Document:

aytu_ex1062

 

Exhibit
10.62

 

 

 

AMENDMENT TO EMPLOYMENT AGREEMENT

 

WHEREAS,
Joshua R. Disbrow (“Disbrow” or “Employee”)
and Aytu Bioscience, Inc. (the “Company”) are parties
to an Employment Agreement dated April 16, 2019 (the
“Employment Agreement”);

 

WHEREAS,
on November 4, 2019, the Company’s Compensation Committee
approved an equity grant to Disbrow in the amount of 453,475
shares, but for various reasons, Disbrow’s shares were never
granted or issued;

 

WHEREAS,
based on the lapse in time since the approval of Disbrow’s
shares, the Compensation Committee has approved the issuance of a
cash payment of $444,406 (“Cash Payment”) in lieu of
the above-mentioned equity grant based on the share price of $0.98
on November 14, 2019, to be paid to Disbrow in two equal
installments;

 

WHEREAS,
the Compensation Committee approved raising Disbrow’s base
salary to $500,000, effective June 1, 2020, and to $590,000,
effective January 1, 2021, and approved modifying his Bonus target
from 100% to 60%; and

 

WHEREAS,
the Compensation Committee approved an Equity Compensation Grant of
100,000 options with a four-year vesting schedule and 450,000
Restricted Shares with a four-year vesting schedule, as set forth
below;

 

THEREFORE,
Disbrow and the Company agree that the Employment Agreement shall
be modified as specifically set forth in this Amendment, but except
as specifically modified herein, shall remain in full force and
effect as written:

 

1.

All capitalized but
undefined terms in this Amendment shall have the meanings ascribed
to them in the Employment Agreement.

 

2.

Section 3(a) is
amended to include:

Effective June 1,
2020, the Company shall pay Employee a Base Salary of $500,000 per
annum, subject to standard deductions and withholdings, payable at
least monthly on the Company’s regular pay cycle for
professional employees. Effective January 1, 2021, the Company
shall pay Employee a Base Salary of $590,000, per annum, less
applicable withholdings, payable at least monthly on the
Company’s regular pay cycle for professional
employees.

 

3.

Section 3(c) is
amended to include:

 

The
Company shall grant Employee 100,000 options with the schedule set
forth in the Option Agreement attached as Exhibit A to the
Amendment. The Company shall grant Employee 450,000 Restricted
Shares with the schedule set forth in the Restricted Stock
Agreement attached as Exhibit B to the Amendment.

 

4.

Section 3(d) is
amended to include:

Effective June 1,
2020, the Employee shall be eligible for an annual discretionary
Bonus with a target amount of sixty percent (60%) of the Base
Salary, subject to standard deductions and
withholdings.

 

5.

Section 3 is
amended to include the following subsection:

 

(e)
Cash Payment in Lieu of
Equity. The Company shall pay Employee a total of
$444,406.00, subject to standard deductions and withholdings. The
payment will be divided into two equal payments of $222,203.00, the
first of which shall be paid by the Company on June 30, 2020, and
the second of which shall be paid by the Company on July 1, 2021.
The Company will enter a payment agreement that obligates the
Company to pay the full amount above, irrespective of any change of
control, termination, or separation from the Company, unless
otherwise agreed to in writing by the Employee and the
Company.

 

6.

Section 7(e)(ii)(C)
is replaced as:

 

(C)            

All vested stock
options shall remain exercisable from the date of termination until
the expiration date of the applicable award. So long as the Section
8 below does not apply, then all options which are unvested at the
date of termination Without Cause or for Good Reason shall be
accelerated as of the date of termination such that the number of
option shares equal to 1/24th the number of option shares
multiplied by the number of full months of Employee’s
employment hereunder shall be deemed vested and immediately
exercisable by the Employee. Any unvested options over and above
the foregoing shall be cancelled and of no further force or effect,
and shall not be exercisable by the Employee. Any issued restricted
stock will immediately vest following the termination
date.

 

7.

Section 7(e)(ii) is
amended to include the following subsection:

 

(E) In
the event of a termination Without Cause or Change in Control,
Employee shall be paid a pro-rata amount of the target bonus
determined by the percentage of time Employee was employed during
the fiscal year.

 

 

IN
WITNESS WHEREOF, the undersigned have caused this Amendment to
Employment Agreement to be executed as of the Effective
Date.

 

 

	

 

	

	

 

	

 

	

 

	

 

	

 

	
Dated:

	
 

	
/s/ 

	

 

	

 

	

 

	
Joshua R. Disbrow,
CEO

	

 

	

 

	

 

	
	

 

 

	

 

	
  Aytu Bioscience, Inc.

	

 

	

 

	

 

	

 

	

 

	
Dated:

	
 

	
/s/ 

	

 

	

 

	

 

	
Its:aytu_ex1063

 

Exhibit 10.63

 

 

 

AMENDMENT TO EMPLOYMENT AGREEMENT

 

WHEREAS,
David A. Green (“Green” or “Employee”) and
Aytu Bioscience, Inc. (the “Company”) are parties to an
Employment Agreement dated December 18, 2017 (the “Employment
Agreement”);

 

WHEREAS,
on November 4, 2019, the Company’s Compensation Committee
approved an equity grant to Green in the amount of 266,250 shares,
but for various reasons, Green’s shares were never granted or
issued;

 

WHEREAS,
based on the lapse in time since the approval of Green’s
shares, the Compensation Committee has approved the issuance of a
cash payment of $260,925.00 (“Cash Payment”) in lieu of
the above-mentioned equity grant based on the share price of $0.98
on November 14, 2019, to be paid to Green in two equal
installments;

 

WHEREAS,
the Compensation Committee approved raising Green’s base
salary to $375,000, effective June 1, 2020, and to $400,000,
effective January 1, 2021; and

 

WHEREAS,
the Compensation Committee approved an Equity Compensation Grant of
100,000 options with a four-year vesting schedule and 250,000
Restricted Shares with a four-year vesting schedule, as set forth
below;

 

THEREFORE,
Green and the Company agree that the Employment Agreement shall be
modified as specifically set forth in this Amendment, but except as
specifically modified herein, shall remain in full force and effect
as written:

 

1.

All capitalized but
undefined terms in this Amendment shall have the meanings ascribed
to them in the Employment Agreement.

 

2.

Section 3(a) is
amended to include:

Effective June 1,
2020, the Company shall pay Employee a Base Salary of $375,000 per
annum, subject to standard deductions and withholdings, payable at
least monthly on the Company’s regular pay cycle for
professional employees. Effective January 1, 2021, the Company
shall pay Employee a Base Salary of $400,000, per annum, subject to
standard deductions and withholdings, payable at least monthly on
the Company’s regular pay cycle for professional
employees.

 

3.

Section 3(d) is
amended to include:

 

The
Company shall grant Employee 100,000 options with the schedule set
forth in the Option Agreement attached as Exhibit A to the
Amendment. The Company shall grant Employee 250,000 Restricted
Shares with the schedule set forth in the Restricted Stock
Agreement attached as Exhibit B to the Amendment.

 

4.

Section 3 is
amended to include the following subsection:

 

(e)
Cash Payment in Lieu of
Equity. The Company shall pay Employee a total of
$260,925.00, subject to standard deductions and withholdings. The
payment will be divided into two equal payments of $130,462.50, the
first of which shall be paid by the Company on June 30, 2020, and
the second of which shall be paid by the Company on July 1, 2021.
The Company will enter a payment agreement that obligates the
Company to pay the full amount above, irrespective of any change of
control, termination, or separation from the Company, unless
otherwise agreed to in writing by the Employee and the
Company.

 

5.

Section 7(e)(ii)(C)
is amended to include:

 

(C)            

All vested stock
options shall remain exercisable from the date of termination until
the expiration date of the applicable award. So long as the Section
8 below does not apply, then all options which are unvested at the
date of termination Without Cause or for Good Reason shall be
accelerated as of the date of termination such that the number of
option shares equal to 1/24th the number of option shares
multiplied by the number of full months of Employee’s
employment hereunder shall be deemed vested and immediately
exercisable by the Employee. Any unvested options over and above
the foregoing shall be cancelled and of no further force or effect,
and shall not be exercisable by the Employee. Any issued restricted
stock will immediately vest following the termination
date.

 

6.

Section 7(e)(ii) is
amended to include the following subsection:

 

(E) In
the event of a termination Without Cause or Change in Control,
Employee shall be paid a pro-rata amount of the target bonus
determined by the percentage of time Employee was employed during
the fiscal year.

 

 

IN
WITNESS WHEREOF, the undersigned have caused this Amendment to
Employment Agreement to be executed as of the Effective
Date.

 

	

 

	

	

 

	

 

	

 

	

 

	

 

	
Dated:

	
 

	
/s/ 

	

 

	

 

	

 

	
David A. Green,
CFO

	

 

	

 

	

 

	
	

 

  

 
	

 

	
  Aytu Bioscience, Inc.

	

 

	

 

	

 

	

 

	

 

	
Dated:

	
 

	
/s/ 

	

 

	

 

	

 

	
Its:a101_firstxamendmentxtox

                                                                    Exhibit 10.1                                                                Execution Version                FIRST AMENDMENT TO ABL CREDIT AGREEMENT        This FIRST AMENDMENT TO ABL CREDIT AGREEMENT, dated as of October 5, 2020 (this  “Amendment”),  among  Option  Care  Health,  Inc. (f/k/a  BioScrip,  Inc.),  a  Delaware  corporation (the “Parent Borrower” and a “Borrower”), each Guarantor party hereto, each Lender  party hereto and Bank of America, N.A., as administrative agent (in such capacity, the “Agent”).         WHEREAS, the  Parent  Borrower, HC  Group  Holdings  II, LLC,  a  Delaware  limited  liability company, the other parties from time to time party thereto, the Lenders (as defined therein)  from time to time party thereto, and the Agent are parties to that certain ABL Credit Agreement,  dated  as  of  August  6,  2019  (as  amended, restated,  amended  and restated,  supplemented  or  otherwise modified prior to the date hereof, the “Existing Credit Agreement” and, the Existing  Credit Agreement as amended hereby and as further amended, restated, amended and restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”); capitalized terms  used  herein  without  definition  shall  have  the  same  meanings  herein  as  set  forth  in  the  Credit  Agreement after giving effect to this Amendment.        WHEREAS,  on  the  date  hereof,  there  are  Revolving  Credit  Commitments  under  the  Existing  Credit  Agreement  in  an  aggregate  principal  amount  of  $150,000,000  (the  “Existing  Revolving Credit Commitments”);        WHEREAS, subject to the conditions set forth in Section II hereof, in accordance with the  provisions  of  Sections 2.14  and  10.01  of  the  Existing  Credit  Agreement,  the  Parent  Borrower  wishes to amend the Existing Credit Agreement as set forth in Section I below to, among other  things, increase the Existing Revolving Credit Commitments by the aggregate principal amount of  $25,000,000 (the “2020 Incremental Revolving Credit Commitments” and, each Lender with a  2020 Incremental Revolving Credit Commitment on the First Amendment Effective Date, a “2020  Incremental Revolving Lender”) on the terms and conditions as set forth herein. The amount of each 2020 Incremental Revolving Lender’s 2020 Incremental Revolving Credit Commitment as  of  the  First  Amendment  Effective  Date  (as  defined  below)  is  set  forth  opposite  such  2020  Incremental Revolving Lender’s name in Exhibit B hereto under the caption “2020 Incremental  Revolving Credit Commitment”;        WHEREAS, subject to the conditions set forth in Section II hereof, in accordance with the  provisions of Section 10.01 of the Existing Credit Agreement, the Parent Borrower has requested  that the Lenders, agree to amend certain other provisions of the Existing Credit Agreement as  provided for in Section I hereof; and        WHEREAS, the Parent Borrower, the Agent and each of the Lenders party hereto wish to  amend the Existing Credit Agreement as set forth in Section I hereof.        NOW,  THEREFORE, in consideration of the premises and the agreements, provisions  and covenants herein contained, the parties hereto agree as follows:  SECTION I.  AMENDMENTS TO EXISTING CREDIT AGREEMENT

 

