this Section for any increased costs or reductions incurred more than 180 days prior to the  date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower Representative of the  Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing Bank’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 2.16. Break Funding Payments. In the event of (a) the payment of any principal of any  Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a result of  an Event of Default or as a result of any prepayment pursuant to Section 2.11), (b) the conversion of any  Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow,  convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant  hereto  (regardless  of  whether  such  notice  may  be  revoked  under Section 2.11(a) and  is  revoked  in  accordance therewith) or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest  Period applicable thereto as a result of a request by the Borrower Representative pursuant to Section 2.19  or 9.02(e), then, in any such event, the Borrowers shall compensate each Lender for the loss, cost and  expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender  shall be deemed to include 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 Eurodollar Loan had such event not  occurred, at the Adjusted LIBO Rate that would have been applicable to such Eurodollar Loan (but not the  Applicable Rate applicable thereto), 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 Eurodollar 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 Dollars of a comparable amount and  period from other banks in the eurodollar market. A certificate of any Lender setting forth any amount or  amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower  Representative and shall be conclusive absent manifest error. The Borrowers shall pay such Lender the  amount shown as due on any such certificate within ten (10) days after receipt thereof.         SECTION 2.17. Taxes.                                          68   

 

      (a)   Payments Free of Taxes. Any and all payments by or on account of any obligation of any  Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes,  except as required by applicable law. If any applicable law (as determined in the good faith discretion of an  applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment  by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction  or withholding and shall timely pay the full amount deducted or withheld to the relevant 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 2.17) the applicable Recipient receives an amount equal to the sum it would have received had no  such deduction or withholding been made.         (b)   Payment of Other Taxes by the Borrowers. The relevant Borrower shall timely pay 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)   Evidence of Payments. As soon as practicable after any payment of Taxes by any Loan  Party  to  a  Governmental  Authority  pursuant  to  this Section 2.17,  such  Loan  Party  shall  deliver  to  the  Administrative Agent the original or 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.         (d)   Indemnification by the Loan Parties. The Loan Parties shall jointly and severally indemnify  each  Recipient,  within  10 days  after  demand  therefor,  for  the  full  amount  of  any  Indemnified  Taxes  (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section)  payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient  and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified  Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate  as to the amount of such payment or liability delivered to the relevant Borrower by a Lender (with a copy  to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender,  shall be conclusive absent manifest error.         (e)   Indemnification by the Lenders. Each Lender shall severally indemnify the Administrative  Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but  only to the  extent that any Loan Party has not already indemnified  the  Administrative  Agent for such  Indemnified  Taxes  and  without  limiting  the  obligation  of  the  Loan  Parties  to  do  so),  (ii) any  Taxes  attributable  to  such  Lender’s  failure  to  comply  with  the  provisions  of Section 9.04(c) relating  to  the  maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each  case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any  reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or  legally imposed or asserted by the relevant 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)   Status of Lenders.               (i)   Any Lender that is entitled to an exemption from or reduction of withholding Tax        with respect to payments made under any Loan Document shall deliver to the Borrowers and the                                         69   

 

Administrative  Agent,  at  the  time  or  times  reasonably  requested  by  the  Borrowers  or  the  Administrative Agent, such properly completed and executed documentation reasonably requested  by the Borrowers or the Administrative Agent as will permit such payments to be made without  withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested  by the Borrowers or the Administrative Agent, shall deliver such other documentation prescribed  by applicable law or reasonably requested by the Borrowers or the Administrative Agent as will  enable the Borrowers  or the  Administrative  Agent to determine  whether or not such  Lender is  subject to backup withholding or information reporting requirements and to comply with any such  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 2.17(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, in the event that any Borrower is  a U.S. Person:         (iii) any  Lender  that  is  a  U.S. Person  shall  deliver  to  such  Borrower  and  the  Administrative Agent on or prior to the date on which such Lender becomes a Lender under this  Agreement (and from time to time thereafter upon the reasonable request of such Borrower or the  Administrative Agent), executed copies of IRS Form W-9 (or any successor form) certifying that  such Lender is exempt from U.S. Federal backup withholding tax;         (iv)  any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to such  Borrower and the Administrative Agent (in such number of copies as shall be requested by the  recipient)  on  or  prior  to the  date  on  which  such  Foreign  Lender  becomes  a  Lender  under this  Agreement (and from time to time thereafter upon the reasonable request of such Borrower or the  Administrative Agent), whichever of the following is applicable;               (A)   in the case of a Foreign Lender claiming the benefits of an income tax        treaty to which the United States is a party (x) with respect to payments of interest under        any Loan Document, executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E (or        any  applicable  successor  form)  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 (or any applicable successor form) 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;               (B)   in the case of a Foreign Lender claiming that its extension of credit will        generate U.S. effectively connected income, executed copies of IRS Form W-8ECI;               (C)   in the case of a Foreign Lender claiming the benefits of the exemption for        portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the        form  of Exhibit F-1 to  the  effect  that  such  Foreign Lender  is  not  a  “bank”  within  the        meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of such Borrower        within  the  meaning  of  Section 881(c)(3)(B)  of  the  Code,  or  a  “controlled  foreign        corporation”  described  in  Section 881(c)(3)(C)  of  the  Code  (a  “U.S. Tax  Compliance        Certificate”) and (y) executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E (or        any applicable successor form); or                                   70                

 

                  (D)   to the extent a Foreign Lender is not the beneficial owner, executed copies              of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or IRS              Form  W-8BEN-E,  a  U.S. Tax  Compliance  Certificate  substantially  in  the  form  of              Exhibit F-2 or Exhibit F-3, IRS Form W-9, and/or other certification documents from each              beneficial owner, as applicable (including any applicable successor form); provided that if              the Foreign Lender is a partnership and one or more direct or indirect partners of such              Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may              provide  a  U.S. Tax  Compliance  Certificate  substantially  in  the  form  of Exhibit F-4 on              behalf of each such direct and indirect partner;               (v)   any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to such        Borrower and the Administrative Agent (in such number of copies as shall be requested by the        recipient)  on  or  prior  to the  date  on  which  such  Foreign  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 copies of any other form prescribed by applicable law as a basis        for  claiming  exemption  from  or  a  reduction  in  U.S. Federal  withholding  Tax,  duly  completed,        together with such supplementary documentation as may be prescribed by applicable law to permit        such Borrower or the Administrative Agent to determine the withholding or deduction required to        be made; and               (vi)  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  such  Borrower  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 amendments made to FATCA after the        date of this Agreement.         Each Lender agrees that if any form or certification it previously delivered expires or becomes  obsolete  or  inaccurate  in  any  respect,  it  shall  update  such  form  or  certification or  promptly  notify  the  Borrower Representative and the Administrative Agent in writing of its legal inability to do so.         (g)   Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in  good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this  Section 2.17 (including by the payment of additional amounts pursuant to this Section 2.17), it shall pay to  the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made  under  this Section 2.17 with  respect  to  the  Taxes  giving  rise  to  such  refund),  net  of  all  out-of-pocket  expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by  the  relevant  Governmental  Authority  with  respect  to  such  refund).  Such  indemnifying  party,  upon  the  request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to  this paragraph (g) (plus any penalties, interest or other charges imposed by the  relevant Governmental  Authority) in the event that such indemnified party is required to repay such refund to such Governmental  Authority. Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified  party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment  of which would place the indemnified party in a less favorable net after-Tax position than the indemnified                                         71   

 

party would have been in if the Tax subject to indemnification and giving rise to such refund had not been  deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with  respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified  party  to  make  available  its  Tax  returns  (or  any  other  information  relating  to  its  Taxes  that  it  deems  confidential) to the indemnifying party or any other Person.         (h)   Survival. Each party’s obligations under this Section 2.17 shall survive the resignation or  replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender,  the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under  any Loan Document.         (i)   Defined Terms. For purposes of this Section 2.17, the term “Lender” includes each Issuing  Bank and the term “applicable law” includes FATCA.         SECTION 2.18. Payments  Generally;  Allocation  of  Proceeds;  Pro  Rata  Treatment;  Sharing  of  Set-offs.          (a)   The Borrowers shall make each payment required to be made by them hereunder (whether  of  principal,  interest,  fees  or  reimbursement  of  LC  Disbursements,  or  of  amounts  payable  under  Section 2.15, 2.16 or 2.17,  or otherwise)  prior  to  4:00 p.m.,  Chicago  time,  on  the  date  when  due,  in  immediately available funds, without set-off or counterclaim. Any amounts received after such time on any  date 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 10 South Dearborn Street, Floor L2, Chicago, Illinois, or to the  account designated by Administrative Agent, except payments to be made directly to the Issuing Bank or  Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.15, 2.16,  2.17 and 9.03 shall  be  made  directly  to  the  Persons  entitled  thereto.  The  Administrative  Agent  shall  distribute any such payments received by it for the account of any other Person to the appropriate recipient  promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business  Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any  payment accruing interest, interest thereon shall accrue and be payable for the period of such extension. All  payments hereunder shall be made in Dollars.         (b)   Any proceeds of Collateral received by the Administrative Agent (i) not constituting either  (A) a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which  shall be applied as specified by the Borrowers), (B) a mandatory prepayment (which shall be applied in  accordance with Section 2.11) or (C) amounts to be applied from the Collection Account when full cash  dominion is in effect (which shall be applied in accordance with Section 2.10(b)) or (ii) after an Event of  Default has occurred and is continuing and the Administrative Agent so elects or the Required Lenders so  direct, such funds shall be applied, subject to the terms of the ABL/Term Loan Intercreditor Agreement,  ratably first, to pay any fees, indemnities, or expense reimbursements including amounts then due to the  Administrative Agent and the Issuing Bank from the Borrowers (other than in connection with Banking  Services Obligations or Swap Agreement Obligations), second, to pay any fees, indemnities, or expense  reimbursements  then  due  to  the  Lenders  from  the  Borrowers  (other  than  in  connection  with  Banking  Services  Obligations  or  Swap  Agreement  Obligations), third,  to  pay  interest  due  in  respect  of  the  Overadvances and Protective Advances, fourth, to pay the principal of the Overadvances and Protective  Advances, fifth,  to  pay  interest  then  due  and  payable  on  the  Loans  (other  than  the  Overadvances  and  Protective Advances) ratably, sixth, to prepay principal on the Loans (other than the Overadvances and  Protective Advances) and unreimbursed LC Disbursements and to pay any amounts owing with respect to  Swap Agreement Obligations up to and including the amount most recently provided to the Administrative  Agent  pursuant  to Section 2.22,  for  which  Reserves  have  been  established  ratably, seventh,  to  pay  an                                         72   

 

amount to the Administrative Agent equal to one hundred three percent (103%) of the aggregate undrawn  face amount of all outstanding Letters of Credit and the aggregate amount of any unpaid LC Disbursements,  to be held as cash collateral for such Obligations, eighth, to payment of any amounts owing with respect to  Banking  Services  Obligations  and  Swap  Agreement  Obligations  up  to  and  including  the  amount  most  recently provided to the Administrative Agent pursuant to Section 2.22, and to the extent not paid pursuant  to clause sixth above, and ninth, to the payment of any other Secured Obligation due to the Administrative  Agent or any Lender by the Borrowers. Notwithstanding the foregoing amounts received from any Loan  Party shall not be applied to any Excluded Swap Obligation of such Loan Party. Notwithstanding anything  to the contrary contained in this Agreement, unless so directed by the Borrower Representative, or unless a  Default is in existence, neither the Administrative Agent nor any Lender shall apply any payment which it  receives to any Eurodollar Loan of a Class, except (a) on the expiration date of the Interest Period applicable  thereto or (b) in the event, and only to the extent, that there are no outstanding ABR Loans of the same  Class and, in any such event, the Borrowers shall pay the break funding payment required in accordance  with Section 2.16. The Administrative Agent and the Lenders shall have the continuing and exclusive right  to apply and reverse and reapply any and all such proceeds and payments to any portion of the Secured  Obligations.         (c)   At  the  election  of  the  Administrative  Agent,  all  payments  of  principal,  interest,  LC  Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all reimbursement  for fees, costs and expenses pursuant to Section 9.03), and other sums payable under the Loan Documents,  may be paid from the proceeds of Borrowings made hereunder whether made following a request by the  Borrower Representative pursuant to Section 2.03 or a deemed request as provided in this Section or may  be deducted from any deposit account of any Borrower maintained with the Administrative Agent (and the  Administrative  Agent  will  provide  reasonably  prompt notice  of  such  deduction  to  the  Borrower  Representative, provided that failure to provide such notice shall not limit the ability of the Administrative  Agent to make such deduction). The Borrowers hereby irrevocably authorize (i) the Administrative Agent  to make a Borrowing for the purpose of paying each payment of principal, interest and fees as it becomes  due hereunder or any other amount due under the Loan Documents and agrees that all such amounts charged  shall constitute  Loans (including Swingline  Loans  and Overadvances, but such a  Borrowing may only  constitute a Protective Advance if it is to reimburse costs, fees and expenses as described in Section 9.03)  and that all such Borrowings shall be deemed to have been requested pursuant to Section 2.03, 2.04 or 2.05,  as applicable, and (ii) the Administrative Agent to charge any deposit account of any Borrower maintained  with the Administrative Agent for each payment of principal, interest and fees as it becomes due hereunder  or any other amount due under the Loan Documents.         (d)   If, except as otherwise expressly provided herein, any Lender shall, by exercising any right  of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of  its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater  proportion of the aggregate amount of its Loans and participations in LC Disbursements and Swingline  Loans and accrued interest thereon than the proportion received by any other similarly situated Lender, then  the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the  Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary  so that the benefit of all such payments shall be shared by all such Lenders ratably in accordance with the  aggregate amount of principal of and accrued interest on their respective Loans and participations in LC  Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or  any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the  purchase  price  restored  to  the  extent  of  such  recovery,  without  interest,  and  (ii)  the  provisions  of  this  paragraph  shall  not  be  construed  to  apply  to  any  payment  made  by  the  Borrowers  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 or participations in LC Disbursements or  Swingline Loans to any assignee or participant, other than to the Borrowers or any Subsidiary or Affiliate                                         73   

 

thereof (as to which the provisions of this paragraph shall apply). Each Borrower consents to the foregoing  and  agrees,  to  the  extent  it  may  effectively  do  so  under  applicable  law,  that  any  Lender  acquiring  a  participation pursuant to the foregoing arrangements may exercise against such Borrower rights of set-off  and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such  Borrower in the amount of such participation.         (e)   Unless  the  Administrative  Agent  shall  have  received  notice  from  the  Borrower  Representative prior to the date on which any payment is due to the Administrative Agent for the account  of  the  Lenders  or  the  Issuing  Bank  hereunder  that  the  Borrowers  will  not  make  such  payment,  the  Administrative Agent may assume that the Borrowers have made such payment on such date in accordance  herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the  case may be, the amount due. In such event, if the Borrowers have not in fact made such payment, then  each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative  Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon,  for each day from and including the date such amount is distributed to it to but excluding the date of payment  to the Administrative Agent, at the greater of the NYFRB Rate and a rate determined by the Administrative  Agent in accordance with banking industry rules on interbank compensation.         (f)   If any Lender shall fail to make any payment required to be made by it hereunder, then the  Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), (i) apply any  amounts thereafter received by the Administrative Agent for the account of such Lender for the benefit of  the Administrative Agent, the Swingline Lender or the Issuing Bank to satisfy such Lender’s obligations to  it under such Sections until all such unsatisfied obligations are fully paid and/or (ii) hold any such amounts  in a segregated account over which the Administrative Agent shall have exclusive control as cash collateral  for, and application to, any future funding obligations of such Lender under any such Section; in the case  of  each  of clauses (i) and (ii) above,  in  any  order  as  determined  by  the  Administrative  Agent  in  its  discretion.         (g)   The  Administrative  Agent may from time  to time  provide  the  Borrowers  with account  statements  or  invoices  with  respect  to  any  of  the  Secured  Obligations  (the  “Statements”).  The  Administrative Agent is under no duty or obligation to provide Statements, which, if provided, will be  solely for the Borrowers’ convenience. Statements may contain estimates of the amounts owed during the  relevant billing period, whether of principal, interest, fees or other Secured Obligations. If the Borrowers  pay the full amount indicated on a Statement on or before the due date indicated on such Statement, the  Borrowers shall not be in default of payment with respect to the billing period indicated on such Statement;  provided, that acceptance by the Administrative Agent, on behalf of the Lenders, of any payment that is  less than the total amount actually due at that time (including but not limited to any past due amounts) shall  not constitute a waiver of the Administrative Agent’s or the Lenders’ right to receive payment in full at  another time.         SECTION 2.19. Mitigation Obligations; Replacement of Lenders.          (a)   If any Lender requests compensation under Section 2.15, or if any Borrower is required to  pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the  account of any Lender pursuant to Section 2.17, 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 2.15 or 2.17,  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  Borrowers  hereby  agree  to  pay  all                                         74   

 

reasonable  costs  and  expenses  incurred  by  any  Lender  in  connection  with  any  such  designation  or  assignment.         (b)   If (i) any Lender requests compensation under Section 2.15, (ii) any Borrower is required  to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the  account of any Lender pursuant to Section 2.17 or (iii) any Lender becomes a Defaulting Lender, then the  Company 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 9.04), all its interests, rights (other than its existing rights to payments  pursuant to Sections 2.15 or 2.17) and obligations under the Loan Documents to an assignee that shall  assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment);  provided that (i) the Company shall have received the prior written consent of the Administrative Agent  (and if a Commitment is being assigned, each Issuing Bank and the Swingline Lender), 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 LC Disbursements and Swingline Loans, 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  Company  (in  the  case  of  all  other  amounts)  and  (iii) in  the  case  of  any  such  assignment  resulting  from  a  claim  for  compensation  under  Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a  reduction in such compensation or payments. A Lender shall not be required to make any such assignment  and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances  entitling the Company to require such assignment and delegation cease to apply. Each party hereto agrees  that (x) an assignment required pursuant to this paragraph may be effected pursuant to an Assignment and  Assumption executed by the Borrower Representative, the Administrative Agent and the assignee (or, to  the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to  an Approved Electronic Platform as to which the Administrative Agent and such parties are participants),  and  (y)  the  Lender  required  to  make  such  assignment  need  not  be  a  party  thereto  in  order  for  such  assignment to be effective and shall be deemed to have consented to and be bound by the terms thereof;  provided that, following the effectiveness of any such assignment, the other parties to such assignment  agree  to  execute  and  deliver  such  documents  necessary  to  evidence  such  assignment  as  reasonably  requested  by the  applicable  Lender, provided that any such documents  shall be without recourse to or  warranty by the parties thereto.         SECTION 2.20. 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 unfunded portion of the Commitment of such Defaulting  Lender pursuant to Section 2.12(a);         (b)   any payment of principal, interest, fees or other amounts received by the Administrative  Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to  Section 2.18(b) or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant  to Section 9.08 shall be applied at such time or times as may be determined by the Administrative Agent as  follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent  hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to  any  Issuing  Bank  or  Swingline  Lender  hereunder; third,  to  cash  collateralize  the  Issuing  Bank’s  LC  Exposure with respect to such Defaulting Lender in accordance with this Section; fourth, as the Borrower  Representative may request (so long as no Default or Event of Default exists), to the funding of any Loan  in  respect  of  which  such  Defaulting  Lender  has  failed  to  fund  its  portion  thereof  as  required  by  this  Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent                                         75   

 

and the Borrower Representative, to be held in a deposit account and released pro rata in order to (x) satisfy  such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement  and (y) cash collateralize the Issuing Bank’s future LC Exposure with respect to such Defaulting Lender  with respect to future Letters of Credit issued under this Agreement, in accordance with this Section; sixth,  to the payment of any amounts owing to the Lenders, the Issuing Bank or Swingline Lender as a result of  any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Bank or Swingline  Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations  under this Agreement or under any other Loan Document; seventh, so long as no Default or Event of Default  exists, to the payment of any amounts owing to the Borrowers as a result of any judgment of a court of  competent  jurisdiction  obtained  by  any  Borrower  against  such  Defaulting  Lender  as  a  result  of  such  Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document;  and eighth,  to  such  Defaulting  Lender  or  as  otherwise  directed  by  a  court  of competent  jurisdiction;  provided that if (x) such payment is a payment of the principal amount of any Loans or LC Disbursements  in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans  were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 4.02  were satisfied or waived, such payment shall be applied solely to pay the Loans of, and LC Disbursements  owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans  of, or LC Disbursements owed to, such Defaulting Lender until such time as all Loans and funded and  unfunded  participations  in  the  Borrowers’  obligations  corresponding  to  such  Defaulting  Lender’s  LC  Exposure  and Swingline Loans are held by the  Lenders pro rata in accordance with the Commitments  without giving effect to clause (d) below. Any payments, prepayments or other amounts paid or payable to  a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post cash  collateral pursuant to this Section shall be deemed paid to and redirected by such Defaulting Lender, and  each Lender irrevocably consents hereto;         (c)   such Defaulting Lender shall not have the right to vote on any issue on which voting is  required  (other  than  to  the  extent  expressly  provided  in Section 9.02(b))  and  the  Commitment  and  Revolving Exposure of such Defaulting Lender shall not be included in determining whether the Required  Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or  other modification pursuant to Section 9.02) or under any other Loan Document; provided, that, except as  otherwise provided in Section 9.02, this clause (b) shall not apply to the vote of a Defaulting Lender in the  case of an amendment, waiver or other modification requiring the consent of such Lender or each Lender  directly affected thereby;         (d)   if  any  Swingline  Exposure  or  LC  Exposure  exists  at  the  time  such  Lender  becomes  a  Defaulting Lender then:               (i)   all or any part of the Swingline Exposure and LC Exposure of such Defaulting        Lender shall be reallocated among the non-Defaulting Lenders in accordance with their respective        Applicable Percentages but only (x) to the extent that the conditions set forth in Section 4.02 are        satisfied  at  the  time  of  such  reallocation  (and,  unless  the  Borrower  Representative  shall  have        otherwise notified the Administrative Agent at such time, the Borrowers shall be deemed to have        represented and warranted that such conditions are satisfied at such time) and (y) to the extent that        such reallocation does not, as to any non-Defaulting Lender, cause such non-Defaulting Lender’s        Revolving Exposure and to exceed its Commitment;               (ii)  if the reallocation described in clause (i) above cannot, or can only partially, be        effected, the Borrowers shall within one (1) Business Day following notice by the Administrative        Agent (x) first, prepay such Swingline Exposure and (y) second, cash collateralize for the benefit        of the relevant Issuing Banks only the Borrowers’ obligations corresponding to such Defaulting        Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above)                                         76   

 

      in accordance with the procedures set forth in Section 2.06(j) for so long as such LC Exposure is        outstanding;               (iii) if the Borrowers cash collateralize any portion of such Defaulting Lender’s LC        Exposure pursuant to clause (ii) above, the Borrowers shall not be required to pay any fees to such        Defaulting  Lender  pursuant  to Section 2.12(b) with  respect  to  such  Defaulting  Lender’s  LC        Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;               (iv)  if  the  LC  Exposure  of  the  non-Defaulting  Lenders  is  reallocated  pursuant  to        clause (i) above,  then  the  fees  payable  to  the  Lenders  pursuant  to Section 2.12(a) and        Section 2.12(b) shall  be  adjusted  in  accordance  with  such  non-Defaulting  Lenders’  Applicable        Percentages; and               (v)   if all or any portion of such Defaulting Lender’s LC Exposure is neither reallocated        nor cash collateralized pursuant to clause (i) or (ii) above, then, without prejudice to any rights or        remedies of any Issuing Bank or any other Lender hereunder, all letter of credit fees payable under        Section 2.12(b) with respect to  such  Defaulting  Lender’s  LC  Exposure  shall be  payable  to  the        relevant Issuing Banks until and to the extent that such LC Exposure is reallocated and/or cash        collateralized; and         (e)   so long as such Lender is a Defaulting Lender, the Issuing Banks shall not be required to  issue, amend, renew, extend or increase any Letter of Credit, unless it is satisfied that such Defaulting  Lender’s then outstanding LC Exposure will be 100% covered by the Commitments of the non-Defaulting  Lenders and/or cash collateral will be provided by the Borrowers in accordance with Section 2.20(d), and  LC  Exposure  related  to  any  newly  issued  or  increased  Letter  of  Credit  shall  be  allocated  among  non-Defaulting Lenders in a manner consistent with Section 2.20(d)(i) (and such Defaulting Lender shall  not participate therein).         If (i) a Bankruptcy Event or a Bail-In Action with respect to a Lender Parent shall occur following  the date hereof and for so long as such event shall continue or (ii) any Issuing Bank has a good faith belief  that any Lender has defaulted in fulfilling its obligations under one or more other agreements in which such  Lender commits to extend credit, no Issuing Bank shall be required to issue, amend or increase any Letter  of Credit, unless such Issuing Bank shall have entered into arrangements with the Borrowers or such Lender,  satisfactory to such Issuing Bank to defease any risk to it in respect of such Lender hereunder.         In the event that the Administrative Agent, the Borrower Representative and each Issuing Bank  each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a  Defaulting Lender, then the LC Exposure of the Lenders shall be readjusted to reflect the inclusion of such  Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of the other  Lenders (other than Swingline Loans) as the Administrative Agent shall determine may be necessary in  order for such Lender to hold such Loans in accordance with its Applicable Percentage, whereupon such  Lender will cease to be a Defaulting Lender; provided that, no adjustments will be made retroactively with  respect  to  fees  accrued  or  payments  made  by  or  on  behalf  of  the  Company  while  that  Lender  was  a  Defaulting Lender; provided, further, that, except to the extent otherwise expressly agreed by the affected  parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any  claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.         SECTION 2.21. Returned  Payments.  If  after  receipt  of  any  payment  which  is  applied  to  the  payment of all or any part of the Obligations (including a payment effected through exercise of a right of  setoff), the Administrative Agent or any Lender is for any reason compelled to surrender such payment or  proceeds to any Person because such payment or application of proceeds is invalidated, declared fraudulent,                                         77   

 

set aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of trust  funds, or for any other reason (including pursuant to any settlement entered into by the Administrative  Agent or such Lender in its discretion), then the Obligations or part thereof intended to be satisfied shall be  revived and continued and this Agreement shall continue in full force as if such payment or proceeds had  not been received by the Administrative Agent or such Lender. The provisions of this Section 2.21 shall be  and remain effective notwithstanding any contrary action which may have been taken by the Administrative  Agent or any Lender in reliance upon such payment or application of proceeds. The provisions of this  Section 2.21 shall survive the termination of this Agreement.         SECTION 2.22. Banking  Services  and  Swap  Agreements.  Each  Lender  or  Affiliate  thereof  providing Banking Services (excluding Lease Financing) for, or having Swap Agreements with, any Loan  Party or any Subsidiary or Affiliate of a Loan Party shall deliver to the Administrative Agent, promptly  after entering into such Banking Services or Swap Agreements, written notice setting forth the aggregate  amount of  all  Banking  Services  Obligations  and  Swap  Agreement  Obligations  of  such  Loan  Party  or  Subsidiary or Affiliate thereof to such Lender or Affiliate (whether matured or unmatured, absolute or  contingent). In addition, each such Lender or Affiliate thereof shall deliver to the Administrative Agent,  from time to time after a significant change therein or upon a request therefor, a summary of the amounts  due or to become due in respect of such Banking Services Obligations and Swap Agreement Obligations.  The most recent information provided to the Administrative Agent shall be used in determining the amounts  to be applied in respect of such Banking Services Obligations and/or Swap Agreement Obligations pursuant  to Section 2.18(b) and which tier of the waterfall, contained in Section 2.18(b), such Banking Services  Obligations and/or Swap Agreement Obligations will be placed.                                    ARTICLE III                                                                      Representations and Warranties         Each Loan Party represents and warrants to the Lenders that:         SECTION 3.01. Organization;  Powers.  Each  Loan  Party  and  its Material  Subsidiaries  is  duly  organized or formed, validly existing and in good standing (to the extent such concept is applicable in the  relevant jurisdiction) 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, could not reasonably be expected to result in a Material Adverse Effect, is qualified to do  business in, and is in good standing (to the extent such concept is applicable) in, every jurisdiction where  such qualification is required.         SECTION 3.02. Authorization;  Enforceability.  The  Transactions  are  within  each  Loan  Party’s  organizational  powers  and  have  been  duly  authorized  by  all  necessary  organizational  actions  and,  if  required, actions by equity holders. The Loan Documents to which each Loan Party is a party have been  duly executed and delivered by such Loan Party and constitute a legal, valid and binding obligation of 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 (a) do not require any  material  consent  or  approval  of,  registration  or  filing  with,  or  any  other  action  by,  any  Governmental  Authority, except such as have been obtained or made and are in full force and effect and except for filings  necessary to perfect Liens created pursuant to the Loan Documents, (b) will not violate in any material  respect any applicable law or regulation or the charter, by-laws or other organizational documents of any  Borrower or any of the 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 any Borrower                                         78   

 

or any of the Material Subsidiaries or its assets, or give rise to a right thereunder to require any payment to  be made by any Borrower or any of the Material Subsidiaries, except, in the case of this clause (c), that  could not reasonably be expected to result in a Material Adverse Effect, and (d) will not result in the creation  or imposition of any Lien on any asset of any Borrower or any of the Material Subsidiaries, other than Liens  created under the Loan Documents.         SECTION 3.04. Financial Condition; No Material Adverse Change.          (a)   The Company has heretofore furnished to the Lenders its consolidated balance sheet and  statements of income, stockholders equity and cash flows (i) as of and for the fiscal year ended August 25,  2018 reported on by Deloitte & Touche LLP, independent public accountants and (ii) as of and for the fiscal  quarter  and  the  portion  of  the  fiscal  year  ended  May 25,  2019,  certified  by  a  Financial  Officer.  Such  financial statements present fairly, in all material respects, the financial position and results of operations  and cash flows of the Company and its consolidated Subsidiaries as of such dates and for such periods in  accordance with GAAP, subject to the year-end audit adjustments and the absence of footnotes in the case  of statements referred to in clause (ii) of the immediately preceding sentence.         (b)   The Company has heretofore furnished to the Lenders its pro forma consolidated balance  sheet and related pro forma consolidated statement of income for the twelve-month period ended August 25,  2018, prepared giving effect to the Transactions as if the Transactions had occurred on such date (in the  case of such balance sheet) or at the beginning of such period (in the case of such statement of income).  Such pro forma consolidated balance sheet and related pro forma consolidated statement of income (i) has  been  prepared  by  the  Company  in  good  faith,  based  on  assumptions  believed  by  the  Company  to  be  reasonable at the time such assumptions were made and (iii) presents fairly, in all material respects, the pro  forma  financial  position  of  the  Company  and  its consolidated  Subsidiaries  as  of  such  date  as  if  the  Transactions had occurred on such date.         (c)   Since August 25, 2018, there has been no material adverse change in the business, assets,  operations or condition, financial or otherwise, of the Company and its Subsidiaries, taken as a whole.         SECTION 3.05. Properties.          (a)   Except for Liens permitted pursuant to Section 6.02, each of the Company and its Material  Subsidiaries has good title to, or (to the knowledge of the Company) 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.         (b)   Each  of  the  Company  and  its  Subsidiaries  owns,  or  is  licensed  to  use,  all  trademarks,  tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof  by the Company and its Subsidiaries does not, to their knowledge, infringe upon the rights of any other  Person, except for any such 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, proceedings or investigations by or before any arbitrator or  Governmental  Authority  pending  against  or,  to  the  knowledge  of  any  Borrower,  threatened  against  or  affecting the Company or any of its Subsidiaries (i) as to which there is a reasonable possibility of an  adverse determination and that, if adversely determined, could reasonably be expected, individually or in  the aggregate, to result in a Material Adverse Effect or (ii) that involve this Agreement or the Transactions.  There are no labor controversies pending against or, to the knowledge of the Company, threatened against                                         79   

 

or affecting the Company or any of its Subsidiaries (i) which could reasonably be expected, individually or  in  the  aggregate,  to  result  in  a  Material  Adverse  Effect,  or  (ii) that  involve  this  Agreement  or  the  Transactions.         (b)   Except with respect to any other matters that, individually or in the aggregate, could not  reasonably  be  expected  to  result  in  a  Material  Adverse  Effect,  neither  the  Company  nor  any  of  its  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  with  respect  to  any  Environmental  Liability or (iv) knows of any basis for any Environmental Liability.         SECTION 3.07. Compliance with Laws and Agreements; No Default. Each of the Company and  its  Subsidiaries  is  in  compliance  with  all laws,  regulations  and  orders  of  any  Governmental  Authority  applicable to it or its property and all indentures, agreements and other instruments binding upon it or its  property,  except  where  the  failure  to  do  so,  individually  or  in  the  aggregate,  could  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 the Company nor any of its Subsidiaries is  an “investment company” as defined in, or subject to regulation under, the Investment Company Act of  1940.         SECTION 3.09. Taxes. Each of the Company and its Subsidiaries has timely filed or caused to be  filed all federal income Tax returns and all other material Tax returns and reports required to have been  filed and has paid or caused to be paid or made a provision for the payment of all federal income Taxes and  all other material Taxes required to have been paid by it, except (a) Taxes that are being contested in good  faith by appropriate proceedings and for which the Company or such Subsidiary, as applicable, has set aside  on its books adequate reserves in accordance with GAAP or (b) to the extent that the failure to do so could  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,  could reasonably be expected to result in a Material Adverse Effect.         SECTION 3.11. Disclosure. As of the Effective Date, each Loan Party has disclosed to the Lenders  all material agreements, instruments and corporate or other restrictions to which it or any of its subsidiaries  is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be  expected  to  result  in  a  Material  Adverse  Effect.  All  written  information,  other  than  any  projections,  estimates,  forecasts  and  other  forward-looking  information  and  information  of  a  general  economic  or  industry-specific nature, furnished by or on behalf of the Company or any Subsidiary to the Administrative  Agent or any Lender on or prior to the Effective Date, when taken as a whole and after giving effect to all  supplements and updates thereto, did not (when furnished) contain any untrue statement of material fact or  omit to state a material fact necessary in order to make the statements contained therein not materially  misleading (when taken as a whole and after giving effect to all such supplements and updates thereto) in  light  of the  circumstances  under  which  such  statements  were  made; provided that,  with  respect to  the  Projections furnished by or on behalf of the Company or any Subsidiary to the Administrative Agent or any  Lender on or prior to the Effective Date pursuant to or in connection with the negotiation of this Agreement  or any other Loan Document or included therein (the “Projections”), the Company represents only that such  information was prepared in good faith based upon assumptions believed by the Company to be reasonable  at  the  time  prepared  (it  being  understood  by  the  Administrative  Agent and  the  Lenders  that  any  such  Projections  are  as  to  future  events  and  are  not  to  be  viewed  as  facts  and  are  subject  to  significant  uncertainties and contingencies, many of which are beyond the control of the Company or the Subsidiaries,                                         80   

 

that no assurances can be given that such Projections will be realized and that actual results during the  period or periods covered by any such Projections may differ materially from the projected results contained  therein and that such differences may be material).         SECTION 3.12. Material Agreements. No Loan Party is in default in the performance, observance  or fulfillment of any of the obligations, covenants or conditions contained in (i) any material agreement to  which it is a party or (ii) any agreement or instrument evidencing or governing Material Indebtedness, in  any such case of clause (i) or (ii) above, which default could not reasonably be expected to have a Material  Adverse Effect.         SECTION 3.13. Margin Stock. No Loan Party is engaged and will not engage, principally or as  one of its important activities, in the business of purchasing or carrying Margin Stock, or extending credit  for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Borrowing or  Letter of Credit hereunder will be used to buy or carry any Margin Stock. Following the application of the  proceeds of each Borrowing or drawing under each Letter of Credit, not more than 25% of the value of the  assets (either of any Loan Party individually or of the Loan Parties and their Subsidiaries on a consolidated  basis) will be Margin Stock.         SECTION 3.14. Liens. There are no Liens on any of the real or personal properties of the Company  or any Subsidiary except for Liens permitted by Section 6.02.         SECTION 3.15. Capitalization and Subsidiaries. As of the Effective Date, Schedule 3.15 sets forth  (a) a correct and complete list of the name and relationship to the Company of each Subsidiary, (b) a true  and complete listing of each class of each Borrower’s (other than the Company’s) issued and outstanding  Equity Interests, all of which Equity Interests are owned beneficially and of record by the Persons identified  on Schedule 3.15, and (c) the type of entity of the Company and each Subsidiary.         SECTION 3.16. No Burdensome Restrictions. On the date hereof, no Borrower is subject to any  Burdensome Restrictions except Burdensome Restrictions permitted under Section 6.11.         SECTION 3.17. Solvency.         (a)   Immediately after the consummation of the Transactions to occur on the Effective Date  and the making of each Loan on the Effective Date and the application of the proceeds of such Loans, (i) the  sum of the liabilities of the Company and its Subsidiaries, taken as a whole, shall not exceed the present  fair saleable value of the assets of the Company and its Subsidiaries, taken as a whole; (ii) the capital of the  Company and its Subsidiaries, taken as a whole, shall not be unreasonably small in relation to the business  of  the  Company  and  its  Subsidiaries,  taken  as  a  whole,  contemplated  on  the  date  hereof  and  (iii) the  Company and its Subsidiaries, taken as a whole, do not intend to incur, or believe that they will incur, debts  including current obligations beyond their ability to pay such debt as they mature in the ordinary course of  business. For the purposes hereof, the amount of any contingent liability at any time shall be computed as  the amount that, in light of all of the facts and circumstances existing at such time, represents the amount  that can reasonably be expected to become an actual or matured liability (irrespective of whether such  contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standard No. 5).         (b)   The Company does not intend  to, nor will it permit any of its Subsidiaries to, and  the  Company does not believe that it or any of its Subsidiaries will, incur debts beyond its ability to pay such  debts as they mature, taking into account the timing of and amounts of cash to be received by it or any such  Subsidiary and the timing of the amounts of cash to be payable on or in respect of its Indebtedness or the  Indebtedness of any such Subsidiary.                                          81   

 

      SECTION 3.18. Insurance. Schedule 3.18 sets forth a description of all insurance maintained by  or on behalf of the Loan Parties and their Subsidiaries as of the Effective Date. As of the Effective Date,  all premiums in respect of such insurance due and payable on or prior to the Effective Date have been paid.  Each Borrower maintains, and has caused each Subsidiary to maintain, with financially sound and reputable  insurance companies, insurance on all their real and personal property in such amounts, subject to such  deductibles  and  self-insurance  retentions  and  covering  such  properties  and  risks  as  are  adequate  and  customarily maintained by companies engaged in the same or similar businesses operating in the same or  similar locations.         SECTION 3.19. Security Interest in Collateral. The Collateral Documents, upon execution and  delivery thereof by the parties thereto, will create in favor of the Administrative Agent, for the benefit of  the Secured Parties, a valid and enforceable security interest in the Collateral covered thereby and (i) when  the Collateral constituting certificated securities (as defined in the UCC) is delivered to the Administrative  Agent,  together  with  instruments  of  transfer  duly  endorsed  in blank,  the  Liens  under  the  Collateral  Documents will constitute a fully perfected security interest in all right, title and interest of the respective  Loan Parties thereunder in such Collateral, prior and superior in right to any other Person, except for Liens  permitted by Section 6.02 and (ii) when financing statements in appropriate form are filed in the applicable  filing offices, the security interest created under the Collateral Documents will constitute a fully perfected  security interest in all right, title and interest of the respective Loan Parties in the remaining Collateral to  the extent perfection can be obtained by filing UCC financing statements, prior and superior to the rights  of any other Person, except for Liens permitted by Section 6.02.         SECTION 3.20. Employment Matters. As of the Effective Date, there are no strikes, lockouts or  slowdowns against any Loan Party or any Subsidiary pending or, to the knowledge of any Loan Party,  threatened, that, in the aggregate, could reasonably be expected to result in a Material Adverse Effect. The  hours worked by and payments made to employees of the Loan Parties and their Subsidiaries have not been  in violation of the Fair Labor Standards Act or any other applicable Federal, state, local or foreign law  dealing with such matters in a manner that, in the aggregate, could reasonably be expected to result in a  Material Adverse Effect. All payments due from any Loan Party or any Subsidiary, or for which any claim  may be made against any Loan Party or any Subsidiary, on account of wages and employee health and  welfare insurance and other benefits, have been paid or accrued as a liability on the books of such Loan  Party or such Subsidiary, except those that could not reasonably be expected to have a Material Adverse  Effect.         SECTION 3.21. Anti-Corruption  Laws  and  Sanctions.  The  Company  has  implemented  and  maintains in effect policies and procedures reasonably designed to ensure compliance by the Company, its  Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and  applicable Sanctions, and the Company, its Subsidiaries and to the knowledge of the Company its officers,  directors, employees and agents that will act in any capacity in connection with or benefit from the credit  facilities established hereby, are in compliance with Anti-Corruption Laws and applicable Sanctions in all  material respects. None of (a) the Company, any Subsidiary or to the knowledge of the Company or such  Subsidiary any of their respective directors, officers or employees, or (b) to the knowledge of the Company,  any agent of the Company or any Subsidiary that will act in any capacity in connection with or benefit from  the credit facility established hereby, is a Sanctioned Person. No Borrowing or Letter of Credit, use of  proceeds or other Transactions will violate any Anti-Corruption Law or applicable Sanctions.         SECTION 3.22. EEA Financial Institutions. No Loan Party is an EEA Financial Institution.         SECTION 3.23. Use of Proceeds. The proceeds of the Loans have been used and will be used,  whether directly or indirectly as set forth in Section 5.08.                                          82   

 