      Subject to the satisfaction (or waiver) of the conditions precedent set forth in Section II hereof, the Parent Borrower the Agent and each of the Lenders party hereto hereby agree to the  amendments to the Existing Credit Agreement as set forth below:        A.   Credit Agreement. The Existing Credit Agreement is amended to delete the red  stricken text (indicated textually in the same manner as the following example: stricken text) and  to add the blue double-underlined text (indicated textually in the same manner as the following  example: double-underlined text) as set forth in the Credit Agreement attached as Exhibit A hereto.        B.    Schedules. Schedule  1.01A to  the  Existing  Credit  Agreement  is deleted  in  its entirety and replaced with Schedule 1.01A attached as Exhibit B hereto.        C.    2020 Incremental  Revolving  Credit  Commitments  Applicable  Rate and  Commitment Fee Rate. The Applicable Rate and the Commitment Fee Rate with respect to the  2020 Incremental Revolving Credit Commitments and the Incremental Revolving Credit Loans made  in  respect  thereof,  as  applicable,  shall  be  the  same  as  the  Applicable  Rate  and  the  Commitment Fee Rate applicable to the Existing Revolving Credit Commitments on the First  Amendment Effective Date and thereafter.  SECTION II. CONDITIONS TO EFFECTIVENESS OF AMENDMENTS TO EXISTING        CREDIT AGREEMENT        This  Amendment  shall become  effective  upon  the  satisfaction  (or waiver) of all of the  following conditions precedent (the date of satisfaction (or waiver) of such conditions precedent  being referred to herein as the “First Amendment Effective Date”).        A.    Execution.  The Agent’s receipt of the following each of which shall be original,  .pdf or facsimile copies or delivered by other electronic method unless otherwise specified:              (i)  a  counterpart  signature  page  to  this  Amendment  duly  executed by the        Lenders  (which  shall  be  sufficient  to  constitute  the  Required  Lenders) and the  Parent        Borrower;              (ii) an opinion from Kirkland & Ellis LLP, as counsel to the Parent Borrower,       in form and substance reasonably satisfactory to the Agent covering such matters relating        to this Amendment as the Agent shall reasonably request;              (iii) a solvency certificate in substantially the form of Exhibit D-3 to the Credit        Agreement,  dated  as  of  the  First Amendment  Effective  Date,  certifying  that  the  Parent        Borrower and  its  Subsidiaries,  on  a  consolidated  basis  after  giving  effect  to  this        Amendment, are Solvent;              (iv) a copy of a certificate of the Secretary of State of the State of Delaware,       dated within thirty (30) days of the First Amendment Effective Date, certifying that the        Parent Borrower is duly organized and in good standing under the laws of such jurisdiction;        and

 

            (v)   a  certificate  of  the  Secretary,  Assistant  Secretary  or  other  appropriate        Responsible Officer of the Parent Borrower dated the First Amendment Effective Date and        certifying (A) that attached thereto is a true and complete copy of the by-laws of the Parent        Borrower as in effect on the First Amendment Effective Date, (B) that attached thereto is        a  true  and  complete  copy  of  resolutions  duly  adopted  by  the  Board  of  Directors  (or        analogous  governing body) of each Loan Party  authorizing the execution, delivery and        performance of this Amendment and the documents related thereto to which such Loan        Party  is  a  party  and,  in  the  case  of  the  Parent  Borrower,  the  effectiveness of  the  2020       Incremental  Revolving  Credit  Commitments,  and  that  such  resolutions  have  not  been        modified, rescinded or amended and are in full force and effect, (C) that attached thereto        is a true and complete copy of the certificate of incorporation of the Parent Borrower as in        effect on the First Amendment Effective Date and (D) as to the incumbency and specimen        signature of each officer executing this Amendment or any other document delivered in        connection  herewith  on  behalf  of the  Parent  Borrower (or  that  the  incumbency  and        specimen  signatures  of  such  the  Parent  Borrower provided  in  the to  the  certificate        previously delivered to the Agent on behalf of the Parent Borrower on the Closing Date       remain in full force and effect).        B.    Fees and Other Amounts.  Payment of all fees and expenses in connection with  the 2020 Incremental Revolving Credit Commitments (including reasonable and documented out- of-pocket legal fees and expenses) payable to the 2020 Incremental Lenders on or before the First Amendment Effective Date shall have been paid to the extent then due; provided, that all such  amounts shall be required to be paid, as a condition precedent to the First Amendment Effective  Date,  only  to  the  extent  invoiced  at  least  one (1)  Business  Day prior  to  the  First Amendment  Effective Date.        C.    Representations and Warranties.  Each of the representations and warranties of  the Parent Borrower contained herein and in the Loan Documents shall be true and correct in all  material respects on and as of the First Amendment Effective Date as if made on and as of such  date, except for representations and warranties expressly stated to relate to a specific earlier date,  in which case such representations and warranties shall be true and correct in all material respects  as of such earlier date (provided, that, in each case such materiality qualifier shall not be applicable  to  any  representations  or  warranties  that  already  are  qualified  or  modified  by  materiality  or  Material Adverse Effect).        D.    Absence of Specified ABL Default. No Specified ABL Default has occurred and  is  continuing  at  the  time  of  the  effectiveness  of  the  2020  Incremental  Revolving  Credit  Commitments or immediately after giving effect thereto.  SECTION III. CONSENTS        Each  applicable  undersigned  Lender  hereby  consents  to  its  respective  allocation  of  the  2020 Incremental Revolving Credit Commitments after giving effect to this Amendment and the  transactions contemplated herein in the amount (not exceeding any commitment offered by such  Lender) allocated to it by the Agent on the First Amendment Effective Date as set forth in the  Register (as such respective allocation has been indicated by the Agent to such Lender on or prior  to the First Amendment Effective Date).

 

SECTION IV. REAFFIRMATION OF GUARANTEES AND SECURITY INTERESTS        Each of the Loan Parties party to the Credit Agreement, the Security Agreement and the  other  Collateral  Documents,  in  each  case  as  amended,  restated, amended  and  restated,  supplemented  or  otherwise  modified  from  time  to  time,  hereby  as  of  the  date  hereof  (i)  acknowledges  and  agrees  that  all of  its  Obligations  under  the  Credit  Agreement,  the  Security  Agreement and the other Collateral Documents to which it is a party are reaffirmed and remain in  full force and effect on a continuous basis, (ii) reaffirms each Lien granted by each Loan Party to  the Agent, its successors and permitted assigns, for the benefit of the Secured Parties and reaffirms  the  guaranties made pursuant to the Credit Agreement, (iii) acknowledges  and  agrees  that  the  grants  of  security  interests  by  and  the  guaranties  of  the  Loan Parties  contained  in  the  Credit  Agreement and the Security Agreement are, and shall remain, in full force and effect after giving  effect to this Amendment, and (iv) agrees that the Obligations include, among other things and  without limitation, the prompt and the complete payment and performance by the Borrowers when  due and payable (whether at the stated maturity, by acceleration or otherwise) of principal and  interest on, and premium (if any) on, any Incremental Revolving Credit Loans made in respect of the 2020 Incremental Revolving Credit Commitment under the Credit Agreement.  SECTION V.  MISCELLANEOUS        A.    Reference  to  and  Effect  on  the  Credit  Agreement  and  the  Other  Loan  Documents.              (i)   On  and  after  the  First Amendment  Effective  Date,  each  reference in the        Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like        import referring to the Credit Agreement, and each reference in the other Loan Documents        to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the        Credit Agreement shall mean and be a reference to the Credit Agreement as amended by        this Amendment.              (ii)  Except as specifically amended by this Amendment, the Credit Agreement        and the other Loan Documents shall remain in full force and effect and are hereby ratified        and confirmed and this Amendment shall not be considered a novation.              (iii) (w)  This  Amendment  (including  all  exhibits  attached  hereto)  shall        constitute a “Loan Document”, an “Incremental Amendment” and the notice to the Agent        required under Section 2.14 of the Credit Agreement, (x) each 2020 Incremental Revolving        Lender  shall  constitute  a  “Lender”, and  “Revolving  Credit  Lender”,  (y)  each  2020        Incremental  Revolving  Credit  Commitment  shall  constitute  a  “Revolving  Credit        Commitment” and (z) the loans borrowed under the 2020 Incremental Revolving Credit        Commitments  shall  constitute  “Loans”,  “Incremental  Revolving  Credit  Loans” and        “Revolving Credit Loans”, in each case, for all purposes of the Credit Agreement and shall        be administered and construed pursuant to the terms of the Credit Agreement.        B.    Limitation of Amendment and Waiver.  Nothing herein shall be deemed to (i)  entitle any Loan Party to a further consent to, or a further waiver, amendment, modification or 

 

other change of, any of the terms, conditions, obligations, covenants or agreements contained in  the Credit Agreement or any other Loan Document in similar or different circumstances or (ii)  constitute a modification, limitation, impairment or waiver of any right, power or remedy available  to the Agent or the Lenders under the Credit Agreement or any other Loan Document.        C.    Amendment, Modification and Waiver. This Amendment may not be amended,  modified or waived except by an instrument or instruments in writing signed and delivered on  behalf of each of the parties hereto.        D.    Severability.  If any provision of this Amendment is held to be illegal, invalid or  unenforceable  in  any  jurisdiction,  the  legality,  validity  and  enforceability  of  the  remaining  provisions  or  obligations,  or  of  such  provision  or  obligation  in  any  other  jurisdiction,  of  this  Amendment and the other Loan Documents shall not be affected or impaired thereby.        E.    [Reserved.]        F.    Headings.  Section  and  Subsection  headings in  this  Amendment  are  included  herein for convenience of reference only and shall not constitute a part of this Amendment for any  other purpose or be given any substantive effect.        G.    Costs and Expenses. Each Borrower hereby reconfirms its obligations pursuant  to Section 10.04 of the Credit Agreement to pay and reimburse the Agent for all reasonable out- of-pocket costs and expenses (including, without limitation, reasonable fees of counsel) incurred  in connection with the negotiation, preparation, execution and delivery of this Amendment and all  other documents and instruments delivered in connection herewith.        H.    Governing Law; Waiver of Jury Trial.  Sections 10.15 and 10.16 of the Credit  Agreement are hereby incorporated herein by reference mutatis mutandis.        I.    Counterparts; Electronic Execution. This Amendment may be executed in any  number  of  counterparts,  each  of  which  when  so  executed  and  delivered  shall  be  deemed  an  original,  but  all  such  counterparts  together  shall  constitute  but  one  and  the  same  instrument.   Delivery of an executed signature page of this Amendment by facsimile, email or other electronic  transmission shall be effective as delivery of a manually executed counterpart to this Amendment. The  words  “execution,”  “signed,”  “signature,”  “delivery,”  and  words  of  like  import  in  this  Amendment, any other Loan Document or any other document to be signed in connection with  this Amendment and the transactions contemplated hereby shall be deemed to include electronic  signatures,  electronic  records  or  the  electronic  matching  of  assignment  terms  and  contract  formations on electronic platforms approved by the Agent or the keeping of records in electronic  form, each of which shall be of the same legal effect, validity or enforceability as a manually  executed signature, 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.

 

      J.    Reallocation.  On  the  First  Amendment  Effective  Date,  each  2020  Incremental  Revolving Lender shall purchase and assume from each existing Revolving Credit Lender having  Revolving  Credit  Loans  and  participations  in  Letters  of  Credit outstanding  on  such  First  Amendment Effective Date, without recourse or warranty, an undivided interest and participation,  to  the  extent  of  such  2020  Incremental  Revolving  Lender’s  Revolving  Credit  Exposure (after  giving  effect  to the  2020  Incremental  Revolving  Credit  Commitments),  in  the  aggregate outstanding Revolving Credit Loans and participations in Letters of Credit, so as to ensure that, on the First Amendment Effective Date after giving effect to the 2020 Incremental Revolving Credit  Commitments, each Revolving Credit Lender is owed only its Revolving Credit Exposure of the  Revolving  Credit  Loans  and  participations  in  Letters  of  Credit outstanding  on  such  First Amendment Effective Date.                     [Remainder of this page intentionally left blank.]