      SECTION 3.24. Plan Assets; Prohibited Transactions. No Loan Party or any of its Subsidiaries is  an entity deemed to hold “plan assets” (within the meaning of the Plan Asset Regulations), and neither the  execution, delivery nor performance of the transactions contemplated under this Agreement, including the  making of any Loan and the issuance of any Letter of Credit hereunder, will give rise to a non-exempt  prohibited transaction under Section 406 of ERISA or Section 4975 of the Code.                                     ARTICLE IV                                                                             Conditions         SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans and of the Issuing  Banks to issue Letters of Credit hereunder shall not become effective until the date on which each of the  following conditions is satisfied (or waived in accordance with Section 9.02):         (a)   Credit Agreement and Other Loan Documents. The Administrative Agent (or its counsel)  shall have received (i) from each party hereto either (A) a counterpart of this Agreement signed on behalf  of such party or (B) written evidence satisfactory to the Administrative Agent (which may include telecopy  or  electronic  transmission  of  a  signed  signature  page  of  this  Agreement)  that  such  party  has  signed  a  counterpart of this Agreement and (ii) each of the other documents, instruments, legal opinions and other  agreements listed on Exhibit D that are required to be delivered on or prior to the date hereof, all in form  and substance satisfactory to the Administrative Agent and its counsel.         (b)   Funding Account. The Administrative Agent shall have received a notice setting forth the  deposit  account(s)  of  the  Borrowers  (the  “Funding  Account”)  to  which  the  Administrative  Agent  is  authorized by the Borrowers to transfer the proceeds of any Borrowings requested or authorized pursuant  to this Agreement.         (c)   Borrowing Base Certificate. The Administrative Agent shall have received an Aggregate  Borrowing Base Certificate and a Borrowing Base Certificate for each Borrower, in each case, prepared as  of the last day of the most recent month ended at least twenty (20) calendar days prior to the Effective Date.         (d)   Closing Availability. After giving effect to all Borrowings to be made on the Effective  Date, the issuance of any Letters of Credit on the Effective Date and the payment of all fees and expenses  due  hereunder,  and  with  all  of  the  Loan  Parties’  indebtedness,  liabilities,  and  obligations  current,  the  Aggregate Availability shall not be less than $38,500,000.         (e)   Fees and Expenses. All fees and expenses due and payable to the Administrative Agent,  the Lenders and their respective Affiliates and required to be paid on or prior to the Effective Date shall  have been paid or shall have been authorized to be deducted from the proceeds of the initial Loans, so long  as any such fees or expenses not expressly set forth in the fee letters entered into by the  Company in  connection with the Transactions  have  been invoiced not less than two (2) Business Days  prior to the  Effective Date (except as otherwise reasonably agreed by the Company).         (f)   Patriot  Act,  Etc. At  least  three  (3)  Business  Days  prior  to  the  Effective  Date,  the  Administrative Agent and the Lead Arranger shall have received all documentation and other information  about the Company and the other Loan Parties as shall have been reasonably requested in writing by either  the Administrative Agent or by the Lead Arranger at least ten (10) days prior to the Effective Date and  required by U.S. regulatory authorities under applicable “know your customer” and anti-money laundering  rules and regulations, including the Patriot Act.                                          83   

 

      (g)   Other Documents. The Administrative Agent shall have received such other documents  and information as the Administrative Agent, the Issuing Bank, any Lender or their respective counsel may  have reasonably requested.         The Administrative Agent shall notify the Company and the Lenders of the Effective Date, and  such notice shall be conclusive and binding.         SECTION 4.02. Each Other Credit Event. The obligation of each Lender to make a Loan on the  occasion of any Borrowing, and of the Issuing Banks to issue, amend, renew or extend any Letter of Credit,  is subject to the satisfaction of the following conditions:         (a)   The representations and warranties of the Loan Parties set forth in the Loan Documents  shall  be  true  and  correct  in  all  material  respects  (provided that  any  representation  or  warranty  that  is  qualified by materiality, Material Adverse Effect or similar language shall be true and correct in all respects)  on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such  Letter of Credit, as applicable, except to the extent that such representations and warranties specifically  refer to an earlier date, in which case they shall be true and correct in all material respects (provided that  any representation or warranty that is qualified by materiality, Material Adverse Effect or similar language  shall be true and correct in all respects) as of such earlier date.         (b)   At  the  time  of  and immediately  after  giving  effect to  such  Borrowing  or the  issuance,  amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred  and be continuing.         (c)   After giving effect to such Borrowing or the issuance, amendment, renewal or extension  of any Letter of Credit, the Borrowers shall be in compliance with the Revolving Exposure Limitations.         Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be  deemed to constitute a representation and warranty by the Loan Parties on the date thereof as to the matters  specified in paragraphs (a), (b) and (c) of this Section.                                     ARTICLE V                                                                         Affirmative Covenants         Until the Commitments shall 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 (other than Unliquidated Obligations  not yet due and payable and Obligations expressly stated to survive such payment and termination) and all  Letters of Credit shall have expired or terminated, in each case, without any pending draw (or shall have  been  cash  collateralized  or  backstopped  pursuant  to  arrangements  reasonably  satisfactory  to  the  Administrative Agent), and all LC Disbursements shall have been reimbursed, each Loan Party executing  this Agreement covenants and agrees, jointly and severally with all of the other Loan Parties, with the  Lenders that:         SECTION 5.01. Financial Statements; Borrowing Base and Other Information. The Company will  furnish to the Administrative Agent for distribution to each Lender:         (a)   within  ninety  (90) days  after  the  end  of  each  fiscal  year  of  the Company,  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 Deloitte & Touche LLP or other independent public accountants of recognized  national standing (without a “going concern” or like qualification or exception and without any qualification                                         84   

 

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  condition and  results  of  operations  of  the  Company  and  its  consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;         (b)   within forty-five (45) days after the end of each of the first three fiscal quarters of each  fiscal year of the  Company, its  consolidated  and consolidating 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 a Financial Officer as presenting fairly in all material respects the financial  condition and results of operations of the Company 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;         (c)   [Intentionally Omitted];         (d)   concurrently  with any  delivery  of  financial  statements  under clause (a) or (b) above,  a  certificate of a Financial Officer of the Borrower Representative in substantially the form of Exhibit C  (i) certifying, in the case of the financial statements delivered under clause (b), as presenting fairly in all  material respects the financial condition and results of operations of the Company 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, (ii) 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, (iii) setting forth reasonably detailed calculations of the Fixed Charge Coverage Ratio  as of the last day of the most recently ended period of four (4) Fiscal Quarters (provided that the Fixed  Charge Coverage Ratio shall only be tested for compliance purposes during an FCCR Test Period) and  (iv) stating whether any change in GAAP or in the application thereof 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;         (e)   within ninety (90) days after the end of each fiscal year of the Company, a copy of the plan  and forecast of the Company and its Subsidiaries in the form previously provided to, and approved by, the  Administrative Agent;         (f)   (i) as soon as available but in any event within twenty (20) days after the end of each fiscal  quarter following the Effective Date (or, (x) during any Monthly Reporting Period, within twenty (20) days  after the end of each calendar month following the Effective Date or (y) during any Weekly Reporting  Period, by the Wednesday immediately following the end of each calendar week) and (ii) at such other  times as may be necessary to re-determine Aggregate Availability or Availability for any Borrower or as  may  be  reasonably  requested  by  the  Administrative  Agent,  as  of the  period then  ended,  an  Aggregate  Borrowing Base Certificate, together with a Borrowing Base Certificate for each Borrower, and supporting  information in connection therewith, together with any additional reports with respect to the Aggregate  Borrowing Base or the  Borrowing Base of any Borrower as the Administrative Agent may reasonably  request;         (g)   as soon as available but in any event within twenty (20) days of the end of each fiscal  quarter (or, during any Monthly Reporting Period or Weekly Reporting Period, within twenty (20) days of  the end of each calendar month), as of the period then ended, all delivered electronically in a text formatted  file acceptable to the Administrative Agent:                                          85   

 

            (i)   a detailed aging of the Borrowers’ Accounts, including all invoices aged by invoice        date and due date (with an explanation of the terms offered), prepared in a manner reasonably        acceptable to the Administrative Agent, together with a summary specifying the name, address,        and balance due for each Account Debtor;               (ii)  a schedule detailing the Borrowers’ Inventory, in form reasonably satisfactory to        the  Administrative  Agent,  (1)  by  location  (showing  U16  Inventory,  Inventory  in  transit,  any        Inventory located with a third party under any consignment, bailee arrangement, or warehouse        agreement), by class (raw material, work-in-process and finished goods), by product type, and by        volume on hand, which Inventory shall be valued at the lower of cost (determined on a first-in,        first-out basis) or market and adjusted for Reserves as the Administrative Agent has previously        indicated  to  the  Borrower  Representative  are  deemed  by  the  Administrative  Agent  to  be        appropriate,  and  (2)  including  a  report  of  any  variances  or  other  results  of  Inventory  counts        performed by the Borrowers since the last Inventory schedule (including information regarding        sales or other reductions, additions, returns, credits issued by Borrowers and complaints and claims        made against the Borrowers);               (iii) if a  Monthly Reporting Period or Weekly Reporting Period is then in effect, a        worksheet of calculations prepared by the Borrowers to determine Eligible Accounts and Eligible        Inventory, such worksheets detailing the Accounts and Inventory excluded from Eligible Accounts        and Eligible Inventory and the reason for such exclusion; and               (iv)  a  reconciliation  of  the  Borrowers’  Accounts  and  Inventory  between  (A)  the        amounts shown in the Borrowers’ general ledger and financial statements and the reports delivered        pursuant to clauses (i) and (ii) above and (B) the amounts and dates shown in the reports delivered        pursuant  to clauses  (i) and (ii) above  and  the  Aggregate  Borrowing  Base  Certificate  and  the        Borrowing Base Certificate of each Borrower delivered pursuant to clause (f) above as of such date;         (h)   as soon as available but in any event within twenty (20) days of the end of each fiscal  quarter (or, during any Monthly Reporting Period or Weekly Reporting Period, within twenty (20) days of  the end of each calendar month) and at such other times as may be requested by the Administrative Agent,  as  of  the  period  then  ended,  a  schedule  and  aging  of  the  Borrowers’  accounts  payable,  delivered  electronically in a text formatted file acceptable to the Administrative Agent;         (i)   as soon as available but in any event within twenty (20) days of the end of each fiscal year  of the Company, and at such other times as may be requested by the Administrative Agent, an updated  customer list for each Borrower and its Subsidiaries, which list shall state the customer’s name, mailing  address and phone number, delivered electronically in a text formatted file acceptable to the Administrative  Agent and certified as true and correct by a Financial Officer of the Borrower Representative;         (j)   promptly upon the Administrative Agent’s reasonable request:               (i)   copies of invoices issued by the Borrowers in connection with any Accounts, credit        memos, shipping and delivery documents, and other information related thereto;               (ii)  copies  of  purchase  orders,  invoices,  and  shipping  and  delivery  documents  in        connection with any Inventory or Equipment purchased by any Loan Party; and               (iii) a schedule detailing the balance of all intercompany accounts of the Loan Parties;                                          86   

 

      (k)   promptly after the same become publicly available, copies of all periodic and other reports,  proxy  statements  and  other  materials  filed  by  the  Company  or  any  Subsidiary  with  the  SEC,  or  any  Governmental Authority succeeding to any or all of the functions of said Commission, or with any national  securities exchange, or distributed by the Company to its shareholders generally, as the case may be; and         (l)   promptly  following  any  request  therefor,  (i)  such  other  information  regarding  the  operations, business affairs and financial condition of the Company or any Subsidiary, or compliance with  the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request, and (ii)  information  and  documentation  reasonably  requested  by  the  Administrative  Agent  or  any  Lender  for  purposes  of  compliance  with  applicable  “know  your  customer”  and  anti-money  laundering  rules  and  regulations, including the USA PATRIOT Act.         Documents required to be delivered pursuant to this Section 5.01 may be delivered electronically  and if so delivered, shall be deemed to have been delivered on the date on which such documents are filed  for public availability on the SEC’s Electronic Data Gathering and Retrieval System; provided that the  Company shall notify (which may be by facsimile or through Electronic Systems) the Administrative Agent  of the filing of any such documents and provide to the Administrative Agent through Electronic Systems  electronic versions (i.e., soft copies) of such documents. The Administrative Agent shall have no obligation  to request the delivery of or to maintain paper copies of the documents referred to above, and in any event  shall have no responsibility to monitor compliance by any Borrower with any such request by a Lender for  delivery, and each Lender shall be solely responsible for timely accessing posted documents or requesting  delivery  of  paper  copies  of  such  documents  to  it  and  maintaining  its  copies  of  such  documents.  Notwithstanding anything contained herein, in every instance the Company shall be required to provide  paper copies of the compliance certificates required by clause (d) of this Section 5.01 to the Administrative  Agent.         SECTION 5.02. Notices  of  Material  Events.  The  Company  will furnish  to  the  Administrative  Agent (for distribution to each Lender) written notice of the following, promptly after a Responsible Officer  of the Company obtains actual knowledge thereof:         (a)   the occurrence of any Default;         (b)   the filing or commencement of any action, suit or proceeding by or before any arbitrator or  Governmental  Authority  against  or  affecting  the  Company  or any  Subsidiary  thereof that,  if  adversely  determined, could reasonably be expected to result in a Material Adverse Effect;         (c)   any loss, damage, or destruction to the Collateral in the amount of $7,500,000 or more,  whether or not covered by insurance;         (d)   any and all default notices received under or with respect to any leased location or public  warehouse where Inventory constituting Collateral with a value in excess of $2,500,000 is located;         (e)   all  amendments  to  the  Term  Loan  Agreement,  together  with  a  copy  of  each  such  amendment;         (f)   the occurrence of any ERISA Event that, alone or together with any other ERISA Events  that have occurred, could reasonably be expected to result in a Material Adverse Effect; and         (g)   any  other  development  that  results  in,  or  could  reasonably  be  expected  to  result  in,  a  Material Adverse Effect.                                          87   

 

      Each notice delivered under this Section shall be accompanied by a statement of a Responsible  Officer or other executive officer of the Borrower Representative setting forth the details of the event or  development requiring such notice and any action taken or proposed to be taken with respect thereto.         Information required to be delivered pursuant to clause (b), (e), (f) and (g) of this Section shall be  deemed to have been delivered if such information, or one or more annual, quarterly, current or other reports  containing such information, is (i) filed for public availability on the SEC’s Electronic Data Gathering and  Retrieval System, (ii) posted on www.winnebagoind.com or at another website identified in a notice from  the Company and accessible by the Lenders without charge; or (iii) posted on the Company’s behalf on an  Internet or intranet website, if any, to which the Administrative Agent and the Lenders have access (whether  a commercial, third-party website or whether sponsored by the Administrative Agent). Information required  to be delivered pursuant to this Section may also be delivered by electronic communications pursuant to  procedures approved by the Administrative Agent.         SECTION 5.03. Existence; Conduct of Business. Each Loan Party will, and will cause each of its  Material Subsidiaries to, (a) do or cause to be done all things necessary to preserve, renew and keep in full  force and effect its legal existence and (b) take, or cause to be taken, all reasonable actions to preserve,  renew and keep in full force and effect the rights, qualifications, licenses, permits, privileges, franchises,  governmental authorizations and intellectual property rights material to the conduct of the business of the  Company and its Subsidiaries, taken as a whole, and maintain all requisite authority to conduct its business  in each jurisdiction in which its business is conducted, except, in the case of this clause (b), to the extent  failure to do so could not reasonably be expected to result in a Material Adverse Effect; provided that, the  foregoing  shall  not  prohibit  any  merger,  consolidation,  liquidation  or  dissolution  permitted  under  Section 6.03.         SECTION 5.04. Payment  of  Obligations.  Each  Loan  Party  will,  and  will  cause  each  of  its  Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could 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 Loan Party or such  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  could  not  reasonably  be  expected  to  result  in  a  Material Adverse Effect.         SECTION 5.05. Maintenance of Properties. Each Loan Party will, and will cause each Subsidiary  to,  keep  and  maintain  all  property  material  to  the  conduct  of  its  business  in  good  working  order  and  condition, ordinary wear and tear and casualty and condemnation excepted, except to the extent such failure  could not reasonably be expected to have a Material Adverse Effect.         SECTION 5.06. Books and Records; Inspection Rights. The Loan Parties will, and will cause each  of their Subsidiaries to, keep in all material respects proper books of record and account in which full, true  and correct entries in all material respects in conformity, in all material respects, with GAAP and applicable  law are made of all material dealings and material transactions in relation to its business and activities. The  Loan Parties will, and will cause each of the Subsidiaries to, permit any representatives designated by the  Administrative Agent, who may be accompanied by a Lender, upon no less than five (5) Business Days’  prior written notice (provided that no such prior written notice shall be required during the occurrence and  continuance of an Event of Default) and at reasonable times during normal business hours, to visit and  inspect its properties, to examine and make extracts from its books and records, environmental assessment  reports and Phase I or Phase II studies, and to discuss its affairs, finances and condition with its officers, all  at such reasonable times and as often as reasonably requested; provided, that so long as no Event of Default  has occurred and is continuing, the Loan Parties shall not be required to pay for any such inspection (but  may  be  obligated  reimburse the  Administrative  Agent  for  field  exams  and  appraisals  as  provided  in                                         88   

 

Sections 5.11 and 5.12 below).  The  Loan  Parties  acknowledge  that  the  Administrative  Agent,  after  exercising its rights of inspection, may prepare and distribute to the Lenders Reports pertaining to the Loan  Parties’ assets for internal use by the Administrative Agent and the Lenders. The Loan Parties and the  Subsidiaries shall have no obligation to discuss or disclose to Administrative Agent, any Lender, or any of  their officers, directors, employees or agents, materials protected by attorney-client privilege (including any  attorney work product) materials that constitute non-financial trade secrets or non-financial proprietary  information, or materials that the Loan Parties or any of the Subsidiaries may not disclose without violation  of a confidentiality obligation binding upon it.         SECTION 5.07. Compliance with Laws and Material Contractual Obligations. Each Loan Party  will, and will cause each Subsidiary to, (i) comply with all Requirements of Law applicable to it or its  property (including without limitation applicable  Environmental Laws) and  (ii) perform in all material  respects its obligations under material agreements to which it is a party, except, in each case for clauses (i)  and (ii) above, where the failure to do so, individually or in the aggregate, could not reasonably be expected  to result in a Material Adverse Effect. Each Loan Party will maintain in effect and enforce policies and  procedures  designed to  ensure  compliance  by  such  Loan  Party,  its  Subsidiaries  and  their  respective  directors,  officers  and  employees  with  Anti-Corruption  Laws  and  applicable  Sanctions  in  all  material  respects.         SECTION 5.08. Use of Proceeds. The proceeds of the Revolving Loans and the Letters of Credit  will be used only to finance the Transaction Costs and to finance the working capital needs, and for general  corporate purposes (including Restricted Payments and Permitted Acquisitions as permitted hereunder), of  the Company and its Subsidiaries. No part of the proceeds of any Loan and no Letter of Credit 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. No Borrower will request any Borrowing or Letter of Credit, and no  Borrower shall use, and each Borrower shall ensure that its Subsidiaries and its or their respective directors,  officers,  employees  and  agents  shall not use,  the  proceeds of any Borrowing or Letter of Credit (i) 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, (ii) for the purpose of  funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person,  or in any Sanctioned Country, except to the extent permitted for a Person required to comply with Sanctions,  or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.         SECTION 5.09. Insurance. Each Loan Party will, and will cause each Subsidiary to, maintain with  financially sound and reputable carriers (a) insurance in such amounts and against such risks (including,  without  limitation:  loss  or  damage  by  fire and  loss  in  transit;  theft,  burglary,  pilferage,  larceny,  embezzlement, and other criminal activities; business interruption; and general liability) and such other  hazards, as is customarily maintained by companies of established repute engaged in the same or similar  businesses operating in the same or similar locations and (b) all insurance required pursuant to the Collateral  Documents.  The  Borrowers  will  furnish  to  the  Lenders,  upon  request  of  the  Administrative  Agent,  information in reasonable detail as to the insurance so maintained.         SECTION 5.10. Casualty  and  Condemnation.  The  Borrowers  will  (a) furnish  to  the  Administrative Agent and the Lenders prompt written notice upon obtaining knowledge of any casualty or  other insured damage to any Collateral in excess of $7,500,000 or the commencement of any action or  proceeding for the taking of any Collateral or interest therein with a book value in excess of $7,500,000  under power of eminent domain or by condemnation or similar proceeding and (b) ensure that the Net  Proceeds of any such event (whether in the form of insurance proceeds, condemnation awards or otherwise)  are collected and applied in accordance with the applicable provisions of this Agreement and the Collateral  Documents.                                          89   

 

      SECTION 5.11. Appraisals. At any time that the Administrative Agent reasonably requests, each  Loan Party will permit the Administrative Agent to conduct appraisals or updates thereof of their Inventory  with an appraiser engaged by the Administrative Agent, such appraisals and updates to include, without  limitation, information required by any applicable Requirement of Law and to be conducted with reasonable  prior notice and during normal business hours. Only one (1) such Inventory appraisal every other calendar  year  shall  be  at  the  sole  expense  of  the  Loan Parties; provided that (i)  an  Inventory  appraisal  may  be  conducted during any calendar year at the sole expense of the Loan Parties if the Aggregate Availability is  less than $50,000,000 at any time during such calendar year, (ii) two (2) such Inventory appraisals per  calendar year shall be at the sole expense of the Loan Parties if the Aggregate Availability is less than the  greater of $16,500,000 and 10% of the Aggregate Commitment at any time during such calendar year and  (iii) during the  occurrence and continuance  of an Event of Default, there  shall be  no limitation on the  number or frequency of appraisals that shall be at the sole expense of the Loan Parties.         SECTION 5.12. Field  Examinations.  At  any  time  that  the  Administrative  Agent  reasonably  requests, each Loan Party will, and will cause each Subsidiary to, permit, upon reasonable prior notice and  during normal business hours, the Administrative Agent to conduct a field examination to ensure adequacy  of Collateral included in the Borrowing Bases and related reporting and control systems. For purposes of  this Section 5.12, it is understood and agreed that a single field examination may consist of examinations  conducted at multiple relevant sites and involve one or more relevant Loan Parties and their assets. Only  one (1) such field examinations per calendar year shall be at the sole expense of the Loan Parties; provided  that (i) two (2) such field examinations per calendar year shall be at the sole expense of the Loan Parties if  the Aggregate Availability is less than the greater of $16,500,000 and 10% of the Aggregate Commitment  at any time during such calendar year and (ii) during the occurrence and continuance of an Event of Default,  there shall be no limitation on the number or frequency of field examinations that shall be at the sole expense  of the Loan Parties.         SECTION 5.13. Accuracy  of  Information.  The  Loan  Parties  will  ensure  that  any  information,  including financial statements or other documents, furnished to the Administrative Agent or the Lenders in  writing in connection with this Agreement or any other Loan Document or any amendment or modification  hereof or thereof or waiver hereunder or thereunder contains no 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, and the furnishing of such information shall be deemed to be a  representation  and  warranty  by  the  Borrowers  on  the  date  thereof  as  to  the  matters  specified  in  this  Section 5.13; provided that,  with  respect  to  projected  financial information,  the  Loan  Parties  will  only  ensure that such information was prepared in good faith based upon assumptions believed to be reasonable  at the time.         SECTION 5.14. Additional Collateral; Further Assurances.         (a)   Within sixty (60) days (or such later date as may be agreed upon by the Administrative  Agent in its reasonable discretion) after any wholly-owned Subsidiary qualifies as a Material Domestic  Subsidiary pursuant to the definition of “Material Domestic Subsidiary”, the Company shall provide the  Administrative Agent with written notice thereof setting forth information in reasonable detail describing  the material assets of such Person and shall cause each such Subsidiary to deliver to the Administrative  Agent a Joinder Agreement and a joinder to the Security Agreement (in the form contemplated thereby)  pursuant to which such Subsidiary agrees to be bound by the terms and provisions hereof and thereof, such  delivery to be accompanied by requisite resolutions, other organizational documentation and legal opinions  as may be reasonably requested by, and in form and substance reasonably satisfactory to, the Administrative  Agent and its counsel. Notwithstanding anything to the contrary in any Loan Document, (i) no Excluded  Domestic  Subsidiary  or  Excluded  Foreign  Subsidiary  shall  be  required  to  be  a  Loan  Party  and  (ii)  no                                          90   

 

Collateral  constituting  fee-owned  real  property  located  in  the  State  of  New  York  shall  secure  any  Commitments, Revolving Loans or Revolving Exposure.         (b)   Subject the  terms,  limitations  and  exceptions  set  forth  in  the  applicable  Collateral  Documents and this Section 5.14(b), each Loan Party will cause all of its owned property (whether real,  personal, tangible, intangible, or mixed but excluding Excluded Assets and any real property that is not  Material Real Property) to be subject at all times to perfected Liens in favor of the Administrative Agent  for the benefit of the Secured Parties to secure the Secured Obligations in accordance with the terms and  conditions of the Collateral Documents on a first priority basis, subject in any case to Liens permitted by  Section 6.02. Without limiting the generality of the foregoing, and subject to the terms, limitations and  exceptions set forth in the applicable Collateral Documents, the Company (i) will cause the Applicable  Pledge Percentage of the issued and outstanding Equity Interests of each Pledge Subsidiary directly owned  by the Company or any other Loan Party (other than Excluded Assets) to be subject at all times to a first  priority  perfected  (subject  in  any  case  to  Liens  permitted  by Section 6.02)  Lien  in  favor  of  the  Administrative Agent to secure the Secured Obligations in accordance with the terms and conditions of the  Collateral  Documents  or  such  other  pledge  and  security  documents  as  the  Administrative  Agent  shall  reasonably request and (ii) will deliver Mortgages and Mortgage Instruments with respect to Material Real  Property owned  by the  Company or such Loan Party to the  extent, and  within such time  period as is,  reasonably  required  by  the  Administrative  Agent.  Notwithstanding  anything  to  the  contrary  in  this  Section 5.14, (i) no such Mortgage or Mortgage Instruments are required to be delivered hereunder until  the date that is ninety (90) days (or such later date as may be agreed upon by the Administrative Agent in  its reasonable discretion) after (A) the Effective Date, with respect to Material Real Property owned by the  Company or any other Loan Party on the Effective Date or (B) the date of acquisition thereof, with respect  to Material Real Property acquired by the Company or any other Loan Party after the Effective Date and  (ii) no foreign pledge documentation in respect of the pledge of Equity Interests of a Pledge Subsidiary that  is a Material Foreign Subsidiary shall be required hereunder (A) until the date that is ninety (90) days after  the Effective Date or such later date as the Administrative Agent may agree in the exercise of its reasonable  discretion with respect thereto, (B) to the extent the Administrative Agent or its counsel determines that  such pledge would not provide material credit support for the benefit of the Secured Parties pursuant to  legally valid, binding and enforceable pledge agreements, and (C) to the extent the Company reasonably  determines in its good faith judgment that such pledge would result in a material adverse tax consequence  to the Company or any Subsidiary.         (c)   If, at any time after the Effective Date any Subsidiary of the Company that is not a Loan  Party  shall  become  party  to  a  guaranty  of,  or  grant  a  Lien  on  any  assets  to  secure,  the  Term  Loan  Obligations,  any  Subordinated  Indebtedness  or  any  other  Material  Indebtedness  of  a  Loan  Party,  the  Company shall promptly notify the Administrative Agent thereof and, within ten (10) days thereof (or such  later date  as  may be  agreed upon by the  Administrative  Agent) cause such  Subsidiary to comply with  Section 5.14(a) and (b) (but without giving effect to the 30-day grace periods provided therein).         (d)   Without limiting the foregoing, each Loan Party will, and will cause each Subsidiary to,  execute and deliver, or cause to be executed and delivered, to the Administrative Agent such documents,  agreements and instruments, and take or cause to be taken such further actions (including the filing and  recording of financing statements, fixture filings, mortgages, deeds of trust and other documents and such  other actions or deliveries of the type required by Section 4.01, as applicable), which may be required by  any Requirement of Law or which the Administrative Agent may, from time to time, reasonably request to  carry out the terms and conditions of this Agreement and the other Loan Documents and to ensure perfection  and priority of the Liens created or intended to be created by the Collateral Documents, subject to the terms,  limitations, and exceptions set forth herein or in any Collateral Document, all at the expense of the Loan  Parties,  in  each  case  to  the  extent  required  by,  and  subject  to  the  limitations  and  exceptions  of,  this  Agreement and the other Loan Documents.                                         91   

 

      (e)   If  any  material  assets  (other  than  Excluded  Assets  or  other  assets  not  required  to  be  Collateral) are acquired by any Loan Party after the Effective Date (other than assets constituting Collateral  under the applicable Collateral Documents that become subject to the Lien granted by the Loan Parties in  favor of the Administrative Agent in support of all of the Secured Obligations upon acquisition thereof),  the Borrower Representative will promptly (i) notify the Administrative Agent thereof and, if requested by  the Administrative Agent or the Required Lenders, cause such assets to be subjected to a Lien securing the  Secured  Obligations  and  (ii)  take  such  actions  as  shall  be  necessary  or  reasonably  requested  by  the  Administrative Agent to grant and perfect such Liens, subject to clause (f) of this Section, all at the expense  of the Loan Parties, subject, however, to the terms, limitations and exceptions set forth herein or in any  Collateral Document; provided that with respect to any Material Real Property acquired by the Company  or any other Loan Party after the Effective Date (including in connection with a Permitted Acquisition),  which property would not be automatically subject to any other Lien pursuant to an existing Collateral  Document, no Mortgage or Mortgage Instrument shall be required to be delivered hereunder prior to the  date that is one hundred twenty (120) days after the acquisition thereof as determined by the Borrower  Representative  (acting  reasonably  in  good  faith)  (or  such  later date  as  may  be  agreed  upon  by  the  Administrative Agent in its reasonable discretion).         (f)   Notwithstanding  the  foregoing,  the  parties  hereto  acknowledge  and  agree  that  (i)  in  circumstances where the Administrative Agent reasonably determines that the cost or effort of obtaining or  perfecting a security interest in any asset that constitutes Collateral is excessive in relation to the benefit  afforded to the Secured Parties thereby, the Administrative Agent may exclude such Collateral from the  creation and perfection requirements set forth in this Agreement and the other Loan Documents and (ii) the  Administrative Agent may grant extensions of time for the creation or perfection of Liens in particular  property (including extensions of time beyond the Effective Date) where it determines that such creation or  perfection cannot be accomplished without undue effort or expense by the time or times at which it would  otherwise be required by this Agreement or any other Loan Document.                                    ARTICLE VI                                                                          Negative Covenants         Until the Commitments shall 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 (other than Unliquidated Obligations  not yet due and payable and Obligations expressly stated to survive such payment and termination) and all  Letters of Credit shall have expired or terminated, in each case, without any pending draw (or shall have  been  cash  collateralized  or  backstopped  pursuant  to  arrangements  reasonably  satisfactory  to  the  Administrative Agent), and all LC Disbursements shall have been reimbursed, each Loan Party executing  this Agreement covenants and agrees, jointly and severally with all of the other Loan Parties, with the  Lenders that:         SECTION 6.01. Indebtedness. No Loan Party will, nor will it permit any Subsidiary to, create,  incur, assume or permit to exist any Indebtedness, except:         (a)   (i) the Secured Obligations and any other Indebtedness created under the Loan Documents  and (ii) (A) Indebtedness under the Term Loan Agreement and Incremental Equivalent Debt (as defined in  the  Term  Loan  Agreement  as  of  the  date  hereof)  in  an  aggregate  principal  amount  at  any  one  time  outstanding not to exceed the sum of $425,000,000 plus the Incremental Term Loan Amount and (B) any  Refinancing Indebtedness thereof;         (b)   Indebtedness existing on the Effective Date and set forth on Schedule 6.01 and Refinancing  Indebtedness in respect of any of the foregoing;                                         92   

 

      (c)   Indebtedness  of  the  Company  or  any  Subsidiary  to  the  Company  or  any  Subsidiary;  provided that (A) any such Indebtedness owing by the Company or any other Loan Party shall be unsecured  and  shall  be  subordinated  in  right  of  payment  to  the  Secured  Obligations  on  terms  customary  for  intercompany subordinated Indebtedness, as reasonably determined by the Administrative Agent, (B) any  such Indebtedness owing to the Company or any other Loan Party shall be evidenced by a promissory note  which shall have been pledged pursuant to the Security Agreement and (C) any such Indebtedness owing  by  any  Subsidiary  that  is  not  a  Loan  Party  to  any  Loan  Party  shall  be  incurred  in  compliance  with  Section 6.04(d);         (d)   Guarantees incurred in compliance with Section 6.04;         (e)   [Intentionally Omitted];         (f)   (i) Indebtedness of the Company or any Subsidiary incurred to finance the acquisition,  construction or improvement of any fixed or capital assets, including Capital Lease Obligations, purchase  money Indebtedness and any Indebtedness assumed by the Company or any Subsidiary in connection with  the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof  and (ii) Refinancing Indebtedness in respect of Indebtedness incurred or assumed pursuant to clause (i)  above; provided that the aggregate principal amount of Indebtedness permitted by this clause (f) shall not  exceed the greater of (x) $30,000,000 and (y) 3% of Consolidated Total Assets (at the time of incurrence);         (g)   (i) Indebtedness of any Person that becomes a Subsidiary (or of any Person not previously  a Subsidiary that is merged or consolidated with or into a Subsidiary in a transaction permitted hereunder)  after the Effective Date, or Indebtedness of any Person that is assumed by any Subsidiary in connection  with an acquisition of assets by such Subsidiary in a Permitted Acquisition; provided that such Indebtedness  exists at the time such Person becomes a Subsidiary (or is so merged or consolidated) or such assets are  acquired and is not created in contemplation of or in connection with such Person becoming a Subsidiary  (or  such  merger  or  consolidation)  or  such  assets  being  acquired,  and  (ii) Refinancing  Indebtedness  in  respect of Indebtedness assumed pursuant to clause (i) above; provided further that the aggregate principal  amount of Indebtedness permitted by this clause (g) shall not exceed the greater of (x) $50,000,000 and (y)  5% of Consolidated Total Assets (at the time of incurrence);         (h)   Permitted  Unsecured  Indebtedness  and  Refinancing  Indebtedness  in  respect  thereof;  provided that, (i) immediately prior to and immediately after giving effect (including pro forma effect) to  the  incurrence  of  any  Permitted  Unsecured  Indebtedness  under  this clause  (h),  no  Default  shall  have  occurred  and  be  continuing,  (ii)  immediately  after  giving  effect  (including  pro  forma  effect)  to  the  incurrence of any Permitted Unsecured Indebtedness, the Total Net Leverage Ratio, calculated on a pro  forma basis for the most recently ended Test Period, shall not exceed 4.25 to 1.00, and (iii) the Company  will, on the date of incurrence of such Indebtedness, deliver to the Administrative Agent a certificate of a  Financial Officer of the Company, dated such date, confirming the satisfaction of the conditions set forth  above and attaching a reasonably detailed calculation evidencing compliance with the condition set forth  in the preceding clause (ii), identifying the Permitted Unsecured Indebtedness being incurred and specifying  that  it  is  being  incurred  pursuant  to  this clause  (h); provided further that  the  aggregate  amount  of  Indebtedness incurred by a Subsidiary that is not a Loan Party under this Section 6.01(h) shall not exceed  the greater of (x) $30,000,000 and (y) 3% of Consolidated Total Assets (at the time of incurrence);         (i)   Indebtedness  incurred  in  the  ordinary  course  of  business  and  owed  in  respect  of  any  overdrafts  and  related  liabilities arising  from  treasury,  depository  and  cash  management  services  or in  connection with any automated clearing-house transfers of funds;                                          93   

 

      (j)   Indebtedness in respect of (1) letters of credit, bank guarantees and similar instruments  issued  for  the  account  of,  and  (2)  lines  of  credit  established  for  the  account  of,  the  Company  or  any  Subsidiary, in the case of each of clauses (1) and (2) in the ordinary course of business supporting or drawn  to support, as applicable, obligations under (i) workers’ compensation, health, disability or other employee  benefits, casualty or liability insurance, unemployment insurance and other social security laws and local  state  and  federal  payroll  taxes,  (ii)  obligations  in  connection  with  self-insurance  arrangements  in  the  ordinary course of business and (iii) bids, trade contracts, leases, statutory obligations, surety and appeal  bonds, performance and reclamation bonds and obligations of a like nature;         (k)   Indebtedness consisting of (i) client advances or deposits received in the ordinary course  of business and (ii) obligations in respect of Repurchase Agreements;         (l)   Indebtedness of the Company or any Subsidiary in the form of purchase price adjustments  (including  in  respect  of  working  capital),  earnouts,  deferred  compensation,  indemnification  or  other  arrangements representing acquisition consideration or deferred payments of a similar nature incurred in  connection  with  any  Permitted  Acquisition  or  other  Investments  permitted  under Section 6.04 or  Dispositions permitted under Section 6.05;         (m)   Indebtedness  of  Foreign  Subsidiaries  and  Refinancing  Indebtedness  in  respect  thereof;  provided that, the aggregate principal amount of Indebtedness permitted by this clause (m) shall not exceed  the greater of (x) $50,000,000 and (y) 5% of Consolidated Total Assets (at the time of incurrence);         (n)   Indebtedness  relating  to  premium  financing  arrangements  for  property  and  casualty  insurance plans and health and welfare benefit plans (including health and workers compensation insurance,  employment practices liability insurance and directors and officers insurance), if incurred in the ordinary  course of business;         (o)   other  unsecured  and  Subordinated  Indebtedness  not  otherwise  described  above,  and  Refinancing Indebtedness in respect thereof, in an aggregate principal amount at any time outstanding not  in excess of the greater of (x) $50,000,000 and (y) 5% of Consolidated Total Assets;         (p)   unfunded pension fund and other employee benefit plan obligations and liabilities to the  extent they are permitted to remain unfunded under applicable law;         (q)   Indebtedness of the Company or any of its Subsidiaries in respect of performance bonds,  bid bonds, appeal bonds, surety bonds and similar obligations, in each case provided in the ordinary course  of business, including guarantees or obligations with respect to letters of credit supporting such performance  bonds, bid bonds, appeal bonds, surety bonds and similar obligations;         (r)   Indebtedness in respect to judgments or awards under circumstances not giving rise to an  Event of Default;         (s)   Indebtedness  in  respect  of  obligations  that  are  being  contested  in  accordance  with  Section 5.04;         (t)   Indebtedness  representing  deferred  compensation,  severance,  pension,  and  health  and  welfare retirement benefits or the equivalent to current and former employees of the  Company and its  Subsidiaries incurred in the ordinary course of business or existing on the Effective Date; and         (u)   Indebtedness consisting of promissory notes issued by the Company or any Subsidiary to  present or former employees, officers, directors or consultants (or their estates or beneficiaries under their                                         94   

 

estates)  to  finance  the  purchase  or  redemption  of  Equity  Interests  of  the  Company  permitted  by  Section 6.09.   For purposes of determining compliance with this Section 6.01, in the event that an item of Indebtedness  (or any portion thereof) meets the criteria of more than one of the categories of permitted Indebtedness  described in clauses (a) through (u) above, the Company, in its sole discretion, will be permitted to divide  and classify such item of Indebtedness (or any portion thereof) on the date of incurrence, and at any time  and from time to time may later reclassify all or any portion of any item of Indebtedness as having been  incurred under any category of permitted Indebtedness described in clauses (a) through (u) above so long  as such Indebtedness is permitted to be incurred pursuant to such provision at the time of reclassification.         SECTION 6.02. Liens. No Loan Party will, nor will it permit any Subsidiary to, create, incur,  assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign  or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except:         (a)   (i) Liens created under the Loan Documents and (ii) Lien on Collateral of the Loan Parties  securing  Indebtedness  incurred  pursuant  to Section 6.01(a)(ii) (which  Liens  shall  be  subject  to  an  Intercreditor Agreement and, to the extent on ABL Priority Collateral, shall be junior to the Liens securing  the Secured Obligations);         (b)   Permitted Encumbrances;         (c)   any Lien on any asset of the Company or any Subsidiary existing on the Effective Date and  set forth on Schedule 6.02; provided that (i) such Lien shall not apply to any other asset of the Company or  any  Subsidiary  other  than  (A)  after-acquired  property  that  is  affixed  or  incorporated  into  the  property  covered  by  such  Lien  or financed  by  Indebtedness  permitted  under Section 6.01 and  (B) proceeds and  products thereof and (ii) such Lien shall secure only those obligations that it secures on the Effective Date  and extensions, renewals, replacements and refinancings thereof so long as the principal amount of such  extensions, renewals, replacements and refinancings does not exceed the principal amount of the obligations  being  extended,  renewed,  replaced  or  refinanced  or,  in  the  case  of  any  such  obligations  constituting  Indebtedness, that are permitted under Section 6.01(b) as Refinancing Indebtedness in respect thereof;         (d)   any Lien existing on any asset prior to the acquisition thereof by the Company or any  Subsidiary or existing on any asset of any Person that becomes a Subsidiary (or of any Person not previously  a Subsidiary that is merged or consolidated with or into a Subsidiary in a transaction permitted hereunder)  after  the  Effective  Date  prior  to  the  time  such  Person  becomes  a  Subsidiary  (or  is  so  merged  or  consolidated); provided that (i) such Lien is not created in contemplation of or in connection with such  acquisition or such Person becoming a Subsidiary (or such merger or consolidation), (ii) such Lien shall  not apply to any other asset of the Company or any Subsidiary (other than (A) the proceeds or products of  such assets, (B) after-acquired property subjected to a Lien securing Indebtedness and other obligations  incurred prior to such time  and which  Indebtedness and  other obligations  are permitted  hereunder that  require, pursuant to their terms at such time, a pledge of after-acquired property, it being understood that  such requirement shall not be permitted to apply to any property to which such requirement would not have  applied but for such acquisition, and (C) in the case of any such merger or consolidation, the assets of any  Subsidiary without significant assets that was formed solely for the purpose of effecting such acquisition)  and (iii) such Lien shall secure only those obligations that it secures on the date of such acquisition or the  date  such  Person  becomes  a  Subsidiary  (or  is so  merged  or  consolidated)  and  extensions,  renewals,  replacements and refinancings thereof so long as the principal amount of such extensions, renewals and  replacements does not exceed the principal amount of the obligations being extended, renewed or replaced  or, in the case of any such obligations constituting Indebtedness, that are permitted under Section 6.01(g)  as Refinancing Indebtedness in respect thereof;                                         95   

 