 

      IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly  executed and delivered by their respective officers thereunto duly authorized, as of the date first  written above.                                OPTION CARE HEALTH, INC.                               (F/K/A BIOSCRIP, INC.),                               as the Parent Borrower and a Borrower                                By:  /s/ Michael Shapiro                               Name: Michael Shapiro                               Title: Senior Vice President, Chief Financial Officer and                                      Treasurer                                   Signature Page to                         First Amendment to ABL Credit Agreement

 

GUARANTORS:                   APPLIED HEALTH CARE, LLC,                               BIOSCRIP INFUSION MANAGEMENT, LLC,                               BIOSCRIP INFUSION SERVICES, INC.,                                BIOSCRIP INFUSION SERVICES, LLC,                                BIOSCRIP MEDICAL SUPPLY SERVICES, LLC,                               BIOSCRIP PBM SERVICES, LLC,                               BIOSCRIP PHARMACY (NY), INC.,                               BIOSCRIP PHARMACY SERVICES, INC.,                               BIOSCRIP PHARMACY, INC.,                               BRADHURST SPECIALTY PHARMACY, INC.,                               CHRONIMED, LLC,                               CHS HOLDINGS, INC.,                               CRITICAL HOME CARE SOLUTIONS, INC.,                               DEACONESS ENTERPRISES, LLC,                               DEACONESS HOMECARE, LLC,                               EAST GOSHEN PHARMACY, INC.,                               HOMECHOICE PARTNERS, INC.,                               INFUSAL PARTNERS,                               INFUCENTERS, LLC,                               INFUSCIENCE HHA, LLC,                                INFUSCIENCE, INC.,                               INFUSCIENCE SOUTH CAROLINA, LLC,                               INFUSCIENCE SUB, INC.,                               INFUSION PARTNERS OF BRUNSWICK, LLC,                               INFUSION PARTNERS OF MELBOURNE, LLC,                                INFUSION PARTNERS, LLC,                               INFUSION SOLUTIONS, INC.,                               INFUSION THERAPY SPECIALISTS, INC.,                               KNOXVILLE HOME THERAPIES, LLC,                                NATIONAL HEALTH INFUSION, INC.,                               NATURAL LIVING, INC.,                               NEW ENGLAND HOME THERAPIES, INC.,                               NUTRI USA, INC.,                               OPTION HEALTH, LTD.,                               PROFESSIONAL HOME CARE SERVICES, INC.,                               PHCS ACQUISITION CO., INC.,                               REGIONAL AMBULATORY DIAGNOSTICS, INC.,                               SCOTT-WILSON, INC.,                               SPECIALTY PHARMA, INC.,                               WILCOX MEDICAL, INC.,                                By: /s/ Michael Shapiro____________________________                               Name: Michael Shapiro                               Title: President, Chief Financial Officer and Treasurer                                   Signature Page to                         First Amendment to ABL Credit Agreement

 

      CHI HOLDING CORP.,       CLINICAL HOLDINGS, INC.,       CLINICAL SPECIALTIES, INC.,       CLINICAL SPECIALTIES NETWORK SERVICES        OF ILLINOIS, INC.,       CRESCENT HEALTHCARE, INC.,       CRESCENT THERAFUSION, INC.,       CRITICAL CARE SYSTEM OF NEW YORK, INC.,       CRITICAL CARE SYSTEMS, INC.,       CSI MANAGED CARE, INC.,       CSI MEDICAL BILLING SERVICES, INC.,       CSI NETWORK SERVICES OF KENTUCKY, INC.,       CSI NETWORK SERVICES OF INDIANA, INC.,       CSI NETWORK SERVICES OF MICHIGAN, INC.,       HC GROUP HOLDINGS III, INC.,       HEALTHY CONNECTIONS HOMECARE        SERVICES, INC.,       HOME I.V. SPECIALISTS, INC.,       MEDNOW INFUSION, LLC,       OPTION CARE ENTERPRISES, INC.,       OPTION CARE ENTERPRISES, INC.,       OPTION CARE HOME CARE, INC.,       OPTION CARE HOME HEALTH LLC,       OPTION CARE INFUSION SERVICES, INC.,       OPTION CARE INFUSION SUITES, LLC       OPTION CARE OF NEW YORK, INC.,       OPTION CARE, INC.,       OPTIONET, INC.,       OPTION HOME HEALTH, INC.,       RIVER CITY PHARMACY, INC.,       SPRINGVILLE PHARMACY INFUSION THERAPY,        INC.,       TRINITY HOME CARE, LLC,       UNIVERSITY OPTION CARE, LLC,        By: /s/ Michael Shapiro____________________________       Name: Michael Shapiro       Title: Treasurer           Signature Page to First Amendment to ABL Credit Agreement

 

                                                                                                             OPTION CARE INFUSION SUITES, LLC                                                                                                       By:  /s/ John Rademacher                                     Name: John Rademacher                                    Title: President                                        [Option Care Health, Inc. Amendment No. 1 to ABL Credit Agreement – Signature Page] 

 

            BANK OF AMERICA, N.A.,             as the Agent, Lender and 2020 Incremental              Revolving Lender              By:   /s/ Brian Scawinski             Name: Brian Scawinski             Title: Authorized Signatory           Signature Page to First Amendment to ABL Credit Agreement

 

            ACF FINCO I LP,             as a Lender              By:  /s/ Oleh Szczupak             Name: Oleh Szczupak             Title: Authorized Signatory           Signature Page to First Amendment to ABL Credit Agreement

 

            EXHIBIT A           Credit Agreement               (Attached)              Signature Page to First Amendment to ABL Credit Agreement

 

                                                                                     EXHIBIT A  Adjusted marked version reflecting changes made pursuant to Amendment No. 1. Added text shown underscored; deleted text shown strikethrough.                                      ABL CREDIT AGREEMENT                                       Dated as of August 6, 2019,                                   as amended as of October , 2020,                                               Among                                    HC GROUP HOLDINGS II, LLC,                   until the consummation of the Debt Assumption, as the Initial Borrower,                                           BIOSCRIP, INC.,                   upon the consummation of the Debt Assumption, as the Parent Borrower,                   THE OTHER BORROWERS PARTY HERETO FROM TIME TO TIME,                     THE GUARANTORS PARTY HERETO FROM TIME TO TIME,                                      BANK OF AMERICA, N.A.,                       as Administrative Agent, Swing Line Lender and Issuing Bank,                    THE OTHER LENDERS PARTY HERETO FROM TIME TO TIME,                                      BANK OF AMERICA, N.A.,                                                and                                          ACF FINCO I LP                            as Joint Lead Arranger and Joint Lead Bookrunner,

 

                                                                                             Page                                        TABLE OF CONTENTS                                                                                               Page  ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS                                                     1  Section 1.01      Defined Terms                                                                 1 Section 1.02      Other Interpretive Provisions                                                66 Section 1.03      Accounting Terms                                                             68 Section 1.04      Rounding                                                                     68 Section 1.05      References to Agreements, Laws, Etc.                                         68 Section 1.06      Times of Day                                                                 68 Section 1.07      Timing of Payment or Performance                                             69 Section 1.08      Pro Forma Calculations                                                       69 Section 1.09      Currency Generally                                                           72 Section 1.10      Letters of Credit.                                                           72  ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS                                              72  Section 2.01      Revolving Credit Commitments                                                 72 Section 2.02      Loans and Borrowings                                                         74 Section 2.03      Letters of Credit                                                            75 Section 2.04      Swing Line Loans                                                             80 Section 2.05      Prepayments                                                                  81 Section 2.06      Termination or Reduction of Commitments                                      83 Section 2.07      Repayment of Loans                                                           84 Section 2.08      Interest                                                                     84 Section 2.09      Fees                                                                         84 Section 2.10      Computation of Interest and Fees                                             85 Section 2.11      Evidence of Indebtedness                                                     86 Section 2.12      Payments Generally                                                           86 Section 2.13      Sharing of Payments                                                          88 Section 2.14      Incremental Facilities                                                       88 Section 2.15      Interest Elections                                                           90 Section 2.16      Extension of Revolving Credit Loans                                          91 Section 2.17      Defaulting Lenders                                                           93 Section 2.18      Co-Borrowers                                                                 95 Section 2.19      Cash Management                                                              96  ARTICLE III. TAXES, INCREASED COSTS PROTECTION AND ILLEGALITY                                  98  Section 3.01      Taxes                                                                        98 Section 3.02      Illegality                                                                  100 Section 3.03      Inability to Determine Rates                                                101 Section 3.04      Increased Cost and Reduced Return; Capital Adequacy; Eurocurrency Rate Loan                   Reserves                                                                    102 Section 3.05      Funding Losses                                                              103 Section 3.06      Matters Applicable to All Requests for Compensation                         103 Section 3.07      Replacement of Lenders under Certain Circumstances                          104 Section 3.08      Survival                                                                    106  ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS                                         107  Section 4.01      Conditions to Initial Credit Extension                                      107 Section 4.02      Conditions to All Credit Extensions after the Closing Date                  109                                                -i-

 

                                                                                             Page  ARTICLE V. REPRESENTATIONS AND WARRANTIES                                                     110  Section 5.01      Existence, Qualification and Power; Compliance with Laws                    110 Section 5.02      Authorization; No Contravention                                             110 Section 5.03      Governmental Authorization; Other Consents                                  110 Section 5.04      Binding Effect                                                              111 Section 5.05      Financial Statements; No Material Adverse Effect                            111 Section 5.06      Litigation                                                                  111 Section 5.07      Ownership of Property; Liens                                                111 Section 5.08      Environmental Matters                                                       111 Section 5.09      Taxes                                                                       112 Section 5.10      ERISA Compliance                                                            112 Section 5.11      Subsidiaries; Equity Interests                                              113 Section 5.12      Margin Regulations; Investment Company Act                                  113 Section 5.13      Disclosure                                                                  113 Section 5.14      Labor Matters                                                               113 Section 5.15      Intellectual Property; Licenses, Etc.                                       114 Section 5.16      Solvency                                                                    114 Section 5.17      [Reserved]                                                                  114 Section 5.18      USA Patriot Act, FCPA and OFAC                                              114 Section 5.19      Collateral Documents                                                        114 Section 5.20      EEA Financial Institution and Covered Party                                 115 Section 5.21      Accounts                                                                    115 Section 5.22      Borrowing Base Calculation                                                  115  ARTICLE VI. AFFIRMATIVE COVENANTS                                                             115  Section 6.01      Financial Statements                                                        115 Section 6.02      Certificates; Other Information                                             117 Section 6.03      Notices                                                                     119 Section 6.04      Payment of Taxes                                                            119 Section 6.05      Preservation of Existence, Etc.                                             119 Section 6.06      Maintenance of Properties                                                   120 Section 6.07      Maintenance of Insurance                                                    120 Section 6.08      Compliance with Laws                                                        120 Section 6.09      Books and Records                                                           120 Section 6.10      Inspection Rights                                                           120 Section 6.11      Additional Collateral; Additional Guarantors                                121 Section 6.12      Compliance with Environmental Laws                                          122 Section 6.13      Further Assurances                                                          122 Section 6.14      Designation of Subsidiaries                                                 122 Section 6.15      [Reserved]                                                                  123 Section 6.16      Use of Proceeds                                                             123 Section 6.17      Post-Closing Matters                                                        123 Section 6.18      Specified Beta Vendor Financing Statements                                  123 Section 6.19      Fiscal Year                                                                 124 Section 6.20      Inventory                                                                   124  ARTICLE VII. NEGATIVE COVENANTS                                                               124  Section 7.01      Liens                                                                       124 Section 7.02      [Reserved]                                                                  129 Section 7.03      Indebtedness, Disqualified Equity Interests and Preferred Stock             129 Section 7.04      Fundamental Changes                                                         135                                                -ii-

 

                                                                                             Page  Section 7.05      Dispositions                                                                136 Section 7.06      Restricted Payments                                                         139 Section 7.07      Change in Nature of Business                                                143 Section 7.08      Transactions with Affiliates                                                143 Section 7.09      Burdensome Agreements                                                       146 Section 7.10      [Reserved]                                                                  148 Section 7.11      Financial Covenant                                                          148 Section 7.12      [Reserved]                                                                  148 Section 7.13      Modifications of Terms of Junior Financing                                  148 Section 7.14      Restrictions Prior to Satisfaction of Specified Post-Closing Undertaking    148  ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES                                                  148  Section 8.01      Events of Default                                                           148 Section 8.02      Remedies Upon Event of Default                                              151 Section 8.03      Application of Funds                                                        151 Section 8.04      Right to Cure.                                                              152  ARTICLE IX. ADMINISTRATIVE AGENT AND OTHER AGENTS                                             153  Section 9.01      Appointment and Authority                                                   153 Section 9.02      Rights as a Lender                                                          154 Section 9.03      Exculpatory Provisions                                                      154 Section 9.04      Reliance by Administrative Agent                                            155 Section 9.05      Delegation of Duties                                                        155 Section 9.06      Resignation of Administrative Agent                                         156 Section 9.07      Non-Reliance on Administrative Agent and Other Lenders                      157 Section 9.08      No Other Duties, Etc.                                                       157 Section 9.09      Administrative Agent May File Proofs of Claim; Credit Bidding.              157 Section 9.10      Collateral and Guaranty Matters                                             158 Section 9.11      Secured Cash Management Agreements and Secured Hedge Agreements             159 Section 9.12      Withholding Tax Indemnity                                                   160 Section 9.13      Indemnification by the Lenders                                              160 Section 9.14      Certain ERISA Matters.                                                      160  ARTICLE X. MISCELLANEOUS                                                                      162  Section 10.01     Amendments, Etc.                                                            162 Section 10.02     Notices and Other Communications; Facsimile Copies                          165 Section 10.03     No Waiver; Cumulative Remedies                                              166 Section 10.04     Attorney Costs and Expenses                                                 167 Section 10.05     Indemnification by the Borrowers                                            168 Section 10.06     Payments Set Aside                                                          169 Section 10.07     Successors and Assigns                                                      169 Section 10.08     Confidentiality                                                             173 Section 10.09     Setoff                                                                      174 Section 10.10     Interest Rate Limitation                                                    174 Section 10.11     Counterparts; Electronic Execution of Assignments and Certain Other Documents 175 Section 10.12     Integration                                                                 175 Section 10.13     Survival of Representations and Warranties                                  175 Section 10.14     Severability                                                                176 Section 10.15     GOVERNING LAW                                                               176 Section 10.16     WAIVER OF RIGHT TO TRIAL BY JURY                                            177 Section 10.17     Binding Effect                                                              177 Section 10.18     USA Patriot Act                                                             177                                                -iii-

 

                                                                                             Page  Section 10.19     No Advisory or Fiduciary Responsibility                                     177 Section 10.20     Intercreditor Agreements                                                    178 Section 10.21     Acknowledgment and Consent to Bail-In of EEA Financial Institutions         178 Section 10.22     Acknowledgement Regarding Any Supported QFCs.                               178  ARTICLE XI. GUARANTEE                                                                         179  Section 11.01     The Guarantee                                                               179 Section 11.02     Obligations Unconditional                                                   180 Section 11.03     Reinstatement                                                               181 Section 11.04     Subrogation; Subordination                                                  181 Section 11.05     Remedies                                                                    181 Section 11.06     Instrument for the Payment of Money                                         181 Section 11.07     Continuing Guarantee                                                        181 Section 11.08     General Limitation on Guarantee Obligations                                 181 Section 11.09     Release of Guarantors                                                       182 Section 11.10     Right of Contribution                                                       182 Section 11.11     Keepwell                                                                    183 Section 11.12     Independent Obligation                                                      183  SCHEDULES  I             Guarantors 1.01A         Commitments (as amended pursuant to Amendment No. 1) 1.01E         Existing Investments 1.01F         Existing Letters of Credit 4.01          Collateral Documents 5.06          Litigation 5.07          Ownership of Property, Liens 5.09          Taxes 5.11          Subsidiaries and Other Equity Investments 6.17          Post-Closing Matters 6.18          Specified Beta Vendor Financing Statements 7.01(b)       Existing Liens 7.03(b)       Existing Indebtedness 7.05          Dispositions 7.08          Existing Agreements 7.09          Existing Restrictions 10.02         Administrative Agent’s Office, Certain Addresses for Notices  EXHIBITS                 Form of  A             Committed Loan Notice B             Swing Line Loan Notice C-1            Revolving Credit Note C-2            Swing Line Note D-1           Form of Collateral Access Agreement D-2            Compliance Certificate D-3            Solvency Certificate E             Assignment and Assumption F             Security Agreement G             Intercompany Note                                                -iv-

 

                                                                                             Page  H-1            Guarantor Joinder Agreement H-2           Borrower Joinder Agreement I             United States Tax Compliance Certificate J             [Reserved] K             [Reserved] L             [Reserved] M             ABL Intercreditor Agreement N             Borrowing Base Certificate                                                  -v-

 

                                    ABL CREDIT AGREEMENT          This ABL CREDIT AGREEMENT      as amended pursuant to Amendment No. 1 referred to below, and as further amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms hereof, is entered into as of August 6, 2019, among HC Group Holdings II, LLC (formerly known as Beta Sub, LLC) , a Delaware limited liability company (“Merger Sub 2” through the consummation of the Merger, and immediately after the consummation of the Merger and the effectiveness of this Agreement until the consummation of  the  Debt  Assumption, the “Initial Borrower”), BioScrip, Inc., a Delaware corporation (the “Company” and, upon the consummation of the Debt Assumption, the “Parent Borrower”),  the other Borrowers party hereto from  time to time, the Guarantors party hereto from time to time, BANK OF AMERICA, N.A., as Administrative Agent,  Issuing Bank and Swing Line Lender, and each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”).                                    PRELIMINARY STATEMENTS          Prior to the date hereofClosing Date, the Company hashad formed Beta Sub, Inc., a Delaware corporation, a direct wholly-owned domestic subsidiary of the Company (“Merger Sub 1”)  and Merger Sub 2, a direct wholly-  owned domestic subsidiary of the Company.  On the Closing Date, pursuant to that certain Agreement and Plan of  Merger,  dated  as  of  March  14,  2019  (together  with  the  exhibits and  disclosure  schedules  thereto,  as  amended,  modified, supplemented or waived, the “Merger Agreement”),  among the Company, Merger Sub 1, Merger Sub 2,  HC Group Holdings II, Inc., a Delaware corporation (“Omega”), HC Group Holdings I, LLC, a Delaware limited  liability  company (“Omega  Parent”), and  HC  Group  Holdings  III,  Inc., a Delaware corporation (“Omega  III”) (solely for purposes of Section 7.3(b) thereof) , (A) Merger Sub 1 merged with and into Omega with Omega as the surviving entity and (B) Omega merged with and into Merger Sub 2, with Merger Sub 2 surviving such merger (such mergers collectively referred to herein as the “Merger”).          TheOn the Closing Date, the Initial Borrower hashad requested that, in connection with and immediately after the consummation of the Merger and the effectiveness of this Agreement as of such date (such agreement as in effect immediately prior to the Amendment No. 1 Effective Date, the “Existing Credit Agreement”) , the Lenders extend credit to the Initial Borrower in the form of an asset-based revolving credit facility established hereunder with initial commitments of $150,000,000.          The proceeds of the Initial Revolving Borrowing (to the extent permitted in accordance with the definition of the term “Permitted Initial Revolving Credit Borrowing Purposes”) , together with (i) a portion of the cash on hand at Omega and its Subsidiaries and the Company and its Subsidiaries, (ii)  the proceeds of the First Lien Loans in an initial  aggregate principal  amount  of  $925,000,000  and  (iii)  the  proceeds  of the  Second  Lien  Notes in  an initial aggregate  principal  amount  of  $400,000,000  under  the  Second  Lien  Notes  Indenture, will  bewere  used  on  the Closing  Date  by  the  Borrowers  (a) to  consummate  the  Closing  Date  Refinancing,  (b)  to  pay  the  Transaction Expenses and (c) to finance upfront fees and OID with respect to the Facilities.  In addition, Letters of Credit may be issued on the Closing Date to backstop or replace existing letters of credit, guarantees and performance and similar  bonds outstanding on the Closing Date.          The Lenders have indicated their willingness to lend and the Issuing Banks have indicated their willingness  to so issue Letters of Credit, in each case, on the terms and subject to the conditions set forth herein.          The Parent Borrower, the Administrative Agent and the Lenders party thereto have entered into that certain  First Amendment to ABL Credit Agreement (“Amendment No. 1”) dated as of October, 2020 (the “Amendment  No. 1 Effective Date”) amending this Agreement as of such date and pursuant to which (i) the Total Revolving Credit  Commitments  under  this  Agreement  immediately prior to the Amendment No. 1 Effective Date increased from $150,000,000 to $175,000,000 and (ii) each 2020 Incremental Lender agreed to provide its 2020 Incremental Revolving Credit Commitment, in each case subject to the terms and conditions provided therein and herein.          In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

 

                                            ARTICLE I.                             DEFINITIONS AND ACCOUNTING TERMS       Section 1.01                Defined Terms.          As used in this Agreement, the following terms shall have the meanings set forth below:          “2020  Incremental Lenders” means, at  any  time, a Lender that has (a) a  2020  Incremental  Revolving  Credit  Commitment on  the  Amendment No. 1  Effective Date or (b) any  Lender  that has made an  Incremental  Revolving Credit Loan pursuant to a 2020 Incremental Revolving Credit Commitment.          “2020  Incremental  Revolving Credit  Commitments” means, as to each  2020  Incremental Lender,  its  obligation to provide Incremental Revolving Credit Commitments to the Borrowers pursuant to Section 2.14 in an  aggregate  amount  not to exceed the  amount  set  forth  opposite such  2020  Incremental Lender’s name  under the  caption “2020 Incremental Revolving Credit Commitment” in Exhibit B to Amendment No. 1, as such amount may  be adjusted from time to time in accordance with this Agreement (including Section 2.14). The aggregate amount of  the 2020 Incremental Revolving Credit Commitments as of the Amendment No. 1 Effective Date is $25,000,000.          “20-Day Specified Availability” means, on a given date, the quotient obtained by dividing (a) the sum of  each day’s Specified Availability during the twenty (20) consecutive day period immediately preceding such date by  (b) twenty (20).          “ABL Financing Documents” means the “ABL Financing Documents” as defined in the ABL Intercreditor Agreement.          “ABL  Intercreditor  Agreement”  means  either  (a)  the  ABL  Intercreditor  Agreement,  dated  as  of the  Closing  Date,  among  the  Administrative  Agent,  the  First  Lien  Agent,  the  Second  Lien  Collateral  Agent  and  acknowledged  and  agreed  by  the  Loan  Parties,  substantially  in the form of  Exhibit M hereto or (b)  a customary  intercreditor  agreement  in  form  and  substance  reasonably  acceptable  to  the  Administrative  Agent  and  the  Administrative Borrower, which agreement shall provide that the Liens on the ABL Priority Collateral securing the  Obligations shall rank senior to the Liens on the ABL Priority Collateral securing the First Lien Obligations and the  Second  Lien  Obligations  and the Liens  on the Term Loan  Priority Collateral  securing the Obligations  shall rank  junior to the Liens on the Term Loan Priority Collateral securing the First Lien Obligations and the Second Lien  Obligations,  in  each  case  with  such  modifications  thereto  as  the  Administrative  Agent  and  the  Administrative  Borrower may agree.          “ABL Priority Collateral” means the “ABL Priority Collateral” as defined in the ABL Intercreditor  Agreement.          “Acceptable Document of Title” means with respect to any Inventory, a tangible bill of lading or other  document of title that (a) is issued to the order of a Loan Party or, if so requested by the Administrative Agent solely  with  respect to negotiable documents of title, to the order of the Administrative Agent, (b) is subject to the first-  priority security interest of the Administrative Agent (subject only to First Priority Priming Liens) and (c) is on terms  otherwise reasonably acceptable to the Administrative Agent.          “Account” means an “account” as such term is defined in Article 9 of the UCC and any and all supporting obligations in respect thereof.          “Account Control Agreement” means a “control agreement” in form and substance reasonably acceptable to the Administrative Agent and the Administrative Borrower and containing terms regarding the treatment of all cash and other amounts on deposit in the respective deposit account governed by such Account Control Agreement consistent with the requirements of Section 2.19 and in the case of any deposit account holding Eligible Cash, the requirements set forth in the definition of such term.                                                   -2

 

       “Account Debtor” means each Person who is obligated on an Account.         “ACF” means ACF Finco I LP.         “Acquired Asset Borrowing Base” has the meaning specified in the definition of Borrowing Base.         “Acquired Indebtedness” means, with respect to any specified Person,                 (a)    Indebtedness  of  any  other  Person  existing  at  the  time  such  other  Person  is  merged,        consolidated  or  amalgamated  with  or  into  or  became  a  Restricted  Subsidiary  of  such  specified  Person,        including  Indebtedness  incurred  in  connection  with,  or  in  contemplation  of,  such  other Person  merging,        amalgamating or consolidating with or into, or becoming a Restricted Subsidiary of, such specified Person,        and                 (b)    Indebtedness secured by a Lien encumbering any asset acquired by such specified Person        which Indebtedness exists at the time such asset is acquired.         “Additional Lender” means any Person (other than a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of a natural Person)) that is not an existing Lender and has agreed to provide Incremental Commitments pursuant to Section 2.14.         “Administrative  Agent”  means  Bank  of  America,  N.A.,  in  its  capacity  as  administrative  agent  and collateral agent under any of the Loan Documents, or any successor administrative agent and collateral agent.         “Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 10.02, or such other address or account as the Administrative Agent may from time to time notify the Administrative Borrower and the Lenders.         “Administrative Borrower” means  (i) initially, the Initial Borrower, (ii) after the consummation  of the Debt Assumption, the Parent Borrower, and (iii) upon notice to the Administrative Agent from the Borrowers, any other Borrower as selected by the Borrowers from time to time to act as the Administrative Borrower.         “Administrative  Questionnaire”  means  an  Administrative  Questionnaire  in  a  form  supplied  by  the Administrative Agent.         “Affiliate” means,  with  respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.  “Control” means  the  possession,  directly  or  indirectly,  of  the  power  to  direct  or  cause  the  direction  of  the  management  or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.  For the avoidance of doubt, none of the Arranger, the Agents or  their respective lending affiliates  or any entity  acting  as an  Issuing  Bank hereunder shall be deemed  to  be an Affiliate of any Borrower or any of their respective Subsidiaries.         “Agent Advance” has the meaning specified in Section 2.01(d).         “Agent Advance Period” has the meaning specified in Section 2.01(d).         “Agent Deposit Account” has the meaning specified in Section 2.19(c).         “Agent Parties” has the meaning specified in Section 10.02(b).         “Agent-Related  Distress  Event”  means,  with  respect  to  the  Administrative  Agent  or  any  Person  that directly or indirectly Controls the Administrative Agent (each, a “Distressed Agent-Related Person”), a voluntary or  involuntary  case  with  respect  to  such  Distressed  Agent-Related  Person  under  any  Debtor  Relief  Law,  or  a custodian,  conservator,  receiver  or  similar  official  is appointed for such  Distressed  Agent-Related Person or any                                                  -3