      (e)   Liens on fixed  or capital assets  acquired, constructed or improved  (including any such  assets made the subject of a Capital Lease Obligation incurred) by the Company or any Subsidiary; provided  that (i) such Liens secure Indebtedness incurred to finance such acquisition, construction or improvement  and permitted by clause (f)(i) of Section 6.01 or any Refinancing Indebtedness in respect thereof permitted  by clause (f)(ii) of Section 6.01,  and  (ii)  such  Liens  shall  not  apply  to  any  other  assets  (except  for  replacements, additions and accessions to such assets) of the Company or any Subsidiary, other than the  proceeds and products of such fixed or capital assets; provided that individual financings of equipment  provided by one lender may be cross collateralized to other financings of equipment provided by such  lender;         (f)   in connection with the sale or transfer of any Equity Interests or other assets in a transaction  permitted under Section 6.05, customary rights and restrictions contained in agreements relating to such  sale or transfer pending the completion thereof;         (g)   in the case of (i) any Subsidiary that is not a wholly-owned Subsidiary or (ii) the Equity  Interests in any Person that is not a Subsidiary, any encumbrance or restriction, including any put and call  arrangements,  related  to  Equity  Interests  in  such  Subsidiary  or  such  other  Person  set  forth  in  the  organizational documents of such Subsidiary or such other Person or any related joint venture, shareholders’  or similar agreement;         (h)   any Lien on assets of any Foreign Subsidiary; provided that (i) such Lien shall not apply  to any Collateral (including any Equity Interests in any Subsidiary that constitute Collateral) or any other  assets of the Company or any other Loan Party and (ii) such Lien shall secure only Indebtedness or other  obligations of such Foreign Subsidiary permitted hereunder;         (i)   Liens  solely  on  any  cash  earnest  money  deposits,  escrow  arrangements  or  similar  arrangements made by the Company or any Subsidiary in connection with any letter of intent or purchase  agreement for a Permitted Acquisition or other transaction permitted hereunder;         (j)   Liens  granted  (i) by  a  Subsidiary  that  is  not  a  Loan  Party  in  respect  of  Indebtedness  permitted to be incurred under Section 6.01(c) and (ii) by any Subsidiary in favor of any Loan Party;         (k)   Liens securing judgments for the payment of money not constituting an Event of Default  under Article VII;         (l)   other Liens securing Indebtedness or other obligations in an aggregate principal amount  not  to  exceed  the  greater  of  (x)  $30,000,000  and  (y)  3%  of  Consolidated  Total  Assets  at  any  time  outstanding;         (m)   Liens  arising  out  of  any  conditional  sale,  title  retention,  consignment  or  other  similar  arrangements for the sale of goods entered into by the Company or any Subsidiary in the ordinary course  of business;         (n)   Liens securing Indebtedness permitted hereunder to finance insurance premiums solely to  the extent of such premiums;         (o)   statutory and common law rights of setoff and other Liens, similar rights and remedies  arising as a matter of law encumbering deposits of cash, securities, commodities and other funds in favor  of banks, financial institutions, other depository institutions, securities or commodities intermediaries or  brokerage, and Liens of a collecting bank arising under Section 4-208 or 4-210 of the UCC in effect in the  relevant jurisdiction or any similar law of any foreign jurisdiction on items in the course of collection;                                         96   

 

      (p)   Liens encumbering reasonable customary initial deposits and margin deposits and similar  Liens attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary course  of business and not for speculative purposes;         (q)   Liens  that  are  contractual  rights  of  set-off  or  rights  of  pledge  (i)  relating  to  the  establishment of depository relations with banks not given in connection with the issuance of Indebtedness,  (ii) relating to pooled deposit or sweep accounts of the Company or any Subsidiary to permit satisfaction  of  overdraft  or  similar  obligations  incurred  in  the  ordinary  course  of  business of  the  or  (3) relating  to  purchase orders and other agreements entered into with customers of the Company or any of Subsidiary in  the ordinary course of business;         (r)   Liens  deemed  to  exist  in connection  with  Investments  in repurchase agreements  under  Section 6.04;         (s)   the modification, replacement, renewal or extension of any Lien permitted by clauses (d)  and (e) of this Section 6.02; provided that (i) the Lien does not extend to any additional property, other than  (A) after-acquired property that is affixed or incorporated into the property covered by such Lien and (B)  proceeds and products thereof, and (ii) the renewal, extension or refinancing of the obligations secured or  benefited by such Liens is permitted by Section 6.01 (to the extent constituting Indebtedness);         (t)   (i) Liens in favor of customs and revenue authorities arising as a matter of law to secure  payment of customs duties in connection with the importation of goods in the ordinary course of business  and (ii) Liens on specific items of inventory or other goods and proceeds thereof of any Person securing  such Person’s obligations in respect of bankers’ acceptances or letters of credit issued or created for the  account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods in  the ordinary course of business; and         (u)   Liens  on  the  Collateral  securing  (i)  Permitted  First  Priority  Refinancing  Indebtedness  permitted under Section 6.01(e) of the Term Loan Agreement (as in effect on the Effective Date) on a pari  passu  basis  with  the  Liens  on  the  Collateral  securing  the  Secured  Obligations,  and,  if  secured  by  the  Collateral, Refinancing Indebtedness in respect thereof; provided that a trustee, collateral agent, security  agent or other Person acting on behalf of the holders of such Indebtedness has entered into an Intercreditor  Agreement and (ii) Permitted Second Priority Refinancing Indebtedness permitted under Section 6.01(e) of  the Term Loan Agreement (as in effect on the Effective Date) on a junior basis to the Liens on the Collateral  securing the Secured Obligations and, if secured by the Collateral, Refinancing Indebtedness in respect  thereof; provided that, a trustee, collateral agent, security agent or other Person acting on behalf of the  holders of such Indebtedness has entered into an Intercreditor Agreement.   For purposes of determining compliance with this Section 6.02, (A) a Lien securing an item of Indebtedness  need  not  be  permitted  solely  by  reference to  one  category  of  permitted  Liens  (or  any  portion thereof)  described in clauses (a) through (u) but may be permitted in part under any combination thereof and (B) in  the event that a Lien securing an item of Indebtedness (or any portion thereof) meets the criteria of one or  more of the categories of permitted Liens (or any portion thereof) described in clauses (a) through (u), the  Company may, in its sole discretion, classify or divide such Lien securing such item of Indebtedness (or  any portion thereof) in any manner that complies with this Section 6.02 and will be entitled to only include  the amount and type of such Lien or such item of Indebtedness secured by such Lien (or any portion thereof)  in one of the above clauses and such Lien securing such item of Indebtedness (or portion thereof) will be  treated as being incurred or existing pursuant to only such clause or clauses (or any portion thereof).         SECTION 6.03. Fundamental Changes.                                          97   

 

      (a)   None of the Company or any Subsidiary will merge into or consolidate with any other  Person, or permit any other Person to merge into or consolidate with it, 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 (other than the Company or any Subsidiary) may merge or consolidate        with the Company or any Subsidiary; provided that any such merger or consolidation involving (A)        the Company must result in the Company as the surviving entity, (B) any Borrower must result in        such Borrower as the surviving entity and (C) a Loan Party must result in such Loan Party as the        surviving entity or, if such Loan Party is not the surviving entity of such merger or consolidation,        the  Person  surviving  such  merger  or  consolidation  becomes  a  Loan  Party  following  the        consummation of such merger or consolidation in accordance with Section 5.14(a);               (ii)  any Subsidiary may merge into or consolidate with a Loan Party in a transaction        in which the surviving entity is such Loan Party (provided that any such merger involving (A) the        Company must result in the Company as the surviving entity and (B) a Borrower must result in        such Borrower as the surviving entity);               (iii) any Subsidiary that is not a Loan Party may merge into or consolidate with another        Subsidiary that is not a Loan Party;               (iv)  any Subsidiary that is not a Loan Party may liquidate, wind up or dissolve if the        Company determines in good faith that such liquidation, winding up or dissolution is in the best        interests of the Company and its Subsidiaries and is not materially disadvantageous to the Lenders;        and               (v)   any Subsidiary may liquidate, wind up or dissolve if its assets are transferred to        the Company or any Loan Party or, if such Subsidiary is not a Loan Party, to any other Subsidiary.         (b)   No Loan Party will, nor will it permit any of its Subsidiaries to, engage to any material  extent in any business substantially different from businesses of the type conducted by the Company and  its  Subsidiaries  (taken  as  a  whole)  on  the  Effective  Date  and  businesses  reasonably  related,  ancillary,  similar, complementary or synergistic thereto or reasonable extensions, development or expansion thereof.         (c)   No Loan Party will, nor will it permit any of its Subsidiaries to, change its fiscal year from  the basis in effect on the Effective Date; provided that, the Loan Parties and their Subsidiaries may change  their fiscal year from the basis in effect on the Effective Date, subject to such adjustments to this Agreement  as  the  Borrower  Representative  and  the  Administrative  Agent  shall  reasonably  agree  are  necessary  or  appropriate  in  connection  with  such  change  (and  the  parties  hereto  hereby  authorize  the  Borrower  Representative and the Administrative Agent to make any such amendments to this Agreement as they  jointly deem necessary to give effect to the foregoing).         (d)   No Loan Party will, nor will it permit any of its Subsidiaries to, amend, modify or waive  any of its rights under its certificate of incorporation, bylaws or other organizational documents, in each  case to the extent such amendment, modification or waiver would be materially adverse to the Lenders.         (e)   No Loan Party will, nor will it permit any Subsidiary to, consummate a Division as the  Dividing Person, without the prior written consent of Administrative Agent. Without limiting the foregoing,  if any Loan Party that is a limited liability company consummates a Division (with or without the prior  consent of Administrative Agent as required above), each Division Successor shall be required to comply                                          98   

 

with the obligations set forth in Section 5.14 and the other further assurances obligations set forth in the  Loan Documents and become a Loan Party under this Agreement and the other Loan Documents.         SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions. No Loan Party will,  nor  will  it  permit  any  Subsidiary  to,  purchase,  hold,  acquire  (including  pursuant  to  any  merger  or  consolidation with any Person that was not a wholly-owned Subsidiary prior thereto), make or otherwise  permit to exist any Investment in any other Person, except:         (a)   [reserved];         (b)   cash and Permitted Investments;         (c)   (i) Investments existing on the Effective Date in Subsidiaries and (ii) other Investments  existing  or  contemplated  on  the  Effective  Date  and  set  forth  on Schedule 6.04 and  any  modification,  replacement,  renewal,  reinvestment  or  extension  thereof provided that  the  amount  of  any  Investment  permitted  pursuant to this Section 6.04(c) is  not increased from the  amount of such Investment on the  Effective Date except pursuant to the terms of such Investment as of the Effective Date or as otherwise  permitted by this Section 6.04;         (d)   (i) additional Investments by the Company in any Loan Party and by any Loan Party in the  Company or in another Loan Party, and (ii) Investments (including by way of capital contributions) by the  Company and the Subsidiaries in Equity Interests in their Subsidiaries; provided, in the case of clause (ii),  that (x) any such Equity Interests held by the Company or any Loan Party shall be pledged in accordance  with the requirements of Section 5.14 and (y) the aggregate amount of Investments made by the Company  or any Loan Party in any Subsidiary that is not a Loan Party in reliance on this clause (d), when combined  with  the  aggregate  amount  of  Guarantees  made  by  the  Company  or  any  Loan  Party  of  Indebtedness  (excluding, for the avoidance of doubt, Guarantees of obligations not constituting Indebtedness) of any  Subsidiary that is not a Loan Party in reliance on clause (e) below, shall not exceed the greater of (x)  $30,000,000 and (y) 3% of Consolidated Total Assets (at the time made);         (e)   Guarantees by the Company or any Subsidiary of Indebtedness or other obligations of the  Company or any Subsidiary (including any such Guarantees arising as a result of any such Person being a  joint and several co-applicant with respect to any letter of credit or letter of guaranty); provided that (i) any  such Guarantee of Subordinated Indebtedness is subordinated to the Secured Obligations on terms no less  favorable to the Lenders than those of the Subordinated Indebtedness, (ii) any such Guarantee constituting  Indebtedness is permitted by Section 6.01 (other than clause (d) thereof) and (iii) the aggregate amount of  Guarantees made by the Company or any Loan Party of Indebtedness (excluding, for the avoidance of  doubt, Guarantees of obligations not constituting Indebtedness) of any Subsidiary that is not a Loan Party  in  reliance  on this clause (e),  when  combined  with the  aggregate  amount  of  Investments  made  by  the  Company or any Loan Party in any Subsidiary that is not a Loan Party in reliance on clause (d) above, shall  not exceed the greater of (x) $30,000,000 and (y) 3% of Consolidated Total Assets (at the time made);         (f)   loans, advances or other extensions of credit to officers, directors and employees of the  Company or any Subsidiary (i) to finance the purchase of Equity Interests of the Company pursuant to  employee plans, (ii) for reasonable and customary business-related travel, entertainment, and moving and  relocation, business machines or supplies, automobiles and other similar expenses and advances, in each  case incurred in the ordinary course of business, and (iii) for purposes not described in the foregoing clauses  (i) and (ii),  in  an  aggregate  principal  amount  outstanding  at  any  time  under clause (iii) not  to  exceed  $5,000,000;                                          99   

 

      (g)   Investments received in connection with the bankruptcy or reorganization of, or settlement  of delinquent accounts and disputes with, customers and suppliers, or consisting of securities acquired in  connection with the satisfaction or enforcement of claims due or owing to the Company or any Subsidiary,  in  each  case  in  the  ordinary  course  of  business  or  upon  the  foreclosure  with  respect  to  any  secured  Investment or other transfer of title with respect to any secured Investment;         (h)   Permitted Acquisitions (including any intercompany investments, loans and advances used  to  consummate  Permitted  Acquisitions); provided that,  the  Payment  Condition  shall  be  satisfied  with  respect to such Acquisition;         (i)   Investments held by a Subsidiary acquired after the Effective Date or of a Person merged  or consolidated with or into the Company or a Subsidiary after the Effective Date, in each case as permitted  hereunder, to the extent that such Investments were not made in contemplation of or in connection with  such acquisition, merger or consolidation and were in existence on the date of such acquisition, merger or  consolidation;         (j)   Investments constituting, or made as a result of the receipt of noncash consideration from  a sale, transfer, lease or other disposition of any asset in compliance with Section 6.05;         (k)   Investments by the Company or any Subsidiary that result solely from the receipt by the  Company or such Subsidiary from any of its subsidiaries of a dividend or other Restricted Payment in the  form of Equity Interests, evidences of Indebtedness or other securities (but not any additions thereto made  after the date of the receipt thereof);         (l)   Investments in the form of Swap Agreements permitted under Section 6.07;         (m)   Investments by Foreign Subsidiaries in other Foreign Subsidiaries or by any Subsidiary  that is not a Loan Party in any other Subsidiary that is not a Loan Party;         (n)   Investments  constituting  deposits  described  in clauses  (c) and (d) of  the  definition  of  “Permitted Encumbrances”;         (o)   Investments consisting of (i) extensions of trade credit, (ii) deposits made in connection  with the purchase of goods or services or the performance of leases, licenses or contracts, in each case, in  the ordinary course of business, (iii) notes receivable of, or prepaid royalties and other extensions of credit  to, customers and suppliers that are not Affiliates of the Company and that are made in the ordinary course  of  business,  (iv)  Guarantees  made  in the  ordinary  course  of  business  in  support  of  obligations  of  the  Company or any of its Subsidiaries not constituting Indebtedness for borrowed money, including operating  leases  and  obligations  owing  to  suppliers,  customers  and  licensees  and  (v) loans,  advances  or  other  extensions of credit to one or more customers by the Company or any Subsidiary pursuant to arm’s-length  terms (or terms otherwise acceptable to the Administrative Agent in its reasonable discretion) in order to  finance such customer’s purchase of chassis that are used by the Company or any Subsidiary to manufacture  recreational  vehicles  for  such  customer; provided that,  the  aggregate  principal  amount  of  such  loans,  advances and extensions of credit outstanding at any time in reliance on this clause (o)(v) shall not exceed  $15,000,000;         (p)   mergers and consolidations permitted under Section 6.03 that do not involve any Person  other than the Company and Subsidiaries that are wholly-owned Subsidiaries;         (q)   to  the  extent  constituting  Investments,  intercompany  loans  or  other  intercompany  Investments made by Loan Parties in the ordinary course of business to or in any Foreign Subsidiary to                                        100   

 

provide funds as necessary to enable the applicable Foreign Subsidiary to comply with changes in statutory  or contractual capital requirements (other than any contractual requirement that constitutes a Guarantee);         (r)   Investments  consisting of Guarantees  in the  ordinary course of business to support the  obligations of any Subsidiary under its worker’s compensation and general insurance agreements;         (s)   the Company’s entry into (including payments of premiums in connection therewith), and  the performance of obligations under, Permitted Call Spread Swap Agreements in accordance with their  terms;         (t)   Investments in joint ventures of the Company or any Subsidiary, taken together with all  other Investments made pursuant to this clause (t) that are at that time outstanding, not to exceed the greater  of (x) $50,000,000 and (y) 5% of Consolidated Total Assets (in each case, determined on the date such  Investment is made, with the fair market value of each Investment being measured at the time made and  without giving effect to subsequent changes in value);         (u)   advances of payroll payments to employees in the ordinary course of business;         (v)   Investments to the extent that payment for such Investments is made solely with Equity  Interests (other than Disqualified Equity Interests) of the Company;         (w)   the forgiveness or conversion to equity of any Indebtedness owed by the Company or any  Subsidiary and permitted by Section 6.01;         (x)   to the  extent  that they  constitute  Investments,  purchases  and  acquisitions  of inventory,  supplies, materials or equipment or purchases, acquisitions, licenses or leases of other assets, Intellectual  Property, or other rights, in each case in the ordinary course of business; and         (y)   Investments arising as a result of Sale and Leaseback Transactions;         (z)   Investments  in  the  Term  Loans  in  accordance  with  Section 9.04(f)  of  the  Term  Loan  Agreement (as in effect on the Effective Date);         (aa)  [reserved];         (bb)  Investments consisting of the acquisition of real property (and any improvements thereon)  located  at,  and  commonly  known  as,  11333  CR2, Middlebury,  Indiana  46540 and  Vacant  Land,  CR2,  Middlebury, Indiana 46540, pursuant to the exercise by Grand Design of its right of first offer to purchase  such property pursuant to the terms of each Lease Agreement, dated as of the date hereof, by and between  Three Oaks, LLC, as landlord, and Grand Design, as tenant (or such other terms as may be reasonably  acceptable to the Administrative Agent); provided that, (i) both immediately before and immediately after  giving pro forma effect to any such Investment pursuant to this clause (bb), no Event of Default shall have  occurred and be continuing and (ii) the aggregate amount of Investments permitted in reliance on this clause  (bb) shall not exceed $20,000,000 (at the time made); and         (cc)  any other Investments (including Acquisitions) whether or not of a type described above;  provided that,  (i)  both  immediately  before  and  immediately  after  giving  pro  forma  effect  to  any  such  Investment pursuant to this clause (cc), no Event of Default shall have occurred and be continuing and the  Payment  Condition  shall  be  satisfied  with  respect  to  such  Investment  and  (ii)  any  Acquisitions  made  pursuant to this clause (cc) must constitute a Permitted Acquisition.                                         101   

 

Notwithstanding the foregoing, any Acquisition made in reliance on any provision of this Section 6.04 must  satisfy the requirements of a Permitted Acquisition.   Notwithstanding anything contrary set forth above, if any Investment is denominated in a foreign currency,  no fluctuation in currency values shall result in a breach of this Section 6.04.   For purposes of determining compliance with this Section 6.04, in the event that an Investment (or any  portion thereof) meets the criteria of more than one of the categories of permitted Investments described in  clauses (a) through (cc) above, the Company and the Subsidiaries, in their sole discretion, will be permitted  to divide and classify such Investment (or any portion thereof) on the date of incurrence, and at any time  and from time to time may later reclassify all or any portion of any Investment as having been incurred  under any category of permitted Investments described in clauses (a) through (cc) above so long as such  Investment is permitted to be incurred pursuant to such provision at the time of reclassification. For the  avoidance of doubt, an Investment entered into in reliance on clause (cc) above that was permitted at the  time entered into shall continue to be permitted under such clause notwithstanding any failure to satisfy the  Payment Condition (or any other condition in such clause) at a later date with respect to any subsequent  Investment.   For purposes of determining the amount of any Investment outstanding, such amount shall be deemed to  be the amount of such Investment when made, purchased or acquired (without adjustment for subsequent  increases  or  decreases  in  the  value  of  such  Investment)  less  any  amount  realized  in  respect  of  such  Investment upon the sale, collection or return of capital (not to exceed the original amount invested.         SECTION 6.05. Asset Sales. No Loan Party will, nor will it permit any Subsidiary to, sell, transfer,  lease or otherwise dispose of any asset, including any Equity Interest owned by it, nor will any Subsidiary  issue any additional Equity Interest in such Subsidiary (other than issuing directors’ qualifying shares and  other  than  issuing  Equity  Interests  to  the  Company  or  another  Subsidiary  in  compliance  with  Section 6.04(d)) (each, a “Disposition”), except:         (a)   Dispositions of (i) inventory or goods held for sale (including, for the avoidance of doubt,  such Dispositions made by the Company or any other Loan Party to Subsidiaries that are not Loan Parties,  so long as such Dispositions are at prices and on terms and conditions at least substantially as favorable to  the Company or such Loan Party as those that could be obtained at the time in a comparable arm’s-length  transaction  with  a  Person  that  is  not  a  Subsidiary),  (ii) immaterial  assets  (including  allowing  any  registrations  or  any  applications  for  registration  of  any  immaterial  intellectual  property  to  lapse  or  go  abandoned  in the  ordinary  course  of  business),  (iii) used,  obsolete,  damaged  or  surplus  property  or  equipment, whether now owned or hereafter acquired, and (iv) cash and Permitted Investments, in each  case in the ordinary course of business;         (b)   Dispositions  to the  Company  or  a  Subsidiary; provided that  any  such  Disposition  to a  Subsidiary that is not a Loan Party (i) shall be made in compliance with Sections 6.04 and 6.08 if and to  the extent applicable and (ii) shall not, in the case of any Disposition by the Company or any other Loan  Party to Subsidiaries that are not Loan Parties in any fiscal year that are not made as Investments permitted  by Section 6.04, involve assets having an aggregate fair market value for all such assets so Disposed in such  fiscal year in excess of $7,500,000;         (c)   Dispositions  of  accounts  receivable  in  connection  with  the  compromise,  settlement  or  collection thereof in the ordinary course of business consistent with past practice and not as part of any  accounts receivables financing transaction;         (d)   (i) to the extent constituting Dispositions, transactions permitted by Sections 6.01 and 6.03,  (ii) Dispositions of assets to the extent that such Disposition constitutes an Investment referred to in and                                        102   

 

permitted by Section 6.04 and (iii) Dispositions of assets to the extent that such Disposition constitute a  Restricted Payment referred to in and permitted by Section 6.09;         (e)   Sale and Leaseback Transactions permitted by Section 6.06;         (f)   Licenses, leases or subleases entered into in the ordinary course of business, including in  connection  with  effectuating  any  tax  subsidy  arrangement,  including  a  payment-in-lieu  of  taxes  arrangement, to the extent that they do not materially interfere with the business of the Company or any  Subsidiary;         (g)   Licenses or sublicenses of intellectual property in the ordinary course of business, to the  extent that they do not materially interfere with the business of the Company or any Subsidiary;         (h)   Dispositions resulting from any casualty or other insured damage to, or any taking under  power of eminent domain or by condemnation or similar proceeding of, any asset of any of the Company  or any Subsidiary;         (i)   Dispositions of assets (including as a result of like-kind exchanges) to the extent that (i)  such assets are exchanged for credit (on a fair market value basis) against the purchase price of similar or  replacement  assets  or  (ii)  such  asset  is  Disposed  of  for  fair  market  value  and  the  proceeds  of  such  Disposition are promptly applied to the purchase price of similar or replacement assets;         (j)   Dispositions of Investments in joint ventures to the extent required by, or made pursuant  to  customary  buy/sell  arrangements  between,  the  joint  venture  parties  set  forth  in  joint  venture  arrangements;         (k)   the abandonment, cancellation, non-renewal or discontinuance of use or maintenance of  non-material intellectual property or rights relating thereto (including registrations  and applications  for  registration) that the Company determines in its reasonable judgment to be desirable to the conduct of its  business and not materially disadvantageous to the interests of the Lenders;         (l)   Dispositions of assets acquired pursuant to or in order to effectuate a Permitted Acquisition  which assets are not used or useful to the core or principal business of the Company and its Subsidiaries in  an  aggregate  amount  not  to  exceed  30%  of  the  aggregate  consideration  in  respect  of  such  Permitted  Acquisition;         (m)   Dispositions of assets that the Company determines in its reasonable judgment to be no  longer used or useful in the conduct of the business of the Company or any Subsidiary outside the ordinary  course  of  business  (and  for  consideration  complying  with  the  requirements  applicable  to  Dispositions  pursuant to clause (r) below) in an aggregate amount not to exceed $15,000,000;         (n)   any swap of assets in exchange for services or other assets of comparable or greater value  or usefulness to the business of the Company and the Subsidiaries as a whole, as determined in good faith  by the Company;         (o)   Dispositions of Investments in joint ventures to the extent required by, or made pursuant  to customary buy/sell arrangements between, the joint venture parties set forth in joint venture arrangements  and similar binding arrangements;         (p)   the unwinding of any Swap Contract pursuant to its terms;                                         103   

 

      (q)   sales or other issuances of Equity Interests in the Company;         (r)   Dispositions contemplated as of the Effective Date and listed on Schedule 6.05; and         (s)   any other Disposition of assets (including Equity Interests); provided that (i) if the total fair  market value of the assets subject to any such Disposition or series of related Dispositions is in excess of  $7,500,000, it shall be for fair market value (or if not for fair market value, the shortfall is permitted as and  treated  as  an  Investment  under Section 6.04),  (ii)  at  least  75%  of  the total  consideration  for  any  such  Disposition in excess of $10,000,000 received by the Company and its Subsidiaries is in the form of cash  or Permitted Investments, (iii) no Default or Event of Default then exists or would result after giving effect  (including pro forma effect) thereto (except if such Disposition is made pursuant to an agreement entered  into at a time when no Default or Event of Default exists) and (iv) if the Dispositions since the delivery of  the most recent Borrowing Base Certificates results (on a pro forma basis) in a reduction of 10% or more  of the Aggregate Borrowing Base (based on the most recent Borrowing Base Certificates delivered to the  Administrative  Agent), the Borrower Representative shall be required to deliver an updated Aggregate  Borrowing Base Certificate, together with an updated Borrowing Base Certificate for each Borrower, to the  Administrative Agent; provided, however, that for purposes of clause (ii) above, the following shall be  deemed to be cash: (A) any liabilities (as shown on the Company’s or such Subsidiary’s most recent balance  sheet  provided  hereunder  or  in  the  footnotes  thereto)  of  the  Company  or  such  Subsidiary  (other  than  liabilities that are by their terms subordinated to the Obligations) that are assumed by the transferee with  respect to the applicable Disposition and for which the Company and its Subsidiaries shall have been validly  released  by  all  applicable  creditors  in  writing,  (B) any  securities  received  by  the  Company  or  such  Subsidiary  from  such  transferee  that  are  converted  by  the  Company  or  such  Subsidiary  into  cash  or  Permitted Investments (to the extent of the cash or Permitted Investments received in the conversion) within  one  hundred  eighty  (180)  days  following  the  closing  of  the  applicable  Disposition  and  (C) aggregate  non-cash consideration received by the Company or such Subsidiary having an aggregate fair market value  (determined in good faith by the Company as of the closing of the applicable Disposition for which such  non-cash consideration is received and without giving effect to subsequent changes in value) not to exceed  the greater of (x) $30,000,000 and (y) 3% of Consolidated Total Assets at any time since the Effective Date  (net of any non-cash consideration converted into cash and Permitted Investments).         SECTION 6.06. Sale  and  Leaseback  Transactions.  No  Loan  Party  will,  nor  will  it  permit  any  Subsidiary to, enter into any Sale and Leaseback Transaction unless (a) any Capital Lease Obligations  arising in connection therewith are permitted under Section 6.01 and (b) any Liens arising in connection  therewith (including Liens deemed to arise in connection with any such Capital Lease Obligations) are  permitted under Section 6.02.         SECTION 6.07. Swap Agreements. No Loan Party will, nor will it permit any Subsidiary to, enter  into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which the  Company or any Subsidiary has actual exposure (other than those in respect of the Equity Interests or  Indebtedness of the Company or any Subsidiary), (b) Swap Agreements entered into in order to effectively  cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating  rate  or  otherwise)  with  respect  to  any  interest-bearing  liability  or  investment  of the  Company  or  any  Subsidiary and (c) Permitted Call Spread Swap Agreements.         SECTION 6.08. Transactions with Affiliates. No Loan Party will, nor will it permit any Subsidiary  to, sell, lease or otherwise transfer any assets to, or purchase, lease or otherwise acquire any assets from, or  otherwise engage in any other transactions with, any of its Affiliates, except:         (a)   transactions that are at prices and on terms and conditions at least substantially as favorable  to the Company or such Subsidiary (or, in the case of a transaction between a Loan Party and a non-Loan                                        104   

 

Party, at least substantially as favorable to such Loan Party) as those that could be obtained at the time in a  comparable arm’s-length transaction with a Person that is not an Affiliate;         (b)   transactions between or among the Company and the other Loan Parties or any Person that  becomes a Loan Party as a result of or in connection with such loan or other transaction to the extent  permitted hereunder and not involving any other Affiliate;         (c)   (i) transactions between or among Subsidiaries that are not Loan Parties and not involving  any other Affiliate and (ii) transactions between any Loan Party and any Subsidiary that is not a Loan Party  to the extent permitted hereunder;         (d)   any Investment (including loans or advances to employees) permitted under Section 6.04;         (e)   the payment of reasonable fees to directors of the Company or any Subsidiary who are not  employees of the Company or any Subsidiary;         (f)   compensation,  expense  reimbursement  and  indemnification  of,  and  other  employment  arrangements  (including severance  arrangements  and health, disability and  similar insurance  or benefit  plans) with, directors, officers, managers, employees and consultants of the Company or any Subsidiary  entered into in the ordinary course of business and transactions pursuant to equity-based plans and employee  benefit plans and arrangements in the ordinary course of business;         (g)   any Restricted Payment permitted by Section 6.09;         (h)   any issuance or sale of Equity Interests to, and any repurchase, retirement, redemption or  other acquisition or retirement of Equity Interests owned by, Affiliates to the extent not prohibited under  this Agreement;         (i)   any payments or other transactions pursuant to any tax sharing agreement among the Loan  Parties and their subsidiaries; provided that, any such tax sharing agreement is on arm’s-length terms usual  and customary for agreements of that type;         (j)   the consummation of the Transactions and the payment of the Transaction Costs;         (k)   the  payment  of customary  fees  and  reasonable  out of  pocket costs  to,  and  indemnities  provided on behalf of, directors, officers, managers, employees and consultants of the Company or any  Subsidiary in the ordinary course of business to the extent attributable to the ownership or operation of the  Company and its Subsidiaries;         (l)   transactions pursuant to agreements in existence on the Effective Date and set forth on  Schedule 6.08 or any amendment thereto to the extent such an amendment is not adverse to the Lenders in  any material respect;         (m)   a joint venture which would constitute a transaction with an Affiliate solely as a result of  the Company or any Subsidiary owning an equity interest or otherwise controlling such joint venture or  similar entity;         (n)   transactions with joint ventures, customers, suppliers, contractors, joint venture partners  (including physicians) or purchasers or sellers of goods or services, in each case which are in the ordinary  course of business (including pursuant to joint venture agreements) and otherwise in compliance with the  terms of the Loan Documents, and which are fair to the Company or its applicable Subsidiaries in the                                        105   

 

reasonable determination of the board of directors, chief executive officer or chief financial officer of the  Company or its Subsidiaries, as applicable, or are on terms at least as favorable as might reasonably have  been obtained at such time from an unaffiliated party;         (o)   existing Indebtedness and any other obligations otherwise permitted hereunder pursuant to  an  agreement  existing  on  the  Effective  Date  as  set  forth  on Schedule 6.01,  as such agreement  may  be  amended pursuant to Section 6.01; and         (p)   any lease or sublease entered into between the Company or any Subsidiary, as lessee, and  any Affiliate of the Company, as lessor or sublessor, which is approved by a majority of the disinterested  members of the board of directors of the Company in good faith.         SECTION 6.09. Restricted Payments. No Loan Party will, nor will it permit any Subsidiary to,  will declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or  otherwise) to do so, except that:         (a)   any Subsidiary may declare and pay dividends or make other distributions with respect to  its Equity Interests, in each case ratably to the holders of such Equity Interests (or if not ratably, on a basis  more favorable to the Company and the Loan Parties);         (b)   the Company may declare and pay dividends with respect to its Equity Interests payable  solely in shares of Qualified Equity Interests of the Company;         (c)   the Company may repurchase, purchase, acquire, cancel or retire for value Equity Interests  of the Company from present or former employees, officers, directors or consultants (or their estates or  beneficiaries under their estates) of the Company or any Subsidiary upon the death, disability, retirement  or termination of employment or service of such employees, officers, directors or consultants, or to the  extent required, pursuant to employee benefit plans, employment agreements, stock purchase agreements  or stock purchase plans, or other benefit plans; provided that the aggregate amount of Restricted Payments  made pursuant to this Section 6.09(c) shall not exceed $5,000,000 in any fiscal year (with unused amounts  in any calendar year being carried over to succeeding calendar years subject to a maximum of $10,000,000;  provided, further, that such amount in any calendar year may be increased by an amount not to exceed:               (i)   the net cash proceeds from the sale of Equity Interests (other than Disqualified        Equity  Interests)  of  the  Company  or  any  Subsidiary  to  members  of  management,  managers,        directors or consultants of the Company or any Subsidiary that occurs after the Effective Date, to        the extent net cash proceeds from the sale of such Equity Interests have not otherwise been applied        to the payment of Restricted Payments by virtue of Section 6.09(b) or this Section 6.09(c); plus               (ii)  the net cash proceeds of key man life insurance policies received by the Company        or any Subsidiary; less               (iii) the amount of any Restricted Payments previously made with the cash proceeds        described in clauses (i) and (ii) of this Section 6.09(c);         (d)   the  Company  may  make  cash  payments  in  lieu  of  the  issuance  of  fractional  shares  representing insignificant interests in the Company in connection with (i) the exercise of warrants, options  or  other  securities  convertible  into  or  exchangeable  for  Equity  Interests  in  the  Company  and  (ii) any  dividend, split or combination thereof or any Permitted Acquisition;                                         106   

 

      (e)   the Company may acquire Equity Interests of the Company upon the exercise of stock  options for such Equity Interests of the Company if such Equity Interests represent a portion of the exercise  price of such stock options or in connection with tax withholding obligations arising in connection with the  exercise of options by, or the vesting of restricted Equity Interests held by, any current or former director,  officer or employee of the Company or its Subsidiaries;         (f)   the Company may convert or exchange any Equity Interests of the Company for or into  Qualified Equity Interests of the Company;         (g)   the Company and its Subsidiaries may declare or make, or agree to pay or make, directly  or indirectly, any other Restricted Payments (whether or not of a type described in the other paragraphs of  this Section 6.09) so long as, both immediately before and after giving effect (including pro forma effect)  to such Restricted Payment (x) no Default or Event of Default shall have occurred and be continuing and  (y) the Payment Condition shall be satisfied with respect to such Restricted Payments;         (h)   the  Company  may  make  Restricted  Payments  within  sixty  (60)  days  after  the  date  of  declaration thereof, if at the date of declaration of such Restricted Payments, such Restricted Payments  would have been permitted pursuant to another clause of this Section 6.09;         (i)   the  Company  and  its  Subsidiaries  may  make  Restricted  Payments  to  effect  the  Transactions; and         (j)   the Company and its Subsidiaries may declare or make, or agree to pay or make, directly  or indirectly, any other Restricted Payments (whether or not of the type described in the other paragraphs  of this Section 6.09) so long as (i) both immediately before and after giving effect (including pro forma  effect) to such Restricted Payments, no Default or Event of Default has occurred and is continuing and (ii)  the aggregate amount of such Restricted Payments made in reliance on this clause (j) during any fiscal year  of the Company shall not exceed $20,000,000.         Notwithstanding  the  foregoing,  the  Company  may  also  repurchase,  exchange  or  induce  the  conversion of Permitted Convertible Notes by delivery of shares of the Company’s common stock and/or  a different series of Permitted Convertible Notes (which series (x) matures after, and does not require any  scheduled amortization or other scheduled payments of principal prior to, the analogous date under the  indenture governing the Permitted Convertible Notes that are so repurchased, exchanged or converted and  (y)  has terms,  conditions  and  covenants  that  are  no  less  favorable  to the  Company  than  the  Permitted  Convertible Notes that are so repurchased, exchanged or converted (as determined by the board of directors  of the Company, or a committee thereof, in good faith)) (any such series of Permitted Convertible Notes,  “Refinancing  Convertible  Notes”)  and/or  by  payment  of  cash (in  an  amount  that  does  not  exceed  the  proceeds received by the Company from the substantially concurrent issuance of shares of the Company’s  common stock and/or a Refinancing Convertible Notes plus the net cash proceeds, if any, received by the  Company pursuant to the related exercise or early unwind or termination of the related Permitted Call  Spread  Swap  Agreements  pursuant  to  the  immediately  following  proviso); provided that,  substantially  concurrently with, or a commercially reasonable period of time before or after, the related settlement date  for the Permitted Convertible Notes that are so repurchased, exchanged or converted, the Company shall  (and,  for the  avoidance  of  doubt, shall  be  permitted  under this Section 6.09 to)  exercise  or unwind or  terminate  early (whether in cash,  shares or any combination thereof) the  portion of the  Permitted  Call  Spread  Swap  Agreements,  if  any,  corresponding  to  such  Permitted  Convertible  Notes  that  are  so  repurchased, exchanged or converted.         SECTION 6.10. Subordinated  Indebtedness  and  Amendments  to  Subordinated  Indebtedness  Documents.                                        107   

 

      (a)   No Loan Party will, nor will it permit any Subsidiary to, directly or indirectly voluntarily  prepay, defease or in substance defease, purchase, redeem, retire or otherwise acquire, any Subordinated  Indebtedness  or  any  Indebtedness  from  time  to  time  outstanding  under  the  Subordinated  Indebtedness  Documents, except:               (i)   regularly scheduled interest and principal payments as and when due in respect of        any Subordinated Indebtedness, other than payments prohibited by the subordination provisions        thereof;               (ii)  refinancings  of  Subordinated  Indebtedness  with  the  proceeds  of  Refinancing        Indebtedness permitted in respect thereof under Section 6.01;               (iii) payments of or in respect of Subordinated Indebtedness made solely with Qualified        Equity Interests in the Company or the conversion of any Subordinated Indebtedness into Qualified        Equity Interests of the Company;               (iv)  prepayments of intercompany Subordinated Indebtedness permitted hereby owed        by the Company or any Subsidiary to the Company or any Subsidiary, other than prepayments        prohibited by the subordination provisions governing such Subordinated Indebtedness; provided        that, for the avoidance of doubt, the prepayment of any Subordinated Indebtedness owed by the        Company or any Loan Party to any Subsidiary that is not a Loan Party shall be permitted so long        as no Default shall have occurred and be continuing or would result after giving effect (including        pro forma effect) thereto; and               (v)   so  long  as  no  Default  shall  have  occurred  and  be  continuing  or  would  result        therefrom,  the  Company  may  on  any  date  make  payments  of  or  in  respect  of  Subordinated        Indebtedness if at the time of making such payment and immediately after giving effect (including        pro forma effect) thereto, the Payment Condition shall be satisfied.         (b)   Furthermore,  no  Loan  Party  will,  nor  will  it  permit  any  Subsidiary  to,  amend  the  Subordinated  Indebtedness  Documents  relating  to  any  Subordinated  Indebtedness  or  any  document,  agreement or instrument evidencing any Indebtedness incurred pursuant to the Subordinated Indebtedness  Documents (or any replacements, substitutions, extensions or renewals thereof) or pursuant to which such  Indebtedness is issued where such amendment, modification or supplement amends, modifies or adds any  provision thereof in a manner which (i) when taken as a whole, is materially adverse the Lenders or (ii) is  more onerous than the applicable provision in this Agreement (except in each case to the extent permitted  under the applicable subordination agreement governing such Subordinated Indebtedness).         SECTION 6.11. Restrictive Agreements. No Loan Party will, nor will it permit any Subsidiary to,  directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that restricts  or imposes any condition upon (a) the ability of the Company or any Subsidiary to create, incur or permit  to exist any Lien upon any of its assets to secure the Secured Obligations or (b) the ability of any Subsidiary  to pay dividends or other distributions with respect to any of its Equity Interests or to make or repay loans  or advances to the Company or any Subsidiary; provided that                (i)   the foregoing shall not apply to:                     (A)   restrictions and conditions imposed by law or by this Agreement or any              other Loan Document;                                         108   

 

      (B)   restrictions  and  conditions  contained  in  any  agreement  or  document  governing or evidencing Refinancing Indebtedness in respect of Indebtedness referred to  in clause (A) or Refinancing Indebtedness in respect thereof; provided that the restrictions  and conditions contained in any such agreement or document referred to in this clause (B)  are  not  less  favorable  in  any  material  respect  to  the  Lenders  than  the  restrictions  and  conditions imposed by this Agreement;         (C)   restrictions  and  conditions  existing  on  the  date hereof  identified  on  Schedule 6.11, and restrictions and conditions contained in any agreement evidencing any  renewal,  extension  or  refinancing  permitted  hereunder  of  any  agreement  identified  on  Schedule 6.11 so long as such renewal, extension or refinancing does not expand the scope  of such restrictions or conditions;         (D)   in  the  case  of  any  Subsidiary  that  is  not  a  wholly-owned  Subsidiary,  restrictions and conditions imposed by its organizational documents or any related joint  venture or similar agreements; provided that such restrictions and conditions apply only to  such Subsidiary and to the Equity Interests of such Subsidiary;         (E)   restrictions imposed by any agreement governing Indebtedness incurred  by  any  Loan  Party  or  any  Subsidiary  after  the  Effective  Date  and  permitted  under  Section 6.01 that are, taken as a whole, in the good faith judgment of the Company, no  more restrictive with respect to the Company or any Subsidiary than those contained in this  Agreement;         (F)   customary restrictions and conditions contained in agreements relating to  the sale, transfer, lease or other Disposition of a Subsidiary or any assets of the Company  or any Subsidiary, in each case pending such transaction; provided that, such restrictions  and conditions apply only to such Subsidiary or the assets that are to be sold, leased or  otherwise transferred and, in each case, such transaction is permitted hereunder;         (G)   restrictions  relating  to  assets  encumbered  by  a  Lien  permitted  by  Section 6.02;         (H)   [reserved];         (I)   restrictions  imposed  by  any  agreement governing  Indebtedness  of  a  Subsidiary  which  is  not  a  Loan  Party  to  the  extent  such  Indebtedness  is  permitted  by  Section 6.01; and         (J)   restrictions or conditions on cash or other deposits imposed by customers  under contracts entered into in the ordinary course of business; and    (ii)  clause (a) of this Section 6.11 shall not apply to:         (A)   restrictions and conditions imposed by any agreement relating to secured  Indebtedness permitted by clause (f), (g), (h), (j), (k), (m) and (n) of Section 6.01 if such  restrictions and conditions apply only to the assets securing such Indebtedness;         (B)   customary provisions in leases, subleases, licenses and other agreements  restricting the assignment thereof; and                             109                

 

                  (C)   restrictions  imposed  by  agreements  relating  to  Indebtedness  of  any              Subsidiary in existence at the time such Subsidiary became a Subsidiary and otherwise              permitted by Section 6.01(g); provided that such restrictions apply only to such Subsidiary              and  its  assets  (or  any  special  purpose  acquisition  Subsidiary  without  material  assets              acquiring such Subsidiary pursuant to a merger).   Nothing  in  this Section 6.11 shall  be  deemed  to  modify  the  obligations  of  the  Loan  Parties  under  Section 5.14 or under the Collateral Documents.         SECTION 6.12. Fixed Charge Coverage Ratio. During any FCCR Test Period, the Borrowers will  not permit the Fixed Charge Coverage Ratio as of the last day of any period of four fiscal quarters ending  during such FCCR Test Period, to be less than 1.00 to 1.00.         SECTION 6.13. [Intentionally Omitted].         SECTION 6.14. Depository  Banks.  Each  Borrower  and  each  Subsidiary  will  maintain  the  Administrative  Agent  as  its  principal  depository  bank,  including  for  the  maintenance  of  operating,  administrative,  cash  management,  collection  activity  and  other  deposit  accounts  for  the  conduct  of  its  business; provided, however, that the Administrative Agent and the Lenders acknowledge and agree that  the Borrowers and their Subsidiaries will not be required to maintain with the Administrative Agent any  Excluded Accounts or any accounts governing controlled disbursement services provided by any financial  institution other than the Administrative Agent.                                    ARTICLE VII                                                                           Events of Default         If any of the following events (“Events of Default”) shall occur:         (a)   any Borrower shall fail to pay any principal of any Loan or any reimbursement obligation  in respect of any LC Disbursement 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)   any Borrower shall fail to pay any interest on any Loan or any fee or any other amount  (other than an amount referred to in clause (a) of this Article) payable under this Agreement or any other  Loan Document, when and as the same shall become due and payable, and such failure shall continue  unremedied for a period of three (3) Business Days;         (c)   any representation or warranty made or deemed made by or on behalf of any Borrower or  any  other  Loan  Party  in  or  in  connection  with  this  Agreement  or  any  other  Loan  Document  or  any  amendment or modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate,  financial statement or other document furnished pursuant to or in connection with this Agreement or any  other Loan Document or any amendment or modification thereof or waiver thereunder, 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(a), 5.03 (with respect to a Borrower’s existence), 5.08, 5.13, 5.14 or in Article VI;         (e)   any  Loan  Party  shall  fail  to  observe  or  perform  any  covenant,  condition  or  agreement  contained in this  Agreement (other  than  those  which  constitute  a  default under  another  Section of this  Article), and such failure shall continue unremedied for a period of (i) five (5) days after the earlier of any  Loan Party’s knowledge of such breach or notice thereof from the Administrative Agent (which notice will                                        110   

 

be given at the request of any Lender) if such breach relates to terms or provisions of Section 5.01, 5.02  (other than Section 5.02(a)), 5.03, 5.04, 5.05, 5.07 or 5.09 of this Agreement or (ii) thirty (30) days after  the earlier of any Loan Party’s knowledge of such breach or notice thereof from the Administrative Agent  (which notice will be given at the request of any Lender) if such breach relates to terms or provisions of  any other Section of this Agreement;         (f)   any Loan Party or any Material Subsidiary shall fail to make any payment (whether of  principal or interest and regardless of amount) in respect of any Material Indebtedness of such Loan Party  or Material Subsidiary, as applicable, when and as the same shall become due and payable, which is not  cured within 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, after giving effect to the expiration of any applicable  grace  period,  and  delivery  of  any  applicable  required  notice,  provided  in  the  applicable  agreement  or  instrument under which such Indebtedness was created, the holder or holders of such Material Indebtedness  or any trustee or agent on its or their behalf to cause such 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 (i) secured Material Indebtedness that becomes due as a result of the  sale, transfer or other disposition (including as a result of a casualty or condemnation event) of the property  or assets securing such Indebtedness (to the extent such sale, transfer or other disposition is not prohibited  under this Agreement), (ii) any Material Indebtedness that becomes due as a result of a refinancing thereof  permitted  by Section 6.01,  (iii)  any  reimbursement  obligation  in  respect  of  a  letter  of  credit,  bankers’  acceptance  or  similar  obligation  as  a  result  of  a  drawing  thereunder  by  a  beneficiary  thereunder  in  accordance with its terms, (iv) any such Material Indebtedness that is mandatorily prepayable prior to the  scheduled  maturity  thereof  with  the  proceeds  of  the  issuance  of  capital  stock,  the  incurrence  of  other  Indebtedness or the sale or other disposition of any assets, so long as such Material Indebtedness that has  become  due  is  so  prepaid  in  full  with  such  net  proceeds  required  to  be  used  to  prepay  such  Material  Indebtedness when due (or within any applicable grace period) and such event shall not have otherwise  resulted in an event of default with respect to such Material Indebtedness, (v) any redemption, exchange,  repurchase, conversion or settlement with respect to any Permitted Convertible Notes, or satisfaction of any  condition  giving  rise  to  or  permitting  the  foregoing,  pursuant  to  their  terms  unless  such  redemption,  repurchase, conversion or settlement results from a default thereunder or an event of the type that constitutes  an Event of Default or (vi) any early payment requirement or unwinding or termination with respect to any  Permitted Call Spread Swap Agreement, or satisfaction of any condition giving rise to or permitting the  foregoing, in accordance with the terms thereof where neither the Company nor any of its Affiliates is the  “defaulting party” (or substantially equivalent term) under the terms of such Permitted Call Spread Swap  Agreement;         (h)   an involuntary proceeding shall be commenced or an involuntary petition shall be filed  seeking (i) liquidation, reorganization or other relief in respect of any Borrower or any Material Subsidiary  or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency,  receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian,  sequestrator, conservator or similar official for any Borrower or any Material Subsidiary or for a substantial  part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty  (60) days or an order or decree approving or ordering any of the foregoing shall be entered;         (i)   any Borrower or any Material Subsidiary shall (i) voluntarily commence any proceeding  or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign  bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution  of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h)  of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator,                                        111   

 

conservator or similar official for any Borrower or any Material Subsidiary or for a substantial part of its  assets,  (iv) file  an  answer  admitting  the  material  allegations of  a  petition  filed  against  it  in  any  such  proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose  of effecting any of the foregoing;         (j)   any Borrower or any Material Subsidiary shall become unable, admit in writing its inability  or fail generally to pay its debts as they become due;         (k)   one or more judgments for the payment of money in an aggregate amount in excess of  $15,000,000 (to the extent not paid, fully bonded or covered by a solvent and unaffiliated insurer that has  not  denied  coverage)  shall  be  rendered  against  any  Loan  Party  or  any  Material  Subsidiary  or  any  combination thereof and the same shall remain undischarged for a period of sixty (60) consecutive days  during which execution shall not be effectively stayed (by reason of pending appeal or otherwise), or any  action shall be legally taken by a judgment creditor to attach or levy upon any assets of any Loan Party or  any Material Subsidiary to enforce any such judgment and such action shall not have been stayed;         (l)   an ERISA Event shall have occurred that, when taken together with all other ERISA Events  that have occurred, could reasonably be expected to result in a Material Adverse Effect;         (m)   a Change in Control shall occur;         (n)   the occurrence of any “default” or “Event of Default”, as defined in any Loan Document  (other than this Agreement), or the breach of any of the terms or provisions of any Loan Document (other  than this Agreement), which default or breach continues beyond any period of grace therein provided (but  if no specific grace period is provided therein, which default or breach continues beyond thirty (30) days  after the earlier of knowledge of such default or breach or notice thereof);         (o)   any Loan Document, after execution thereof and for any reason other than as expressly  permitted hereunder or thereunder or in satisfaction in full of the Obligations, ceases to be valid, binding  and enforceable against the Company or any other Loan Party party thereto in accordance with its terms in  all material respects (or any Loan Party shall challenge the enforceability of any Loan Document or shall  assert in writing, or engage in any action or inaction based on any such assertion, that any material provision  of  any  of the  Loan  Documents  has ceased  to  be  or  otherwise  is  not  valid,  binding  and  enforceable  in  accordance with its terms in any material respect, other than as expressly permitted hereunder or thereunder  or the satisfaction in full in cash of the Obligations then due and payable); or         (p)   except as permitted by the terms of any Collateral Document or this Agreement, (i) any  Collateral Document shall for any reason fail to create  or keep created a  valid security interest in any  material portion of the Collateral purported to be covered thereby, or (ii) other than as a result of the failure  of the Administrative Agent to take any action within its control to maintain perfection of the Liens created  in favor of the Administrative Agent for the benefit of the Secured Parties pursuant to the Loan Documents  (excluding any action based on facts or circumstances for which the Administrative Agent has not been  notified in accordance with the provisions of the Loan Documents), any Lien securing any material portion  of the Secured Obligations shall cease to be a perfected Lien having the priority required by the Loan  Documents;   then, and in every such event (other than an event with respect to any 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 written notice to the Borrower Representative,  take either or both of the following actions, at the same or different times: (i) terminate the Commitments  and thereupon the Commitments shall terminate immediately, (ii) declare the Loans then outstanding to be                                        112   

 

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), and thereupon the principal of the Loans so declared to be  due and payable, together with accrued interest thereon and all fees and other Secured Obligations of the  Borrowers  accrued  hereunder  and  under  the  other  Loan  Documents,  shall  become  due  and  payable  immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby  waived  by  the  Borrowers  and  (iii)  require  cash  collateral  for  the  LC  Exposure  in  accordance  with  Section 2.06(j); and in case of any event with respect to any Borrower described in clause (h) or (i) of this  Article, the Commitments shall automatically terminate and the principal of the Loans then outstanding and  the cash collateral for the LC Exposure, together with accrued interest thereon and all fees and other Secured  Obligations accrued hereunder and under the other Loan Documents, 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.  Upon  the  occurrence  and  during  the continuance  of  an  Event  of  Default,  the  Administrative  Agent  may,  and  at  the  request  of  the  Required  Lenders  shall,  exercise  any  rights  and  remedies provided to the Administrative Agent under the Loan Documents or at law or equity, including  all remedies provided under the UCC.                                    ARTICLE VIII                                                                        The Administrative Agent         SECTION 8.01. Authorization and Action.         (a)   Each Lender, on behalf of itself and any of its Affiliates that are Secured Parties and the  Issuing Bank hereby irrevocably appoints the entity named as Administrative Agent in the heading of this  Agreement and its successors and assigns to serve as the administrative agent and collateral agent under the  Loan Documents and each Lender and the Issuing Bank authorizes the Administrative Agent to take such  actions  as  agent  on  its  behalf  and  to  exercise  such  powers  under  this  Agreement  and  the  other  Loan  Documents  as  are  delegated  to  the  Administrative  Agent  under  such  agreements  and  to  exercise  such  powers  as  are  reasonably  incidental  thereto.  In  addition,  to the  extent  required  under  the  laws  of  any  jurisdiction other than within the United States, each Lender and the Issuing Bank hereby grants to the  Administrative Agent any required powers of attorney to execute and enforce any Collateral Document  governed by the laws of such jurisdiction on such Lender’s or such Issuing Bank’s behalf. Without limiting  the foregoing, each Lender and the Issuing Bank hereby authorizes the Administrative Agent to execute  and deliver, and to perform its obligations under, each of the Loan Documents to which the Administrative  Agent is a party, and to exercise all rights, powers and remedies that the Administrative Agent may have  under such Loan Documents.         (b)   As  to any matters  not expressly provided for herein and  in the other Loan  Documents  (including  enforcement  or  collection),  the  Administrative  Agent  shall  not  be  required  to  exercise  any  discretion  or  take  any  action,  but  shall  be  required  to  act  or  to refrain from  acting  (and  shall  be  fully  protected in so acting or refraining from acting) upon the written instructions of the Required Lenders (or  such other number or percentage of the Lenders as shall be necessary, pursuant to the terms in the Loan  Documents), and, unless and until revoked in writing, such instructions shall be binding upon each Lender  and the Issuing Bank; provided, however, that the Administrative Agent shall not be required to take any  action  that  (i)  the  Administrative  Agent  in  good  faith  believes  exposes  it  to  liability  unless  the  Administrative Agent receives an indemnification and is exculpated in a manner satisfactory to it from the  Lenders and the Issuing Bank with respect to such action or (ii) is contrary to this Agreement or any other  Loan Document or applicable law, including any action that may be in violation of the automatic stay under  any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors or that may  effect  a  forfeiture,  modification  or  termination  of  property  of  a  Defaulting  Lender  in  violation  of  any  requirement  of  law relating  to  bankruptcy,  insolvency  or  reorganization  or  relief  of  debtors; provided,                                        113   

 

further, that the Administrative Agent may seek clarification or direction from the Required Lenders prior  to the exercise of any such instructed action and may refrain from acting until such clarification or direction  has been provided. Except as expressly set forth in the Loan Documents, the Administrative Agent shall  not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to  any  Borrower,  any  other  Loan  Party,  any  Subsidiary  or  any  Affiliate  of  any  of  the  foregoing  that  is  communicated to or obtained by the Person serving as Administrative Agent or any of its Affiliates in any  capacity. Nothing in this Agreement shall require the Administrative Agent to expend or risk its own funds  or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise  of any of its rights or powers if it shall have reasonable grounds for believing that repayment of such funds  or adequate indemnity against such risk or liability is not reasonably assured to it.         (c)   In performing its functions and duties hereunder and under the other Loan Documents, the  Administrative Agent is acting solely on behalf of the Lenders and the Issuing Bank (except in limited  circumstances expressly provided for herein relating to the maintenance of the Register), and its duties are  entirely mechanical and administrative in nature. Without limiting the generality of the foregoing:               (i)   the  Administrative  Agent  does  not  assume  and  shall  not  be  deemed  to  have        assumed any obligation or duty or any other relationship as the agent, fiduciary or trustee of or for        any Lender, Issuing Bank or Secured Party or holder of any other obligation other than as expressly        set forth herein and in the other Loan Documents, regardless of whether a Default or an Event of        Default has occurred and is continuing (and it is understood and agreed that the use of the term        “agent”  (or  any  similar  term)  herein  or  in  any  other  Loan  Document  with  reference  to  the        Administrative Agent is not intended to connote any fiduciary duty or other implied (or express)        obligations arising under agency doctrine of any applicable law, and that such term is used as a        matter of market custom and is intended to create or reflect only an administrative relationship        between  contracting  parties); additionally,  each  Lender  agrees  that it  will  not  assert  any  claim        against  the  Administrative  Agent  based  on  an  alleged  breach of  fiduciary  duty  by  the        Administrative  Agent  in  connection  with  this  Agreement  and/or  the  transactions  contemplated        hereby; and               (ii)  nothing in this Agreement or any Loan Document shall require the Administrative        Agent to account to any Lender for any sum or the profit element of any sum received by the        Administrative Agent for its own account.         (d)   The Administrative Agent may perform any of its duties and exercise its rights and powers  hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the  Administrative  Agent.  The  Administrative  Agent  and  any  such  sub-agent  may  perform  any  of  their  respective duties and exercise their respective rights and powers through their respective Related Parties.  The exculpatory provisions of this Article 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 pursuant to  this Agreement. The Administrative Agent shall not be responsible for the negligence or misconduct of any  sub-agent except to the extent that a court of competent jurisdiction determines in a final and non-appealable  judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection  of such sub-agent.         (e)   None of the Lead Arranger nor the Syndication Agent shall have any obligations or duties  whatsoever in such capacity under this Agreement or any other Loan Document and shall incur no liability  hereunder  or  thereunder  in  such  capacity,  but  shall  have  the  benefit  of  the  indemnities  provided  for  hereunder.                                         114   

 

      (f)   In  case  of  the  pendency  of  any  proceeding  with  respect  to  any  Loan  Party  under  any  Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, the  Administrative Agent (irrespective of whether the principal of any Loan or any reimbursement obligation  in respect of any LC Disbursement shall then be due and payable as herein expressed or by declaration or  otherwise  and  irrespective  of  whether  the  Administrative  Agent  shall  have  made  any  demand  on  any  Borrower)  shall  be  entitled  and  empowered  (but  not  obligated)  by  intervention  in  such  proceeding  or  otherwise:               (i)   to file and prove a claim for the whole amount of the principal and interest owing        and unpaid in respect of the Loans, LC Disbursements and all other Obligations that are owing and        unpaid and to file such other documents as may be necessary or advisable in order to have the        claims of the Lenders, the Issuing Bank and the Administrative Agent (including any claim under        Sections 2.12, 2.13, 2.15, 2.17 and 9.03) allowed in such judicial proceeding; and               (ii)  to collect and receive any monies or other property payable or deliverable on any        such claims and to distribute the same;         and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in  any such proceeding is hereby authorized by each Lender, the Issuing Bank and each other Secured Party  to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall  consent to the making of such payments directly to the Lenders, the Issuing Bank or the other Secured  Parties, to pay to the Administrative Agent any amount due to it, in its capacity as the Administrative Agent,  under the Loan Documents (including under Section 9.03). Nothing contained herein shall be deemed to  authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender  or  Issuing  Bank  any  plan  of  reorganization,  arrangement,  adjustment  or composition  affecting  the  Obligations or the rights of any Lender or Issuing Bank or to authorize the Administrative Agent to vote in  respect of the claim of any Lender or Issuing Bank in any such proceeding.         (g)   The provisions of this Article are solely for the benefit of the Administrative Agent, the  Lenders and the Issuing Bank, and, except solely to the extent of the Borrowers’ right to consent pursuant  to and subject to the conditions set forth in this Article, no Borrower nor any Subsidiary, or any of their  respective Affiliates, shall have any rights as a third party beneficiary under any such provisions. Each  Secured  Party, whether or not a  party hereto, will be  deemed,  by its  acceptance of the  benefits  of the  Collateral and of the Guarantees of the Secured Obligations provided under the Loan Documents, to have  agreed to the provisions of this Article.         SECTION 8.02. Administrative Agent’s Reliance, Indemnification, Etc.          (a)   Neither the Administrative Agent nor any of its Related Parties shall be (i) liable for any  action taken or omitted to be taken by such party, the Administrative Agent or any of its Related Parties  under or in connection with this Agreement or the other Loan Documents (x) with the consent of or at the  request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary,  or as the Administrative Agent shall believe in good faith to be necessary, under the circumstances as  provided in the Loan Documents) or (y) in the absence of its own gross negligence or willful misconduct  (such absence to be presumed unless otherwise determined by a court of competent jurisdiction by a final  and non-appealable judgment) or (ii) responsible in any manner to any of the Lenders for any recitals,  statements, representations or warranties made by any Loan Party or any officer thereof contained in this  Agreement or any other Loan Document or in any certificate, report, statement or other document referred  to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement  or  any  other  Loan  Document  or  for  the  value,  validity,  effectiveness,  genuineness,  enforceability  or                                         115   

 

sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party to perform  its obligations hereunder or thereunder.         (b)   The Administrative Agent shall be deemed not to have knowledge of any Default unless  and until written notice thereof (stating that it is a “notice of default”) is given to the Administrative Agent  by the Borrower Representative, a Lender or the Issuing Bank, 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 any Loan Document, (ii) the contents of any certificate, report or other  document delivered thereunder or in connection therewith, (iii) the performance or observance of any of  the covenants, agreements or other terms or conditions set forth in any Loan Document or the occurrence  of  any  Default,  (iv)  the  sufficiency,  validity,  enforceability,  effectiveness  or  genuineness  of  any  Loan  Document or any other agreement, instrument or document, (v) the satisfaction of any condition set forth  in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items (which on their  face purport to be such items) expressly required to be delivered to the Administrative Agent or satisfaction  of any condition that expressly refers to the matters described therein being acceptable or satisfactory to the  Administrative Agent, or (vi) the creation, perfection or priority of Liens on the Collateral.         (c)   Without limiting the foregoing, the Administrative Agent (i) may treat the payee of any  promissory note as its holder until such promissory note has been assigned in accordance with Section 9.04,  (ii) may rely on the Register to the extent set forth in Section 9.04(b), (iii) may consult with legal counsel  (including counsel to the Borrowers), independent public accountants and other experts selected by it, and  shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the  advice of such counsel, accountants or experts, (iv) makes no warranty or representation to any Lender or  Issuing Bank and shall not be responsible to any Lender or Issuing Bank for any statements, warranties or  representations made by or on behalf of any Loan Party in connection with this Agreement or any other  Loan Document, (v) in determining compliance with any condition hereunder to the making of a Loan, or  the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an  Issuing Bank, may presume that such condition is satisfactory to such Lender or Issuing Bank unless the  Administrative  Agent  shall  have  received  notice  to  the  contrary  from  such  Lender  or  Issuing  Bank  sufficiently in advance of the making of such Loan or the issuance of such Letter of Credit and (vi) shall be  entitled to rely on, and shall incur no liability under or in respect of this Agreement or any other Loan  Document by acting upon, any notice, consent, certificate or other instrument or writing (which writing  may be a fax, any electronic message, Internet or intranet website posting or other distribution) or any  statement made to it orally or by telephone and believed by it to be genuine and signed or sent or otherwise  authenticated by the proper party or parties (whether or not such Person in fact meets the requirements set  forth in the Loan Documents for being the maker thereof).         SECTION 8.03. Posting of Communications.         (a)   The Borrowers agree that the Administrative Agent may, but shall not be obligated to,  make any Communications available to the Lenders and the Issuing Bank by posting the Communications  on  IntraLinksTM,  DebtDomain,  SyndTrak,  ClearPar  or  any  other  electronic  system  chosen  by  the  Administrative Agent to be its electronic transmission system (the “Approved Electronic Platform”).         (b)   Although the Approved Electronic Platform and its primary web portal are secured with  generally-applicable  security  procedures  and  policies  implemented  or  modified  by  the  Administrative  Agent from time to time (including, as of the Effective Date, a user ID/password authorization system) and  the Approved Electronic Platform is secured through a per-deal authorization method whereby each user  may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders, the Issuing  Bank and each Borrower acknowledges and agrees that the distribution of material through an electronic  medium is not necessarily secure, that the Administrative Agent is not responsible for approving or vetting                                        116   

 

the representatives or contacts of any Lender that are added to the Approved Electronic Platform, and that  there may be confidentiality and other risks associated with such distribution. Each of the Lenders, the  Issuing  Bank  and  each  Borrower  hereby  approves  distribution  of  the  Communications  through  the  Approved Electronic Platform and understands and assumes the risks of such distribution.         (c)   THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE  PROVIDED “AS IS” AND “AS AVAILABLE”. THE APPLICABLE PARTIES (AS DEFINED BELOW)  DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR  THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM  LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND  THE  COMMUNICATIONS. NO  WARRANTY  OF  ANY  KIND,  EXPRESS,  IMPLIED  OR  STATUTORY,  INCLUDING  ANY  WARRANTY  OF  MERCHANTABILITY,  FITNESS  FOR  A  PARTICULAR  PURPOSE,  NON-INFRINGEMENT  OF  THIRD  PARTY  RIGHTS  OR FREEDOM  FROM  VIRUSES  OR  OTHER  CODE  DEFECTS,  IS  MADE  BY  THE  APPLICABLE  PARTIES  IN  CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM.  IN  NO  EVENT  SHALL  THE  ADMINISTRATIVE  AGENT,  THE  LEAD  ARRANGER,  THE  SYNDICATION AGENT OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY,  “APPLICABLE PARTIES”) HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER, ANY  ISSUING  BANK  OR  ANY  OTHER  PERSON  OR  ENTITY  FOR  DAMAGES  OF  ANY  KIND,  INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES,  LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF  ANY  LOAN  PARTY’S  OR  THE  ADMINISTRATIVE  AGENT’S  TRANSMISSION  OF  COMMUNICATIONS  THROUGH  THE  INTERNET  OR  THE  APPROVED  ELECTRONIC  PLATFORM.               “Communications”  means,  collectively,  any notice,  demand,              communication, information, document or other material provided by or              on  behalf  of  any  Loan  Party  pursuant  to  any  Loan  Document  or  the              transactions  contemplated  therein  which  is  distributed  by  the              Administrative Agent, any Lender or Issuing Bank by means of electronic              communications pursuant to this Section, including through an Approved              Electronic Platform.         (d)   Each Lender and Issuing Bank agrees that notice to it (as provided in the next sentence)  specifying that Communications have been posted to the Approved Electronic Platform shall constitute  effective delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender  and Issuing Bank agrees (i) to notify the Administrative Agent in writing (which could be in the form of  electronic communication) from time to time of such Lender’s or Issuing Bank’s (as applicable) email  address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing  notice may be sent to such email address.         (e)   Each of the Lenders, Issuing Bank and each Borrower agrees that the Administrative Agent  may, but (except as may be required by applicable law) shall not be obligated to, store the Communications  on the Approved Electronic Platform in accordance with the Administrative Agent’s generally applicable  document retention procedures and policies.         (f)   Nothing herein shall prejudice the right of the Administrative Agent, any Lender or Issuing  Bank to give any notice or other communication pursuant to any Loan Document in any other manner  specified in such Loan Document.                                         117   

 

      SECTION 8.04. The Administrative Agent Individually. With respect to its Commitment, Loans  (including Swingline Loans) and Letters of Credit, the Person serving as the Administrative Agent shall  have and may exercise the same rights and powers hereunder and is subject to the same obligations and  liabilities as and to the extent set forth herein for any other Lender or Issuing Bank, as the case may be. The  terms “Issuing Bank”, “Lenders”, “Required Lenders” and any similar terms shall, unless the context clearly  otherwise indicates, include the Administrative Agent in its individual capacity as a Lender, Issuing Bank  or as one of the Required Lenders, as applicable. The Person serving as the Administrative Agent and its  Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any  other advisory capacity for and generally engage in any kind of banking, trust or other business with, any  Loan Party, any Subsidiary or any Affiliate of any of the foregoing as if such Person was not acting as the  Administrative Agent and without any duty to account therefor to the Lenders or the Issuing Bank.         SECTION 8.05. Successor Administrative Agent.         (a)   The Administrative Agent may resign at any time by giving 30 days’ prior written notice  thereof to the  Lenders, the  Issuing Bank and  the  Borrower Representative,  whether or not a successor  Administrative Agent has been appointed. Upon any such resignation, the Required Lenders shall have the  right, to appoint a successor Administrative Agent. If no successor Administrative Agent shall have been  so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the  retiring Administrative Agent’s giving of notice of resignation, then the retiring Administrative Agent may,  on behalf of the Lenders and the Issuing Bank, 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.  In  either  case,  such  appointment shall be subject to the prior written approval of the Borrower Representative (which approval  may not be unreasonably withheld and shall not be required while an Event of Default has occurred and is  continuing).  Upon  the  acceptance  of  any  appointment  as  Administrative  Agent  by  a  successor  Administrative Agent, such successor Administrative Agent shall succeed to and become vested with, all  the  rights,  powers,  privileges  and  duties  of the  retiring  Administrative  Agent.  Upon  the  acceptance  of  appointment as Administrative  Agent by a successor Administrative  Agent, the retiring Administrative  Agent  shall  be  discharged  from  its  duties  and  obligations  under  this  Agreement  and  the  other  Loan  Documents. Prior to any retiring Administrative Agent’s resignation hereunder as Administrative Agent,  the retiring Administrative Agent shall take such action as may be reasonably necessary to assign to the  successor Administrative Agent its rights as Administrative Agent under the Loan Documents.         (b)   Notwithstanding paragraph (a) of this Section, in the event no successor Administrative  Agent shall have been so appointed and shall have accepted such appointment within 30 days after the  retiring Administrative Agent gives notice of its intent to resign, the retiring Administrative Agent may  give  notice of the  effectiveness of its resignation to the  Lenders, the Issuing Bank and  the  Borrowers,  whereupon,  on  the  date  of  effectiveness  of  such  resignation  stated  in  such  notice,  (i)  the  retiring  Administrative Agent shall be discharged from its duties and obligations hereunder and under the other  Loan Documents; provided that, solely for purposes of maintaining any security interest granted to the  Administrative Agent under any Collateral Document for the benefit of the Secured Parties, the retiring  Administrative  Agent shall continue to be  vested  with such security interest as collateral agent for the  benefit of the Secured Parties and continue to be entitled to the rights set forth in such Collateral Document  and Loan Document, and, in the case of any Collateral in the possession of the Administrative Agent, shall  continue  to  hold  such  Collateral,  in  each  case  until  such  time  as  a  successor  Administrative  Agent  is  appointed and accepts such appointment in accordance with this Section (it being understood and agreed  that the retiring Administrative Agent shall have no duty or obligation to take any further action under any  Collateral Document, including any action required to maintain the perfection of any such security interest),  and (ii) the Required Lenders shall succeed to and become vested with all the rights, powers, privileges and  duties of the retiring Administrative Agent; provided that (A) all payments required to be made hereunder  or under any other Loan Document to the Administrative Agent for the account of any Person other than                                        118   

 

the  Administrative  Agent  shall  be  made  directly  to  such  Person  and  (B)  all  notices  and  other  communications required or contemplated to be given or made to the Administrative Agent shall directly  be  given  or made to each Lender and Issuing Bank. Following the  effectiveness  of the Administrative  Agent’s  resignation  from  its  capacity  as  such,  the  provisions  of  this  Article, Section 2.17(d) and  Section 9.03, as well as any exculpatory, reimbursement and indemnification provisions set forth in any  other Loan Document, shall continue in effect for the benefit of such retiring Administrative Agent, its  sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any  of them while the retiring Administrative Agent was acting as Administrative Agent and in respect of the  matters referred to in the proviso under clause (a) above.         SECTION 8.06. Acknowledgements of Lenders and Issuing Bank.         (a)   Each Lender represents that it is engaged in making, acquiring or holding commercial loans  in  the  ordinary  course  of  its  business  and  that  it  has,  independently  and  without  reliance  upon  the  Administrative Agent, the Lead Arranger, the Syndication Agent or any other Lender, or any of the Related  Parties of any of the foregoing, and based on such documents and information as it has deemed appropriate,  made its own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or  hold Loans hereunder. Each Lender also acknowledges that it will, independently and without reliance upon  the Administrative Agent, the Lead Arranger, the Syndication Agent or any other Lender, or any of the  Related Parties of any of the foregoing, and based on such documents and information (which may contain  material, non-public information within the meaning of the United States securities laws concerning the  Borrowers and their Affiliates) as it shall from time to time deem appropriate, continue to make its own  decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or  any related agreement or any document furnished hereunder or thereunder.         (b)   Each Lender, by delivering its signature page to this Agreement on the Effective Date, or  delivering its signature page to an Assignment and Assumption or any other Loan Document pursuant to  which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of, and consented  to and approved, each Loan Document and each other document required to be delivered to, or be approved  by or satisfactory to, the Administrative Agent or the Lenders on the Effective Date or the effective date of  any such Assignment and Assumption or any other Loan Document pursuant to which it shall have become  a Lender hereunder.         (c)   Each Lender hereby agrees that (i) it has requested a copy of each Report prepared by or  on  behalf  of  the  Administrative  Agent;  (ii)  the  Administrative  Agent  (A)  makes  no  representation  or  warranty, express or implied, as to the completeness or accuracy of any Report or any of the information  contained therein or any inaccuracy or omission contained in or relating to a Report and (B) shall not be  liable  for  any  information  contained  in  any  Report;  (iii)  the  Reports  are  not  comprehensive  audits  or  examinations, and that any Person performing any field examination will inspect only specific information  regarding the Loan Parties and will rely significantly upon the Loan Parties’ books and records, as well as  on  representations  of  the  Loan  Parties’  personnel  and  that  the  Administrative  Agent  undertakes  no  obligation to update, correct or supplement the Reports; (iv) it will keep all Reports confidential and strictly  for its internal use, not share the Report with any Loan Party or any other Person except as otherwise  permitted pursuant to this Agreement; and (v) without limiting the generality of any other indemnification  provision contained in this Agreement, (A) it will hold the Administrative Agent and any such other Person  preparing  a  Report  harmless  from  any  action  the  indemnifying  Lender  may  take  or  conclusion  the  indemnifying Lender may reach or draw from any Report in connection with any extension of credit that  the indemnifying Lender has made or may make to a Borrower, or the indemnifying Lender’s participation  in,  or  the  indemnifying  Lender’s  purchase  of,  a  Loan  or  Loans;  and  (B)  it  will  pay  and  protect,  and  indemnify,  defend,  and  hold  the  Administrative  Agent  and  any  such  other  Person  preparing  a  Report  harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts                                        119   

 

(including reasonable attorneys’ fees) incurred by the Administrative Agent or any such other Person as the  direct  or  indirect  result  of  any  third  parties  who  might  obtain  all  or  part  of  any  Report  through  the  indemnifying Lender.         SECTION 8.07. Collateral Matters.         (a)   Except with respect to the exercise of setoff rights in accordance with Section 9.08 or with  respect to a Secured Party’s right to file a proof of claim in an insolvency proceeding, no Secured Party  shall have any right individually to realize upon any of the Collateral or to enforce any Guarantee of the  Secured Obligations, it being understood and agreed that all powers, rights and remedies under the Loan  Documents  may  be  exercised  solely  by  the  Administrative  Agent  on  behalf  of  the  Secured  Parties  in  accordance with the terms thereof. In its capacity, the Administrative Agent is a “representative” of the  Secured Parties within the meaning of the term “secured party” as defined in the UCC. In the event that any  Collateral  is  hereafter  pledged  by  any  Person  as  collateral  security  for  the  Secured  Obligations,  the  Administrative Agent is hereby authorized, and hereby granted a power of attorney, to execute and deliver  on behalf of the Secured Parties any Loan Documents necessary or appropriate to grant and perfect a Lien  on such Collateral in favor of the Administrative Agent on behalf of the Secured Parties.         (b)   In furtherance of the foregoing and not in limitation thereof, no arrangements in respect of  Banking Services the obligations under which constitute Secured Obligations and no Swap Agreement the  obligations under which constitute Secured Obligations, will create (or be deemed to create) in favor of any  Secured  Party  that  is  a  party  thereto  any  rights  in  connection  with  the  management  or  release  of  any  Collateral or of the obligations of any Loan Party under any Loan Document. By accepting the benefits of  the Collateral, each Secured Party that is a party to any such arrangement in respect of Banking Services or  Swap Agreement, as applicable, shall be deemed to have appointed the Administrative Agent to serve as  administrative agent and collateral agent under the Loan Documents and agreed to be bound by the Loan  Documents as a Secured Party thereunder, subject to the limitations set forth in this paragraph.         (c)   The Secured Parties irrevocably authorize the Administrative Agent, at its option and in its  discretion, to subordinate any Lien on any property granted to or held by the Administrative Agent under  any Loan Document to the holder of any Lien on such property that is permitted by Section 6.02(b). The  Administrative  Agent  shall  not  be  responsible  for  or  have  a  duty  to  ascertain  or  inquire  into  any  representation or warranty regarding the existence, value or collectability of the Collateral, the existence,  priority or perfection of the Administrative Agent’s Lien thereon or any certificate prepared by any Loan  Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders or  any other Secured Party for any failure to monitor or maintain any portion of the Collateral.         SECTION 8.08. Credit  Bidding.  The  Secured  Parties  hereby  irrevocably  authorize  the  Administrative  Agent,  at  the  direction  of the  Required  Lenders,  to  credit  bid  all or any  portion  of  the  Obligations  (including  by  accepting  some  or  all  of  the  Collateral  in  satisfaction  of  some  or  all  of  the  Obligations pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either  directly or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale  thereof conducted under the provisions of the Bankruptcy Code, including under Sections 363, 1123 or  1129 of the Bankruptcy Code, or any similar laws in any other jurisdictions to which a Loan Party is subject,  or (b) at any other sale, foreclosure or acceptance of collateral in lieu of debt conducted by (or with the  consent  or  at  the  direction  of)  the  Administrative  Agent  (whether  by  judicial  action  or  otherwise)  in  accordance with any applicable law. In connection with any such credit bid and purchase, the Obligations  owed to the Secured Parties shall be entitled to be, and shall be, credit bid by the Administrative Agent at  the direction of the Required Lenders on a ratable basis (with Obligations with respect to contingent or  unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest  upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent                                        120   

 

claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the  equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with  such purchase). In connection with any such bid (i) the Administrative Agent shall be authorized to form  one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or  vehicles, (ii) each of the Secured Parties’ ratable interests in the Obligations which were credit bid shall be  deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the  purpose  of  closing  such  sale,  (iii)  the  Administrative  Agent  shall  be  authorized  to  adopt  documents  providing  for  the  governance  of  the  acquisition  vehicle  or  vehicles  (provided that  any  actions  by  the  Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the  assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents  shall provide for, control by the vote of the Required Lenders or their permitted assignees under the terms  of this Agreement or the governing documents of the applicable acquisition vehicle or vehicles, as the case  may be, irrespective of the termination of this Agreement and without giving effect to the limitations on  actions  by the  Required  Lenders  contained in Section 9.02 of this  Agreement), (iv) the  Administrative  Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Secured  Parties, ratably on account of the relevant Obligations which were credit bid, interests, whether as equity,  partnership interests, limited partnership interests or membership interests, in any such acquisition vehicle  and/or debt instruments issued by such acquisition vehicle, all without the need for any Secured Party or  acquisition vehicle to take any further action, and (v) to the extent that Obligations that are assigned to an  acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher  or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of  Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be  reassigned to the Secured Parties pro rata with their original interest in such Obligations and the equity  interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall  automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any  further action. Notwithstanding that the ratable portion of the Obligations of each Secured Party are deemed  assigned to the acquisition vehicle or vehicles as set forth in clause (ii) above, each Secured Party shall  execute such documents and provide such information regarding the Secured Party (and/or any designee of  the Secured Party which will receive interests in or debt instruments issued by such acquisition vehicle) as  the  Administrative  Agent  may  reasonably  request  in  connection  with  the  formation  of  any  acquisition  vehicle,  the  formulation  or  submission  of  any  credit  bid  or  the  consummation  of  the  transactions  contemplated by such credit bid.         SECTION 8.09. Certain ERISA Matters.         (a)   Each Lender (x) represents and warrants, as of the date such Person became a Lender party  hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such  Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, the Lead Arranger  and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of any Borrower or  any other Loan Party, that at least one of the following is and will be true:               (i)   such  Lender  is  not  using  “plan  assets”  (within  the  meaning  of  the  Plan  Asset        Regulations) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or        the Commitments,               (ii)  the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a        class exemption for certain transactions determined by independent qualified professional asset        managers), PTE 95-60 (a class exemption for certain transactions involving insurance company        general  accounts),  PTE  90-1 (a  class  exemption  for  certain  transactions  involving  insurance        company  pooled  separate  accounts),  PTE  91-38  (a  class  exemption  for  certain  transactions        involving  bank  collective  investment  funds)  or  PTE  96-23  (a  class  exemption  for  certain                                        121   

 

      transactions determined by in-house asset managers), is applicable with respect to such Lender’s        entrance  into,  participation  in,  administration  of  and  performance  of  the  Loans,  the  Letters  of        Credit, the Commitments and this Agreement,               (iii) (A) such Lender is an investment fund managed by a “Qualified Professional Asset        Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset        Manager  made  the  investment  decision  on  behalf  of  such  Lender  to  enter  into,  participate  in,        administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C)        the entrance into, participation in, administration of and performance of the Loans, the Letters of        Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through        (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of        subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into,        participation  in,  administration  of  and  performance  of  the  Loans,  the  Letters  of  Credit,  the        Commitments and this Agreement, or               (iv)  such  other  representation,  warranty  and  covenant  as  may  be  agreed  in  writing        between the Administrative Agent, in its sole discretion, and such Lender.         (b)   In  addition,  unless sub-clause  (i) in  the  immediately  preceding clause  (a) is  true  with  respect to a Lender or such Lender has not provided another representation, warranty and covenant as  provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and  warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such  Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the  benefit of, the Administrative Agent, the Lead Arranger and their respective Affiliates, and not, for the  avoidance  of  doubt,  to  or  for  the  benefit  of  any  Borrower  or  any  other  Loan  Party,  that  none  of  the  Administrative Agent, the Lead Arranger, the Syndication Agent or any of their respective Affiliates is a  fiduciary  with  respect  to  the  Collateral  or  the  assets  of such  Lender (including  in connection  with  the  reservation  or  exercise  of  any  rights  by  the  Administrative  Agent  under  this  Agreement,  any  Loan  Document or any documents related to hereto or thereto).         (c)   The Administrative Agent, the Syndication Agent and the Lead Arranger hereby informs  the Lenders that each such Person is not undertaking to provide investment advice or to give advice in a  fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a  financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may  receive interest or other payments with respect to the Loans, the Letters of Credit, the Commitments, this  Agreement and any other Loan Documents, (ii) may recognize a gain if it extended the Loans, the Letters  of Credit or the Commitments for an amount less than the amount being paid for an interest in the Loans,  the Letters of Credit or the Commitments by such Lender or (iii) may receive fees or other payments in  connection  with  the  transactions  contemplated  hereby,  the  Loan  Documents  or  otherwise,  including  structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking  fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter  of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term  out premiums, banker’s acceptance fees, breakage or other early termination fees or fees similar to the  foregoing.         SECTION 8.10. Flood Laws. JPMCB has adopted internal policies and procedures that address  requirements placed on federally regulated lenders under the National Flood Insurance Reform Act of 1994  and  related  legislation  (the  “Flood  Laws”).  JPMCB,  as  administrative  agent  or  collateral  agent  on  a  syndicated facility, will post on the applicable electronic platform (or otherwise distribute to each Lender  in the syndicate) documents that it receives in connection with the Flood Laws. However, JPMCB reminds  each Lender and Participant in the facility that, pursuant to the Flood Laws, each federally regulated Lender                                        122   