 

 substantial part of such Distressed Agent-Related Person’s assets, such Distressed Agent-Related Person makes a  general assignment for the benefit of creditors or is otherwise adjudicated as, or determined by any Governmental  Authority  having  regulatory  authority over such Distressed Agent-Related Person or its assets to be, insolvent or  bankrupt or such Distressed Agent-Related Person becomes the subject of a Bail-In Action; provided that an Agent- Related Distress Event shall not be deemed to have occurred solely by virtue of the ownership or acquisition of any Equity Interests in the Administrative Agent or any Person that directly or indirectly Controls the Administrative Agent by a Governmental Authority or an instrumentality thereof so long as such ownership interest does not result in or provide the Administrative Agent with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit the Administrative Agent (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made with the Administrative Agent.          “Agent-Related  Persons”  means  the  Agents  and  their  respective  Affiliates  and  any  officers,  directors, employees, partners, agents, advisors and other representatives of each of the foregoing.          “Agents” means, collectively, the Administrative Agent, the Arrangers and the Bookrunners.          “Aggregate Exposure” means with respect to any Lender, as of any date of determination, the sum of (a) the  aggregate  principal  amount  of  all  Revolving  Credit  Loans  of  such  Lender  as  of  such  date  plus (b) the LC  Exposure of such Lender as of such date plus (c) the Swing Line Exposure of such Lender as of such date.          “Agreement”  means  this  Credit  Agreement,  as  the  same  may  be  amended,  restated,  supplemented  or  otherwise modified from time to time.          “AHYDO  Payment”  means  any  mandatory  prepayment  or  redemption  pursuant  to  the terms  of  any  Indebtedness that is intended or designed to cause such Indebtedness not to be treated as an “applicable high yield  discount obligation” within the meaning of Section 163(i) of the Code.          “Amendment No. 1”  has  the  meaning  assigned to such term in  the  preliminary  statements to  this  Agreement.          “Amendment No. 1 Effective Date” has the meaning assigned to such term in the preliminary statements  to this Agreement.          “Annual  Financial  Statements”  means  the  Beta  Annual  Financial  Statements  and  the  Omega  Annual  Financial Statements.          “Applicable Lien” means (x) any Lien on the Collateral created pursuant to any Loan Document, (y) any  Lien on the Term Loan Priority Collateral that ranks pari passu with any Lien created pursuant to any First Lien  Financing Document on the Term Loan Priority Collateral (without regard to control of remedies) and (z) any Lien  on the Collateral created pursuant to any First Lien Financing Document.          “Applicable Rate” means initially a rate per annum equal to in the case of Loans maintained as (A) Base  Rate Loans, the applicable rate per annum set forth in Level II of the below pricing grid and (B) Eurocurrency Rate  Loans, the applicable rate per annum set forth in Level II of the below pricing grid, in each case, until the date of the  delivery of the first Quarterly Pricing Certificate in accordance with the first sentence of the following paragraph  (each,  a  “Start  Date”),  commencing  with  the  Quarterly  Pricing  Certificate  delivered  with  respect  to  the  fiscal  quarter ending December 31, 2019.  From and after the first Start Date to and including the applicable End Date  described below, the Applicable Rates for such Type of Loans shall be those set forth below opposite the Historical  Excess Availability indicated to have been achieved in any certificate delivered in accordance with the first sentence  of the following paragraph:                                                     Applicable Rate for             Historical Excess Availability as a                            Applicable Rate for Base  Level                                                Eurocurrency                percentage of the Line Cap                                        Rate Loans                                                        Rate Loans                                                   -4

 

  I         Greater than or equal to 66.66%             2.25%                     1.25%         Less than 66.66%, but greater than or equal  II                                                     2.50%                     1.50%                      to 33.33%  III              Less than 33.33%                      2.75%                     1.75%         The  Historical  Excess  Availability  used  in  a  determination  of  the  Applicable  Rates  shall  be  determined based on the delivery by the Administrative Borrower of a certificate of a Responsible Officer of the Administrative Borrower (each, a “Quarterly Pricing Certificate”)  to the Administrative Agent  (with  a copy to be sent by the Administrative Agent to each Lender), within fifteen (15) Business Days after the last day of each fiscal quarter, which Quarterly Pricing Certificate shall set forth the calculation of the Historical Excess Availability as at the last day of the fiscal quarter ended immediately prior to the relevant Start Date.  The Applicable Rates so determined shall  apply,  except  as  set  forth  in  the  succeeding  sentence,  from  and  including  the  relevant  Start  Date  to  but excluding the earlier of (x) the date on which the next Quarterly Pricing Certificate is delivered to the Administrative Agent and (y) the date which is fifteen (15) Business Days following the last day of the fiscal quarter in which the previous Start Date occurred (such earlier date, the “End Date”), at which time, if no Quarterly Pricing Certificate has been delivered to the Administrative Agent (and thus commencing a new Start Date), the Applicable Rates shall be  those  that  correspond  to  a  Historical  Excess  Availability  at  Level  III  above  (such  Applicable  Rates  as  so determined, the “Highest Applicable Rates”) and the Highest Applicable Rates shall apply until a Quarterly Pricing Certificate  is  delivered  to  the  Administrative  Agent  (and  thus commencing  a  new  Start  Date).   Notwithstanding anything to the contrary contained above in this definition, (a) the Applicable Rates shall be the Highest Applicable Rates at all times during which there shall exist a Specified Event of Default (provided, upon the cure or waiver of such Event of Default, the Applicable Rate shall be determined in accordance with the above pricing grid based on the most recently delivered Quarterly Pricing Certificate from and after the day immediately following the date such Event of Default is cured or waived), (b) from and after the most recent Incremental Facility Closing Date for any Incremental Amendment pursuant to which the Applicable Rates have been increased above the Applicable Rates in effect immediately prior to such Incremental Facility Closing Date, the Applicable Rates shall be increased to those respective percentages per annum set forth in the applicable Incremental Amendment and (c) from and after any Extension, with respect to any Extended Revolving Credit Commitments, the Applicable Rates specified for such Extended Revolving Credit Commitments shall be those specified in the applicable definitive documentation thereof.         “Appropriate Lender” means, at any time, (a) with respect to Loans of any Class, the Lenders of such Class of Loans, (b) with respect to Letters of Credit, (i) the relevant Issuing Bank(s) and (ii) the Revolving Credit Lenders and (c) with respect to Swing Line Loans, (i) the Swing Line Lender and (ii) if any Swing Line Loans are outstanding pursuant to Section 2.04(a), the Revolving Credit Lenders.         “Approved Bank” has the meaning specified in clause (c) of the definition of “Cash Equivalents.”         “Approved  Fund”  means  any  Fund  that  is  administered,  advised  or  managed  by  (a)  a  Lender,  (b)  an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers, advises or manages a Lender.         “Arranger” means each of Bank of America, N.A. and ACF, each in its capacity as a joint lead arranger under this Agreement.         “Assignees” has the meaning specified in Section 10.07(b).         “Assignment  and  Assumption”  means  an  Assignment  and  Assumption  substantially  in  the  form of Exhibit E hereto.         “Assignment  of  Claims  Act”  has  the  meaning  specified  in  paragraph  (g)  of  the  definition of  “Eligible Accounts”.         “Assignment Taxes” has the meaning specified in Section 3.01(b).                                                  -5

 

        “Attorney Costs” means all reasonable and documented fees, expenses and disbursements of any law firm  or other external legal counsel.          “Attributable Indebtedness” means, on any date, in respect of any Capitalized Lease Obligation of any  Person, the amount thereof that would appear as a liability on a balance sheet of such Person prepared as of such  date in accordance with GAAP (subject to Section 1.03).          “Auto Renewal Letter of Credit” has the meaning specified in Section 2.03(c).          “Available  Currency”  means  Dollars,  Pounds  Sterling,  Euros  and  to  the  extent  agreed  by  the  Administrative Agent and each Revolving Credit Lender, other freely tradeable currencies to be agreed.          “Availability  Period”  means  (a)  with  respect  to  the  Revolving  Credit  Facility,  the period  from  and  including the Closing Date to but excluding the earlier of (i) the Maturity Date and (ii) the date of termination of the  Revolving Credit Commitments, and (b) with respect to Extended Revolving Credit Commitments, the period from  and  including  the  effective  date  of  the  Extension  Amendment  applicable  to  such  Extended  Revolving  Credit  Commitments but excluding the earlier of (i) the final maturity date thereof as specified in the applicable Extension  Offer accepted by the respective Lender or Lenders and (ii) the date of termination of the such Extended Revolving  Credit Commitments.          “Average Facility Balance” means for any period for any Facility, the amount obtained by dividing the  Aggregate  Exposure for all Lenders  under such  Facility at  the end of each day for the period in question by the  number of days in such period.          “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.          “Bank Product Reserve” means a reserve equal to the aggregate amount of Secured Obligations in respect of  any  Noticed  Hedge,  up  to  the  Swap  Termination  Value  thereunder,  as  specified  by  the  applicable  Qualified Counterparty and the Administrative Borrower in writing to Administrative Agent, which amount may be increased or decreased with respect to any existing Secured Hedge Agreement at any time by further written notice from such Hedge Bank and the Administrative Borrower to the Administrative Agent.          “Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a bankruptcy  or insolvency proceeding or a corporate statutory arrangement proceeding having similar effect, is subject to, or any  Person  that  directly  or  indirectly  controls  such  Person  is  subject  to,  a  forced  liquidation,  or  has  had  a  receiver,  interim  receiver,  receiver  and  manager,  conservator,  trustee,  administrator,  custodian,  monitor,  assignee  for  the  benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it or  any  substantial  part  of  its  assets,  or,  in  the  good  faith  determination  of  the  Administrative  Agent,  has  taken  any  action  in  furtherance  of,  or  indicating  its  consent  to,  approval  of,  or  acquiescence  in,  any  such  proceeding  or  appointment; provided, that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition  of  any ownership  interest,  in  such  Person  by a Governmental Authority or instrumentality thereof, so long as such ownership interest does not result in or provide such Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such  Person  (or  such  Governmental  Authority  or  instrumentality)  to  reject,  repudiate,  disavow  or  disaffirm  any contracts or agreements made by such Person.          “Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2 of 1.00%, (b) the rate of interest in effect for such day as publicly announced from time to time by the Administrative Agent as its “prime rate” and (c) the Eurocurrency Rate plus 1.00% (or, if such day is not a Business Day, the immediately preceding Business Day).  The “prime rate” is a rate set by the Administrative Agent based                                                   -6

 

upon various factors including the Administrative Agent’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate.  Any change in such rate announced by the Administrative Agent shall take effect at the opening of business on the day specified in the public announcement of such change.         “Base Rate Loan” means a Loan that bears interest based on the Base Rate.         “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.         “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code that is subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.         “Beta  Annual  Financial  Statements”  means  the  audited  consolidated  statements  of  operations, shareholders’ equity and cash flows of the Company for the fiscal years ended December 31, 2016, December 31, 2017, and December 31, 2018, and the related audited consolidated balance sheets as of the end of such fiscal years.         “Beta  Entities”  means  the  Company  and  its  Subsidiaries  that  are  Subsidiaries of  the  Company  prior to giving effect to the Transactions.         “Beta  Material  Adverse  Effect”  means  a  “Beta  Material  Adverse  Effect”  as  defined  in  the  Merger Agreement.         “Beta Quarterly Financial Statements” means the unaudited consolidated statement of operations of the Company for the fiscal quarters ending March 31, 2018, June 30, 2018, September 30, 2018, and March 31, 2019 and the related unaudited consolidated balance sheet as of the end of such fiscal quarters.         “BHC Act Affiliate” has the meaning specified in Section 10.22(b).         “Board  of  Directors”  means,  for  any  Person,  the  board  of  directors  or  other  governing  body  of  such Person or, if such Person does not have such a board of directors or other governing body and is owned or managed by a single entity, the Board of Directors of such entity, or, in either case, any committee thereof duly authorized to act on behalf of such Board of Directors.         “Bookrunner”  means  each  of  Bank  of  America,  N.A.  and  ACF,  each  in  its  capacity  as  a  joint  lead bookrunner.         “Borrower” and “Borrowers” shall mean the Initial Borrower, the Parent Borrower and any wholly-owned Domestic Subsidiary of the Parent Borrower that is treated as a corporation for U.S. federal tax purposes and that after  the  Closing  Date  becomes  a Borrower by executing  a Borrower Joinder Agreement  in accordance with the terms hereof (but excluding any Subsidiary of the Parent Borrower that ceases to be a party hereto in accordance with the terms of Section 11.09); provided that any Subsidiary that is or has become a Borrower (a “Subsidiary Borrower”) may have its status as a Borrower terminated by delivering a notice to the Administrative Agent from the  Administrative  Borrower  and  such  Subsidiary  Borrower  electing  to  terminate  such  Subsidiary’s  status  as  a Borrower, provided further that no such termination shall affect (and such notice shall expressly provide that): (x) any obligation of such Subsidiary as a Guarantor or as a grantor or pledgor under any Loan Document or (y) any Lien  granted  by  such  Subsidiary  which  Liens  shall  continue  in  full  force  and  effect  after  giving  effect  to  such termination.         “Borrower  Joinder  Agreement”  means  a  joinder  agreement  substantially  in  the  form  of  the  Borrower Joinder Agreement attached as Exhibit H-2 hereto or in such other form agreed by the Administrative Agent and the Administrative Borrower.                                                  -7