 

(whether acting as a Lender or Participant in the facility) is responsible for assuring its own compliance  with the flood insurance requirements.                                    ARTICLE IX                                                                            Miscellaneous         SECTION 9.01. Notices.         (a)   Except in the case of notices and other communications expressly permitted to be given by  telephone or Electronic Systems (and subject in each case to paragraph (b) below), all notices and other  communications provided for herein shall be in writing and shall be delivered by hand or overnight courier  service, mailed by certified or registered mail or sent by facsimile, as follows:               (i)   if to any Loan Party, to the Borrower Representative at:                    Winnebago Industries, Inc.                   13200 Pioneer Trail, Suite 150                   Eden Prairie, MN 55347                   Attention: Bert Jameson, Treasurer               (ii)  if to the Administrative Agent (other than for purposes of a notification of the DQ        List), JPMCB in its capacity as an Issuing Bank or the Swingline Lender, to JPMCB at:                    JPMorgan Chase Bank, N.A.                   10 S. Dearborn St.                   Chicago, Illinois 60603                   Attention: John Morrone                   Facsimile No: (312) 548-1943               (iii) if to the Administrative Agent for purposes of a notification of the DQ List, to        JPMDQ_Contact@jpmorgan.com; and               (iv)  if to any other Lender or Issuing Bank, to it at its address or facsimile number set        forth in its Administrative Questionnaire.         All such notices and other communications (i) sent by hand or overnight courier service, or mailed  by certified or registered mail, shall be deemed to have been given when received, (ii) sent by facsimile  shall be deemed to have been given when sent, provided that if not given during normal business hours of  the recipient, such notice or communication shall be deemed to have been given at the opening of business  on  the  next  Business  Day  of  the  recipient,  or  (iii)  delivered  through  Electronic  Systems  or  Approved  Electronic  Platform,  as  applicable,  to  the  extent  provided  in paragraph  (b) below  shall  be  effective  as  provided in such paragraph.         (b)   Notices and other communications to the Lenders and the Issuing Banks hereunder may be  delivered  or furnished  by  using  Electronic  Systems  or  Approved  Electronic  Systems,  as  applicable,  or  pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply  to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable  Lender. The Administrative Agent or the Company may, in its discretion, agree to accept notices and other  communications to it hereunder by Electronic Systems or Approved Electronic Platforms, as applicable,  pursuant  to  procedures  approved  by  it; provided that  approval  of  such  procedures  may  be  limited  to  particular notices or communications.                                        123   

 

      Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent  to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the  intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other  written acknowledgement), provided that if not given during the normal business hours of the recipient,  such notice or communication shall be deemed to have been given at the opening of business on the next  Business Day for the recipient, and (ii) notices or communications posted to an Internet or intranet website  shall  be  deemed  received  upon  the  deemed  receipt  by  the  intended  recipient,  at  its  e-mail  address  as  described in the foregoing clause (i), of notification that such notice or communication is available and  identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice,  email or other communication is not sent during the normal business hours of the recipient, such notice or  communication shall be deemed to have been sent at the opening of business on the next business day for  the recipient.         (c)   Any  party  hereto  may  change  its  address  or  telecopy  number  for  notices  and  other  communications  hereunder  by  notice  to  the  other  parties  hereto.  Unless  otherwise  set  forth  herein,  all  notices  and  other  communications  given  to  any  party  hereto in  accordance  with  the  provisions  of  this  Agreement shall be deemed to have been given on the date of receipt.         SECTION 9.02. Waivers; Amendments.         (a)   No  failure  or  delay  by  the  Administrative  Agent,  any  Issuing  Bank  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, the Issuing  Banks and the Lenders hereunder and under the other Loan Documents 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 any 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 or issuance of a Letter of Credit shall not be construed as a waiver of any  Default, regardless of whether the Administrative Agent, any Lender or any Issuing Bank may have had  notice or knowledge of such Default at the time.         (b)   Except as provided in the first sentence of Section 2.09(f) (with respect to any commitment  increase), Section 2.14(b) with respect to an alternate rate of interest to the LIBO Rate or Section 6.03(c)  with respect to changes in fiscal year, neither this Agreement nor any provision hereof may be waived,  amended  or  modified  except  pursuant  to  an  agreement  or  agreements  in  writing  entered  into  by  the  Borrowers and the Required Lenders or by the Borrowers and the Administrative Agent with the consent  of the Required Lenders; provided that no such agreement shall:               (i)   increase  the  Commitment  of  any  Lender  without  the  written  consent  of  such        Lender (including any such Lender that is a Defaulting Lender); provided that, a waiver of any        condition precedent set forth in Section 4.02 or the waiver of any Default or mandatory prepayment        shall not constitute an increase of any Commitment of any Lender;               (ii)  reduce or forgive the principal amount of any Loan or LC Disbursement or reduce        the rate of interest thereon, or reduce or forgive any interest or fees payable hereunder, without the        written consent of each Lender (including any such Lender that is a Defaulting Lender) directly        affected thereby; provided that (x) any amendment or modification of the financial covenants in        this  Agreement  (or  defined  terms  used in  the  financial covenants  in this  Agreement)  shall  not                                        124   

 

      constitute a reduction in the rate of interest or fees for purposes of this clause (ii) and (y) only the        consent  of  the  Required  Lenders  shall  be  necessary  to  reduce  or  waive  any  obligation  of  the        Borrowers  to  pay  interest  or  any  other  amount  at  the  applicable  default  rate  set  forth  in        Section 2.13(c) or to amend Section 2.13(c);               (iii) postpone the scheduled date of payment of the principal amount of any Loan or        LC Disbursement, or any interest thereon, or any fees payable hereunder, or reduce the amount of,        waive  or  excuse  any  such  payment,  or  postpone  the  scheduled  date  of  expiration  of  any        Commitment, without the written consent of each Lender (including any such Lender that is a        Defaulting Lender) directly affected thereby (other than with respect to the matters set forth in        clauses (ii)(x) and (ii)(y) above);               (iv)  change Section 2.09(d) or Section 2.18(b) or (d) in a manner that would alter the        pro rata sharing of payments required thereby, without the written consent of each Lender (other        than any Defaulting Lender);               (v)   change the definition of any Borrowing Base (or any defined terms used therein)        in a manner that makes more credit available, increase the advance rates set forth in the definition        of Borrowing Base or add new categories of eligible assets, in each case, without the written consent        of each Lender (other than any Defaulting Lender);               (vi)  change  any of  the  provisions  of  this  Section or  the  definition  of  “Required        Lenders” or any other provision of any Loan Document specifying the number or percentage of        Lenders (or Lenders of any Class) required to waive, amend or modify any rights thereunder or        make any  determination  or  grant  any  consent  thereunder,  without  the  written  consent  of  each        Lender (other than any Defaulting Lender);               (vii) release  all  or  substantially  all  of  the  value  of  the  Loan  Guaranty  (except  as        otherwise  permitted  herein  or  in  the  other  Loan Documents,  including  with  respect  to  a  sale,        disposition or dissolution of a Loan Guarantor permitted herein), without the written consent of        each Lender (other than any Defaulting Lender); or               (viii) except as provided in clause (d) of this Section or in any Collateral Document,        release all or substantially all of the Collateral, without the written consent of each Lender (other        than any Defaulting Lender);   provided further that (A) no such agreement shall amend, modify or otherwise affect the rights or duties of  the Administrative Agent, any Issuing Bank or the Swingline Lender hereunder without the prior written  consent of the Administrative Agent, such Issuing Bank or the Swingline Lender, as the case may be (it  being understood that any change to Section 2.20 shall require the consent of the Administrative Agent,  each  Issuing  Bank  and  the  Swingline  Lender)  and  (B)  no  such  agreement  shall  amend  or  modify  the  provisions  of Section 2.06 or  any  letter  of  credit  application  and  any  bilateral  agreement  between  the  Borrower Representative and the Issuing Bank regarding the Issuing Bank’s Issuing Bank Sublimit or the  respective  rights  and  obligations  between  any  Borrower  and  the  Issuing  Bank  in  connection  with  the  issuance of Letters of Credit without the prior written consent of the Administrative Agent and the Issuing  Bank,  respectively.  The  Administrative  Agent  may  also  amend  the  Commitment  Schedule to  reflect  assignments entered into pursuant to Section 9.04.         (c)   Notwithstanding  the  foregoing,  this  Agreement  and any  other  Loan  Document  may  be  amended (or amended and restated) with the written consent of the Required Lenders, the Administrative  Agent and each Borrower (x) to add one or more credit facilities to this Agreement and to permit extensions                                        125   

 

of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to  share ratably in the benefits of this Agreement and the other Loan Documents with the Revolving Loans  and the accrued interest and fees in respect thereof and (y) to include appropriately the Lenders holding  such credit facilities in any determination of the Required Lenders and Lenders.         (d)   The Lenders and the Issuing Bank hereby irrevocably authorize the Administrative Agent,  at its option and in its sole discretion, to release any Liens granted to the Administrative Agent by the Loan  Parties on any Collateral (i) upon satisfaction of the Final Release Conditions, (ii) constituting property  being sold or disposed of if the Loan Party disposing of such property certifies to the Administrative Agent  that the sale or disposition is made in compliance with the terms of this Agreement (and the Administrative  Agent may rely conclusively on any such certificate, without further inquiry), and to the extent that the  property  being  sold or  disposed  of  constitutes  100%  of  the  Equity  Interests  of  a  Subsidiary,  the  Administrative Agent is authorized to release any Loan Guaranty, (iii) constituting property leased to a  Loan  Party  under  a  lease  which  has  expired  or  been  terminated  in  a  transaction  permitted  under  this  Agreement, (iv) constituting Excluded Assets or (v) as required to effect any sale or other disposition of  such Collateral in connection with any exercise of remedies of the Administrative Agent and the Lenders  pursuant to Article VII. Except as provided in the preceding sentence, the Administrative Agent will not  release any Liens on Collateral without the prior written authorization of the Required Lenders; provided  that, the Administrative Agent may in its discretion, release its Liens on Collateral valued in the aggregate  not in excess of $7,500,000 during any calendar year without the prior written authorization of the Required  Lenders(it being agreed that the Administrative Agent may rely conclusively on one or more certificates of  the Borrowers as to the value of any Collateral to be so released, without further inquiry). Any execution  and delivery by the Administrative Agent of documents in connection with any such release shall be without  recourse to or warranty by the Administrative Agent. In addition, each of the Lenders, on behalf of itself  and any of its Affiliates that are Secured Parties, irrevocably authorizes the Administrative Agent, at its  option and in its discretion, (i) to subordinate any Lien on any assets granted to or held by the Administrative  Agent  under  any  Loan  Document  to  the  holder  of  any  Lien  on  such  property  that  is  permitted  by  Section 6.02(e) or (ii) in the event that the Company shall have advised the Administrative Agent that,  notwithstanding the use by the Company of commercially reasonable efforts to obtain the consent of such  holder (but without the requirement to pay any sums to obtain such consent) to permit the Administrative  Agent to retain its liens (on a subordinated basis as contemplated by clause (i) above), the holder of such  other Indebtedness requires, as a condition to the extension of such credit, that the Liens on such assets  granted  to  or  held  by  the  Administrative  Agent  under  any  Loan  Document  be  released,  to  release  the  Administrative Agent’s Liens on such assets. Any such release shall not in any manner discharge, affect,  or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of  the Loan Parties in respect of) all interests retained by the Loan Parties, including the proceeds of any sale,  all  of  which  shall  continue  to  constitute  part  of  the  Collateral.  Any  execution  and  delivery  by  the  Administrative Agent of documents in connection with any such release shall be without recourse to or  warranty by the Administrative Agent.         (e)   If, in connection with any proposed amendment, waiver or consent requiring the consent  of  “each  Lender”  or  “each  Lender  directly  affected  thereby,”  the  consent  of  the  Required  Lenders  is  obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent is  necessary but not obtained being referred to herein as a “Non-Consenting Lender”), then the Company may  elect to replace a Non-Consenting Lender as a Lender party to this Agreement, provided that, concurrently  with such replacement, (i) another bank or other entity which is reasonably satisfactory to the Company  and  the  Administrative  Agent  shall  agree,  as  of  such  date,  to  purchase  for  cash  the  Loans  and  other  Obligations due to the Non-Consenting Lender pursuant to an Assignment and Assumption and to become  a Lender for all purposes under this Agreement and to assume all obligations of the Non-Consenting Lender  to be terminated as of such date and to comply with the requirements of clause (b) of Section 9.04, and  (ii) such Non-Consenting Lender shall have received in same day funds on the day of such replacement                                        126   

 

(1) all interest, fees and other amounts then accrued but unpaid to such Non-Consenting Lender by such  Borrower hereunder to and including the date of termination, including without limitation payments due to  such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an amount, if any, equal to the payment  which would have been due to such Lender on the day of such replacement under Section 2.16 had the  Loans  of  such  Non-Consenting  Lender  been  prepaid  on  such  date  rather  than  sold  to  the  replacement  Lender. Each party hereto agrees that an assignment required pursuant to this paragraph may be effected  pursuant to an Assignment and Assumption executed by the Borrower Representative, the Administrative  Agent  and  the  assignee  (or,  to  the  extent  applicable,  an  agreement  incorporating  an  Assignment  and  Assumption by reference pursuant to an  Approved  Electronic  Platform as to which the  Administrative  Agent and such parties are participants), and the Lender required to make such assignment need not be a  party thereto in order for such assignment to be effective and shall be deemed to have consented to and be  bound by the terms thereof; provided that, following the effectiveness of any such assignment, the other  parties  to  such  assignment  agree  to  execute  and  deliver  such  documents  necessary  to  evidence  such  assignment as reasonably requested by the applicable Lender, provided that any such documents shall be  without recourse to or warranty by the parties thereto.         (f)   Notwithstanding anything to the contrary herein the Administrative Agent may, with the  consent of the Borrowers only, amend, modify or supplement this Agreement or any of the other Loan  Documents (i) to correct, amend, resolve or cure any ambiguity, omission, mistake, defect or inconsistency  or correct any typographical error or other manifest error in any Loan Document, (ii) to comply with local  law or advice of local counsel in any jurisdiction the laws of which govern any Collateral Document or that  are relevant to the creation, perfection, protection and/or priority of any Lien in favor of the Administrative  Agent, (iii) to effect the granting, perfection, protection, expansion or enhancement of any security interest  in any Collateral or additional property to become Collateral for the benefit of the Secured Parties, (iv) to  make administrative or operational changes not adverse to any Lender or (v) to add a guarantor or collateral  or otherwise enhance the rights and benefits of the Lenders.         SECTION 9.03. Expenses; Indemnity; Damage Waiver.         (a)   The Loan Parties shall, jointly and severally, pay (i) all reasonable out-of-pocket expenses  incurred by the Administrative Agent and the Lead Arranger and their respective Affiliates (including the  reasonable and documented fees, disbursements and other charges of one primary counsel and one local  counsel  in  each  applicable  jurisdiction  for  the  Administrative  Agent  and  the  Lead  Arranger  and  their  respective Affiliates, in each case, for all such parties taken together) in connection with the syndication  and  distribution  (including,  without  limitation,  via  the  internet  or  through  any  Electronic  System  or  Approved  Electronic  Platform)  of  the  credit  facilities  provided  for  herein,  the  preparation  and  administration of this Agreement and the other Loan Documents or any amendments, modifications or  waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby  shall  be  consummated),  (ii) all  reasonable  out-of-pocket  expenses  incurred  by  any  Issuing  Bank  in  connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for  payment thereunder and (iii) all out-of-pocket expenses incurred by the Administrative Agent, any Issuing  Bank or any Lender (including the reasonable and documented fees, disbursements and other charges of  one primary counsel and one local counsel in each applicable jurisdiction for the Administrative Agent, the  Issuing Banks and the Lenders taken as a whole (and, in light of actual or potential conflicts of interest or  the  availability  of  different  claims  or  defenses  (as  reasonably  determined  by  the  affected  party),  one  additional firm of counsel to each group of similarly affected parties)) in connection with the enforcement  or protection of its rights in connection with this Agreement and any other Loan Document, including its  rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder,  including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in  respect  of  such  Loans  or Letters  of  Credit.  Expenses  being  reimbursed  by  the  Loan  Parties  under this                                        127   

 

Section include,  without  limiting  the  generality  of  the  foregoing,  fees,  costs  and  expenses  incurred  in  connection with:               (i)   subject  to  the  limits  set  forth  in Sections 5.11 and 5.12,  appraisals,  field        examinations and the preparation of Reports based on the fees charged by a third party retained by        the  Administrative  Agent  or  the  internally  allocated  fees  for  each  Person  employed  by  the        Administrative Agent with respect to each appraisal and field examination;               (ii)  background checks regarding senior management of the Loan Parties, as deemed        necessary or appropriate in the sole discretion of the Administrative Agent;               (iii) Other  Taxes,  fees  and  other  charges  for  (A) lien  and  title  searches  and  title        insurance and (B) recording the Mortgages, filing financing statements and continuations, and other        actions to perfect, protect, and continue the Administrative Agent’s Liens;               (iv)  sums paid or incurred to take any action required of any Loan Party under the Loan        Documents that such Loan Party fails to pay or take; and               (v)   forwarding  loan  proceeds,  collecting  checks  and  other  items  of  payment,  and        establishing and maintaining the accounts and lock boxes, and costs and expenses of preserving        and protecting the Collateral.   All of the foregoing fees, costs and expenses may be charged to the Company as Revolving Loans or to  another deposit account, all as described in Section 2.18(c).         (b)   The  Loan  Parties  shall, jointly  and  severally,  indemnify  the  Administrative  Agent,  the  Arranger, the Syndication Agent, each Issuing Bank and each Lender, and each Related Party of any of the  foregoing Persons  (each such  Person being called an “Indemnitee”) against, and hold each Indemnitee  harmless from, any and  all losses, claims,  damages, penalties, incremental taxes,  liabilities and related  expenses (including the reasonable and documented fees, charges and disbursements and other charges of  (x)  one  primary  counsel  and  one  local  counsel  in  each  applicable  jurisdiction,  in  each  case  for  the  Indemnitees taken as a whole and (y) one additional counsel for each affected Indemnitee in light of actual  or potential conflicts of interest or the availability of different claims or defenses) incurred by or asserted  against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of  any Loan Document or any agreement or instrument contemplated thereby, the performance by the parties  hereto of their respective obligations thereunder or the consummation of the Transactions or any other  transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom  (including any refusal by any Issuing Bank to honor a demand for payment under a Letter of Credit if the  documents presented in connection with such demand do not strictly comply with the terms of such Letter  of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials on or from any property  owned or operated by the Company or any of its Subsidiaries, or any Environmental Liability related in any  way  to  the  Company  or  any  of  its  Subsidiaries,  (iv)  the  failure  of  a  Loan  Party  to  deliver  to  the  Administrative  Agent  the  required  receipts  or  other  required  documentary  evidence  with  respect  to  a  payment made by a Loan Party for Taxes pursuant to Section 2.17, or (v) any actual or prospective claim,  litigation, investigation, arbitration or proceeding relating to any of the foregoing, whether or not such  claim, litigation, investigation, arbitration or proceeding is brought by the Company or any other Loan Party  or its or their respective equity holders, Affiliates, creditors or any other third Person and 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,  penalties, liabilities or related expenses are determined by a court of competent jurisdiction by final and  nonappealable  judgment  to  have  resulted  from  (x)  the  gross  negligence  or  willful  misconduct  of  such                                        128   

 

Indemnitee or (y) the material breach in bad faith by such Indemnitee of its express obligations under this  Agreement pursuant to a claim initiated by the Company. This Section 9.03(b) shall not apply with respect  to Taxes other than any Taxes that represent losses, claims or damages arising from any non-Tax claim.         (c)   Each Lender severally agrees to pay any amount required to be paid by any Loan Party  under paragraph (a) or (b) of this Section 9.03 to the Administrative Agent, each Issuing Bank and the  Swingline Lender, and each Related Party of any of the foregoing Persons (each, an “Agent Indemnitee”)  (to the extent not reimbursed by a Loan Party and without limiting the obligation of any Loan Party to do  so),  ratably  according  to  their  respective  Applicable  Percentage  in  effect  on  the  date  on  which  indemnification is sought under this Section (or, if indemnification is sought after the date upon which the  Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with  such Applicable Percentage immediately prior to such date), from and against any and all losses, claims,  damages,  liabilities  and  related  expenses,  including  the  fees,  charges  and  disbursements  of  any  kind  whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred  by or asserted against such Agent Indemnitee in any way relating to or arising out of the Commitments, this  Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or  therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent  Indemnitee under or in connection with any of the foregoing; 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 such Agent Indemnitee in its capacity as such; provided, further, that no Lender shall be liable for  the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments,  suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of  competent  jurisdiction  to  have  resulted  from  such  Agent  Indemnitee’s  gross  negligence  or  willful  misconduct. The agreements in this Section until satisfaction of the Final Release Conditions.         (d)   To the extent permitted by applicable law, no Loan Party shall assert, and each Loan Party  hereby waives, any claim against any Indemnitee (i) for any damages arising from the use by others of  information  or  other  materials  obtained  through  telecommunications,  electronic  or  other  information  transmission systems (including the Internet) other than actual or direct damages that are determined by a  court  of  competent  jurisdiction  by  final  and  nonappealable  judgment  to  have  resulted  from  the  gross  negligence or willful misconduct of such Indemnitee or any of its Related Parties. To the extent permitted  by applicable law, no Indemnitee shall assert against any Loan Party or its Related Parties and no Loan  Party shall assert against any Indemnitee, and each Indemnitee and Loan Party hereby waives, any claim,  or (ii) on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to  direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other  Loan Document or any agreement or instrument contemplated hereby or thereby, the Transactions, any  Loan or Letter of Credit or the use of the proceeds thereof; provided that, nothing contained in this sentence  shall limit the Company’s indemnity obligations to the extent set forth in Section 9.03(b).         (e)   All amounts due under this Section shall be payable not later than fifteen (15) days after  written demand therefor.         SECTION 9.04. 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 (including any Affiliate of the  relevant Issuing Bank that issues any Letter of Credit), except that (i) no 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 any Borrower without such consent shall be null and void) and (ii) no  Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this  Section. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person                                        129   

 

(other  than  the  parties  hereto,  their  respective  successors  and  assigns  permitted  hereby  (including  any  Affiliate of the relevant Issuing Bank that issues any Letter of Credit), 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, the Issuing Banks 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 Persons (other than an Ineligible Institution) all or a portion of its rights and obligations under  this Agreement (including all or a portion of its Commitments and the Loans at the time owing to it) with  the prior written consent (such consent not to be unreasonably withheld) of:                     (A)   the  Borrower  Representative; provided that,  (i)  the  Borrower              Representative shall be deemed to have consented to any assignment unless it shall object              thereto by written notice to the Administrative Agent within five (5) Business Days after              having received notice thereof and (ii) no consent of the Borrower Representative shall be              required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if              an Event of Default has occurred and is continuing, any other assignee;                     (B)   the Administrative Agent;                     (C)   each Issuing Bank; and                     (D)   the Swingline 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 Approved Fund or an assignment of the entire remaining amount of the assigning              Lender’s Commitment or Loans of any Class, the amount of the Commitment 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  unless  each  of  the  Borrower              Representative  and  the  Administrative  Agent  otherwise  consent, provided that no  such              consent  of  the  Borrower  Representative  shall  be  required  if  an  Event  of  Default  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;                     (C)   the  parties  to  each  assignment  shall  execute  and  deliver  to  the              Administrative Agent (x) an Assignment and Assumption or (y) to the extent applicable,              an agreement incorporating an Assignment and Assumption by reference pursuant to a              Platform  as  to  which  the  Administrative  Agent  and  the  parties  to  the  Assignment  and              Assumption  are  participants,  together  with  a  processing  and  recordation  fee  of  $3,500              (unless waived by the Administrative Agent), such fee to be paid by either the assigning              Lender or the assignee Lender or shared between such Lenders; provided that (1) only one              such  processing  and  recordation  fee  shall  be  payable  in  the  event  of  simultaneous              assignments and delegations from any Lender or its Approved Funds to one or more other              Approved Funds of such Lender and (2) with respect to any assignment and delegation              pursuant to Section 2.19(b) or 9.02(e), the parties hereto agree that such assignment and              delegation may be effected pursuant to an Assignment and Assumption executed by the                                        130   

 

            Company, the Administrative Agent and the assignee and that the Lender required to make              such assignment and delegation need not be a party thereto; and                     (D)   the assignee, if it shall not be a Lender, shall deliver to the Administrative              Agent an Administrative Questionnaire in which the assignee designates one or more credit              contacts  to  whom  all  syndicate-level  information (which  may  contain MNPI  about the              Company and its affiliates and their Related Parties or their respective securities) will be              made available and who may receive such information in accordance with the assignee’s              compliance procedures and applicable laws, including Federal and state securities laws.         For the purposes of this Section 9.04(b), the terms “Approved Fund” and “Ineligible Institution”  have the following meanings:         “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.         “Ineligible Institution” means (a) a natural person, (b) a Defaulting Lender or its Lender Parent, (c)  the Borrowers, any of their Subsidiaries or any of their Affiliates, (d) a company, investment vehicle or  trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof or (e) a  Disqualified Lender.               (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) 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 2.15, 2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of rights or        obligations under this Agreement that does not comply with this Section 9.04 shall be treated for        purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations        in accordance with paragraph (c) of this Section.               (iv)  The Administrative Agent, acting for this purpose as a non-fiduciary agent of each        Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered        to  it and  a  register  for  the  recordation  of  the  names  and  addresses  of  the  Lenders,  and  the        Commitment of, and principal amount (and stated interest) of the Loans and LC Disbursements        owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries        in the Register shall be conclusive, and the Borrowers, the Administrative Agent, the Issuing Banks        and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the        terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to        the contrary. The Register shall be available for inspection by the Company, any Issuing Bank and        any Lender, at any reasonable time and from time to time upon reasonable prior notice.               (v)   Upon its receipt of (x) a duly completed Assignment and Assumption executed by        an assigning Lender and an assignee or (y) to the extent applicable, an agreement incorporating an        Assignment and Assumption by reference pursuant to a Platform as to which the Administrative        Agent and the parties to the Assignment and Assumption are participants, the assignee’s completed                                        131   

 

      Administrative  Questionnaire  (unless  the  assignee  shall  already  be  a  Lender  hereunder),  the        processing and recordation fee referred to in paragraph (b) of this Section 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;        provided that if either the assigning Lender or the assignee shall have failed to make any payment        required to be made by it pursuant to Section 2.05(c), 2.06(d) or (e), 2.07(b), 2.18(d) or 9.03(c), the        Administrative Agent shall have no obligation to accept such Assignment and Assumption and        record the information therein in the Register unless and until such payment shall have been made        in full, together with all accrued interest thereon. No assignment shall be effective for purposes of        this Agreement unless it has been recorded in the Register as provided in this paragraph.         (c)   Any Lender may, without the consent of, or notice to, any Borrower, the Administrative  Agent, the Issuing Banks or the Swingline Lender, sell participations to one or more banks or other entities  (a  “Participant”),  other  than  an  Ineligible  Institution,  in  all  or  a  portion  of  such  Lender’s  rights  and  obligations under this Agreement (including all or a portion of its Commitment 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, the Issuing Banks 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. Any agreement or instrument pursuant to which a Lender sells such a participation shall  provide  that  such  Lender  shall  retain  the  sole  right to  enforce  this  Agreement  and  to  approve  any  amendment, modification or waiver of any provision of this Agreement; provided that such agreement or  instrument may provide that such Lender will not, without the consent of the Participant, agree to any  amendment,  modification  or  waiver  described  in  the  first  proviso  to Section 9.02(b) that  affects  such  Participant. Each Lender that sells a participation agrees, at any Borrower’s request and expense, to use  reasonable efforts to cooperate with such Borrower to effectuate the provisions of Section 2.19 with respect  to  any  Participant.  Each  Borrower  agrees  that  each  Participant  shall  be  entitled  to  the  benefits  of  Sections 2.15, 2.16 and 2.17 (subject to the requirements and limitations therein, including the requirements  under Section 2.17(f) and (g) (it being understood that the documentation required under Section 2.17(f)  shall be delivered to the participating Lender and the information and documentation required under 2.17(g)  will be delivered to the Borrowers and the Administrative Agent)) to the same extent as if it were a Lender  and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such  Participant (A) agrees to be subject to the provisions of Sections 2.18 and 2.19 as if it were an assignee  under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under  Sections 2.15 or 2.17, with respect to any participation, than its  participating Lender would have  been  entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change  in Law that occurs after the Participant acquired the applicable participation. To the extent permitted by  law,  each Participant  also  shall  be  entitled  to the  benefits  of Section 9.08 as  though  it  were  a  Lender,  provided such Participant agrees to be subject to Section 2.18(c) as though it were a Lender. Each Lender  that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrowers,  maintain a register on which it enters the name and address of each Participant and the principal amounts  (and  stated  interest)  of  each  Participant’s  interest  in  the  Loans  or  other  obligations  under  the  Loan  Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all  or any portion of the  Participant Register (including the identity of any Participant or any information  relating to a Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations  under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish  that  such  Commitment,  Loan,  Letter  of  Credit  or  other  obligation  is  in  registered  form  under  Section 5f.103-1(c) or Proposed Section 1.163-5(b) of the United States Treasury Regulations (or, in each  case, any amended or successor version). 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                                        132   

 

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, 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.         (e)   Disqualified Lenders.               (i)   No assignment or participation shall be made to any Person that was a Disqualified        Lender as of the date (the “Trade Date”) on which the assigning Lender entered into a binding        agreement to sell and assign or grant a participation in all or a portion of its rights and obligations        under this Agreement to such Person (unless the Company has consented to such assignment or        participation in writing in its sole and absolute discretion, in which case such Person will not be        considered a  Disqualified Lender for the purpose of such assignment or participation). For the        avoidance of doubt, with respect to any assignee or Participant that becomes a Disqualified Lender        after the applicable Trade Date (including as a result of the delivery of a notice pursuant to, and/or        the expiration of the notice period referred to in, the definition of “Disqualified Lender”), (x) such        assignee or Participant shall not retroactively be disqualified from being a Lender or Participant        and (y) the execution by the Company of an Assignment and Assumption with respect to such        assignee will not by itself result in such assignee no longer being considered a Disqualified Lender.        Any assignment or participation in violation of this clause (e)(i) shall not be void, but the other        provisions of this clause (e) shall apply.               (ii)  If any assignment or participation is made to any Disqualified Lender without the        Company’s  prior written  consent  in  violation  of clause  (i) above,  or  if  any  Person  becomes  a        Disqualified Lender after the applicable Trade Date, the Company may, at its sole expense and        effort, upon notice to the applicable Disqualified Lender and the Administrative Agent, require        such  Disqualified  Lender  to  assign,  without  recourse  (in  accordance  with  and  subject  to  the        restrictions  contained  in  this Section 9.04),  all  of  its  interest,  rights  and  obligations  under  this        Agreement to one or more Persons (other than an Ineligible Institution) at the lesser of (x) the        principal amount thereof and (y) the amount that such Disqualified Lender paid to acquire such        interests,  rights  and  obligations  in  each  case plus accrued  interest,  accrued  fees  and  all  other        amounts (other than principal amounts) payable to it hereunder.               (iii) Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement,        Disqualified Lenders to whom an assignment or participation is made in violation of clause (i)        above (A) will not have the right to (x) receive information, reports or other materials provided to        Lenders by the Company, the Administrative Agent or any other Lender, (y) attend or participate        in meetings attended by the Lenders (or any of them) and the Administrative Agent, or (z) access        any electronic site established for the Lenders or confidential communications from counsel to or        financial  advisors  of  the  Administrative  Agent  or  the  Lenders  and  (B)(x)  for  purposes  of  any        consent to any amendment, waiver or modification of, or any action under, and for the purpose of        any direction to the Administrative Agent or any Lender to undertake any action (or refrain from        taking any action) under this Agreement or any other Loan Document, each Disqualified Lender        will be deemed to have consented in the same proportion as the Lenders that are not Disqualified        Lenders consented to such matter, and (y) for purposes of voting on any plan of reorganization,        each Disqualified Lender party hereto hereby agrees (1) not to vote on such plan of reorganization,                                        133   

 

      (2) if  such  Disqualified  Lender  does  vote  on  such  plan  of  reorganization  notwithstanding  the        restriction in the foregoing clause (1), such vote will be deemed not to be in good faith and shall be        “designated” pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any        other applicable laws), and such vote shall not be counted in determining whether the applicable        class has accepted or rejected such plan of reorganization in accordance with Section 1126(c) of        the Bankruptcy Code (or any similar provision in any other applicable laws) and (3) not to contest        any request by any party for a determination by the Bankruptcy Court (or other applicable court of        competent jurisdiction) effectuating the foregoing clause (2).               (iv)  The Administrative Agent shall have the right, and the Company hereby expressly        authorizes the Administrative Agent, to (A) post the list of Disqualified Lenders provided by the        Company and any updates thereto from time to time (collectively, the “DQ List”) on an Approved        Electronic Platform, including that portion of such Approved Electronic Platform that is designated        for  “public  side”  Lenders  and/or  (B)  provide  the  DQ  List  to  each  Lender  or  potential  Lender        requesting the same.               (v)   The Administrative Agent and the Lenders shall not be responsible or have any        liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the        provisions hereof relating to Disqualified Lenders. Without limiting the generality of the foregoing,        neither the Administrative Agent nor any Lender shall (x) be obligated to ascertain, monitor or        inquire as to whether any other Lender or Participant or prospective Lender or Participant is a        Disqualified Lender or (y) have any liability with respect to or arising out of any assignment or        participation  of  Loans,  or  disclosure  of  confidential  information,  by  any  other  Person  to  any        Disqualified Lender.         SECTION 9.05. Survival. All covenants, agreements, representations and warranties made by the  Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection  with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied  upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and  the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any  such other party or on its behalf and notwithstanding that the Administrative Agent, any Issuing Bank 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 until the Final Release  Conditions have been satisfied. The provisions of Sections 2.15, 2.16, 2.17 and 9.03 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  Letters  of  Credit  and  the  Commitments or the termination of this Agreement or any other Loan Document or any provision hereof  or thereof.         SECTION 9.06. Counterparts; Integration; Effectiveness; Electronic Execution. 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 (i) fees payable  to the Administrative Agent and (ii) increases or reductions of the Issuing Bank Sublimit of the Issuing  Bank constitute the entire contract among the parties relating to the subject matter hereof and supersede  any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed  by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof  which, when taken together, bear the signatures of each of the other parties hereto, 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 telecopy, e-mailed.pdf or any                                        134   

 

other electronic means that reproduces an image of the actual executed signature page shall be effective as  delivery  of  a  manually  executed  counterpart  of  this  Agreement.  The  words  “execution,”  “signed,”  “signature,” “delivery,” and words of like import in or relating to any document to be signed in connection  with  this  Agreement  and  the  transactions  contemplated  hereby  shall  be  deemed  to  include  Electronic  Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal  effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a  paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable  law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York  State  Electronic  Signatures  and  Records  Act,  or  any  other  similar  state  laws  based  on  the  Uniform  Electronic Transactions Act; provided that nothing herein shall require the Administrative Agent to accept  electronic signatures in any form or format without its prior written consent.         SECTION 9.07. Severability. Any provision of any Loan Document held to be invalid, illegal or  unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity,  illegality or unenforceability without affecting the validity, legality and enforceability of the remaining  provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate  such provision in any other jurisdiction.         SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be continuing,  each Lender, the Issuing Bank and each of their respective 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, the Issuing Bank or any such Affiliate, to or for the credit or the account of any Loan Party  against any and all of the Secured Obligations held by such Lender, the Issuing Bank or their respective  Affiliates, irrespective of whether or not such Lender, the Issuing Bank or their respective Affiliates shall  have made any demand under the Loan Documents and although such obligations may be contingent or  unmatured or are owed to a branch office or Affiliate of such Lender or the Issuing Bank different from the  branch office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event  that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid  over immediately to the Administrative Agent for further application in accordance with the provisions of  Section 2.20 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds  and deemed held in trust for the benefit of the Administrative Agent, the Issuing Bank, and the Lenders,  and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing  in reasonable detail the Secured Obligations owing to such Defaulting Lender as to which it exercised such  right  of  setoff.  The  applicable  Lender,  the  Issuing  Bank  or  such  Affiliate  shall  notify  the  Borrower  Representative and the Administrative Agent of such setoff or application, provided that any failure to give  or any delay in giving such notice shall not affect the validity of any such setoff or application under this  Section. The rights of each Lender, the Issuing Bank and their respective Affiliates under this Section are  in addition to other rights and remedies (including other rights of setoff) that such Lender, the Issuing Bank  or their respective Affiliates may have.         SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process.         (a)   The  Loan  Documents  (other  than  those  containing  a  contrary  express  choice  of  law  provision) shall be governed by and construed in accordance with the internal laws of the State of New  York, but giving effect to federal laws applicable to national banks.         (b)   Each of the Lenders and the Administrative Agent hereby irrevocably and unconditionally  agrees that, notwithstanding the governing law provisions of any applicable Loan Document, any claims  brought against the Administrative Agent by any Secured Party relating to this Agreement, any other Loan                                         135   

 

Document, the Collateral or the consummation or administration of the transactions contemplated hereby  or thereby shall be construed in accordance with and governed by the law of the State of New York.         (c)   Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its  property, to the exclusive jurisdiction of any U.S. federal or New York state court sitting in New York,  New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating  to any Loan Documents, the transactions relating hereto or thereto, 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 (and any such claims, cross-claims or third party claims  brought against the Administrative Agent or any of its Related Parties may only) be heard and determined  in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto  agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in  other  jurisdictions  by  suit  on  the  judgment  or  in  any  other  manner  provided  by  law.  Nothing  in  this  Agreement or any other Loan Document shall affect any right that the Administrative Agent, the Issuing  Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or  any other Loan Document against any Loan Party or its properties in the courts of any jurisdiction.         (d)   Each Loan Party hereby irrevocably and unconditionally waives, to the fullest extent it may  legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of  any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in  any court referred to in paragraph (c) 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.         (e)   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 9.10. 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,  ANY  OTHER  LOAN  DOCUMENT  OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY  OR  THEREBY  (WHETHER  BASED  ON  CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (a) CERTIFIES THAT NO  REPRESENTATIVE OR OTHER AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER PARTY  HAS REPRESENTED, 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 9.11. 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 9.12. Confidentiality.  Each  of  the  Administrative  Agent,  the  Issuing  Banks  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 Governmental Authority (including any                                        136   

 

self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent  required by any Requirement of Law 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 under this Agreement 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 (1) any assignee of or Participant in, or any  prospective assignee of or Participant in, any of its rights or obligations under this Agreement (it being  understood that the DQ List may be disclosed to any assignee or Participant, or prospective assignee or  Participant, in reliance on this clause (f)) or (2) any actual or prospective counterparty (or its advisors) to  any swap or derivative transaction relating to any Borrower and its obligations, (g) on a confidential basis  to (1) any rating agency in connection with rating the Company or its Subsidiaries or the credit facilities  provided for herein or (2) the CUSIP Service Bureau or any similar agency in connection with the issuance  and monitoring of CUSIP numbers with respect to the credit facilities provided for herein, (h) with the  consent of the Company or (i) to the extent such Information (1) becomes publicly available other than as  a result of a breach of this Section or (2) becomes available to the Administrative Agent, the Issuing Banks  or any Lender on a nonconfidential basis from a source other than the Company. For the purposes of this  Section, “Information” means all information received from the Company relating to the Company or its  business,  whether  or  not  identified  at  the  time  of  delivery  as  confidential,  other  than  (x)  any  such  information  that  is  available  to  the  Administrative  Agent,  any  Issuing  Bank  or  any  Lender  on  a  nonconfidential basis prior to disclosure by the Company, (y) any such information that is independently  developed, discovered or arrived at by the Administrative Agent, any Issuing Bank or any Lender and (z)  information  pertaining  to  this  Agreement  routinely  provided  by  arrangers  to  data  service  providers,  including league table providers, that serve the lending industry; provided that, in the case of information  received  from  the  Company  after  the  date  hereof, such  information is  clearly  identified  at the  time  of  delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in  this Section shall be considered to have complied with its obligation to do so if such Person has exercised  the same degree of care to maintain the confidentiality of such Information as such Person would accord to  its own confidential information.         EACH  LENDER  ACKNOWLEDGES  THAT  INFORMATION  AS  DEFINED  IN  THE  IMMEDIATELY  PRECEDING  PARAGRAPH  FURNISHED  TO  IT  PURSUANT  TO  THIS  AGREEMENT  MAY  INCLUDE  MNPI  CONCERNING  THE  COMPANY  AND  ITS  RELATED  PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED  COMPLIANCE PROCEDURES REGARDING THE USE OF MNPI AND THAT IT WILL HANDLE  SUCH  MNPI  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 COMPANY OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN  THE  COURSE  OF  ADMINISTERING,  THIS  AGREEMENT  WILL  BE  SYNDICATE-LEVEL  INFORMATION,  WHICH  MAY  CONTAIN  MNPI  ABOUT THE  COMPANY,  THE OTHER  LOAN  PARTIES    AND    THEIR     RELATED     PARTIES    OR    THEIR     RESPECTIVE  SECURITIES. ACCORDINGLY,  EACH  LENDER  REPRESENTS  TO  THE  COMPANY  AND  THE  ADMINISTRATIVE  AGENT  THAT  IT  HAS  IDENTIFIED  IN  ITS  ADMINISTRATIVE  QUESTIONNAIRE  A  CREDIT  CONTACT  WHO  MAY  RECEIVE  INFORMATION  THAT  MAY  CONTAIN MNPI IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE  LAW.         SECTION 9.13. USA PATRIOT Act. Each Lender that is subject to the requirements of the Patriot  Act hereby notifies each Loan Party that pursuant to the requirements of the Patriot Act, it is required to  obtain, verify and record information that identifies such Loan Party, which information includes the name                                        137   