 

        “Borrower Materials” has the meaning specified in Section 6.02.           “Borrowing” means a Revolving Credit Borrowing, a Swing Line Borrowing or an Agent Advance, as the  context may require.          “Borrowing Base” means as of any date of calculation, the amount calculated pursuant to the Borrowing Base Certificate most recently delivered to the Administrative Agent in accordance with Section 6.02(f) or Section  4.01(x), equal to, without duplication, the sum of:                   (a)     the lesser of (i) 85.0% of the NOLV of Eligible Inventory of each Loan Party and (ii)           75% of the book value of Eligible Inventory of each Loan Party (which, in the case of both clauses (i)           and (ii), shall take into account purchase price variances and shrinkage); provided that Eligible Inventory           included in the Borrowing Base pursuant to this clause (a) shall not exceed 30% of the Borrowing Base           (after giving effect to the inclusion of such acquired Eligible Inventory); plus                   (b)     85% of the Eligible Accounts of each Loan Party; plus                   (c)     100% of Eligible Cash of each Loan Party; minus                   (d)     the Eligible Reserves.          Notwithstanding the foregoing, any Eligible Inventory and Eligible Accounts acquired by a Loan Party in a  Permitted  Acquisition  or  other  permitted  Investment  may  be  immediately  included  in  the  Borrowing  Base  notwithstanding that  the Administrative Agent  has  not completed  a reasonably satisfactory field examination and  inventory appraisal in respect of such Eligible Inventory and Eligible Accounts subject to the following limitations  (which shall not apply to the extent such acquired Eligible Inventory and Eligible Accounts contribute an amount  less than  10% of the Borrowing  Base prior to giving effect to any such acquired Eligible Inventory and Eligible  Accounts):  the  portion  of  the  Borrowing  Base  that  may  be  attributable  to  such  acquired  Eligible  Inventory  and  Eligible Accounts shall be limited to the lesser of (a) 20% of the Borrowing Base (after giving effect to the inclusion  of such acquired Eligible Inventory and Eligible Accounts) and (b) (i) for each Borrowing Base Certificate that is  delivered on or after the date that such Permitted Acquisition or permitted Investment is consummated and prior to  the date that is ninety (90) days after the date such Permitted Acquisition or permitted Investment is consummated,  the sum of (x) 70% of the Eligible Accounts acquired in such Permitted Acquisition or permitted Investment and  (y) 70% of the NOLV of the Eligible Inventory acquired in such Permitted Acquisition or permitted Investment and  (ii) for each subsequent Borrowing Base Certificate that is delivered on or after the date that is ninety (90) days after  such Permitted Acquisition or permitted Investment is consummated and on or before the date that is one hundred  eighty (180) days after such Permitted Acquisition or permitted Investment is consummated (or such later date that  as may be agreed to by the Administrative Agent in its Permitted Discretion), the sum of (x) 55% of the Eligible  Accounts acquired in such Permitted Acquisition or permitted Investment and (y) 55% of the NOLV of the Eligible  Inventory acquired in such Permitted Acquisition or permitted Investment ((i) or (ii), as applicable, the “Acquired  Asset  Borrowing  Base”).  To  the  extent  that  the  Administrative  Agent  has  not  completed,  at  the  Borrowers’  expense, a field examination and inventory appraisal reasonably satisfactory to the Administrative Agent within one  hundred eighty (180) days of the acquisition of such Eligible Inventory and Eligible Accounts (or such longer period  as  the  Administrative  Agent  may  reasonably  agree)  such  Inventory  and  Accounts  will  cease  to  be  eligible  for  inclusion in the Borrowing Base.  The Administrative Agent shall have the right (but not the obligation) to review  such computations and if the Administrative Agent shall have reasonably determined in its Permitted Discretion that  such  computations  have  not  been  calculated  in  accordance  with  the  terms  of  this  Agreement,  the Administrative  Agent shall have the right to correct any such errors.  For the avoidance of doubt, prior to the date of closing of any  such  Permitted  Acquisition  or  permitted  Investment,  no  portion of  the  Acquired  Asset  Borrowing  Base  shall  be  included  in  the  Borrowing  Base  for  purposes  of  determining  the Line  Cap  for  purposes  of  a  Borrowing.  Notwithstanding the foregoing, in no event shall any property of the Company or any other Beta Entities be included  in the Borrowing Base unless and until the Specified Post-Closing Undertaking has been satisfied in accordance with  Section 6.18, at which point the inclusion of such property in the Borrowing Base shall be subject to receipt by the                                                   -8

 

Administrative Agent of a field examination and inventory appraisal reasonably satisfactory to the Administrative Agent.         “Borrowing Base Certificate” has the meaning specified in Section 6.02(f).         “Broker-Dealer Regulated Subsidiary” means any Subsidiary of the Parent Borrower that is registered as a broker-dealer under the Exchange Act or any other applicable Laws requiring such registration.         “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, New York, New York or the jurisdiction where the Administrative Agent’s Office is located and, if such day relates to any Eurocurrency Rate Loan, means any such day that is also a London Banking Day.         “Canadian Dollars” means the lawful currency of Canada.         “Capital Expenditures” means, for any period, the aggregate of all expenditures (whether paid in cash or accrued as liabilities and including in all events all amounts expended or capitalized under Capitalized Leases) by the Borrowers and the Restricted Subsidiaries during such period that, in conformity with GAAP, are or are required to be included as capital expenditures on the consolidated statement of cash flows of the Parent Borrower and its Restricted Subsidiaries.  Notwithstanding the foregoing, Capital Expenditures shall not include:         (a)     expenditures made with tenant allowances received by the Parent Borrower or any of its Restricted Subsidiaries from landlords in the ordinary course of business and subsequently capitalized;         (b)     any  amounts  spent  in  connection  with  permitted  Investments,  Permitted  Acquisitions  and expenditures made in connection with the Transactions;         (c)     expenditures financed with the proceeds of an issuance of Equity Interests of the Parent Borrower or any direct or indirect parent thereof, or a capital contribution to any Borrower;         (d)     expenditures that are accounted for as capital expenditures by the Parent Borrower or any of its Restricted  Subsidiaries  and  that  actually  are  paid  for  by  a  Person  other  than  the  Parent  Borrower  or  any  of  its Restricted Subsidiaries to the extent neither the Parent Borrower nor any of its Restricted Subsidiaries has provided or is required to provide or incur, directly or indirectly, any consideration or obligation to such Person or any other Person (whether before, during or after such period);         (e)     any expenditures which are contractually required to be, and are, advanced or reimbursed to the Parent  Borrower  or  any  of  its  Restricted  Subsidiaries  in  cash  by  a  third  party  (including  landlords)  during  such period of calculation;         (f)     the book value of any asset owned by the Parent Borrower or any of its Restricted Subsidiaries prior to or during such period to the extent that such book value is included as a capital expenditure during such period as a result of such Person reusing or beginning to reuse such asset during such period without a corresponding expenditure actually having been made in such period; provided that (i) any expenditure necessary in order to permit such  asset  to  be  reused  shall  be  included  as  a  capital  expenditure  during  the  period  in  which  such  expenditure actually  is  made  and  (ii)  such  book  value  shall  have  been  included  in  capital  expenditures  when  such  asset was originally acquired;         (g)    that portion of interest on Indebtedness incurred for capital expenditures which is paid in cash and capitalized in accordance with GAAP;         (h)    expenditures  made  in  connection  with  the  replacement,  substitution,  restoration,  upgrade, development or repair of assets to the extent financed with (x) insurance or settlement proceeds paid on account of                                                  -9

 

 the  loss  of  or  damage  to  the  assets  being  replaced,  substituted,  restored,  upgraded,  developed  or repaired  or  (y)  awards of compensation arising from the taking by eminent domain or condemnation of the assets being replaced;          (i)    in  the  event  that  any  equipment  is  purchased  substantially  simultaneously  with  the  trade-in  of  existing equipment, the gross amount of the credit granted by the seller of such equipment for the equipment being  traded in at such time; or          (j)    expenditures  relating to the construction, acquisition, replacement, reconstruction, development, refurbishment, renovation or improvement of any property which has been transferred to a Person other than the Parent Borrower or any of its Restricted Subsidiaries during the same fiscal year in which such expenditures were made pursuant to a sale-leaseback transaction to the extent of the cash proceeds received by the Parent Borrower or any of its Restricted Subsidiaries pursuant to such sale-leaseback transaction that are not required to prepay funded Indebtedness.          “Capitalized Lease Obligation” means, at the time any determination thereof is to be made, the amount of the liability in respect of a Capitalized Lease that would at such time be required to be capitalized and reflected as a  liability on a balance sheet (excluding the footnotes thereto) prepared in accordance with GAAP (subject to Section  1.03).          “Capitalized  Leases” means all leases that have been or are required to be, in accordance with GAAP,  recorded  as  capitalized  leases; provided  that  for  all  purposes  hereunder  the  amount  of  obligations  under  any  Capitalized Lease shall be the amount thereof accounted for as a liability in accordance with GAAP.          “Capitalized Software Expenditures” means, for any period, the aggregate of all expenditures (whether  paid in cash or accrued as liabilities) by the Borrowers and the Restricted Subsidiaries during such period in respect  of licensed or purchased software or internally developed software and software enhancements that, in conformity  with GAAP, are or are required to be reflected as capitalized costs on the consolidated balance sheet of the Parent  Borrower and the Restricted Subsidiaries.          “Captive Insurance Subsidiary” means any Subsidiary of a Borrower that is subject to regulation as an  insurance company and provides insurance to a Borrower and its Restricted Subsidiaries.          “Cash Collateral” has the meaning specified in Section 2.17(c).          “Cash Collateral Account” means a blocked account, established for the purposes of Section 2.05(c)(ii),  at the Administrative Agent (or another commercial bank selected by the Administrative Agent) in the name of the  Administrative  Agent  and  under  the  sole  dominion  and  control  of  the  Administrative  Agent,  and  otherwise  established in a manner reasonably satisfactory to the Administrative Agent.          “Cash Collateralize” has the meaning specified in Section 2.17(c).          “Cash  Equivalents”  means  any  of  the  following  types  of  Investments,  to  the  extent  owned  by  any  Borrower or any of its Restricted Subsidiaries:                  (a)    (1) Yen, Dollars, pound sterling, Canadian Dollars or euros or any national currency of         any  Participating  Member  State  of  the  EMU;  and  (2)  in  the  case of  any  Foreign  Subsidiary  or  any         jurisdiction  in  which  any  Borrower  or  any  of  its  Restricted  Subsidiaries  conducts  business,  such  local         currencies held by it from time to time in the ordinary course of business and not for speculation;                  (b)    readily marketable obligations issued or directly and fully guaranteed or insured by the         United States government or any agency or instrumentality thereof the securities of which are guaranteed as         a full faith and credit obligation of such government with maturities of 24 months or less from the date of         acquisition;                                                   -10

 

        (c)    time deposits, eurodollar time deposits or demand deposits with, insured certificates of deposit, bankers’ acceptances or overnight bank deposits of, or letters of credit issued by, any commercial bank that (i) is a Lender or (ii) (A) is organized under the Laws of the United States, any state thereof, the District  of  Columbia  or  any  member  nation  of  the  Organization  for  Economic  Cooperation  and Development or is the principal banking Subsidiary of a bank holding company organized under the Laws of the United States, any state thereof, the District of Columbia or any member nation of the Organization for Economic Cooperation and Development and is a member of the Federal Reserve System, and (B) has combined capital and surplus of at least $250,000,000 (any such bank in the foregoing clauses (i) or (ii) being  an  “Approved  Bank”),  in  each  case  with  maturities  not  exceeding  24  months  from  the  date  of acquisition thereof;          (d)    commercial paper and variable or fixed rate notes issued by an Approved Bank (or by the parent company thereof) or any variable or fixed rate note issued by, or guaranteed by, a corporation (other than structured investment vehicles and other than corporations used in structured financing transactions) rated  A-2  (or  the  equivalent  thereof)  or  better  by  S&P  or  P-2  (or  the  equivalent  thereof)  or  better  by Moody’s (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another nationally recognized statistical rating agency selected by the Borrowers), in each case with average maturities of not more than 24 months from the date of acquisition thereof;          (e)    marketable short-term money market and similar funds having a rating of at least P-2 (or the equivalent thereof) or A-2 (or the equivalent thereof) from either Moody’s or S&P, respectively (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another nationally recognized statistical rating agency selected by the Borrowers);          (f)    repurchase obligations for underlying securities of the types described in clauses (b), (c) and (e) above entered into with any Approved Bank;          (g)    securities with average maturities of 24 months or less from the date of acquisition issued or  fully  guaranteed   (i)  by  any  state,  commonwealth  or  territory  of  the  United  States,  by  any  political subdivision  or  taxing  authority  of  any  such  state,  commonwealth  or  territory  or  by  (ii)  any  foreign government,  in  each  case,  having  an  Investment  Grade  Rating  from  either  S&P  or  Moody’s  (or  the equivalent  thereof)  (or,  if  at  any  time  neither  Moody’s  nor  S&P  shall  be  rating  such  obligations,  an equivalent rating from another nationally recognized statistical rating agency selected by the Borrowers);          (h)    Investments with average maturities of 12 months or less from the date of acquisition in money market funds rated AAA- (or the equivalent thereof) or better by S&P or Aaa3 (or the equivalent thereof) or better by Moody’s (or, if at any time neither Moody’s nor S&P shall be rating such obligations, an equivalent rating from another nationally recognized statistical rating agency selected by the Borrowers);          (i)    securities  with  maturities  of  12  months  or  less  from  the  date of  acquisition backed by standby letters of credit issued by any Approved Bank;         (j)     instruments equivalent to those referred to in clauses (a) through (i) above denominated in euros or any other foreign currency comparable in credit quality and tenor to those referred to above and customarily  used  by  corporations  for  cash  management  purposes  in  any  jurisdiction  outside  the  United States to the extent reasonably required in connection with any business conducted by the Parent Borrower or any of its Restricted Subsidiaries;         (k)     Investments, classified in accordance with GAAP as current assets of the Parent Borrower or any of its Restricted Subsidiaries, in money market investment programs which are registered under the Investment Company Act of 1940 or which are administered by financial institutions having capital of at least $250,000,000, and, in either case, the portfolios of which are limited such that substantially all of such Investments are of the character, quality and maturity described in clauses (a) through (j) of this definition; and                                           -11

 

                (l)    investment  funds  investing  substantially  all  of  their  assets  in  securities  of  the  types         described in clauses (a) through (k) above.          Notwithstanding the foregoing,  Cash Equivalents shall include amounts  denominated in currencies other than  those  specified  in  clause  (a)  above; provided  that,  except  for amounts used to pay  non-Dollar-denominated obligations of the Borrowers or any of their Restricted Subsidiaries in the ordinary course of business, such amounts are converted into any currency listed in clause (a) above as promptly as practicable and in any event within ten (10) Business Days following the receipt of such amounts.          “Cash  Management  Agreement” means  any agreement  between  any Borrower or any  of  its Restricted Subsidiaries and any Qualified Counterparty relating to Cash Management Services.          “Cash Management Services” means any treasury, depositary, disbursement, lockbox, funds transfer,  pooling, netting, overdraft, stored value card, purchase card (including so-called “procurement cards” or “P-cards”),  debit card, credit card, e-payable, cash management and similar services, foreign exchange facilities, and any  automated clearing house transfer of funds.          “Casualty Event” means any event that gives rise to the receipt by any Borrower or any of its Restricted  Subsidiaries of any insurance proceeds or condemnation awards in respect of any equipment, fixed assets or Real  Property (including any improvements thereon) to replace or repair such equipment, fixed assets or Real Property.          “CFC” means a “controlled foreign corporation” within the meaning of Section 957(a) of the Code.          “CFC Holdco” means any Domestic Subsidiary if it has no material assets other than the Equity Interests  (including any Indebtedness treated as equity for U.S. federal income tax purposes) and, if applicable, Indebtedness  (and any cash or Cash Equivalents related thereto) of one or more Foreign Subsidiaries that is a CFC.          “Change in Law” means the occurrence, after the date of this Agreement, of any of the following:  (a) the  adoption  or  taking  effect  of  any  law,  rule,  regulation  or  treaty  (excluding  the  taking  effect  after  the  date  of  this  Agreement of a law, rule, regulation or treaty adopted prior to the date of this Agreement), (b) any change in any  law, rule,  regulation  or treaty  or in the administration, interpretation or application thereof by any Governmental  Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of  law) by any Governmental Authority.  It is understood and agreed that (i) the Dodd–Frank Wall Street Reform and  Consumer Protection Act (Pub.L. 111-203, H.R. 4173), all Laws relating thereto, all interpretations and applications  thereof and any compliance by a Lender with any request or directive relating thereto and (ii) all requests, rules,  guidelines or directives  promulgated by the Bank for International settlements, the Basel Committee on Banking  Supervision (or any successor or similar authority) or the United States regulatory authorities, in each case pursuant  to Basel III (collectively, “Basel  III”),  shall, in  each  case,  for the purposes  of this Agreement, be deemed to be  adopted and taking effect subsequent to the Closing Date, provided that a Lender shall be entitled to compensation  with  respect to any such  adoption taking  effect,  making  or issuance becoming effective after the date of the this  Agreement  only  if  it  is  the  applicable  Lender’s  general  policy or  practice  to  demand  compensation  in  similar  circumstances under comparable provisions of other financing agreements.          “Change of Control” shall be deemed to occur if:                  (a)(i) any Person (other than a Permitted Holder) or (ii) Persons (other than one or more Permitted         Holders) constituting a “group” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act as in         effect on the Closing Date), but excluding any underwriters in connection with a Qualified Primary Equity         Offering or a secondary public offering of Equity Interests of the Parent Borrower, any employee benefit         plan of such Person and its Subsidiaries, and any person or entity acting in its capacity as trustee, agent or         other  fiduciary  or  administrator  of  any  such  plan,  becomes  the “beneficial  owner”  (as  defined  in  Rules         13(d)-3 and  13(d)-5 under the Exchange Act as in effect on the Closing Date), directly or indirectly, of         Equity Interests representing more than thirty-five percent (35%) of the aggregate ordinary voting power         represented by the issued and outstanding Equity Interests of the Company (it being understood that to the         extent  any  Permitted  Holders  are  members  of  such  group,  any  Equity  Interests  held  by  such  Permitted                                                   -12

 

       Holders  will  be  disregarded  in  calculating  such  beneficial  ownership)  and  the  percentage  of  aggregate        ordinary  voting  power  so  held  is  greater  than  the  percentage  of  the  aggregate  ordinary  voting  power        represented  by  the  Equity  Interests  of  the  Company  beneficially  owned,  directly  or  indirectly,  in  the        aggregate  by  the  Permitted  Holders, unless,  and  so long as, the Permitted  Holders have the right or the        ability by voting power, contract or otherwise to elect or designate for election at least a majority of the        Board of Directors of the Company;                        (b)    a “change of control” (or similar event) shall occur in any document pertaining        to (i) Indebtedness that constitutes First Lien Obligations or Second Lien Obligations, (ii) any Incremental        Equivalent Debt or (iii) any Refinancing Equivalent Debt (or any Refinancing Indebtedness in respect of        any of the foregoing, in each case of clauses (i) through (iii) with an aggregate outstanding principal amount        in excess of the Threshold Amount.         Notwithstanding  the  preceding  or  any  provision  of  Section  13d-3  of  the  Exchange  Act,  (i)  a  Person  or “group” shall not be deemed to beneficially own Equity Interests subject to a stock or asset purchase agreement, merger  agreement,  option  agreement,  warrant  agreement  or  similar  agreement  (or  voting  or  option  or  similar agreement related thereto) until the consummation of the acquisition of the Equity Interests in connection with the transactions contemplated by such agreement and (ii) the right to acquire Equity Interests (so long as such Person does not have the right to direct the voting of the Equity Interests subject to such right) or to exercise any veto power in connection with the acquisition or disposition of Equity Interests will not in itself cause a party to be a beneficial owner.         “Class”  means  (a)  when  used  with  respect  to  Lenders,  refers  to  whether  such  Lender  has  a  Loan  or Commitment with respect to a particular Class of Loans or Commitments, (b) when used with respect to Revolving Credit  Commitments,  refers  to  whether  such  Revolving  Credit  Commitments  are  Initial  Revolving  Credit Commitments,  Incremental  Revolving  Commitments  (of  the  same  tranche)  or  Extended  Revolving  Credit Commitments (of the same tranche) and (c) when used with respect to Loans or a Borrowing, refers to whether such Loan  or  the  Loans  comprising  such  Borrowing,  are  Revolving  Credit  Loans  under  the  Initial  Revolving  Credit Commitments, Extended Revolving Credit Loans (of the same tranche) or Incremental Revolving Credit Loans (of the  same tranche); provided, that notwithstanding anything to the contrary contained in this Agreement or in any Loan Document, the 2020 Incremental Revolving Credit Commitments shall be effected as Incremental Revolving Credit Commitments and shall be of the same Class as the Initial Revolving Credit Commitments established on the Closing Date. Revolving Credit Loans under the Initial Revolving Credit Commitments, Extended Revolving Credit Loans  (of  the  same  tranche)  or  Incremental  Revolving  Credit  Loans  (or  the  same  tranche)  (together  with  the respective  Commitments  in  respect  thereof)  shall,  at  the  election  of  the  Parent  Borrower,  be  construed  to  be  in different Classes.         “Closing Date” means August 6, 2019.         “Closing Date Refinancing” means (A) all existing Indebtedness for borrowed money of (I) the Company and  its  subsidiaries  pursuant  to:  (i) that certain  First  Lien  Note Purchase Agreement,  dated as of  June 29, 2017, among  the  Company,  as  issuer,  the  purchasers  party  thereto  from  time  to  time  and  Wells  Fargo  Bank,  National Association, as collateral agent, (ii) that certain Second Lien Note Purchase Agreement, dated as of June 29, 2017, among  the  Company,  as  issuer,  the  purchasers  party  thereto  from  time  to  time  and  Wells  Fargo  Bank,  National Association,  as  collateral  agent  and  (iii)  that  certain  Indenture,  dated  February  11,  2014,  by  and  among  the Company, the guarantors named therein and U.S. Bank National Association, as trustee and (II) Omega pursuant to (i) that certain Credit Agreement, dated as of April 7, 2015, by and among Omega III, as borrower, the lenders party thereto, Bank of America, N.A., as administrative agent and the other parties thereto and (ii) that certain Indenture, dated  as  of  April  7,  2015,  among  Omega  III,  as  issuer,  the  guarantors  party  thereto  and  U.S.  Bank  National Association, as trustee and collateral agent, will, in each case be repaid or satisfied or discharged, and all related guaranties  and  security interests with respect thereto will be terminated and released simultaneously concurrently with the initial funding of the Revolving Credit Loans (to the extent permitted in accordance with the definition of the term “Permitted Initial Revolving Credit Borrowing Purposes”) the First Lien Loans and the Second Lien Notes (or arrangements for such termination and release shall have been made) and (B) all outstanding Preferred Stock                                                  -13

 

 issued  by  the  Company  will  be  redeemed  for  cash  (the  “Preferred  Redemption  Cash”)  and/or  converted  into  common stock of the Company.          “CMS”  shall  mean  the  Centers  for  Medicare  &  Medicaid  Services  of  the  United  States  Department  of  Health and Human Services.          “Code”  means  the  U.S.  Internal  Revenue  Code  of  1986, and  the  United States  Treasury  Department  regulations promulgated thereunder, as amended from time to time.          “Collateral”  means  the  “Collateral”  as  defined  in  the  Security  Agreement  and  all  the  “Collateral”  or  “Pledged Collateral” (or equivalent term) as defined in any other Collateral Document and any other assets pledged  pursuant to any Collateral Document, but in any event excluding Excluded Assets.          “Collateral Access Agreement” means a collateral access agreement substantially in the form of Exhibit  D-1  (or  such  other  form  as  may  be  reasonably  satisfactory  to  the  Administrative  Agent  and  the  Administrative Borrower) with such amendments or modifications as may be reasonably satisfactory to the Administrative Agent and the Administrative Borrower.          “Collateral and Guarantee Requirement” means, at any time, subject to (x) the applicable limitations set forth in this Agreement and/or any other Loan Documents, (y) the time periods (and extensions thereof) set forth in Section 6.11 and Section 6.17 and (z) the terms of any applicable Intercreditor Agreement contemplated hereby, the requirement that:                 (a)     the Administrative Agent  shall have received each Collateral Document required to be         delivered (i) on the Closing Date, pursuant to Section 4.01(a)(v) (subject to the proviso at the end of such         Section 4.01(a)) and (ii) at such time as may be designated therein, pursuant to the Collateral Documents in         Sections 2.18, 6.11 or 6.13, subject, in each case, to the limitations and exceptions of this Agreement and         the Collateral Documents, duly executed by each Loan Party party thereto;                 (b)     all Secured Obligations (i) of the Borrowers shall have been unconditionally guaranteed         by each Restricted Subsidiary of the Parent Borrower (other than a Borrower) that is then required to be a         Guarantor and (ii) of any Borrower shall have been unconditionally guaranteed by each other Borrower;                  (c)    the  Secured  Obligations  and  the  Guaranty  shall  have  been  secured  by  a  first-priority         security interest (subject to Liens permitted by Section 7.01) in (i) all of the Equity Interests of each wholly-         owned  Material  Domestic  Subsidiary  (other  than  a  Domestic  Subsidiary  described  in  the  following         clause (ii)) directly owned by any Borrower or any Guarantor, (ii) 65% of the issued and outstanding voting         Equity Interests and 100% of the non-voting Equity Interests of each Restricted Subsidiary that is a wholly-         owned Material Domestic Subsidiary that is directly owned by any Borrower or by any Guarantor that is a         CFC  Holdco  and  (iii) 65%  of  the  issued  and  outstanding  voting  Equity  Interests  and  100%  of  the  non-         voting Equity Interests of each CFC that is a Restricted Subsidiary that is a wholly-owned Material Foreign         Subsidiary that is directly owned by any Borrower or by any Guarantor, in each case other than constituting         Excluded Assets pursuant to clause (vi)(D) of the definition thereof;                  (d)    except to the extent otherwise provided hereunder, including subject to Liens permitted         by Section 7.01, or under any Collateral Document, the Secured Obligations and the Guaranty shall have         been  secured  by  a  perfected  first-priority  security  interest  (to  the  extent  such  security  interest  may  be         perfected by delivering certificated securities, filing financing statements under the Uniform Commercial         Code or making any necessary filings with the United States Patent and Trademark Office or United States         Copyright Office, or, to the extent required in the Security Agreement (or any other Collateral Document)         or this Agreement) in the Collateral of any Borrower and each Guarantor (including accounts receivable,         intercompany  obligations,  inventory,  equipment,  investment  property,  contract  rights,  applications  and         registrations  of  material  intellectual  property  filed  in  the  United  States,  other  general  intangibles  and         proceeds  of  the  foregoing),  in  each  case,  (i) with  the  priority  required  by  the  Loan  Documents  and                                                   -14