 

and address of such Loan Party and other information that will allow such Lender to identify such Loan  Party in accordance with the Patriot Act.         SECTION 9.14. Several Obligations; Nonreliance; Violation of Law. The respective obligations  of the Lenders hereunder are several and not joint and the failure of any Lender to make any Loan or  perform any of its obligations hereunder shall not relieve any other Lender from any of its obligations  hereunder. Each Lender hereby represents that it is not relying on or looking to any margin stock (as defined  in Regulation U of the Board) for the repayment of the Borrowings provided for herein. Anything contained  in  this  Agreement  to  the  contrary  notwithstanding,  neither  the  Issuing  Bank  nor  any  Lender  shall  be  obligated to extend credit to the Borrowers in violation of any Requirement of Law.         SECTION 9.15. Disclosure.  Each  Loan  Party,  each  Lender  and  the  Issuing  Bank hereby  acknowledges and agrees that the Administrative Agent and/or its Affiliates from time to time may hold  investments in, make  other loans to or have  other relationships with any of the Loan Parties and their  respective Affiliates.         SECTION 9.16. Appointment for Perfection. Each Lender hereby appoints each other Lender as  its agent for the purpose of perfecting Liens, for the benefit of the Administrative Agent and the Secured  Parties,  in  assets  which,  in  accordance  with  Article 9  of  the  UCC  or  any  other  applicable law  can  be  perfected only by possession or control. Should any Lender (other than the Administrative Agent) obtain  possession or control of any such Collateral, such Lender shall notify the Administrative Agent thereof,  and,  promptly  upon  the  Administrative  Agent’s  request  therefor  shall  deliver  such  Collateral  to  the  Administrative Agent or otherwise deal with such Collateral in accordance with the Administrative Agent’s  instructions.         SECTION 9.17. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at  any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which  are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the  maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or  reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in  respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the  Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect  of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the  interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not  above  the  Maximum  Rate  therefor)  until such  cumulated  amount, together  with  interest thereon  at the  NYFRB Rate to the date of repayment, shall have been received by such Lender.         SECTION 9.18. Release of Loan Guarantors.         (a)   A  Loan  Guarantor  shall  automatically  be  released  from  its  obligations  under  the  Loan  Guaranty upon the consummation of any transaction permitted by this Agreement as a result of which such  Loan Guarantor ceases to be a Subsidiary; provided that, if so required by this Agreement, the Required  Lenders shall have consented to such transaction and the terms of such consent shall not have provided  otherwise. In connection with any termination or release pursuant to this Section, the Administrative Agent  shall (and is hereby irrevocably authorized by each Lender to) execute and deliver to any Loan Party, at  such Loan Party’s expense, all documents that such Loan Party shall reasonably request to evidence such  termination or release. Any execution and delivery of documents pursuant to this Section shall be without  recourse to or warranty by the Administrative Agent.         (b)   Further,  the  Administrative  Agent  may  (and  is  hereby  irrevocably  authorized  by  each  Lender to), upon the request of the Company, release any Loan Guarantor from its obligations under the  Loan Guaranty if (i) such Loan Guarantor is no longer a Material Subsidiary or is otherwise not required                                        138   

 

pursuant  to  the  terms  of  this  Agreement  to  provide  a  Loan  Guaranty  or (ii)  such  release  is  approved,  authorized or ratified by the requisite Lenders pursuant to Section 9.02.         (c)   At such time as (i) the principal and interest on the Loans, the fees, expenses and other  amounts  payable  under  the  Loan  Documents  and  the  other  Secured  Obligations  (other  than  Banking  Services Obligations, Swap Agreement Obligations and Unliquidated Obligations, in each case, not then  due and payable) shall have been paid in full in cash, (ii) the Commitments shall have been terminated, and  (iii) no Letters of Credit shall be outstanding (or any outstanding Letters of Credit shall have been cash  collateralized or backstopped pursuant to arrangements reasonably satisfactory to the Administrative Agent  and  the  applicable  Issuing  Bank)  (the  conditions  set forth  in  the  preceding clauses (i), (ii) and (iii),  collectively,  the  “Final  Release  Conditions”),  the  Loan  Guaranty  and  all  obligations  (other  than  those  expressly  stated  to  survive  such  termination)  of  each  Loan  Guarantor  thereunder  shall  automatically  terminate, all without delivery of any instrument or performance of any act by any Person.         SECTION 9.19. Intercreditor  Agreements.  Without  limiting  the  authority  granted  to  the  Administrative  Agent  in Article VIII hereof,  each  Lender  (and  each  Person  that  becomes  a  Lender  hereunder pursuant to Section 9.04) hereby authorizes and directs the Administrative Agent to enter into  any Intercreditor Agreement on behalf of such Lender and agrees that the Administrative Agent may take  such actions on its behalf as is contemplated by the terms of such Intercreditor Agreement. In the event of  any  conflict  between  the  terms  of  any  Intercreditor Agreement  and  this  Agreement,  the  terms  of such  Intercreditor Agreement shall govern and control.         SECTION 9.20. Marketing Consent. The Borrowers hereby authorize JPMCB and its affiliates  (collectively, the “JPMCB Parties”), at their respective sole expense, but without any prior approval by any  Borrower, to include the Borrowers’ names and logos in advertising slicks posted on their internet sites, in  pitchbooks or sent in mailings to prospective customers and to give such other publicity to this Agreement  as each may from time to time determine in its sole discretion. Notwithstanding the foregoing, JPMCB  Parties  shall  not  publish  the  Borrowers’  names  in  a  newspaper  or  magazine  without  obtaining  the  Borrowers’ prior written approval. The foregoing authorization shall remain in effect unless and until the  Borrower Representative notifies JPMCB in writing that such authorization is revoked.         SECTION 9.21. 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                                        139   

 

            (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 9.22. No Fiduciary Duty, etc.          (a)   Each  Borrower  acknowledges  and  agrees,  and  acknowledges  its  Subsidiaries’  understanding, that no Credit Party will have any obligations except those obligations expressly set forth  herein and in the other Loan Documents and each Credit Party is acting solely in the capacity of an arm’s  length contractual counterparty to each Borrower with respect to the Loan Documents and the transactions  contemplated herein and therein and not as a financial advisor or a fiduciary to, or an agent of, any Borrower  or any other person. Each Borrower agrees that it will not assert any claim against any Credit Party based  on an alleged breach of fiduciary duty by such Credit Party in connection with this Agreement and the  transactions contemplated hereby. Additionally, each Borrower acknowledges and agrees that no Credit  Party is advising any Borrower as to any legal, tax, investment, accounting, regulatory or any other matters  in any jurisdiction. Each Borrower shall consult with its own advisors concerning such matters and shall be  responsible for making its own independent investigation and appraisal of the transactions contemplated  herein or in the other Loan Documents, and the Credit Parties shall have no responsibility or liability to any  Borrower with respect thereto.         (b)   Each  Borrower  further  acknowledges  and  agrees,  and acknowledges  its  Subsidiaries’  understanding, that each Credit Party, together with its Affiliates, is a full service securities or banking firm  engaged in securities trading and brokerage activities as well as providing investment banking and other  financial services. In the ordinary course of business, any Credit Party may provide investment banking and  other financial services to, and/or acquire, hold or sell, for its own accounts and the accounts of customers,  equity, debt and other securities and financial instruments (including bank loans and other obligations) of,  any Borrower and other companies with which any Borrower may have commercial or other relationships.  With  respect  to  any  securities  and/or  financial  instruments  so  held  by  any  Credit  Party  or  any  of  its  customers, all rights in respect of such securities and financial instruments, including any voting rights, will  be exercised by the holder of the rights, in its sole discretion.         (c)   In addition, each Borrower acknowledges and agrees, and acknowledges its Subsidiaries’  understanding, that each Credit Party and its affiliates may be providing debt financing, equity capital or  other services (including financial advisory services) to other companies in respect of which a Borrower  may have conflicting interests regarding the transactions described herein and otherwise. No Credit Party  will use confidential information obtained from any Borrower by virtue of the transactions contemplated  by the Loan Documents or its other relationships with such Borrower in connection with the performance  by such Credit Party of services for other companies, and no Credit Party will furnish any such information  to other companies. Each Borrower also acknowledges that no Credit Party has any obligation to use in  connection with the transactions contemplated by the Loan Documents, or to furnish to any Borrower,  confidential information obtained from other companies.         SECTION 9.23. Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan  Documents  provide  support,  through a  guarantee  or  otherwise,  for  Swap  Agreements  or  any  other  agreement  or  instrument  that  is  a  QFC  (such  support  “QFC  Credit  Support”,  and  each  such  QFC,  a  “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of  the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the  Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated  thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit  Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported  QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States  or any other state of the United States):                                        140   

 

      In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes  subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and  the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC  and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit  Support) from such Covered Party will be effective to the same extent as the transfer would be effective  under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any  such interest, obligation and rights in property) were governed by the laws of the United States or a state of  the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject  to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that  might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against  such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be  exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were  governed by the laws of the United States or a state of the United States. Without limitation of the foregoing,  it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall  in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit  Support.                                     ARTICLE X                                                                            Loan Guaranty         SECTION 10.01. Guaranty. Each Loan Guarantor (other than those that have delivered a separate  Guaranty) hereby agrees that it is jointly and severally liable for, and, as a primary obligor and not merely  as  surety,  absolutely,  unconditionally  and  irrevocably  guarantees  to  the  Secured  Parties,  the  prompt  payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter,  of the Secured Obligations and all costs and expenses, including, without limitation, all court costs and  attorneys’ and paralegals’ fees and expenses paid or incurred by the Administrative Agent, the Issuing Bank  and the Lenders in endeavoring to collect all or any part of the Secured Obligations from, or in prosecuting  any action against, any Borrower, any Loan Guarantor or any other guarantor of all or any part of the  Secured  Obligations  (such  costs  and  expenses,  together  with  the  Secured  Obligations,  collectively  the  “Guaranteed Obligations”; provided, however, that the definition of “Guaranteed Obligations” shall not  create any guarantee by any Loan Guarantor of (or grant of security interest by any Loan Guarantor to  support, as applicable) any Excluded Swap Obligations of such Loan Guarantor for purposes of determining  any  obligations  of  any  Loan  Guarantor).  Each  Loan  Guarantor  further  agrees  that  the  Guaranteed  Obligations may be extended or renewed in whole or in part without notice to or further assent from it, and  that it remains bound upon its guarantee notwithstanding any such extension or renewal. All terms of this  Loan Guaranty apply to and may be enforced by or on behalf of any domestic or foreign branch or Affiliate  of any Lender that extended any portion of the Guaranteed Obligations.         SECTION 10.02. Guaranty of Payment. This Loan Guaranty is a guaranty of payment and not of  collection. Each Loan Guarantor waives any right to require the Administrative Agent, the Issuing Bank or  any Lender to sue any Borrower, any Loan Guarantor, any other guarantor of, or any other Person obligated  for, all or any part of the Guaranteed Obligations (each, an “Obligated Party”), or otherwise to enforce its  payment against any collateral securing all or any part of the Guaranteed Obligations.         SECTION 10.03. No Discharge or Diminishment of Loan Guaranty.          (a)   Except as otherwise provided for herein, the obligations of each Loan Guarantor hereunder  are unconditional and absolute and not subject to any reduction, limitation, impairment or termination for  any reason (other than the indefeasible payment in full in cash of the Guaranteed Obligations), including:  (i) any claim of waiver, release, extension, renewal, settlement, surrender, alteration or compromise of any                                        141   

 

of the Guaranteed Obligations, by operation of law or otherwise; (ii) any change in the corporate existence,  structure or ownership of any Borrower or any other Obligated  Party liable for any of the  Guaranteed  Obligations;  (iii)  any  insolvency,  bankruptcy,  reorganization  or  other  similar  proceeding  affecting  any  Obligated Party or their assets or any resulting release or discharge of any obligation of any Obligated Party;  or (iv) the existence of any claim, setoff or other rights which any Loan Guarantor may have at any time  against any Obligated Party, the Administrative Agent, the Issuing Bank, any Lender or any other Person,  whether in connection herewith or in any unrelated transactions.         (b)   The obligations of each Loan Guarantor hereunder are not subject to any defense or setoff,  counterclaim,  recoupment  or termination  whatsoever  by  reason  of  the  invalidity,  illegality  or  unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable law or  regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed Obligations or any  part thereof.         (c)   Further, the obligations of any Loan Guarantor hereunder are not discharged or impaired  or otherwise affected by: (i) the failure of the Administrative Agent, the Issuing Bank or any Lender to  assert any claim or demand or to enforce any remedy with respect to all or any part of the Guaranteed  Obligations; (ii) any waiver or modification of or supplement to any provision of any agreement relating to  the Guaranteed Obligations; (iii) any release, non-perfection or invalidity of any indirect or direct security  for the obligations of any Borrower for all or any part of the Guaranteed Obligations or any obligations of  any other Obligated Party liable for any of the Guaranteed Obligations; (iv) any action or failure to act by  the Administrative Agent, the Issuing Bank or any Lender with respect to any collateral securing any part  of the Guaranteed Obligations; or (v) any default, failure or delay, willful or otherwise, in the payment or  performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or delay that  might in any manner or to any extent vary the risk of such Loan Guarantor or that would otherwise operate  as a discharge of any Loan Guarantor as a matter of law or equity (other than the indefeasible payment in  full in cash of the Guaranteed Obligations).         SECTION 10.04. Defenses Waived. To the fullest extent permitted by applicable law, each Loan  Guarantor hereby waives any defense based on or arising out of any defense of any Borrower or any Loan  Guarantor or the unenforceability of all or any part of the Guaranteed Obligations from any cause, or the  cessation from any cause of the liability of any Borrower, any Loan Guarantor or any other Obligated Party,  other than the indefeasible payment in full in cash of the Guaranteed Obligations. Without limiting the  generality  of  the  foregoing,  each  Loan  Guarantor  irrevocably  waives  acceptance  hereof,  presentment,  demand, protest and, to the fullest extent permitted by law, any notice not provided for herein, as well as  any requirement that at any time any action be taken by any Person against any Obligated Party or any other  Person. Each Loan Guarantor confirms that it is not a surety under any state law and shall not raise any  such law as a defense to its obligations hereunder. The Administrative Agent may, at its election, foreclose  on any Collateral held by it by one or more judicial or nonjudicial sales, accept an assignment of any such  Collateral in lieu of foreclosure or otherwise act or fail to act with respect to any collateral securing all or a  part of the Guaranteed Obligations, compromise or adjust any part of the Guaranteed Obligations, make  any other accommodation with any Obligated Party or exercise any other right or remedy available to it  against any Obligated Party, without affecting or impairing in any way the liability of such Loan Guarantor  under this Loan Guaranty except to the extent the Guaranteed Obligations have been fully and indefeasibly  paid in cash. To the fullest extent permitted by applicable law, each Loan Guarantor waives any defense  arising out of any such election even though that election may operate, pursuant to applicable law, to impair  or extinguish any right of reimbursement or subrogation or other right or remedy of any Loan Guarantor  against any Obligated Party or any security.         SECTION 10.05. Rights of Subrogation. No Loan Guarantor will assert any right, claim or cause  of action, including, without limitation, a claim of subrogation, contribution or indemnification, that it has                                        142   

 

against any Obligated Party or any collateral, until the Loan Parties and the Loan Guarantors have fully  performed all their obligations to the Administrative Agent, the Issuing Bank and the Lenders.         SECTION 10.06. Reinstatement; Stay of Acceleration. If at any time any payment of any portion  of  the  Guaranteed  Obligations  (including  a  payment  effected  through  exercise  of  a  right  of  setoff)  is  rescinded, or must otherwise be restored or returned upon the insolvency, bankruptcy or reorganization of  any Borrower or otherwise (including pursuant to any settlement entered into by a Secured Party in its  discretion), each Loan Guarantor’s obligations under this Loan Guaranty with respect to that payment shall  be reinstated at such time as though the payment had not been made and whether or not the Administrative  Agent, the Issuing Bank and the Lenders are in possession of this Loan Guaranty. If acceleration of the time  for  payment  of  any  of  the  Guaranteed  Obligations  is  stayed  upon  the  insolvency,  bankruptcy  or  reorganization of any Borrower, all such amounts otherwise subject to acceleration under the terms of any  agreement relating to the Guaranteed Obligations shall nonetheless be payable by the Loan Guarantors  forthwith on demand by the Administrative Agent.         SECTION 10.07. Information.  Each  Loan Guarantor  assumes  all  responsibility  for  being  and  keeping itself informed of the Borrowers’ financial condition and assets, and of all other circumstances  bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the  risks that each Loan Guarantor assumes and incurs under this Loan Guaranty, and agrees that none of the  Administrative Agent, the Issuing Bank or any Lender shall have any duty to advise any Loan Guarantor  of information known to it regarding those circumstances or risks.         SECTION 10.08. Termination. Each of the Lenders and the Issuing Bank may continue to make  loans or extend credit to the Borrowers based on this Loan Guaranty until five (5) days after it receives  written notice of termination from any Loan Guarantor. Notwithstanding receipt of any such notice, each  Loan Guarantor will continue to be liable to the Lenders for any Guaranteed Obligations created, assumed  or committed to prior to the fifth day after receipt of the notice, and all subsequent renewals, extensions,  modifications and amendments with respect to, or substitutions for, all or any part of such Guaranteed  Obligations. Nothing in this Section 10.08 shall be deemed to constitute a waiver of, or eliminate, limit,  reduce or otherwise impair any rights or remedies the Administrative Agent or any Lender may have in  respect of, any Default or Event of Default that shall exist under Article VII hereof as a result of any such  notice of termination.         SECTION 10.09. Taxes. Any obligation of any Borrower under Section 2.17 of this Agreement to  pay any additional amounts to, or indemnify, any Lender, Issuing Bank, or the Administrative Agent for  any Taxes that are required to be withheld or deducted from payments made to any Lender, Issuing Bank,  or the Administrative Agent or to pay for, or indemnify any Lender, Issuing Bank, or the Administrative  Agent for, any Other Taxes, shall apply mutatis mutandis (and without duplication) to each Loan Guarantor  with respect to this Loan Guaranty and payments made with respect to Guaranteed Obligations.         SECTION 10.10. Maximum Liability. Notwithstanding any other provision of this Loan Guaranty,  the amount guaranteed by each Loan Guarantor hereunder shall be limited to the extent, if any, required so  that its obligations hereunder shall not be subject to avoidance under Section 548 of the Bankruptcy Code  or  under  any  applicable  state  Uniform  Fraudulent  Transfer  Act,  Uniform  Fraudulent  Conveyance  Act,  Uniform Voidable Transactions Act or similar statute or common law. In determining the limitations, if  any, on the amount of any Loan Guarantor’s obligations hereunder pursuant to the preceding sentence, it is  the intention of the parties hereto that any rights of subrogation, indemnification or contribution which such  Loan Guarantor may have under this Loan Guaranty, any other agreement or applicable law shall be taken  into account.         SECTION 10.11. Contribution.                                        143   

 

      (a)   To the extent that any Loan Guarantor shall make a payment under this Loan Guaranty (a  “Guarantor  Payment”)  which,  taking  into  account  all  other  Guarantor  Payments  then  previously  or  concurrently made by any other Loan Guarantor, exceeds the amount which otherwise would have been  paid by or attributable to such Loan Guarantor if each Loan Guarantor had paid the aggregate Guaranteed  Obligations  satisfied  by  such  Guarantor  Payment  in  the  same  proportion  as  such  Loan  Guarantor’s  “Allocable Amount” (as defined below) (as determined immediately prior to such Guarantor Payment) bore  to the aggregate Allocable Amounts of each of the Loan Guarantors as determined immediately prior to the  making of such Guarantor Payment, then, following indefeasible payment in full in cash of the Guarantor  Payment and the Guaranteed Obligations (other than Unliquidated Obligations that have not yet arisen),  and all Commitments and Letters of Credit have terminated or expired or, in the case of all Letters of Credit,  are fully collateralized on terms reasonably acceptable to the Administrative Agent and the Issuing Bank,  and  this  Agreement,  the  Swap  Agreement  Obligations  and  the  Banking  Services  Obligations  have  terminated, such Loan Guarantor shall be entitled to receive contribution and indemnification payments  from, and be reimbursed by, each other Loan Guarantor for the amount of such excess, pro rata based upon  their respective Allocable Amounts in effect immediately prior to such Guarantor Payment.         (b)   As of any date of determination, the “Allocable Amount” of any Loan Guarantor shall be  equal to the excess of the fair saleable value of the property of such Loan Guarantor over the total liabilities  of such Loan Guarantor (including the maximum amount reasonably expected to become due in respect of  contingent liabilities, calculated, without duplication, assuming each other Loan Guarantor that is also liable  for such contingent liability pays its ratable share thereof), giving effect to all payments made by other Loan  Guarantors as of such date in a manner to maximize the amount of such contributions.         (c)   This Section 10.11 is intended only to define the relative rights of the Loan Guarantors,  and  nothing  set  forth  in  this Section 10.11 is  intended  to  or  shall  impair  the  obligations  of  the  Loan  Guarantors, jointly and severally, to pay any amounts as and when the same shall become due and payable  in accordance with the terms of this Loan Guaranty.         (d)   The parties  hereto  acknowledge  that  the  rights  of  contribution  and  indemnification  hereunder shall constitute assets of the Loan Guarantor or Loan Guarantors to which such contribution and  indemnification is owing.         (e)   The rights of the indemnifying Loan Guarantors against other Loan Guarantors under this  Section 10.11 shall be exercisable upon satisfaction of the Final Release Conditions.         SECTION 10.12. Liability Cumulative. The liability of each Loan Party as a Loan Guarantor under  this Article X is  in  addition  to  and  shall  be  cumulative  with  all  liabilities  of  each  Loan  Party  to  the  Administrative  Agent,  the  Issuing  Bank  and  the  Lenders  under  this  Agreement  and  the  other  Loan  Documents to which such Loan Party is a party or in respect of any obligations or liabilities of the other  Loan Parties, without any limitation as to amount, unless the instrument or agreement evidencing or creating  such other liability specifically provides to the contrary.         SECTION 10.13. Keepwell. Each Qualified ECP Guarantor hereby jointly and severally absolutely,  unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from  time to time by each other Loan Party to honor all of its obligations under this Guarantee in respect of a  Swap Obligation (provided, however, that each Qualified ECP Guarantor shall only be liable under this  Section 10.13 for the maximum amount of such liability that can be hereby incurred without rendering its  obligations under this Section 10.13 or otherwise under this Loan Guaranty voidable under applicable law  relating  to  fraudulent  conveyance  or  fraudulent  transfer,  and  not  for  any  greater  amount).  Except  as  otherwise provided herein, the obligations of each Qualified ECP Guarantor under this Section 10.13 shall  remain  in  full  force  and  effect  until  satisfaction  of  the  Final  Release  Conditions.  Each  Qualified  ECP                                        144   

 

Guarantor intends that this Section 10.13 constitute, and this Section 10.13 shall be deemed to constitute, a  “keepwell,  support,  or  other  agreement”  for  the  benefit  of  each  other  Loan  Party  for  all  purposes  of  Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.                                    ARTICLE XI                                                                       The Borrower Representative         SECTION 11.01. Appointment; Nature of Relationship. The Company is hereby appointed by each  of the Borrowers as its contractual representative (herein referred to as the “Borrower Representative”)  hereunder and under each other Loan Document, and each of the Borrowers irrevocably authorizes the  Borrower Representative to act as the contractual representative of such Borrower with the rights and duties  expressly set forth herein and in the other Loan Documents. The Borrower Representative agrees to act as  such contractual representative upon the express conditions contained in this Article XI. Additionally, the  Borrowers hereby appoint the Borrower Representative as their agent to receive all of the proceeds of the  Loans in the Funding Account(s), at which time the Borrower Representative shall promptly disburse such  Loans to the appropriate Borrower(s); provided that, in the case of a Revolving Loan, such amount shall  not cause the Borrowers to violate the Revolving Exposure Limitations. The Administrative Agent and the  Lenders, and their respective officers, directors, agents or employees, shall not be liable to the Borrower  Representative or any Borrower for any action taken or omitted to be taken by the Borrower Representative  or the Borrowers pursuant to this Section 11.01.         SECTION 11.02. Powers. The Borrower Representative shall have and may exercise such powers  under the Loan Documents as are specifically delegated to the Borrower Representative by the terms of  each thereof, together with such powers as are reasonably incidental thereto. The Borrower Representative  shall have no implied duties to the Borrowers, or any obligation to the Lenders to take any action thereunder  except any action specifically provided by the Loan Documents to be taken by the Borrower Representative.         SECTION 11.03. Employment of Agents. The Borrower Representative may execute any of its  duties  as  the  Borrower  Representative  hereunder  and  under  any  other  Loan  Document  by  or  through  authorized officers.         SECTION 11.04. Notices. Each Borrower shall immediately notify the Borrower Representative of  the occurrence of any Default or Event of Default hereunder referring to this Agreement describing such  Default  or  Event  of  Default and  stating  that  such  notice  is  a  “notice  of  default”.  In  the  event that the  Borrower Representative  receives such a notice, the Borrower Representative  shall give  prompt notice  thereof to the Administrative Agent and the Lenders. Any notice provided to the Borrower Representative  hereunder shall constitute notice to each Borrower on the date received by the Borrower Representative.         SECTION 11.05. Successor  Borrower  Representative.  Upon  the  prior  written  consent  of  the  Administrative Agent, the Borrower Representative may resign at any time, such resignation to be effective  upon the appointment of a successor Borrower Representative. The Administrative Agent shall give prompt  written notice of such resignation to the Lenders.         SECTION 11.06. Execution  of  Loan  Documents;  Borrowing  Base  Certificate.  The  Borrowers  hereby empower and authorize the Borrower Representative, on behalf of the Borrowers, to execute and  deliver  to  the  Administrative  Agent  and  the  Lenders  the  Loan  Documents  and  all  related  agreements,  certificates, documents, or instruments as shall be necessary or appropriate to effect the purposes of the  Loan  Documents,  including,  without  limitation,  the  Aggregate  Borrowing  Base  Certificate  and  the  Borrowing Base Certificate of each Borrower and the Compliance Certificates. Each Borrower agrees that  any action taken by the Borrower Representative or the Borrowers in accordance with the terms of this  Agreement or the other Loan Documents, and the exercise by the Borrower Representative of its powers                                        145   

 

set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be  binding upon all of the Borrowers.         SECTION 11.07. Reporting.  Each  Borrower  hereby  agrees  that  such  Borrower  shall  furnish  promptly after each fiscal month to the Borrower Representative a copy of its Borrowing Base Certificate  and any other certificate or report required hereunder or requested by the Borrower Representative on which  the  Borrower  Representative  shall  rely  to  prepare  the  Aggregate  Borrowing  Base  Certificate  and  the  Borrowing  Base  Certificate  of  each  Borrower  and  Compliance  Certificate  required  pursuant  to  the  provisions of this Agreement.                                [Signature Pages Follow]                                            146   

 

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed  by their respective authorized officers as of the day and year first above written.                                       WINNEBAGO INDUSTRIES, INC., as Borrower                                                                                                                  By: /s/ Bryan Hughes                                        Name:  Bryan Hughes                                         Title:  Vice President and Chief Financial Officer                                                                                                                  WINNEBAGO OF INDIANA, LLC, as Borrower                                                                                                                  By: /s/ Scott Degnan                                        Name:  Scott Degnan                                        Title:  President                                                                                                                  GRAND DESIGN RV, LLC, as Borrower                                                                                                                  By: /s/ Donald Clark                                        Name:  Donald Clark                                        Title:  President                                                                                                                  OCTAVIUS CORPORATION, as Loan Guarantor                                                                                                                  By: /s/ Bryan Hughes                                        Name: Bryan L. Hughes                                        Title:  Chief Financial Officer                   [Signature Page to Amended and Restated Credit Agreement – Winnebago Industries, Inc.]   

 

                             JPMORGAN CHASE BANK, N.A., individually as                                    a  Lender,  as  Swingline  Lender,  as  an  Issuing                                   Bank and as Administrative Agent                                                                                             By: /s/ John Morrone                                  Name: John Morrone                                 Title: Authorized Signer     [Signature Page to Amended and Restated Credit Agreement – Winnebago Industries, Inc.]                

 

                                                           BMO  HARRIS   BANK   N.A.,  individually  as                                    a Lender and as Syndication Agent                                                                                             By: /s/ Stephanie Bach                                  Name: Stephanie Bach                                 Title: Vice President                                   [Signature Page to Amended and Restated Credit Agreement – Winnebago Industries, Inc.]                

 

                             GOLDMAN SACHS USA, individually as a Lender                                                                                              By: /s/ Thomas M. Manning                                  Name: Thomas M. Manning                                  Title: Authorized Signatory                                                                                                                              [Signature Page to Amended and Restated Credit Agreement – Winnebago Industries, Inc.]                

 

                          COMMITMENT SCHEDULE                  LENDER                            COMMITMENTS   JPMORGAN CHASE BANK, N.A.                                        $92,500,000   BMO HARRIS BANK N.A.                                             $60,000,000   GOLDMAN SACHS BANK USA                                           $40,000,000   AGGREGATE COMMITMENTS                                           $192,500,000                                              

 

                                                                  EXHIBIT A                          ASSIGNMENT AND ASSUMPTION         This  Assignment  and  Assumption  (the  “Assignment  and  Assumption”)  is  dated  as  of  the  Effective  Date  set  forth  below  and  is  entered  into  by  and  between  [Insert  name  of  Assignor]  (the  “Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined  herein shall have the meanings given to them in the Credit Agreement identified below (as amended,  supplemented or otherwise modified from time to time, the “Credit Agreement”), receipt of a copy of  which  is  hereby  acknowledged  by  the  Assignee.  The  Standard  Terms  and  Conditions  set  forth  in  Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of  this Assignment and Assumption as if set forth herein in full.         For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee,  and  the  Assignee  hereby  irrevocably  purchases  and  assumes  from  the  Assignor,  subject  to  and  in  accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date  inserted  by  the  Administrative  Agent  as  contemplated  below (i) all  of  the  Assignor’s  rights  and  obligations  in  its  capacity  as  a  Lender  under  the  Credit  Agreement  and  any  other  documents  or  instruments  delivered  pursuant  thereto  to  the  extent  related  to  the  amount  and  percentage  interest  identified below of all of such outstanding rights and obligations of the Assignor under the respective  facilities identified below (including any letters of credit, guarantees, and swingline loans included in  such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits,  causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person,  whether  known  or  unknown,  arising  under  or  in  connection  with  the  Credit  Agreement,  any  other  documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any  way based on or related to any of the foregoing, including contract claims, tort claims, malpractice  claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold  and  assigned  pursuant  to clause (i) above  (the  rights  and  obligations  sold  and  assigned  pursuant to  clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”). Such sale and  assignment is without recourse to the Assignor and, except as expressly provided in this Assignment  and Assumption, without representation or warranty by the Assignor.   1.   Assignor:           _____________________________    2.   Assignee:           _____________________________                             [and is an Affiliate/Approved Fund of [identify Lender]1]   3.   Borrowers:          Winnebago Industries, Inc., Winnebago of Indiana, LLC and                           Grand Design RV, LLC   4.   Administrative Agent: JPMorgan Chase Bank, N.A., as the administrative agent under                           the Credit Agreement   5.   Credit Agreement:   The Amended and Restated Credit Agreement dated as of                           October 22, 2019 among Winnebago Industries, Inc., Winnebago                           of Indiana, LLC and Grand Design RV, LLC, as Borrowers, the                           other Loan Parties from time to time parties thereto, the Lenders                           parties thereto, and JPMorgan Chase Bank, N.A., as                           Administrative Agent   6.   Assigned Interest:                                                                   1 Select as applicable.                                    Exhibit A-1   

 

 Aggregate Amount of     Amount of               Percentage Assigned    Commitment/Loans for   Commitment/                     of        all Lenders       Loans Assigned            Commitment/Loans2   $                  $                   %   $                  $                   %   $                  $                   %                Effective  Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE  AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER  IN THE REGISTER THEREFOR.]         The  Assignee  agrees  to  deliver  to  the Administrative  Agent  a  completed  Administrative  Questionnaire  in  which  the  Assignee  designates  one  or  more  Credit  Contacts  to  whom  all  syndicate-level information (which may contain material non-public information about the Company,  the other Loan Parties and their Related Parties or their respective securities) will be made available  and who may receive such information in accordance with the Assignee’s compliance procedures and  applicable laws, including Federal and state securities laws.         The terms set forth in this Assignment and Assumption are hereby agreed to:                                       ASSIGNOR                                                                            [NAME OF ASSIGNOR]                                                                                                                  By:                                                                           Title:                                                                                                                  ASSIGNEE                                                                            [NAME OF ASSIGNEE]                                                                                                                  By:                                                                           Title:                                                                                Consented to and Accepted:    JPMORGAN CHASE BANK, N.A., as   Administrative Agent, an Issuing Bank and Swingline Lender      By:                                 Title:                                                                 2 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.                                    Exhibit A-2   

 

[__________], as   an Issuing Bank      By:                                 Title:      [Consented to:]3    WINNEBAGO INDUSTRIES, INC.      By:                                 Title:                                                            3 To be added only if the consent of the Borrower Representative is required by the terms of the Credit Agreement.                                    Exhibit A-3   

 

                                                                   ANNEX I                      STANDARD TERMS AND CONDITIONS FOR                         ASSIGNMENT AND ASSUMPTION         1.    Representations and Warranties.         1.1.  Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial  owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or  other adverse  claim and  (iii) it has full power and authority, and  has taken  all action necessary, to  execute and deliver this Assignment and Assumption and to consummate the transactions contemplated  hereby;  and  (b) assumes  no  responsibility  with  respect  to  (i) any  statements,  warranties  or  representations  made in or in connection with the  Credit Agreement or any other Loan  Document,  (ii) the  execution,  legality,  validity,  enforceability,  genuineness,  sufficiency  or  value  of  the  Loan  Documents  or  any  collateral  thereunder,  (iii) the  financial  condition  of  the  Company,  any  of  its  Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, (iv) any  requirements under applicable law for the Assignee to become a lender under the Credit Agreement or  to charge interest at the rate set forth therein from time to time, or (v) the performance or observance  by the Company, any of its Subsidiaries or Affiliates or any other Person of any of their respective  obligations under any Loan Document.         1.2.  Assignee.  The  Assignee  (a) represents  and  warrants  that  (i) it  has  full  power  and  authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption  and to consummate the transactions contemplated hereby and to become a Lender under the Credit  Agreement,  (ii) it  satisfies  the  requirements,  if  any,  specified  in  the  Credit  Agreement  and  under  applicable law that are required to be satisfied by it in order to acquire the Assigned Interest and become  a  Lender,  (iii) from  and  after the  Effective  Date,  it shall  be  bound  by  the  provisions  of  the  Credit  Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations  of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the  most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such  other documents and information as it has deemed appropriate to make its own credit analysis and  decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the  basis  of  which  it  has  made  such  analysis  and  decision  independently  and  without  reliance  on  the  Administrative Agent, the Lead Arranger or any other Lender or any of their respective Related Parties,  and (v) attached to the Assignment and Assumption is any documentation required to be delivered by  it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and  (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Lead  Arranger, the Syndication Agent, the Assignor or any other Lender or any of their respective Related  Parties, and based on such documents and information as it shall deem appropriate at the time, continue  to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it  will  perform  in  accordance  with  their  terms  all  of  the  obligations  which  by  the  terms  of  the  Loan  Documents are required to be performed by it as a Lender.         2.    Payments. From and after the Effective Date, the Administrative Agent shall make all  payments in respect of the Assigned Interest (including payments of principal, interest, fees and other  amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to  the Assignee for amounts which have accrued from and after the Effective Date.         3.    General Provisions. This Assignment and Assumption shall be binding upon, and inure  to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and  Assumption  may  be  executed  in  any  number  of  counterparts,  which  together  shall  constitute  one  instrument. Acceptance and adoption of the terms of this Assignment and Assumption by the Assignee  and the Assignor by Electronic Signature or delivery of an executed counterpart of a signature page of  this Assignment and Assumption by any Approved Electronic Platform shall be effective as delivery of                                     Exhibit A-4   

 

a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption  shall be governed by, and construed in accordance with, the law of the State of New York.                                                 Exhibit A-5   

 

             EXHIBIT B-1   FORM OF BORROWING BASE CERTIFICATE                 [Attached]                  Exhibit B-1                

 

                   EXHIBIT B-2   FORM OF AGGREGATE BORROWING BASE CERTIFICATE                       [Attached]                                                       Exhibit B-2                

 

                                 EXHIBIT C                            COMPLIANCE CERTIFICATE   To:   The Lenders parties to the         Credit Agreement Described Below         This Compliance Certificate is furnished pursuant to that certain Amended and Restated Credit  Agreement, dated as of October 22, 2019 (as amended, restated, supplemented or otherwise modified  from  time  to  time,  the  “Agreement”),  among  Winnebago  Industries, Inc.  (the  “Borrower  Representative”),  Winnebago  of  Indiana,  LLC  and  Grand  Design  RV,  LLC,  as  Borrowers  (the  “Borrowers”), the other Loan Parties from time to time party thereto, the Lenders from time to time  party thereto and JPMorgan  Chase  Bank, N.A., as Administrative  Agent. Unless  otherwise defined  herein, capitalized terms used in this Compliance Certificate have the meanings ascribed thereto in the  Agreement.         THE  UNDERSIGNED  HEREBY  CERTIFIES,  ON  ITS  BEHALF  AND  ON  BEHALF  OF  THE  BORROWERS,  SOLELY  IN  SUCH  PERSON’S  CAPACITY  AS  AN  OFFICER  OF  THE  COMPANY AND NOT IN AN INDIVIDUAL CAPACITY, THAT:         1.    I am the duly elected [__________] of the Borrower Representative;         2.    I have reviewed the terms of the Agreement and I have made, or have caused to be  made under my supervision, a detailed review of the transactions and conditions of the Company and  its Subsidiaries during the accounting period covered by the attached financial statements [for quarterly  or monthly financial statements add: and such financial statements present fairly in all material respects  the financial condition and results of operations of the Borrowers and their consolidated Subsidiaries  on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit  adjustments and the absence of footnotes];         3.    The examinations described in paragraph 2 did not disclose, except as set forth below,  and I have no knowledge of (i) the existence of any condition or event which constitutes a Default  during or at the end of the accounting period covered by the attached financial statements or as of the  date of this Certificate or (ii) any change in GAAP or in the application thereof that has occurred since  the date of the audited financial statements referred to in Section 3.04 of the Agreement;         4.    I hereby certify that no Loan Party has changed (i) its name, (ii) its chief executive  office, (iii) principal place of business, (iv) the type of entity it is or (v) its state of incorporation or  organization without having given the Administrative Agent the notice required by Section 4.15 of the  Security Agreement;         5.    Schedule I attached hereto sets forth financial data and computations evidencing the  Borrowers’ compliance with certain covenants of the Agreement, all of which data and computations  are true, complete and correct;         6.    Schedule II hereto sets forth the computations necessary to determine the Applicable  Rate commencing on the date that is five (5) Business Days after the date this certificate is delivered;  and    [for annual or quarterly financial statements add:          7.    Schedule III  hereto  sets  forth  the  computations  necessary  to  determine  the  average  daily Total Commitment Utilization for the period referenced in paragraph 2 above.]                                     Exhibit C-1   

 

      Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the (i) nature of  the condition or event, the period during which it has existed and the action which the Borrowers have  taken, are taking, or propose to take with respect to each such condition or event or (i) the change in  GAAP or the application thereof and the effect of such change on the attached financial statements:                                                                                                                                                                                                                                        The  foregoing  certifications,  together  with  the  computations  set  forth  in  Schedule I  and  Schedule II hereto and the financial statements delivered with this Certificate in support hereof, are  made and delivered this ___ day of __________, 20__.                                                WINNEBAGO INDUSTRIES, INC., as                                      Borrower Representative                                                                                                                                                        By:                                                                          Name:                                                                     Title:                                                                  Exhibit C-2   

 

                                 EXHIBIT D                           LIST OF CLOSING DOCUMENTS                          WINNEBAGO INDUSTRIES, INC.                         WINNEBAGO OF INDIANA, LLC                            GRAND DESIGN RV, LLC                              ABL CREDIT FACILITY                                  October 22, 2019                          LIST OF CLOSING DOCUMENTS4                            A.    LOAN DOCUMENTS         1.    Amended and Restated Credit Agreement (the “Credit Agreement”) by and among  Winnebago Industries, Inc., an Indiana corporation (the “Company”), Winnebago of Indiana, LLC,  and Grand Design RV, LLC, as Borrowers (the “Borrowers”), the other Loan Parties from time to time  parties  thereto,  the  institutions  from  time  to  time  parties  thereto  as  Lenders  (the “Lenders”)  and  JPMorgan  Chase  Bank,  N.A.  (“JPMorgan”),  in  its  capacity  as  Administrative  Agent  (the  “Administrative Agent”), evidencing an asset-based revolving credit facility to the Borrowers from  the Lenders in an initial aggregate principal amount of $192,500,000.                                   SCHEDULES         Commitment Schedule        Schedule 3.15 –   Capitalization and Subsidiaries        Schedule 3.18 –   Insurance        Schedule 6.01 –   Existing Indebtedness        Schedule 6.02 –   Existing Liens        Schedule 6.04 –   Existing Investments        Schedule 6.05 –   Dispositions        Schedule 6.08 –   Transactions with Affiliates        Schedule 6.11 –   Restrictive Agreements                                    EXHIBITS   Exhibit A –    Form of Assignment and Assumption  Exhibit B –    Form of Borrowing Base Certificate  Exhibit C –    Form of Compliance Certificate  Exhibit D –    List of Closing Documents  Exhibit E –    Form of Joinder Agreement  Exhibit F-1 –  Form of U.S. Tax Certificate (Foreign Lenders That Are Not Partnerships)  Exhibit F-2 –  Form of U.S. Tax Certificate (Foreign Participants That Are Not Partnerships)  Exhibit F-3 –  Form of U.S. Tax Certificate (Foreign Participants That Are Partnerships)  Exhibit F-4 –  Form of U.S. Tax Certificate (Foreign Lenders That Are Partnerships)  Exhibit G-1 –  Form of Borrowing Request  Exhibit G-2 –  Form of Interest Election Request                                                          4 Each capitalized term used herein and not defined herein shall have the meaning assigned to such term in the  above-defined Credit Agreement. Items appearing in bold and italics shall be prepared and/or provided by the  Company and/or Company’s counsel.                                    Exhibit D-1   

 

      2.    Notes executed by the Borrowers in favor of each of the Lenders, if any, which has  requested a note pursuant to Section 2.10(e) of the Credit Agreement.         3.    Amended and Restated Pledge and Security Agreement executed by the Loan Parties  in favor of the Administrative Agent, together with pledged instruments and allonges, stock certificates,  stock powers executed in blank, pledge instructions and acknowledgments, as appropriate.         4.    Confirmatory Grant of Security Interest in United States Patents made by certain of the  Loan Parties in favor of the Administrative Agent for the benefit of the Secured Parties.          Schedule A --    Registered Patents; Patent Applications; Other Patents           5.    Confirmatory Grant of Security Interest in United States Trademarks made by certain  of the Loan Parties in favor of the Administrative Agent for the benefit of the Secured Parties.          Schedule A --    Registered Trademarks; Trademark and Service Mark Applications;                          Other Trademarks           6.    Certificates of Insurance listing the Administrative Agent as (x) lender loss payee for  the property and casualty insurance policies of the initial Loan Parties, together with long-form lender  loss  payable  endorsements,  as  appropriate,  and  (y)  additional  insured  with  respect  to  the  liability  insurance of the Loan Parties, together with additional insured endorsements.                             B.    UCC DOCUMENTS         7.    UCC, tax lien and name variation search reports naming each Loan Party from the  appropriate offices in relevant jurisdictions.         8.    UCC financing statements naming each Loan Party as debtor and the Administrative  Agent as secured party as filed with the appropriate offices in applicable jurisdictions.                         C.    CORPORATE DOCUMENTS         9.    Certificate of the Secretary or an Assistant Secretary of each Loan Party certifying  (i) that there have been no changes in the Certificate of Incorporation or other charter document of such  Loan Party, as attached thereto and as certified as of a recent date by the Secretary of State (or analogous  governmental entity) of the jurisdiction of its organization, since the date of the certification thereof by  such governmental entity, (ii) the By-Laws or other applicable organizational document, as attached  thereto, of such Loan Party as in effect on the date of such certification, (iii) resolutions of the Board of  Directors  or  other  governing  body  of  such  Loan  Party  authorizing  the  execution,  delivery  and  performance of each Loan Document to which it is a party and (iv) the names and true signatures of the  incumbent officers of each Loan Party authorized to sign the Loan Documents to which it is a party,  and (in the case of each Borrower) authorized to request a Borrowing or the issuance of a Letter of  Credit under the Credit Agreement.         10.   Good Standing Certificate (or analogous documentation if applicable) for each Loan  Party  from  the  Secretary  of  State  (or  analogous  governmental  entity)  of  the  jurisdiction  of  its  organization, to the extent generally available in such jurisdiction.                                 D.    OPINIONS         11.   Favorable written opinion (addressed to the Administrative Agent and the Lenders and  dated the Effective Date) of Faegre Baker Daniels, counsel for the Loan Parties, covering such matters                                     Exhibit D-2   

 

relating to the Loan Parties, the Loan Documents or the Transactions as the Administrative Agent shall  reasonably request. The Company hereby requests such counsel to deliver such opinion.               E.    CLOSING CERTIFICATES AND MISCELLANEOUS         12.   A Certificate signed by the President, a Vice President or a Financial Officer of the  Company certifying that: (i) no Default has occurred and is continuing, (ii) setting forth reasonably  detailed calculations demonstrating pro forma compliance with Section 6.12 of the Credit Agreement,  (iii) stating that the representations and warranties contained in Article III of the Credit Agreement are  true and correct in all material respects (provided that any representation or warranty that is qualified  by materiality, Material Adverse Effect or similar language is true and correct in all respects) on and as  of the Effective Date, except to the extent that such representations and warranties specifically refer to  an  earlier  date,  in  which  case  they  are  true  and  correct  in  all  material  respects  (provided that  any  representation or warranty that is qualified by materiality, Material Adverse Effect or similar language  are  true  and  correct in  all respects) as  of  such  earlier  date  and  (iv)  stating  that  the  Borrower is  in  compliance with the Revolving Exposure Limitations.         13.   A Solvency Certificate of the chief financial officer of the Company substantially in  the form of Annex I hereto, certifying that the Company and its Subsidiaries, on a consolidated basis  after giving effect to the Transactions, are solvent.         14.   An Aggregate Borrowing Base Certificate and a Borrowing Base Certificate for each  Borrower, in each case, prepared as of the last day of the most recent month ended at least twenty (20)  calendar days prior to the Effective Date.         15.   Funding Account Notice.                                        Exhibit D-3   

 

                                                           Annex I to Exhibit D                         FORM OF SOLVENCY CERTIFICATE                                                              [__________], 20[__]         This Solvency Certificate is being executed and delivered pursuant to Section 4.01(a) of the  Amended and Restated Credit Agreement (the “Credit Agreement”), dated as of October 22, 2019,  among Winnebago Industries, Inc. (the “Company”), the other loan parties party thereto from time to  time, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A., as the administrative  agent; the terms defined therein being used herein as therein defined.         I, [__________], the chief financial officer of the Company, solely in such capacity and not in  an individual capacity, hereby certify that I am the chief financial officer of the Company and that I am  generally familiar with the businesses and assets of the Company and its Subsidiaries (taken as a whole),  I  have  made  such  other  investigations  and  inquiries  as  I  have  deemed  appropriate  and  I  am  duly  authorized  to  execute  this  Solvency  Certificate  on  behalf  of  the  Company  pursuant  to  the  Credit  Agreement.         I further certify, solely in my capacity as chief financial officer of the Company, and not in my  individual capacity, as of the date hereof and after giving effect to the Transactions and the incurrence  of the indebtedness and obligations being incurred in connection with the Credit Agreement and the  Transactions on the date hereof, that, with respect to the Company and its Subsidiaries on a consolidated  basis, (a) the sum of the liabilities of the Company and its Subsidiaries, taken as a whole, does not  exceed the present fair saleable value of the assets of the Company and its Subsidiaries, taken as a  whole; (b) the capital of the Company and its Subsidiaries, taken as a whole, is not unreasonably small  in relation to the business of the Company and its Subsidiaries, taken as a whole, contemplated on the  date hereof and (c) the Company and its Subsidiaries, taken as a whole, do not intend to incur, or believe  that they will incur, debts including current obligations beyond their ability to pay such debt as they  mature  in  the  ordinary  course  of  business.  For  the  purposes  hereof,  the  amount  of  any  contingent  liability at any time shall be computed as the amount that, in light of all of the facts and circumstances  existing at such time, represents the amount that can reasonably be expected to become an actual or  matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under  Statement of Financial Accounting Standard No. 5).                        [Remainder of page intentionally left blank]                                     Exhibit D-4   

 

      IN WITNESS WHEREOF, I have executed this Solvency Certificate on the date first written  above.                                                                                                                   By:__________________________________                                        Name:                                        Title: Chief Financial Officer                                       Exhibit D-5   

 

                                 EXHIBIT E                              JOINDER AGREEMENT         THIS  JOINDER AGREEMENT  (this  “Agreement”),  dated  as  of  [__________],  20__,  is  entered into between [__________], a [__________] (the “New Subsidiary”) and JPMORGAN CHASE  BANK, N.A., in its capacity as administrative agent (the “Administrative Agent”) under that certain  Amended  and  Restated  Credit  Agreement  dated  as  of  October 22],  2019  (as  amended,  restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”) among Winnebago  Industries,  Inc.,  Winnebago  of  Indiana,  LLC  and  Grand  Design  RV,  LLC, as  Borrowers  (the  “Borrowers”), the other Loan Parties party thereto, the Lenders party thereto and the Administrative  Agent for the Lenders. All capitalized terms used herein and not otherwise defined herein shall have  the meanings set forth in the Credit Agreement.         The New Subsidiary and the Administrative Agent, for the benefit of the Lenders, hereby agree  as follows:         1.    The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution  of this Agreement, the New Subsidiary will be deemed to be a Loan Party under the Credit Agreement  and a “Loan Guarantor” for all purposes of the Credit Agreement and shall have all of the obligations  of a Loan Party and a Loan Guarantor thereunder as if it had executed the Credit Agreement. The New  Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions  and  conditions  contained  in  the  Credit  Agreement,  including  without  limitation  (a)  all  of  the  representations and warranties of the Loan Parties set forth in Article III of the Credit Agreement, (b)  all of the covenants set forth in Articles V and VI of the Credit Agreement and (c) all of the guaranty  obligations  set  forth  in  Article X  of  the  Credit  Agreement.  Without  limiting  the  generality  of  the  foregoing  terms  of  this  paragraph  1,  the  New  Subsidiary,  subject  to  the  limitations  set  forth  in  Sections 10.10 and 10.13 of the Credit Agreement, hereby guarantees, jointly and severally with the  other Loan Guarantors, to the Administrative Agent and the Lenders, as provided in Article X of the  Credit Agreement, the prompt payment and performance of the Guaranteed Obligations in full when  due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise) in accordance  with the terms thereof and agrees that if any of the Guaranteed Obligations are not paid or performed  in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise),  the New Subsidiary will, jointly and severally together with the other Loan Guarantors, promptly pay  and perform the same, without any demand or notice whatsoever, and that in the case of any extension  of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in  full when due (whether at extended maturity, as a mandatory prepayment, by acceleration or otherwise)  in accordance with the terms of such extension or renewal.         2.    If  required,  the  New  Subsidiary  is,  simultaneously  with  the  execution  of  this  Agreement,  executing  and  delivering  such  Collateral  Documents  (and  such  other  documents  and  instruments) as requested by the Administrative Agent in accordance with the Credit Agreement.         3.    The  address  of  the  New  Subsidiary  for  purposes  of  Section 9.01  of  the  Credit  Agreement is as follows:                                                                                                                                                                                                                                              Exhibit E-1   

 

      4.    The New Subsidiary hereby waives acceptance by the Administrative Agent and the  Lenders of the guaranty by the New Subsidiary upon the execution of this Agreement by the New  Subsidiary.         5.    This Agreement may be executed in any number of counterparts, each of which when  so  executed  and  delivered  shall  be  an  original,  but  all  of  which  shall  constitute  one  and  the  same  instrument.         6.    THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES  HEREUNDER  SHALL  BE  GOVERNED  BY  AND  CONSTRUED  AND  INTERPRETED  IN  ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.         IN WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly executed  by its authorized officer, and the Administrative Agent, for the benefit of the Lenders, has caused the  same to be accepted by its authorized officer, as of the day and year first above written.                                                                             [NEW SUBSIDIARY]                                                                                                                  By:                                                                    Name:                                                                  Title:                                                                                                       Acknowledged and accepted:                                                                            JPMORGAN CHASE BANK, N.A., as                                      Administrative Agent                                                                            By:                                                                    Name:                                                                  Title:                                                                  Exhibit E-2   

 

                                                                EXHIBIT F-1                                    [FORM OF]                        U.S. TAX COMPLIANCE CERTIFICATE       (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)         Reference is hereby made to the Amended and Restated Credit Agreement dated as of October  22, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit  Agreement”), among Winnebago Industries, Inc., Winnebago of Indiana, LLC and Grand Design RV,  LLC, as Borrowers (the “Borrowers”), the other Loan Parties party thereto, the Lenders from time to  time  party thereto and JPMorgan  Chase  Bank, N.A., as administrative  agent (in such capacity, the  “Administrative Agent”).         Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby  certifies  that  (i) it  is  the  sole  record  and  beneficial  owner  of  the  Loan(s)  (as  well  as  any  Note(s)  evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within  the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of any Borrower  within  the  meaning  of  Section 871(h)(3)(B)  of  the  Code  and  (iv) it  is  not  a  controlled  foreign  corporation related to any Borrower as described in Section 881(c)(3)(C) of the Code.         The undersigned has furnished the Administrative Agent and the Borrowers with a certificate  of  its  non-U.S. Person  status  on  IRS  Form W-8BEN  or  IRS  Form  W-8BEN-E.  By  executing  this  certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the  undersigned  shall  promptly  so  inform  the  Borrowers  and  the  Administrative  Agent  and  (2) the  undersigned  shall  have  at  all  times  furnished  the  Borrowers and  the  Administrative  Agent  with  a  properly completed and currently effective certificate in either the calendar year in which each payment  is to be made to the undersigned, or in either of the two calendar years preceding such payments.         Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall  have the meanings given to them in the Credit Agreement.   [NAME OF LENDER]      By:                                Name:     Title:   Date: __________, 20[__]                                                 Exhibit F-1   

 

                                                                EXHIBIT F-2                                    [FORM OF]                        U.S. TAX COMPLIANCE CERTIFICATE     (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)         Reference is hereby made to the Amended and Restated Credit Agreement dated as of October  22, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit  Agreement”), among Winnebago Industries, Inc., Winnebago of Indiana, LLC and Grand Design RV,  LLC, as Borrowers (the “Borrowers”), the other Loan Parties party thereto, the Lenders from time to  time  party thereto and JPMorgan  Chase  Bank, N.A., as administrative  agent (in such capacity, the  “Administrative Agent”).         Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby  certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is  providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code,  (iii) it is not a ten percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of  the Code and (iv) it is not a controlled foreign corporation related to any Borrower as described in  Section 881(c)(3)(C) of the Code.         The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person  status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned  agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly  so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender  with a properly completed and currently effective certificate in either the calendar year in which each  payment  is  to  be  made  to  the  undersigned,  or  in  either  of  the  two  calendar  years  preceding  such  payments.         Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall  have the meanings given to them in the Credit Agreement.   [NAME OF PARTICIPANT]      By:                                Name:     Title:   Date: __________, 20[__]                                        Exhibit F-2   

 

                                                                EXHIBIT F-3                                    [FORM OF]                        U.S. TAX COMPLIANCE CERTIFICATE       (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)         Reference is hereby made to the Amended and Restated Credit Agreement dated as of October  22, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit  Agreement”), among Winnebago Industries, Inc., Winnebago of Indiana, LLC and Grand Design RV,  LLC, as Borrowers (the “Borrowers”), the other Loan Parties party thereto, the Lenders from time to  time  party thereto and JPMorgan  Chase  Bank, N.A., as administrative  agent (in such capacity, the  “Administrative Agent”).         Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby  certifies that (i) it is the sole record owner of the participation in respect of which it is providing this  certificate,  (ii) its  direct  or  indirect  partners/members  are  the  sole  beneficial  owners  of  such  participation,  (iii) with  respect  such  participation,  neither  the  undersigned  nor  any  of  its  direct  or  indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the  ordinary  course  of  its  trade  or  business  within  the  meaning  of  Section 881(c)(3)(A)  of  the  Code,  (iv) none of its direct or indirect partners/members is a ten percent shareholder of any Borrower within  the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members  is a controlled foreign corporation related to any Borrower as described in Section 881(c)(3)(C) of the  Code.         The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied  by one of the following forms from each of its partners/members that is claiming the portfolio interest  exemption:  (i) an  IRS  Form W-8BEN  or  IRS  Form  W-8BEN-E  or  (ii) an  IRS  Form W-8IMY  accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner’s/member’s  beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the  undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall  promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender  with a properly completed and currently effective certificate in either the calendar year in which each  payment  is  to be  made  to  the  undersigned,  or  in  either  of  the  two  calendar  years  preceding  such  payments.         Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall  have the meanings given to them in the Credit Agreement.   [NAME OF PARTICIPANT]      By:                                Name:     Title:   Date: __________, 20[__]                                        Exhibit F-3   

 

                                                                EXHIBIT F-4                                    [FORM OF]                        U.S. TAX COMPLIANCE CERTIFICATE        (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)         Reference is hereby made to the Amended and Restated Credit Agreement dated as of October  22, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit  Agreement”), among Winnebago Industries, Inc., Winnebago of Indiana, LLC and Grand Design RV,  LLC, as Borrowers (the “Borrowers”), the other Loan Parties party thereto, the Lenders from time to  time  party thereto and JPMorgan  Chase  Bank, N.A., as administrative  agent (in such capacity, the  “Administrative Agent”).         Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby  certifies  that (i) it is the  sole  record owner of the  Loan(s) (as well as any Note(s) evidencing such  Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members  are  the  sole  beneficial  owners  of  such  Loan(s)  (as  well  as  any  Note(s)  evidencing  such  Loan(s)),  (iii) with  respect  to  the  extension  of  credit  pursuant  to  the  Credit  Agreement  or  any  other  Loan  Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending  credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within  the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is  a ten percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the Code and  (v) none of its direct or indirect partners/members is a controlled foreign corporation related to any  Borrower as described in Section 881(c)(3)(C) of the Code.         The  undersigned  has  furnished  the  Administrative  Agent  and  the  Borrowers  with  IRS  Form W-8IMY accompanied by one of the following forms from each of its partners/members that is  claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an  IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of  such  partner’s/member’s  beneficial  owners  that  is  claiming  the  portfolio  interest  exemption.  By  executing this certificate, the undersigned agrees that (1) if the information provided on this certificate  changes, the undersigned shall promptly so inform the Borrowers and the Administrative Agent, and  (2) the undersigned shall have at all times furnished the Borrowers and the Administrative Agent with  a  properly  completed  and  currently  effective  certificate  in  either  the  calendar  year  in  which  each  payment  is  to  be  made  to  the  undersigned,  or  in  either  of  the  two  calendar  years  preceding  such  payments.         Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall  have the meanings given to them in the Credit Agreement.   [NAME OF LENDER]      By:                                Name:     Title:   Date: __________, 20[__]                                        Exhibit F-4   

 

                                                                EXHIBIT G-1                          FORM OF BORROWING REQUEST   JPMorgan Chase Bank, N.A.,  as Administrative Agent  for the Lenders referred to below    JPMorgan Chase Bank, N.A.  10 S. Dearborn St.  Chicago, Illinois 60603  Attention: John Morrone  Facsimile No: (312) 548-1943          Re: Winnebago Industries, Inc.                                                                         [Date]   Ladies and Gentlemen:         Reference is hereby made to the Amended and Restated Credit Agreement dated as of October  22, 2019 (as the same may be amended, restated, supplemented or otherwise modified from time to  time, the “Credit Agreement”), among Winnebago Industries, Inc. (the “Borrower Representative”),  Winnebago of Indiana, LLC and Grand Design RV, LLC, as Borrowers (the “Borrowers”), the other  Loan Parties from time to time party thereto, the Lenders from time to time party thereto and JPMorgan  bChase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”). Capitalized  terms  used  but  not  defined  herein  shall  have  the  meanings  assigned  to  such  terms  in  the  Credit  Agreement. The Borrower Representative hereby gives you notice pursuant to Section 2.03 of the Credit  Agreement  that  it  requests  a  Borrowing  under  the  Credit  Agreement,  and  in  that  connection  the  Borrower Representative specifies the following information with respect to such Borrowing requested  hereby:         1.    Name of the applicable Borrower: __________         2.    Aggregate principal amount of Borrowing:5 __________         3.    Date of Borrowing (which shall be a Business Day): __________         4.    Type of Borrowing (ABR or Eurodollar): __________         5.    Interest Period and the last day thereof (if a Eurodollar Borrowing):6 __________         6.    Location and number of the Borrower’s account or any other account agreed upon by              the Administrative Agent and the Borrower to which proceeds of Borrowing are to be              disbursed: __________                               [Signature Page Follows]                                                          5 Not less than applicable amounts specified in Section 2.02(c).  6 Which must comply with the definition of “Interest Period” and end not later than the Maturity Date.                                    Exhibit G-1   

 

      The undersigned  hereby represents  and  warrants that the  conditions  to lending specified in  Section[s] [4.01 and]7 4.02 of the Credit Agreement are satisfied as of the date hereof.                                       Very truly yours,                                                                            WINNEBAGO INDUSTRIES, INC.,                                       as the Borrower Representative                                                                                                                                                        By:                                                                    Name:                                       Title:                                                          7 To be included only for Borrowings on the Effective Date.                                    Exhibit G-1   

 

                                                                EXHIBIT G-2                      FORM OF INTEREST ELECTION REQUEST   JPMorgan Chase Bank, N.A.,  as Administrative Agent  for the Lenders referred to below    JPMorgan Chase Bank, N.A.  10 S. Dearborn St.  Chicago, Illinois 60603  Attention: John Morrone  Facsimile No: (312) 548-1943          Re: Winnebago Industries, Inc.                                                                         [Date]   Ladies and Gentlemen:         Reference is hereby made to the Amended and Restated Credit Agreement dated as of October  22, 2019 (as the same may be amended, restated, supplemented or otherwise modified from time to  time, the “Credit Agreement”), among Winnebago Industries, Inc. (the “Borrower Representative”),  Winnebago of Indiana, LLC and Grand Design RV, LLC, as Borrowers (the “Borrowers”), the other  Loan Parties from time to time party thereto, the Lenders from time to time party thereto and JPMorgan  Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”). Capitalized  terms  used  but  not  defined  herein  shall  have  the  meanings  assigned  to  such  terms  in  the  Credit  Agreement. The Borrower Representative hereby gives you notice pursuant to Section 2.08 of the Credit  Agreement that it requests to [convert][continue] an existing Borrowing under the Credit Agreement,  and  in  that  connection  the  Borrower  specifies  the  following  information  with  respect  to  such  [conversion][continuation] requested hereby:         1.    Name of Borrower: __________         2.    List date, Type, Class, principal amount and Interest Period (if applicable) of existing              Borrowing: __________         3.    Aggregate principal amount of resulting Borrowing: __________         4.    Effective date of interest election (which shall be a Business Day): __________         5.    Type of Borrowing (ABR or Eurodollar): __________         6.    Interest Period and the last day thereof (if a Eurodollar Borrowing):8 __________                               [Signature Page Follows]                                                          8Which must comply with the definition of “Interest Period” and end not later than the Maturity Date.                                    Exhibit G-2   

 

   Very truly yours,          WINNEBAGO INDUSTRIES, INC.     as Borrower Representative               By:                             Name:      Title:                   Exhibit G-3Exhibit 10.18

 

 

Framework Agreement

on the Acquisition of Shares in the Yong Xiong Group

 

 

August 2018

 

 

Table of Contents

 

	
Article 1
    	
Definitions and   Interpretation
    	
3
    
	
 
    	
 
    	
 
    
	
Article 2
    	
Steps of the Transaction
    	
8
    
	
 
    	
 
    	
 
    
	
Article 3
    	
Conditions Precedent to   Investment
    	
17
    
	
 
    	
 
    	
 
    
	
Article 4
    	
Representations and   Warranties
    	
22
    
	
 
    	
 
    	
 
    
	
Article 5
    	
Costs and Taxes
    	
22
    
	
 
    	
 
    	
 
    
	
Article 6
    	
Exclusivity Clause
    	
23
    
	
 
    	
 
    	
 
    
	
Article 7
    	
Confidentiality and Notices
    	
23
    
	
 
    	
 
    	
 
    
	
Article 8
    	
Force Majeure
    	
24
    
	
 
    	
 
    	
 
    
	
Article 9
    	
Liability for Breach
    	
25
    
	
 
    	
 
    	
 
    
	
Article 10
    	
Termination
    	
26
    
	
 
    	
 
    	
 
    
	
Article 11
    	
Applicable Law and   Dispute Resolution
    	
26
    
	
 
    	
 
    	
 
    
	
Article 12
    	
Entire Agreement
    	
27
    
	
 
    	
 
    	
 
    
	
Article 13
    	
Miscellaneous
    	
27
    
	
 
    	
 
    	
 
    
	
Schedule 1
    	
List of Subsidiaries and   Branches of the Yong Xiong Group
    	
30
    

 

 

 

This Framework Agreement on the Acquisition of Shares in the Yong Xiong Group (this “Agreement”) was entered into this 2nd day of August, 2018, by and among the following parties:

 

1.                   Tan Man, a Chinese natural person, ID card no. 43010319750515095X;

 

2.                   Zhou Xiaofang, a Chinese natural person, ID card no. 430381198501084187;

 

(Tan Man and Zhou Xiaofang are collectively the “Founders”)

 

3.                   Hunan Yong Xiong Asset Management Group Co., Ltd., a limited liability company duly established and validly existing under PRC laws, with its registered address at Room 1001, Building 7, Xincheng Science & Technology Park, 588 West Yuelu Avenue, Changsha High-tech Development Zone (the “Yong Xiong Group”);

 

4.                   Shanghai Zhongping Guojing M&A Equity Investment Fund Partnership (LP), a limited partnership established and existing under PRC laws, with its registered address at Room 1406-B, 89 East Yunling Road, Putuo District, Shanghai (“Zhong Ping Capital”)

 

The foregoing Parties are referred to individually as a “Party” or such “Party”, collectively as the “Parties” and mutually as the “Other Party” or “Other Parties”.

 

WHEREAS:

 

1.                   Zhong Ping Capital or a third party designated by it intends to accept part of the shares held by Tan Man, one of the Founders, in the Cayman Company (as defined below) in order to obtain part of interests in the Group Company (as defined below); and

 

2.                   The Founders hold 100% of the equity in the Yong Xiong Group, and the Yong Xiong Group intends to put all of its interests under control outside PRC through an offshore restructuring, with a view to helping the overseas controlling entity issue shares outside PRC and get the shares listed for trading on NASDAQ Stock Market or another stock exchange outside PRC.

 

NOW, THEREFORE, the Parties hereby enter into this Agreement for joint compliance with respect to relevant investment matters through friendly consultation.

 

Article 1              Definitions and Interpretation

 

1.1             Definitions

 

For the purposes of this Agreement, unless otherwise specified, the following terms appearing herein shall have the meanings given below:

 

	
Founders
    	
 
    	
Mean Tan Man and Zhou Xiaofang.
    
	
 
    	
 
    	
 
    
	
Investor
    	
 
    	
Means Zhong Ping Capital or a domestic or overseas   third party designated by it.
    
	
 
    	
 
    	
 
    
	
Cayman   Company
    	
 
    	
Means the company that is established under Cayman   laws and is 100% owned by the Founders directly and indirectly, which is   intended as the IPO entity.
    

 

3

 

	
WFOE
    	
 
    	
Means the PRC WFOE that is 100% indirectly owned by   the Cayman Company.
    
	
 
    	
 
    	
 
    
	
VIE   Structure
    	
 
    	
Means a variable interest entity structure, wherein   the Cayman Company will own 100% of the interests in the Yong Xiong Group by   means of VIE indirectly through the WFOE; in order to achieve such a   structure, the WFOE will enter into VIE Agreements with the Yong Xiong Group   and the Founders.
    
	
 
    	
 
    	
 
    
	
VIE   Agreements
    	
 
    	
Mean (i) Exclusive Consulting and Service   Agreement, (ii) Exclusive Option Agreement, (iii) Equity Pledge   Agreement, (iv) Shareholders’ Voting Rights Proxy Agreement, and   (iv) Spouse Consent Letter, which are entered into by and among the   WFOE, the Yong Xiong Group and the Founders.
    
	
 
    	
 
    	
 
    
	
Amended   VIE Agreements
    	
 
    	
Mean (i) Exclusive Consulting and Service   Agreement, (ii) Exclusive Option Agreement, (iii) Equity Pledge   Agreement, (iv) Shareholders’ Voting Rights Proxy Agreement, and   (iv) Spouse Consent Letter (if any), which are entered into by and among   the WFOE, the Yong Xiong Group and the Founders, as amended and restated.
    
	
 
    	
 
    	
 
    
	
SPV
    	
 
    	
Means the overseas entity in the VIE Structure, which   is directly or indirectly established by the Cayman Company and which   indirectly or directly owns 100% of the shares in the WFOE.
    
	
 
    	
 
    	
 
    
	
Group   Company
    	
 
    	
Collectively means the Cayman Company, the SPV, the   WFOE, the Yong Xiong Group and the entities directly or indirectly controlled   by the foregoing parties (including but not limited to any VIE entity and the   subsidiaries and branches of the Yong Xiong Group set forth in Annex I)
    
	
 
    	
 
    	
 
    
	
Key   Subsidiary
    	
 
    	
Means an entity within the Group Company with annual   operating revenue of more than RMB5,000,000.
    
	
 
    	
 
    	
 
    
	
Target   Shares/Transferred Shares
    	
 
    	
Mean the shares to be transferred to the Investor   from Tan Man, which are issued by the Cayman Company and are directly or   indirectly owned by Tan Man in the Cayman Company, representing 20% of the   total shares in the Cayman Company on a fully diluted basis.
    
	
 
    	
 
    	
 
    
	
Hunan   Yong Xiong Equity
    	
 
    	
Means the 0.0001% equity in the Yong Xiong Group to   be transferred to the Investor from the Founders, corresponding to RMB60 of   the registered capital.
    
	
 
    	
 
    	
 
    
	
Hunan   Yong Xiong Equity Pledge
    	
 
    	
Has the meaning described in   Article 2.3.1(4)(i) hereof.
    

 

4

 

	
Hunan   Yong Xiong Equity Pledge Notice
    	
 
    	
Has the meaning described in   Article 2.3.1(4)(i) hereof.
    
	
 
    	
 
    	
 
    
	
WFOE   Equity Pledge
    	
 
    	
Has the meaning described in   Article 2.3.1(4)(i) hereof.
    
	
 
    	
 
    	
 
    
	
WFOE   Equity Pledge Notice
    	
 
    	
Has the meaning described in   Article 2.3.1(4)(i) hereof.
    
	
 
    	
 
    	
 
    
	
Cayman   Company Share Pledge
    	
 
    	
Has the meaning described in   Article 2.3.1(4)(i) hereof.
    
	
 
    	
 
    	
 
    
	
Circular   No.37 Registration
    	
 
    	
Has the meaning described in   Article 3.1.3(4) hereof.
    
	
 
    	
 
    	
 
    
	
The   Transaction
    	
 
    	
Means a series of transactions whereby the Investor   acquires the Target Shares and Hunan Yong Xiong Equity.
    
	
 
    	
 
    	
 
    
	
Share   Sale and Purchase Agreement
    	
 
    	
Means the Share Sale and Purchase Agreement with   respect to the Target Shares.
    
	
 
    	
 
    	
 
    
	
Amended   Articles
    	
 
    	
Means the Articles of Association of the Cayman   Company amended pursuant to the terms hereof upon completion of the   Transaction.
    
	
 
    	
 
    	
 
    
	
Formal   Transaction Documents
    	
 
    	
Mean (i) Hunan Yong Xiong Equity Transfer   Agreement, the Articles of Association of the Yong Xiong Group and its   registration and filing documents; (ii) the Share Sale and Purchase   Agreement; (iii) the Amended and Restated Shareholders Agreement of the   Cayman Company; (iv) the Amended Articles; (v) the Amended VIE   Agreements; and (vi) other documents negotiated by relevant parties,   including but not limited to the incorporation documents of the Cayman   Company, as well as any annexes, amendments and supplements to the foregoing   documents.
    
	
 
    	
 
    	
 
    
	
Affiliate
    	
 
    	
Means that a party controls, or shares the control   over or exerts a significant effect on another party, and that two or more   parties are under the common control, shared control or significant effect of   another party; “Control” means the power to decide the financial and business   policies of an enterprise and the ability to obtain benefits from the   operating activities of such enterprise.
    
	
 
    	
 
    	
 
    
	
Immediate   Family
    	
 
    	
Mean one’s spouse, parents and children.
    
	
 
    	
 
    	
 
    
	
Closing
    	
 
    	
Means Overseas Closing and Domestic Closing.
    
	
 
    	
 
    	
 
    
	
Closing   Date
    	
 
    	
Has the meaning described in Article 2.3.1(3) hereof.
    

 

5

 

	
Transaction   Price
    	
 
    	
Means the total consideration paid by the Investor   with respect to the Transaction at the time of Closing.
    
	
 
    	
 
    	
 
    
	
Overseas   Closing
    	
 
    	
Has the meaning described in   Article 2.3.1(1) hereof.
    
	
 
    	
 
    	
 
    
	
Domestic   Closing
    	
 
    	
Has the meaning described in   Article 2.3.1(2) hereof.
    
	
 
    	
 
    	
 
    
	
Joint   Account
    	
 
    	
Means the account opened with a bank in PRC in the   name of Tan Man and jointly managed by Tan Man and the Investor or a third   party acceptable to the Investor; the only payee of the account is the Yong   Xiong Group.
    
	
 
    	
 
    	
 
    
	
Material   Adverse Change
    	
 
    	
Has the meaning described in Article 3.3 hereof.
    
	
 
    	
 
    	
 
    
	
Longstop   Date
    	
 
    	
Means the date that is one hundred and eighty (180)   days after the signing date hereof.
    
	
 
    	
 
    	
 
    
	
Conversion   Price
    	
 
    	
Has the meaning described in   Article 2.3.2(7) hereof.
    
	
 
    	
 
    	
 
    
	
Net   Profit
    	
 
    	
Means the audited net profit after tax for each   fiscal year under the consolidated statements of the Group Company (after   non-recurring profit and loss), subject to the unqualified audit report   issued by an accounting firm qualified for securities business or another   accounting firm recognized by the Investor pursuant to the applicable   accounting standards.
    
	
 
    	
 
    	
 
    
	
IPO
    	
 
    	
Means (i) the initial public offering and   listing of the shares in the Cayman Company and admission to trading on New   York Stock Exchange, NASDAQ Main Market, the Main Board of The Stock Exchange   of Hong Kong Ltd. or any other internationally accepted investment securities   exchange with an equivalent or higher international standing that is approved   and accepted by the Investor; (ii) back-door listing of the Cayman   Company on any of the foregoing exchanges. The first trading day of the   shares of the Cayman Company on the relevant exchange or the date when it   acquires shares due to back-door listing shall be deemed as the IPO date.
    
	
 
    	
 
    	
 
    
	
QIPO
    	
 
    	
Means the IPO of the shares in the Cayman Company,   and in any case, the pre-IPO valuation of the shares held by the Investor in   the Cayman Company shall not be less than RMB400 million (calculated   according to the USD to RMB mid rate published by the PBC on the IPO date)   and the annualized return of the Investor calculated according to the   foregoing valuation shall not be less than 12%.
    
	
 
    	
 
    	
 
    
	
Repurchase   Price
    	
 
    	
Has the meaning described in Article 2.3.2(11)   hereof.
    
	
 
    	
 
    	
 
    
	
Series A   Ordinary Shares
    	
 
    	
Mean the Series A Ordinary Shares issued by the   Cayman Company, i.e. the shares with a par value of US$0.01 per share.
    

 

6

 

	
Transition   Period
    	
 
    	
Has the meaning described in Article 3.4.3   hereof.
    
	
 
    	
 
    	
 
    
	
Exclusivity   Period
    	
 
    	
Has the meaning described in Article 6.1 hereof.
    
	
 
    	
 
    	
 
    
	
Force   Majeure
    	
 
    	
Has the meaning described in Article 8.1 hereof.
    
	
 
    	
 
    	
 
    
	
Affected   Party
    	
 
    	
Has the meaning described in Article 8.1 hereof.
    
	
 
    	
 
    	
 
    
	
Laws
    	
 
    	
Mean laws, regulations, rules and judicial   interpretations officially promulgated and made known to the public by   legislative bodies and other competent authorities of PRC at all levels;   solely for the purposes of this Agreement, excluding the laws, regulations   and precedents of Hong Kong Special Administrative Region, Macao Special   Administrative Region and Taiwan.
    
	
 
    	
 
    	
 
    
	
Business   Administration Authority
    	
 
    	
Means State Administration for Market Regulation   (SAMR) or any other local market supervision administration having   jurisdiction over business registration with respect to the Transaction   pursuant to SAMR authorization.
    
	
 
    	
 
    	
 
    
	
Business   Day
    	
 
    	
Means any day other than Saturday, Sunday and legal   holidays in the PRC, the Hong Kong SAR, the British Virgin Islands and the   Cayman Islands.
    
	
 
    	
 
    	
 
    
	
PRC
    	
 
    	
Means the People’s Republic of China, which, for the   purposes of this Agreement, excludes Hong Kong SAR, Macao SAR and Taiwan.
    

 

1.2                                         Other interpretations of this Agreement

 

1.2.1                                “Herein”, “Hereunder” and other similar words and expressions used in this Agreement shall refer to the whole of this Agreement rather than any specific clause hereof;

 

1.2.2                                The contents and headings herein are inserted for reference only and shall not affect the meaning or interpretation hereof in any way;

 

1.2.3                                References to “Articles”, “Paragraphs”, “Items”, “Annexes” or “Schedules”, unless otherwise expressly indicated, shall be to the corresponding “Articles”, “Paragraphs”, “Items”, “Annexes” or “Schedules” of or to this Agreement;

 

1.2.4                                Any agreement, instrument or other document referred to herein shall mean such agreement, instrument or other document as amended, supplemented or modified from time to time;

 

1.2.5                                This Agreement shall be construed as being drafted by the Parties jointly, and the fact that any clause hereof is drafted by a Party shall not give rise to any assumption or burden of proof for or against any Party.

 

7

 

Article 2              Steps of the Transaction

 

2.1                                          Transaction Negotiation

 

Upon execution of this Agreement, the Parties shall negotiate the details of the Transaction hereunder and shall strive to reach consensus on the substance and form of the Formal Transaction Documents within thirty (30) days. Transaction details include but are not limited to the following:

 

(1)              Specific time, arrangements and prerequisites for the Investor to be assigned the Target Shares and Hunan Yong Xiong Equity and make payment;

 

(2)              The priority available to the Investor with respect to the Target Shares transferred to it;

 

(3)              Corporate governance and other relevant matters of the Cayman Company and the Group Company after the Investor is assigned the Target Shares and Hunan Yong Xiong Equity;

 

(4)              The capital table of the Cayman Company, including the amount of the share capital of the Cayman Company, and the proportion of the Target Shares (priority) to be held by the Investor;

 

(5)              Confidentiality clause, dispute resolution concerning the Formal Transaction Documents, etc.; and

 

(6)              Other relevant matters that shall be subject to negotiation in the opinion of the Parties.

 

2.1.1                                 Due Diligence

 

While the negotiation is underway with respect to the Transaction, the Investor will carry out legal, financial, business, asset or other forms of due diligence on the Group Company, and investigate the personal credit standings of the Founders.

 

2.3                                          The Parties will execute the Share Sale and Purchase Agreement and execute other relevant Formal Transaction Documents thereafter

 

Subject to the satisfaction (or waiver by the Investor) of all the conditions precedent set forth in Article 3.1.1, the Investor, together with the Founders, the Yong Xiong Group, the Cayman Company and other relevant parties, will enter into and perform the Share Sale and Purchase Agreement and other relevant Formal Transaction Documents. The Formal Transaction Documents shall include at least the following:

 

8

 

2.3.1                                Transaction Structure

 

(1)                 Overseas Closing

 

Subject to compliance with the terms and conditions specified in the Formal Transaction Documents, the Investor will be assigned the Target Shares to indirectly obtain 20% of the interests in the Group Company. The Parties agree that, the Transaction Price payable by the Investor in connection with the Transaction will be RMB300,000,000 (in words: RMB Three Hundred Million only), meaning that the overall valuation of the Group Company is RMB1,500,000,000 (in words: RMB One Point Five Billion only); such valuation is calculated on the basis of the Group Company’s 2018 estimated net profit of RMB150,000,000 and a P/E ratio of ten (10) times, and the foregoing valuation and price will be adjusted appropriately as agreed in Article 2.3.3 hereof. Subject to compliance with relevant laws and regulations and this Agreement, the Investor shall pay the foregoing Transaction Price into the bank account designated by Tan Man.

 

The foregoing transaction structure may be adjusted appropriately pursuant to (i) the need for the approval/filing of overseas direct investment by the Investor; and (ii) the capital allocation need of Tan Man, subject to consensus among the Parties and compliance with the provisions of applicable laws and regulations; the additional taxes incurred by the Investor due to any adjustment of the transaction structure made to satisfy the capital allocation need of Tan Man shall be borne by the Founders.

 

In this Transaction, the Closing shall take place at the Shanghai Office of Beijing Dacheng Law Offices (or any other location agreed upon by the Parties) at 11:00 am Beijing Time on the second (2nd) Business Day after the Investor has met all the conditions for paying the relevant transaction amount outside PRC, the change of the register of shareholders, the change of the register of directors and the Amended Articles of the Cayman Company in connection with the transfer of the Target Shares have been filed with the companies registry of the Cayman Islands, and the amended register of directors of the SPV has been filed with the competent registration authority; such Closing is hereinafter referred to as the “Overseas Closing”.

 

(2)                 Domestic Closing

 

Subject to compliance with the terms and conditions specified in the Formal Transaction Documents, Tan Man shall transfer his 0.0001% equity in the Yong Xiong Group to the Investor for a nominal consideration and complete relevant change registration/filing procedures with the Business Administration Authority. Within three (3) Business Days upon completion of the relevant change registration/filing procedures (or at any other time agreed upon by the Parties), the Founders and the Yong Xiong Group shall deliver the proof of registration approval of the Business Administration Department concerning the Yong Xiong Group, updated filings of directors and/or other senior officers, copy of reissued business license (if any) and original of certificate of shareholders’ capital contribution, updated director filings of the WFOE and other supporting documents to the Investor for the record; such delivery is hereinafter referred to as the “Domestic Closing”.  The Parties acknowledge that, the Domestic Closing shall be conducted simultaneously with the Overseas Closing or as soon as possible after the completion of the Overseas Closing. At the same time, the Investor undertakes to execute the Amended VIE Agreements confirmed by the Investor while the Domestic Closing is underway.

 

9

 

The Parties acknowledge that, the Investor shall, within five (5) Business Days following the Domestic Closing, pledge the equity held by it in the Yong Xiong Group to the WFOE and assist in handling the equity transfer registration pursuant to the Amended VIE Agreements.

 

(3)                 Payment of Deposit and Transaction Price

 

(i)                 The Investor shall pay a deposit of RMB60 million (the “Deposit”) for the Transaction into the Joint Account within three (3) Business Days after the satisfaction of the conditions precedent to the payment of the Deposit as agreed in Article 3.1.2 hereof. At the same time, the Deposit shall be processed according to the following principles:

 

(a)               The Parties agree that, subject to the satisfaction of the conditions precedent to the payment of the Transaction Price as agreed in Article 3.1.3 hereof, the Deposit shall be converted into and equally set off against the corresponding portion of the Transaction Price payable by the Investor at the time of the Closing based on the situations of the payer, or refunded to the designated account of the payer of the Deposit according to the provisions of Article 2.3.1(3)(ii) hereof;

 

(b)              Tan Man shall, within one (1) Business Day, pay the Deposit to the Yong Xiong Group to settle the receivables and payables between Tan Man and the Yong Xiong Group as Affiliates, and shall, within one (1) Business Day, provide the Investor with a copy of the payment voucher signed and confirmed by Tan Man as well as a copy of the corresponding receipt voucher issued by the Yong Xiong Group and affixed with the official seal of the Yong Xiong Group;

 

(c)               The Founders may confiscate the Deposit for the Transaction if the payment conditions agreed in Article 3.1.3 hereof have been satisfied as at the expiration date of the Exclusivity Period but the Investor refuses to continue the Transaction, or if the payment conditions agreed in Article 3.1.3 hereof are not satisfied due to the action or omission of the Investor;

 

(d)              The Founders shall refund double of the Deposit to the Investor if the Founders refuses to proceed with the Closing despite the satisfaction of the closing conditions, or if the closing conditions are not satisfied due to the action or omission of the Founders or the Yong Xiong Group, or if the Founders fail to pledge the shares of the Cayman Company within the time limit specified in Article 2.3.1(4) hereof;

 

(e)               If the payment conditions agreed in Article 3.1.3 hereof have not been satisfied as at the expiration date of the Exclusivity Period due to any reason unattributable to the Investor or the Founders (for example, the Investor fails to complete relevant overseas direct investment (ODI) procedures, the Founders fail to complete Circular No.37 Registration, and it is possible or estimated to possible to complete Circular No.37 change registration or post-registration), or if this Transaction cannot be closed due to other objective reasons, the Founders shall, within three (3) Business Days from the expiration date of the Exclusivity Period, refund the Deposit to the Investor and pay the Investor a capital occupation cost equal to annual simple interest calculated at a rate of 12%; this Paragraph shall apply in preference to other amounts in Article 2.3.1(3);

 

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(f)                In case the Investor identifies the representations and warranties made by the Founders and the Yong Xiong Group as false, concealing, containing material omission or misleading, the Investor shall have the right to terminate the Transaction, while the Founders shall refund double of the Deposit to the Investor within three (3) Business Days from the date when the Investor issues a termination notice.

 

(ii)              Upon fulfillment of the payment conditions specified in Article 3.1.3 hereof and upon completion of the Closing (the “Closing Date”), the Investor shall pay the Transaction Price to Tan Man or the account designated by him, after the deduction of the Deposit confirmed to be offset. For the avoidance of doubt, if the payer of the Deposit is not the same entity as the actual transferee of the Target Shares, the Transaction Price may be paid in installments with a down payment of RMB60 million; Tan Man shall, within one (1) Business Day upon receipt of such down payment, refund the Deposit to the payer thereof, while the actual transferee of the Target Shares shall in turn pay the remaining Transaction Price to Tan Man.

 

(4)                 Equity Pledge Registration and De-registration

 

(i)                 In order to guarantee the performance of all the obligations of the Founders under this Agreement and the Formal Transaction Documents prior to the Closing Date, Tan Man agrees to (a) pledge the 20% equity held by him in the Yong Xiong Group to the Investor or a third party designated by it (“Hunan Yong Xiong Equity Pledge”), and provide the Investor with a notice of creation of equity pledge issued by the Business Administration Authority (“Hunan Yong Xiong Equity Pledge Notice”), (b) within seven (7) Business Days after acquiring the shares in the Cayman Company and prior to the execution of the VIE Agreements, pledge the 20% shares held by him in the Cayman Company to the Investor or a third party designated by it and present the Investor with the evidence of equity pledge (“Cayman Company Equity Pledge”); (c) within three (3) Business Days after acquiring the equity in the WFOE either directly or indirectly, pledge the 20% equity held by him in the WFOE to the Investor or a third party designated by it (“WFOE Equity Pledge”), and present the Investor with a corresponding notice of creation of equity pledge (“WFOE Equity Pledge Notice”);

 

(ii)              The Investor agrees that, within three (3) Business Days following the Closing, it shall cooperate with the Cayman Company and relevant parties in completing the de-registration procedure of Cayman Company Equity Pledge, and cooperate with Tan Man and the Yong Xiong Group in completing the de-registration procedures of Hunan Yong Xiong Equity Pledge and WFOE Equity Pledge.

 

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(iii)           At the same time of de-registering Hunan Yong Xiong Equity Pledge in Item (ii) above, the Founders shall pledge all of the equity held by them in Hunan Yong Xiong to the WFOE as agreed in the VIE Agreements and complete the corresponding equity pledge registration.

 

(5)                 Subsequent Domestic Equity Transfer Arrangements

 

The Investor agrees that, after selling the Target Shares, it shall transfer the Hunan Yong Xiong Equity transferred to it pursuant to Article 2.3.1(2) hereof to Tan Man or a third person designated by him for a nominal consideration, and shall assist the Founders and Hunan Yong Xiong in completing the relevant change registration/filing procedures with the Business Administration Authority, executing the agreement to cancel the Amended VIE Agreements and handling the de-registration procedure of the equity pledge under the Amended VIE Agreements. All the taxes and expenses arising from the equity transfer agreed in this Item (5) shall be paid by Tan Man.

 

2.3.2                                Priority

 

Subject to the Investor’s review of the existing documents of the Group Company, with respect to the Transaction, the Investor shall be entitled to at least the following priority to the extent of the Target Shares held by it:

 

(1)          Transfer Restrictions

 

Prior to the QIPO of the Cayman Company, except with the prior written consent of the Investor or except as agreed in this Agreement or the Formal Transaction Documents, as long as the Investor still holds any share in the Group Company, the Founders may not directly or indirectly sell, grant, pledge, create encumbrance over or otherwise dispose of the shares or interests directly or indirectly held by them in the Cayman Company, with the result that the shares directly and indirectly held by the Founders in the aggregate in the Cayman Company will account for less than 51% or such share transfer price will be lower than the price at which the Investor acquires the shares. Except under the foregoing circumstances, if the Founders intend to conduct any sale, grant, pledge, create any encumbrance or effect any other disposal, they shall notify the Investor in writing of such arrangement and shall be subject to the provisions set forth elsewhere in this Agreement regarding the transfer restrictions. The restrictions on equity transfer shall be terminated automatically at the time of the QIPO. However, in no case shall the Founders sell, grant, pledge, create encumbrance over or otherwise dispose of the equity or interests in the Key Subsidiaries of the Group Company, except for the purposes of the QIPO, performance of this Agreement and normal business needs.

 

(2)          Dividend

 

The dividend shall be decided by the Board of the Cayman Company and may be distributed to the Investor at an annual non-cumulative dividend rate of 8% per share. It is agreed that dividend distribution shall be terminated automatically at the time of the QIPO.

 

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(3)          Right of First Refusal and Co-sale Right

 

Prior to the QIPO of the Cayman Company, except for customary business exceptions, in any case, if either Founder intends to transfer any of his/her shares in the Cayman Company directly or indirectly, the Investor shall have the priority to purchase such proposed shares in the Cayman Company under the same conditions proportionately. If the Investor does not exercise the right of first refusal, the Investor will have the right to participate in the proposed transfer of shares in the Cayman Company proportionately.

 

Such right of first refusal and co-sale right will not apply to customary business exceptions and shall be terminated automatically at the time of the QIPO.

 

(4)          Preemptive Right to New Shares

 

Prior to the QIPO of the Cayman Company, if the Cayman Company intends to issue new shares to other parties, the Investor shall have the priority to purchase the new shares to be issued by the Cayman Company, at the same price and subject to the same conditions, according to the shareholding proportion of the Investor at that time, unless such issuance of new shares relates to an employee incentive mechanism of the Cayman Company and the anti-dilution arrangement mentioned below.  Such pre-emptive right shall be terminated automatically at the time of the QIPO.

 

(5)          Composition of Board, Appointment of Directors and Protective Clause

 

At the time of the Closing, the Investor shall have the right to appoint one (1) director at the Cayman Company, the SPV, the WFOE and the Yong Xiong Group, respectively; the candidate will be Wang Kaiguo, who will exercise director’s powers pursuant to the articles of association of such entities and applicable laws, and have such vote power regarding significant matters of the Group Company as is customarily made available to investors in such investments; such significant matters include but are not limited to the following:

 

(i)                 Capital increase/decrease, significant combination/division of the Group Company;

 

(ii)              Sale, transfer, pledge or other disposal of all or substantially all assets of the Group Company;

 

(iii)           Sale or restructuring resulting in the change of control of the Group Company;

 

(iv)           Change in the number of members of the Group Company or the method of appointing directors;

 

(v)              Termination, dissolution or liquidation of any Key Subsidiary of the Group Company;

 

(vi)           Distribution of dividend and bonus to the shareholders of the Group Company;

 

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(vii)        Modification or termination of the VIE Agreements; or other arrangements which are related to the VIE Structure (other than execution of the Amended VIE Agreements) and have an effect on the exercise of the interests or rights of the Investor;

 

(viii)     Appointment or removal of the auditor;

 

(ix)           Termination or material change of the main business of the Group Company for the time being; change of the rights available to the Investor, change of the quantity of preferred shares or change of the rights, privileges and restrictions attached to the preferred shares.

 

The foregoing veto power shall be terminated at the time of the QIPO of the Cayman Company.

 

(6)          Liquidation Preference

 

Prior to the QIPO of the Cayman Company, if the Cayman Company enters into liquidation, dissolution or winding-up, the Investor will receive a preferential liquidation payment, which is equal to (i) the Transaction Price, plus (ii) a fixed return calculated at an annual simple rate of 12% during the period from the Closing Date to the date when such preferential liquidation payment is fully paid to the Investor. After the preferential liquidation payment to the Investor is satisfied, the Investor (deemed to have been converted into an ordinary shareholder of the Cayman Company) and the Founders shall have the right to participate in the distribution of the remaining assets in proportion to their respective shareholdings in the Cayman Company. Such liquidation preference shall be terminated automatically at the time of the QIPO.

 

The combination or merger of the Cayman Company or the sale, leasing, licensing or other transfer of all or substantially all of its assets or technologies will be deemed as liquidation, unless the shareholders of the Cayman Company prior to such transaction become the shareholders holding more than 51% of the voting rights in the surviving company upon completion of such transaction.

 

(7)          Conversion Right

 

Prior to the QIPO of the Cayman Company, the Investor may choose to convert the Target Shares into the ordinary shares of the Cayman Company at a conversion rate of 1:1 at any time (“Conversion Price”), subject to the anti-dilution adjustment and other common adjustments. Following the QIPO of the Cayman Company, the Target Shares will be automatically converted into Series A Ordinary Shares at the Conversion Price then in effect. In case the Cayman Company had not distributed dividend to the Investor as agreed in Article 2.3.2 (2) hereof prior to the QIPO, the dividend available to the Investor as calculated pursuant thereto shall be automatically converted into Series A Ordinary Shares at the Conversion Price then in effect.

 

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(8)          Anti-dilution Clause

 

Prior to the QIPO of the Cayman Company, except for customary business exceptions, if the per-share price of other shares issued by the Cayman Company is less than the Conversion Price of the Target Shares, then such Conversion Price shall be adjusted on the basis of narrow-based weighted average, including but not limited to the following arrangements: (i) the Cayman Company issues new shares to the Investor for free; (ii) the Founders transfer corresponding shares held by them in the Cayman Company to the Investor for free. The anti-dilution clause shall be terminated automatically at the time of QIPO.

 

(9)          Right to Know

 

From the Closing Date up to the QIPO of the Cayman Company, the Founders and the Group Company, up reasonable request of the Investor, provide the Investor with the monthly, quarterly and annual financial reports and annual budget and business plan of the Group Company, and the Investor may require that the annual financial report be audited by an internationally accepted independent public accounting firm. The Investor shall also be entitled to require the Founders and the Group Company to provide other statistical data, trading and financial information in the form reasonable requested by the Investor, so that the Investor will be properly informed of the target information and be able to protect its own interests.

 

(10)    Registration Right

 

The Investor has the right to be registered twice, provided that the total issuance price shall reach a certain amount. Subject to satisfaction of customary commercial terms, the Investor shall be entitled to unlimited number of co-registration rights and F-3 registration rights.

 

(11)    Put-back Option

 

In case the Cayman Company fails to complete the QIPO within three (3) years from the Closing of the Transaction, the Investor shall have the right to require the Founders to jointly and severally repurchase all or part of the shares held by the Investor in the Cayman Company, at a repurchase price which is equal to (i) the transaction consideration actually paid by the Investor, plus (ii) the fixed return calculated at an annual simple rate of 12% during the period from the Closing Date to the date when the shares held by the Investor are fully repurchased, with the deduction of the bonus and dividend already paid by the Cayman Company to the Investor.

 

(12)    Other Rights

 

Other rights, options, privileges or obligations of the Investor will be negotiated with the Cayman Company and the Founders in preparing the conclusive Formal Transaction Documents, and shall be subject to the written agreement concluded by the Parties at that time.

 

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2.3.3                                Performance Target and Performance Compensation

 

The performance target for the year of 2018 is an annual net profit of no less than RMB150 million (“Performance Target 2018”).

 

If the net profit in 2018 is less than 80% of the Performance Target 2018 (i.e. RMB120 million), the Investor shall have the right to require the Founders to pay a cash compensation to the Investor as follows, within thirty (30) days upon issuance of the annual audit report 2018 (no later than April 30, 2019).The cash compensation is calculated as follows:

 

Cash compensation in 2018 = transaction price actually paid by the Investor * (1- net profit in 2018/net profit target in 2018).

 

If the Founders fail to pay the foregoing cash compensation to the Investor, the Investor shall have the right to require the Founders to provide compensation in shares, and the Founders shall transfer shares to the Investor at a nominal price. If any regulatory authority raises an objection to such equity transfer price in the approval process, the nominal price separately agreed upon by the Parties shall apply, and the taxes and fees arising therefrom shall be paid by the Founders.

 

Shares required to be transferred by the Founders = number of shares then held by the Investor * (net profit target in 2018/net profit in 2018 - 1).

 

2.3.4                                Representations and Warranties

 

From the signing date of the Share Sale and Purchase Agreement to the Closing Date, each of the Group Company and the Founders shall jointly and severally make the customary representations, warranties and undertakings with respect to the Group Company, including but not limited to business, assets, financial condition and operation, under the Formal Transaction Documents. The Formal Transaction Documents shall contain corresponding indemnity clauses with respect to the violations of the representations, warranties or undertakings of the Group Company and the Founders as well as other specific matters identified by the Investor after completing the due diligence.

 

2.3.5                                Non-competition

 

The Founders agree, warrant and undertake that: as of the signing date of this Agreement, they (or any of their Affiliates) and their Immediate Family will not enter into any form of horizontal competition or engage in the following activities in any relevant capacity:

 

(1)              Join any other third party in engaging in any activity competing against the business currently conducted or planned to be conducted in the future by the Group Company in the capacity of principal, agent, partner, shareholder (except for a shareholding of no more than 5% in the listed company), joint venturer, licensee or in any other capacity or have an interest in any such competing activity;

 

(2)              Lobby or solicit any customer or potential customer of the Group Company with respect to any product, service or business provided by the Group Company; or

 

(3)              Induce or try to induce any employee, consultant or person holding any other post at the Group Company to terminate his/her employment relationship with the Group Company.

 

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The Founders agree, warrant and undertake that: they will ensure that the Founders, the directors, senior officers, core technical personnel and other key officers of the Group Company shall sign confidentiality agreements and non-competition agreements with the Group Company, and agree in writing that, during their employment and within two (2) years from their termination date or the date when they no longer hold any equity or other interests in the Group Company (whichever is later), the foregoing persons will not engage in any work in the industry competing with the business of the Group Company; if the directors, senior officers, core technical personnel and other key officers violate such confidentiality agreements and non-competition agreements, the Founders shall cause the Group Company to try its best to hold such persons liable for breach.

 

In case of any breach of the foregoing undertakings, the Founders shall be held jointly and severally liable for the losses thus caused to the Group Company and the Investor.

 

Article 3                Conditions Precedent to Investment

 

3.1                                         Conditions Precedent

 

3.1.1                                  The Parties agree that, prior to the execution of the Share Sale and Purchase Agreement, the following conditions precedent shall be satisfied and/or waived by the Investor:

 

(1)              The Investor has carried out legal, financial, business, asset or other form of due diligence on the Group Company, and has investigated the personal credit standings of the Founders and has been satisfied with the results of such due diligence; furthermore, after a due diligence (if required) concerning no adverse change in the results of due diligence, the Investor has been satisfied with its report;

 

(2)              The Parties have reached a preliminary consensus on the Formal Transaction Documents;

 

(3)              The Parties have obtained all the corporate authorizations necessary to enter into the Share Sale and Purchase Agreement and the Transaction, including but not limited to the approvals of their respective shareholders meeting and boards of directors;

 

(4)              The Transaction is not conflicting with any other transaction, nor is any consent required from any other third party to enter into the Share Sale and Purchase Agreement;

 

(5)              There is no financial or market change or change of current legal provisions that would have a material adverse effect on the Transaction or the Group Company; and

 

(6)              Other reasonable conditions required by the Investor based on the results of due diligence.

 

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3.1.2                                The Investor shall pay the Deposit subject to satisfaction of the following conditions precedent, one or more of which may be waived or exempted by the Investor:

 

(1)              The conditions precedent set forth under Article 3.1.1 hereof have been satisfied continuously;

 

(2)              The procedures of Hunan Yong Xiong Equity Pledge have been completed, and the Investor has received Hunan Yong Xiong Equity Pledge Notice.

 

3.1.3                                The Investor shall pay the Transaction Price (net of the Deposit) subject to satisfaction of the following conditions precedent, one or more of which may be waived or exempted by the Investor:

 

(1)              The conditions precedent set forth under Article 3.1.1 hereof have been satisfied continuously;

 

(2)              Relevant parties have approved by their shareholders meetings or boards of directors to execute the Formal Transaction Documents other than the Share Sale and Purchase Agreement and enter into the transactions involved in such other Formal Transaction Documents;

 

(3)              The Formal Transaction Documents other than the Share Sale and Purchase Agreement shall have been executed by the relevant parties and become effective no later than the Closing Date;

 

(4)              The VIE Structure has been built, including but not limited to the fact that the Founders have completed the registration, change registration or post-registration procedures (“Circular No.37 Registration”) necessary for the Transaction as required by the Notice of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration of the Overseas Investment and Financing and the Round-tripping Investment Made by Domestic Residents through Special Purpose Companies, with a view to reflecting the Transaction;

 

(5)              The VIE Agreements have been executed and come into force;

 

(6)              The Investor has completed the procedures related to overseas direct investment (ODI) (including relevant payment applications and payment quota applications) and has obtained approvals from or filings with the competent regulatory authorities (including but not limited to the regulatory authority for the application of insurance funds) (if necessary);

 

(7)              The Investor has received the legal opinion dated the Closing Date which is issued by the PRC lawyer of the Group Company in form and substance reasonably acceptable to the Investor, including but not limited to the legal compliance of the VIE Structure as well as the payment method used by the Investor for the Transaction Price;

 

(8)              The Investor has received the legal opinion dated the Closing Date which is issued to the Investor by the Cayman lawyer of the Cayman Company with respect to the transfer of the Target Shares to the Investor, in form and substance reasonably acceptable to the Investor, including but not limited to: Tan Man holds the Target Shares lawfully, free from any pledge, freezing, other security interest or third party right, and there is no pledge, freezing, other security interest or third party right in the Target Shares held by the Investor as at the Closing Date;

 

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(9)              No Party has committed a material breach of this Agreement and the Formal Transaction Documents, and no event of Force Majeure has occurred or is continuing;

 

(10)        The representations and warranties made by the Group Company and the Founders in the Formal Transaction Documents executed in connection with the Transaction shall be true, complete, accurate, valid and not misleading at the time made, and shall remain true, accurate, complete, valid and not misleading at the time of the Closing;

 

(11)        There is no financial or market change or change of current legal provisions that would have a material adverse effect on the Transaction or the Group Company; and

 

(12)        Other reasonable and customary conditions precedent to investment, including the fact that the Founders shall have performed and complied with all the undertakings, agreements, obligations and conditions required to be performed at or before the Closing under the Formal Transaction Documents executed in connection with the Transaction.

 

3.2                                         Satisfaction of Conditions Precedent

 

3.2.1                                 The Parties shall make their best effort to procure the satisfaction of the conditions precedent set forth in Article 3.1 hereof as soon as possible;

 

3.2.2                                 The conditions precedent agreed in Article 3.1 hereof shall not be deemed satisfied or waived until confirmed by the Investor or the Founders (depending on the context).If the Investor has any objection, it shall have the right to require the Founders and the Group Company to take further actions or provide further documents till the Investor confirms that all such conditions precedent have been satisfied or waived by the Investor. The Parties acknowledge that Article 3.1.3(6) hereof may not be waived.

 

3.2.3                                 From the signing date hereof, if any condition precedent then set forth in Article 3.1 hereof has not been fully satisfied and waived or exempted by the Investor or the Founders in writing by the Longstop Date, or if any fact or circumstance in violation of the foregoing Article 3.1 arises and the Investor or the Founders fail to notify the relevant party and make correction within a reasonable period upon occurrence of the foregoing fact or circumstance, Article 2.3.1(3) and Article 10.2.1 hereof shall apply, and the relevant party shall assume no liability for breach accordingly. In particular, notwithstanding other provisions, if the Investor fails to complete the relevant procedures for overseas direct investment (ODI), resulting in the non-fulfillment of the conditions precedent to payment, the Investor shall also assume no liability for breach.

 

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3.3                                         Material Adverse Change

 

From the signing date hereof to the Closing Date, the Founders shall endeavor to ensure that there is no event, change or development that would have a material adverse effect on the Transaction, otherwise the Investor shall have the right to terminate this Agreement without assuming any liability for breach. “Material Adverse Changes” include but are not limited to:

 

3.3.1                               With respect to the Group Company, a material adverse change of assets, business, financial condition or owner’s equity within the scope of its consolidated statements, such as business suspension, interruption or termination, or serious deterioration or material adverse change of its assets and liabilities and financial condition, loss of the ability to pay debts as they become due, loss or damage of material assets or loss or impairment of ownership, power of management or right of use;

 

3.3.2                                With respect to the Transaction, the inability to conduct the Transaction legally and fully, or loss or material change of the basis of transaction, or serious impairment of transaction value; and

 

3.3.3                                Existing or impending material change of legal, political, macro-economic and social environments; existing or impending material change of the operation mode or structure of main products or services of the Group Company; existing or impending material change of the industry position of the Group Company or the operating environment of the industry in which it is engaged.

 

3.4                                         Except for the purposes of satisfying the conditions precedent set forth in Article 3.1 hereof or except for the transaction performed with the prior written consent of the Investor, the Founders shall ensure that:

 

3.4.1                                They will take all reasonable actions to enable the Group Company to operate its existing business as a going concern in the general and ordinary course of business, its nature, main business scope or main operation mode will not be interrupted or changed, and it will follow the sound business principles adopted prior to the signing date hereof;

 

3.4.2                                They will endeavor to avoid any condition or circumstance that would result in a breach of any of the terms and conditions hereof;

 

3.4.3                                From the signing date hereof to the Closing Date (the “Transition Period”), except with the prior written consent of the Investor or except as agreed in this Agreement or the Formal Transaction Documents, the Founders may not directly or indirectly sell, grant, pledge, create encumbrance over or otherwise dispose of the shares or interests directly or indirectly held by them in the Cayman Company, with the result that the shares held by the Founders in the aggregate in the Cayman Company will account for less than 51% or such equity transfer price will be lower than the price at which the Investor acquires the shares. Except under the foregoing circumstances, if the Founders intend to conduct any sale, grant, pledge, create any encumbrance or effect any other disposal, the Founders shall notify the Investor in writing of such arrangement; except for the purposes of the IPO, performance of this Agreement and normal business needs, the Founders may not sell, grant, pledge, create encumbrance over or otherwise dispose of the equity or interests in the Key Subsidiaries of the Group Company;

 

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3.4.4                                During the Transition Period, after giving a written notice, the Investor may inspect the financial books and records (including but not limited to all financial books, minutes of meeting, contracts, documents and lists) of the Group Company during the normal business hours, provided that such inspection will not affect the normal operation of the Group Company.

 

3.4.5                                The Founders agree not to proactively take any action that causes or might cause any member of the Group Company to violate the foregoing provisions.

 

3.5                                         Prior to the Closing, except with the prior written consent of the Investor or except as otherwise agreed in the Formal Transaction Documents, neither the Founders nor the Group Company may engage in the following significant activities:

 

3.5.1                                Amend the Articles of Association and the Amended Articles will give rise to a material adverse change to the Investor’s rights and the Transaction;

 

3.5.2                                Issue new shares or perform any other refinancing plan with a pre-money valuation less than the valuation of the Transaction;

 

3.5.3                                Material asset purchase and sale, external guarantee or loan is defined according to the following standards:

 

(1)           The total assets purchased or sold account for more than 10% of the total end-of-period assets of such entity in the audited consolidated financial accounting report for the latest fiscal year;

 

(2)           The operating revenue generated by the purchased or sold assets in the latest fiscal year accounts for more than 10% of the operating revenue of such entity in the audited consolidated financial accounting report for the same period;

 

(3)           The net assets purchased or sold account for more than 10% of the end-of-period net assets of such entity in the audited consolidated financial accounting report for the latest fiscal year; and

 

(4)           Individual external guarantee or loan exceeds RMB5,000,000, or the cumulative guarantee or loan amount to the same creditor or the same guarantor exceeds RMB10,000,000, except for guarantee provided to the principal for purposes of performing this Agreement and carrying out day-to-day collection business.

 

3.5.4                                 Distribute dividends;

 

3.5.5                                Modify or terminate the VIE Agreements or other arrangements in connection with the VIE Structure (other than the execution of the Amended VIE Agreements); and

 

3.5.6                                Take other actions that are similar to the foregoing and likely to have any adverse effect on the rights of the Investor.

 

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Article 4              Representations and Warranties

 

4.1                                         Representations and Warranties of the Founders

 

The Founders and the Yong Xiong Group will make their best effort to assist the Investor in conducting financial, legal, business and other forms of due diligence, audit and evaluation and proceeding with the Transaction, timely provide various data and information and ensure the integrity, accuracy, authenticity and validity of such data and information provided, and warrant that such data are free of any concealing or false record, misleading statement or material omission.

 

In case any payment problem of the Deposit prevents the deduction of the Deposit from the Transaction Price, the Founders agree to refund the Deposit received to the Investor which will in turn pay the corresponding amount, but the relevant cost or loss (if any) arising therefrom shall be solely borne by Tan Man.

 

After the Closing Date, if any problem in the payment method of the Transaction Price makes it impossible to complete the procedures for remitting the investment return of the Investor back to PRC or creates an obstacle for completing such procedures, the Founders agree to provide bridge financing equivalent to the Transaction Price to ensure that the Investor can complete the necessary procedures for remitting the investment return back to PRC; further, if the foregoing method still fails to enable the Investor to remit the investment return back to PRC, the Founders agree to pay a compensation equivalent to the investment return at home, thereafter, the Investor agrees to transfer the overseas investment return (if necessary) to the Founders in an appropriate manner. However, the exchange loss (if any) and other relevant costs or losses (if any) arising therefrom shall be solely borne by Tan Man.

 

Article 5              Costs and Taxes

 

5.1                                         Costs and Taxes

 

Unless otherwise agreed herein, the Parties must bear the costs incurred by them in negotiating, preparing and executing this Agreement and each of the Formal Transaction Documents and shall pay the relevant taxes in the Transaction pursuant to relevant Laws.

 

With respect to the taxes incurred in connection with the Transaction and required to be paid by Tan Man, if relevant PRC laws and regulations impose a withholding obligation on the Investor, the Investor shall perform such withholding obligation pursuant to the provisions of relevant laws and regulations (i.e. the Investor shall have the right to deduct the corresponding taxes from the Transaction Price payable to Tan Man), while Tan Man shall cooperate and provide all the necessary documents.

 

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Article 6              Exclusivity Clause

 

6.1                                         Exclusivity

 

The Founders and the Yong Xiong Group shall work with the Investor on the Transaction on an exclusive basis till the Closing Date or the day next to the Longstop Date (whichever is earlier) or another date jointly negotiated by the Founders and the Investor (“Exclusivity Period”).The Founders and the Yong Xiong Group hereby represent and warrant that, they are not subject to any potential sale, transfer and/or financing arrangement entered into any other individual or entity in connection with the Transaction or subject to any other agreement in connection with the Transaction hereunder, and the Founders and the Yong Xiong Group undertake and agree that during the Exclusivity Period, they will not directly or indirectly solicit the interest of any third party, or carry out any discussion or enter into any arrangement with any third party with respect to the potential full or partial sale or transfer of the equity held by the Founders in the Yong Xiong Group (subject to the prior approval of the Investor) or any substantially similar arrangement with respect to the Transaction. For the avoidance of doubt, the Parties acknowledge that, any discussion conducted or arrangement made by the Founders and the Yong Xiong Group with any third party at any time with respect to the subscription for the new shares issued by the Yong Xiong Group or any substantially similar arrangement shall not constitute an violation by the Investor or the Yong Xiong Group of the provisions of this Article 6.1, provided, however, that the pre-money valuation of such new issue shall not be less than the valuation of the Transaction, and such new issue will not result in a change of the actual controller of the Cayman Company or cause Tan Man or the BVI company controlled by him to lose the largest shareholder status in the Cayman Company. If the Investor and the Founders have executed relevant Formal Transaction Documents with respect to the Transaction, and a delay has occurred in order to meet the closing conditions described in the Formal Transaction Documents, the Exclusivity Period shall be postponed accordingly.

 

Article 7              Confidentiality and Notices

 

7.1                                         Confidentiality

 

The Parties undertake that, except with the prior written consent of other Parties or pursuant to the requirements of Laws, the government or competent court, no Party hereto may disclose to any third party (other than the professional consultants of the Parties) the information in connection with the Transaction and the business secrets of other Parties known to such Party in executing and performing this Agreement. The Parties shall bear continuing confidentiality obligation with respect to the foregoing information, and such obligation shall remain in force within two (2) years upon termination hereof.

 

7.2                                         Notices

 

7.2.1                                All the notices hereunder shall be delivered by hand, fax or by reputable overnight courier service, postage prepaid. The notices and correspondences among the Parties shall be sent to the corresponding addresses or fax numbers described below (or other addresses or fax numbers indicated by the recipient to other Parties by giving a written notice seven (7) days in advance):

 

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Tan Man, Zhou Xiaofang and Hunan Yong Xiong Asset Management Group Co., Ltd.

 

Address: Hunan Yong Xiong Asset Management Group, Building 7, Xincheng Science & Technology Park, Changsha High-tech Development Zone

 

Tel: 0731-81829999

 

Fax: 0731-81822777

 

Postal code: 410000

 

Shanghai Zhongping Guojing M&A Equity Investment Fund Partnership (LP)

 

Address: Building 6, Changning Financial Park, 1320 Yuyuan Road, Changning District, Shanghai

 

Tel: 021-31576682

 

Fax:

 

Postal code: 200050

 

Attn: Dai Wei

 

7.2.2                                The notices sent or delivered pursuant to Article 7.2.1 hereof shall be deemed delivered at the time of delivery if delivered by hand, or at the time of receiving the transmission receipt if sent by fax or on the fifth (5th) calendar day after being deposited with the courier service or taken by the courier service.

 

Article 8              Force Majeure

 

8.1                                         “Force Majeure” means all the events that occur after the execution hereof and prevent any Party (“Affected Party”) from performing or partially performing this Agreement, and such events cannot be reasonably controlled or foreseen by the Parties hereto or cannot be reasonably avoided and overcome even if foreseeable (including but not limited to earthquake, typhoon, flood, fire, war, laws and regulations and administrative orders and policies).

 

8.2                                         In case of an event of Force Majeure that prevents the Affected Party from performing its obligations hereunder, the suspension of performance during the delay resulting from such event of Force Majeure shall not be deemed as a breach. The Affected Party shall promptly notify the other Parties within a reasonable period of time and provide sufficient evidence to prove that such event of Force Majeure has occurred, is continuing and has made it impossible or impracticable for such Party to perform this Agreement in whole or in part.

 

8.3                                         The Party alleging Force Majeure shall promptly notify the other Parties in writing and assist the relevant party in providing the evidence of the occurrence and continuation of such event of Force Majeure.

 

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8.4                                         In case of an event of Force Majeure, the Parties shall commence negotiation immediately to find a reasonable solution and shall make all the reasonable efforts to minimize the effect of such event of Force Majeure. In case the occurrence or effect of such event of Force Majeure poses a material impediment to the operation of the company for a period of more than six (6) months, and the Parties fail to find a reasonable solution, any Party may terminate this Agreement pursuant to the provisions of Article 10 hereof.

 

Article 9              Liability for Breach

 

9.1                                         Event of Default

 

The Parties hereto shall strictly comply with the provisions hereof, and each of the following events will constitute an event of default:

 

(1)              Any Party hereto fails to perform its obligations or undertakings hereunder, so that the other Parties cannot fulfill the purposes for which this Agreement and the Transaction are entered into; or

 

(2)              Any representations and warranties made by any Party hereto under this Agreement are untrue, inaccurate, incomplete or contain material omission in any material respect.

 

9.2                                         Remedies for Breach

 

9.2.1                                If an event of default occurs following the execution hereof, the non-breaching party shall be entitled to require the breaching party to make correction within a reasonable period. If the breaching party fails to correct such breach within the specified period, the non-breaching party shall have the right to terminate this Agreement unilaterally and hold the breaching party liable for breach; or although the breaching party has corrected its breach, such breach has caused losses to the non-breaching party, the breaching party shall be still obliged to assume liability for such losses, including the actual losses of the non-breaching party, the benefits obtainable after the performance hereof and the expenses incurred in claiming compensation.

 

9.2.2                                As of the signing date hereof, should any of the following circumstances arise, the Investor shall have the right to require the Founders and the Yong Xiong Group to jointly and severally pay liquidated damages equivalent to 10% of the Transaction Price:

 

(1)              (1) The Founders and the Group Company violate the exclusivity clause set forth in Article 6.1 hereof.

 

9.2.3                                If the Investor fails to pay the Deposit or the Transaction Price on time as agreed herein, the Investor shall pay Tan Man liquidated damages equal to 0.05% of the overdue amount for each delayed day.

 

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9.2.4                                 In case the Founders fail to refund the Deposit or pay capital occupation cost pursuant to Article 2.3.1(3) hereof, or fails to pay cash compensation to the Investor within the period agreed in Article 2.3.3 hereof, the Founders shall pay the Investor liquidated damages equal to 0.05% of the unpaid amount for each delayed day till full payment.

 

Article 10        Termination

 

10.1                                    Termination

 

The Parties hereto may jointly terminate this Agreement in writing after reaching consensus through consultation.

 

10.2                                   Unilateral Cancellation

 

10.2.1                          The Investor shall have the right to cancel this Agreement and the Formal Transaction Documents then executed by relevant parties by giving a written notice pursuant to the provisions of Articles 3.2 and 3.3.

 

10.2.2                          If the breach of any Party has made it impossible to fulfill the fundamental purpose of this Agreement and the Transaction, the non-breaching party shall have the right to demand the early cancellation of this Agreement and the Formal Transaction Documents then executed by relevant parties.

 

10.2.3                          If the Investor delays in paying the Deposit pursuant to Article 2.3.1(3) hereof for more than seven (7) Business Days, the Founders shall be entitled to cancel this Agreement and the Formal Transaction Documents then executed by relevant parties by giving a written notice to the Investor.

 

10.3                                   Effect of Cancellation

 

Early cancellation or termination of this Agreement shall not affect the exercise of the right available to a Party pursuant to this Agreement prior to early cancellation or termination to pursue the breach of another Party or other liabilities specified herein. The following articles hereof shall survive the termination hereof:

 

(1)              Article 7 Confidentiality and Notices;

 

(2)              Article 9 Liability for Breach;

 

(3)              Article 10 Termination;

 

(4)              Article 11 Applicable Law and Dispute Resolution;

 

(5)              Article 12 Entire Agreement; and

 

(6)              Article 13 Miscellaneous.

 

Article 11        Applicable Law and Dispute Resolution

 

11.1                                   This Agreement shall be governed by and interpreted in accordance with PRC Laws.

 

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11.2                                   Any controversy, dispute or claim arising among the Parties in connection with this Agreement shall be resolved by the Parties through friendly consultation, with all reasonable efforts made. If no solution is reached, any Party may dispute such controversy, dispute or claim to Shanghai International Economic and Trade Arbitration Commission for arbitration in accordance with the arbitration rules of the Commission then in effect. The arbitration shall take place in Shanghai, and the arbitral tribunal shall consist of three (3) arbitrators. The arbitration shall be conducted in Chinese. The arbitral award shall be final and binding upon the Parties. Arbitration costs, including attorney’s fee, shall be borne by the losing party.

 

11.3                                   While a dispute arises and is pending resolution, except for the matters under dispute, the Parties shall continue to exercise their unaffected rights hereunder and perform their unaffected obligations hereunder in good faith.

 

Article 12        Entire Agreement

 

12.1                                   This Agreement together with the annexes hereto shall constitute the entire agreement among the Parties and may be modified only in writing executed by the Parties. As for any matter uncovered by this Agreement, the Parties may enter into a supplementary agreement through negotiation, which shall have the same legal force as this Agreement. In particular, in case of any conflict between the terms hereof and the content of the Formal Transaction Documents, the latter shall prevail.

 

12.2                                   If any one or more provisions hereof are deemed invalid, illegal or unenforceable in any respect under applicable laws, the Parties hereto shall be obliged to conduct negotiation and enter into substitute provisions; nevertheless, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected by the foregoing matters in any way.

 

Article 13        Miscellaneous

 

13.1                                   This Agreement shall become effective after it is executed by the Parties.

 

13.2                                   This Agreement is made in quintuplicate, with two (2) copies to be held by the Investor and one (1) copy by each of the other Parties, and all copies shall be equally authentic.

 

(THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK)

 

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(This page is intentionally left blank to serve as the signature page of the Framework Agreement Concerning Acquisition of Shares in the Group Company)

 

IN WITNESS WHEREOF, the Parties have duly authorized their representatives to execute this Agreement in Changning District, Shanghai as of August 2, 2018.

 

	
Tan Man
    	
 
    
	
 
    	
 
    
	
Signature:
    	
/s/ Man Tan
    	
 
    
	
 
    	
 
    	
 
    
	
Zhou Xiaofang
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Xiaofang Zhou
    	
 
    
	
 
    	
 
    
	
Hunan   Yong Xiong Asset Management Group Co., Ltd.
    
	
 
    
	
(seal)
    
	
Signature of authorized   representative:
    	
/s/   Man Tan [Company Seal is affixed]
    
				

 

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(This page is intentionally left blank to serve as the signature page of the Framework Agreement Concerning Acquisition of Shares in the Group Company)

 

IN WITNESS WHEREOF, the Parties have duly authorized their representatives to execute this Agreement in Changning District, Shanghai as of August 2, 2018.

 

Shanghai Zhongping Guojing M&A Equity Investment Fund Partnership (LP) (seal)

 

	
Signature of authorized representative:
    	
/s/ Kaiguo Wang [Company   seal is affixed]
    

 

29

 

Schedule 1 List of Subsidiaries and Branches of the Yong Xiong Group

 

(As of __, 2018)

 

	
No.
    	
 
    	
Company Name
    	
 
    	
Place of Registration
    
	
1.
    	
 
    	
Hunan   Weicheng Credit Risk Management Co., Ltd.
    	
 
    	
PRC
    
	
2.
    	
 
    	
Changsha   Yubang Software Development Co., Ltd.
    	
 
    	
PRC
    
	
3.
    	
 
    	
Changsha   Weixin Asset Management Co., Ltd.
    	
 
    	
PRC
    
	
4.
    	
 
    	
Changsha   Weicheng Asset Management Co., Ltd.
    	
 
    	
PRC
    
	
5.
    	
 
    	
Gansu   Yong Xiong Enterprise Management Consulting Co., Ltd.
    	
 
    	
PRC
    
	
6.
    	
 
    	
Changchun   Yong Xiong Business Consulting Co., Ltd.
    	
 
    	
PRC
    
	
7.
    	
 
    	
Shenzhen   Yong Xiong Credit Management Co., Ltd.
    	
 
    	
PRC
    
	
8.
    	
 
    	
Chongqing   Yong Xiong Service Outsourcing Co., Ltd.
    	
 
    	
PRC
    
	
9.
    	
 
    	
Guangzhou   Yong Xiong Credit Management Co., Ltd.
    	
 
    	
PRC
    
	
10.
    	
 
    	
Hainan   Yong Xiong Credit Management Co., Ltd.
    	
 
    	
PRC
    
	
11.
    	
 
    	
Kunming   Yong Xiong Business Consulting Co., Ltd.
    	
 
    	
PRC
    
	
12.
    	
 
    	
Shanghai   Weixin Enterprise Management Co., Ltd.
    	
 
    	
PRC
    
	
13.
    	
 
    	
Nanjing   Yong Xiong Credit Management Co., Ltd.
    	
 
    	
PRC
    
	
14.
    	
 
    	
Tianjin   Yong Xiong Enterprise Management Consulting Service Co., Ltd.
    	
 
    	
PRC
    
	
15.
    	
 
    	
Chengdu   Yong Xiong Enterprise Management Consulting Co., Ltd.
    	
 
    	
PRC
    
	
16.
    	
 
    	
Beijing   Yong Xiong Credit Management Co., Ltd.
    	
 
    	
PRC
    
	
17.
    	
 
    	
Zhengzhou   Yong Xiong Enterprise Management Consulting Co., Ltd.
    	
 
    	
PRC
    
	
18.
    	
 
    	
Guizhou   Weixin Financial Service Outsourcing Co., Ltd. (in preparation)
    	
 
    	
PRC
    
	
19.
    	
 
    	
Fuzhou   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
20.
    	
 
    	
Xi’an   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
21.
    	
 
    	
Hohhot   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
22.
    	
 
    	
Yinchuan   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    

 

30

 

	
No.
    	
 
    	
Company Name
    	
 
    	
Place of Registration
    
	
23.
    	
 
    	
Shenyang   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
24.
    	
 
    	
Xinjiang   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
25.
    	
 
    	
Hefei   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
26.
    	
 
    	
Harbin   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
27.
    	
 
    	
Shijiazhuang   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
28.
    	
 
    	
Guiyang   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
29.
    	
 
    	
Nanchang   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
30.
    	
 
    	
Guangxi   Nanning Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
31.
    	
 
    	
Tibet   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
32.
    	
 
    	
Jinan Branch   of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
33.
    	
 
    	
Wuhan   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
34.
    	
 
    	
Xining   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
35.
    	
 
    	
Taiyuan   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    
	
36.
    	
 
    	
Hangzhou   Branch of Hunan Yong Xiong Asset Management Group Co., Ltd.
    	
 
    	
PRC
    

 

31

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