 

       (ii) subject to exceptions and limitations otherwise set forth in this Agreement (for the avoidance of doubt,        including the limitations and exceptions set forth in Section 4.01) and the Collateral Documents;  provided, however, that (i) the foregoing definition shall not require, and the Loan Documents shall not contain any requirements as to, the creation or perfection of pledges of, security interests in, mortgages on, or the obtaining of title insurance, surveys, abstracts or appraisals or taking other actions with respect to any Excluded Assets (or take any other actions which are expressly not required pursuant to the definition thereof), (ii) no Loan Party shall be required to prepare or procure any environmental surveys or reports with respect to the real property of any Loan Party or Restricted Subsidiary and (iii) the Liens required to be granted from time to time pursuant to the Collateral and  Guarantee  Requirement  shall  be  subject  to  exceptions  and  limitations  set  forth  in  this  Agreement  and  the Collateral Documents.         The Administrative Agent may grant extensions of time for the perfection of security interests in particular assets  and  the  delivery  of  assets  (including  extensions  beyond the  Closing  Date  for  the  perfection  of  security interests  in  the  assets  of  the  Loan  Parties  on  such  date)  or  any  other  compliance  with  the  requirements  of  this definition  where  it  reasonably  determines,  in  consultation  with  the  Administrative  Borrower,  that  perfection  or compliance  cannot  be  accomplished  without  undue  effort  or  expense  by  the  time  or  times  at  which  it  would otherwise be required by this Agreement, the Collateral Documents or the other Loan Documents.         No  actions  in  any  non-U.S.  jurisdiction  or  required  by  the  Laws  of  any  non-U.S.  jurisdiction  shall  be required  in order to create any security interests in assets  located or titled outside of the U.S.  or to perfect such security interests, including any intellectual property registered in any non-U.S. jurisdiction (it being understood that there shall be no security agreements or pledge agreements governed under the Laws of any non-U.S. jurisdiction or any  requirement  to  make  any  filings  in  any  foreign  jurisdiction,  including  with  respect  to  foreign  intellectual property).  Except as set forth in Section 2.19, the foregoing shall not require control agreements or perfection by “control” (as defined in the UCC) (including deposit accounts or other bank accounts or securities accounts), other than in respect of (x) promissory notes and other evidences of Indebtedness owed to a Loan Party and required to be pledged pursuant to the Collateral Documents and (y) certificated Equity Interests of the Borrowers (other than the Parent  Borrower) and wholly-owned Restricted Subsidiaries that are Material Subsidiaries or Guarantors directly owned by any Borrower or by any Guarantor otherwise required to be pledged pursuant to the provisions of clause (c) of this definition of “Collateral and Guarantee Requirement” and not otherwise constituting an Excluded Asset. No Loan Party shall be required to comply with the Assignment of Claims Act, or any similar statute, except to the extent provided in the definition of Eligible Accounts.  The foregoing definition shall not require nor shall it permit the  Administrative  Agent  to  enter  into  any  source  code  escrow  arrangement  or  register  or  apply  to  register  any intellectual property.         Notwithstanding  any  of  the  foregoing,  the  Borrowers  may  cause  any  Subsidiary  that  is  a  Restricted Subsidiary and is not otherwise required to be a Guarantor to Guarantee the Obligations in accordance with the last sentence of the definition of “Guarantor”, in which case such entity shall be treated as a Guarantor hereunder for all purposes.         “Collateral  Documents” means,  collectively,  the Security  Agreement, the  Intellectual Property  Security Agreements,  collateral  assignments,  Security  Agreement  Supplements,  Account  Control  Agreements,  security agreements, pledge agreements, intellectual property security agreements or other similar agreements delivered to the Administrative Agent pursuant to Section 2.18, Section 4.01(a)(v), Section 6.11 or Section 6.13 and each of the other agreements, instruments or documents that creates or purports to create a Lien in favor of the Administrative Agent for the benefit of the Secured Parties.         “Collection Banks” has the meaning specified in Section 2.19(a).         “Commingled Inventory” means Inventory of any Loan Party that is commingled (whether pursuant to a consignment,  a  toll  manufacturing  agreement  or  otherwise) with Inventory of another Person (other than another Loan Party) at a location owned, leased or rented by a Loan Party, but only to the extent that such Inventory of such Loan Party is not readily identifiable as separate from such Inventory of such other Person.                                                  -15

 

        “Commitment” means a Revolving Credit Commitment.          “Commitment  Fee”  means  fees  payable  on the undrawn  portion of  the Revolving  Credit  Commitments  pursuant to Section 2.09(c).          “Commitment  Fee  Rate”  means  on  any  date,  with  respect  to  the initialInitial Revolving Credit  Commitments, the applicable rate per annum set forth below based upon the Historical Average Utilization as of the  last  day  of  the  fiscal  quarter  most  recently  ended  for  which  a Quarterly  Pricing  Certificate  has  been  delivered;  provided that until delivery of the Quarterly Pricing Certificate delivered with respect to the fiscal quarter ending December 31, 2019, “Commitment Fee Rate” shall be the applicable rate per annum set forth below in Level II:                      Level   Historical Average Utilization Commitment Fee Rate                       I                ≥ 50%                      0.25%                       II               < 50%                     0.375%   The Commitment Fee Rate shall be adjusted quarterly on a prospective basis.          “Commitment Parties” means Bank of America, N.A., the Arrangers, DDJ (as defined in the First Lien  Credit Agreement), Ares Capital Management LLC and the Initial MBD Lenders (as defined in the First Lien Credit  Agreement).          “Committed Loan Notice” means a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to  the other, or (c) a continuation of Eurocurrency Rate Loans, pursuant to Section 2.15, which, if in writing, shall be  substantially in the form of Exhibit A hereto or such other form as may be approved by the Administrative Agent  and agreed by the Administrative Borrower (including any form on an electronic platform or electronic transmission  system as shall be approved by the Administrative Agent and agreed by the Administrative Borrower), appropriately  completed and signed by a Responsible Officer of the Administrative Borrower.          “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.          “Compensation Period” has the meaning specified in Section 2.12(b)(ii).          “Compliance Certificate” means a certificate substantially in the form of Exhibit D-2 hereto.          “Compliance Period” means any period (a) commencing on the date on which Specified Availability is  less than the greater of (i) 10.0% of the Line Cap (without giving effect to any increase thereof during an Agent  Advance Period) at such time and (ii) $10,000,000 and (b) ending on the first date thereafter on which Specified  Availability has been equal to or greater than the greater of (i) 10.0% of the Line Cap (without giving effect to any  increase thereof  during an  Agent  Advance Period) at  such time and (ii) $10,000,000 for a period of twenty (20)  consecutive calendar days.          “Consolidated  Depreciation  and  Amortization  Expense”  means,  with  respect  to  any  Person  for  any  period, the total amount of depreciation and amortization expense of such Person and its Restricted Subsidiaries,  including  the  amortization  or  write-off  of  (a)  intangible  assets  and  non-cash  organization  costs,  (b)  deferred  financing fees, debt issuance costs, commissions, fees and expenses, bridge, commitment and other financing fees,  discounts,  yield  and  other  fees  and  charges,  (c)  unrecognized  prior  service  costs  and  actuarial  gains  and  losses  related to pensions and other post-employment benefits, (d) Capitalized Software Expenditures, capitalized customer  acquisition  costs  and  incentive  payments  and  capitalized  conversion  costs  and  contract  acquisition  costs  and  (e)  favorable or unfavorable lease assets or liabilities of such Person and its Restricted Subsidiaries, for such period on a  consolidated basis and otherwise determined in accordance with GAAP.          “Consolidated EBITDA” means, with respect to any Person for any period, the Consolidated Net Income  of such Person and its Restricted Subsidiaries for such period:                                                   -16

 

        (a)    increased (without duplication) by the following, in each case (other than in the case of clauses  (a)(vii),  (ix),  (x)  and  (xi)  below)  to  the  extent  deducted  (and  not  added  back)  in  determining Consolidated Net Income, for such period with respect to such Person and its Restricted Subsidiaries:                  (i)    total interest  expense determined in accordance with GAAP (including, to the         extent deducted and not added back in computing Consolidated Net Income, (A) amortization of         OID resulting from the issuance of Indebtedness at less than par, (B) all commissions, discounts         and other fees and charges owed with respect to letters of credit or bankers acceptances, (C) non-         cash interest payments, (D) the interest component of Capitalized Leases, (E) net payments, if any,         pursuant  to  interest  Swap  Contracts  with  respect  to  Indebtedness,  (F) amortization  of  deferred         financing fees, debt issuance costs, commissions and fees and (G) the interest component of any         pension or other post-employment benefit expense) and, to the extent not reflected in such total         interest expense, any losses on hedging obligations or other derivative instruments entered into for         the  purpose  of  hedging  interest  rate  risk,  net  of  interest  income  and  gains  on  such  hedging         obligations or other derivative instruments, and costs of surety bonds in connection with financing         activities (whether amortized or immediately expensed), plus                 (ii)    provision for taxes based on income or profits or capital gain, including, federal,         state,  local,  franchise,  property  and  similar  taxes  and  foreign  withholding  taxes  (including  any         future  taxes  or  other  levies  which  replace  or  are  intended  to  be  in  lieu  of  such  taxes  and  any         penalties and interest related to such taxes or arising from tax examinations), plus                 (iii)  Consolidated Depreciation and Amortization Expense for such period, plus                 (iv)   the  amount  of  any  non-controlling  interest  or  minority  interest  expense         consisting of Subsidiary income attributable to minority equity interests of third parties in any non-         wholly-owned Subsidiaries, plus                  (v)   the  amount  of  management,  monitoring,  consulting,  transaction,  advisory  and        other fees (including termination and exit fees) and indemnities and expenses paid or accrued in        such  period  under  a  Sponsor  Management  Agreement  or  other  arrangement  or  otherwise  in        connection with management, monitoring, consulting, transaction and advisory services provided        by  the  Permitted  Holders  (or  other  Persons  with  a  similar  interest)  to  such  Person  and  its        Subsidiaries (including with respect to any transaction fee payable in connection with the Merger),        payments  by  the  Parent  Borrower  or  any  of  its  Restricted  Subsidiaries  to  any  of  the  Permitted        Holders  made  for  any  financial  advisory,  financing,  underwriting  or  placement  services  or  in        respect  of  other  investment  banking  activities,  including,  without  limitation,  in  connection  with        acquisitions or divestitures which payments are approved by a majority of the board of directors or        a majority of the disinterested members of the board of directors of the Borrower in good faith and        fees and expenses paid to the outside directors of the Parent Borrower or their direct or indirect        parent companies, in each case to the extent otherwise permitted under Section 7.08, plus                 (vi)   any costs or expenses incurred pursuant to any management equity plan, stock         option plan or any other management, director or employee benefit plan, agreement or any stock         subscription or stockholders agreement, to the extent that such costs or expenses are funded with         cash  proceeds  contributed  to  the capital of  such Person  or net cash proceeds of an  issuance of         Equity Interests of such Person (other than Disqualified Equity Interests) solely to the extent that         such cash proceeds shall not be, and have not been, designated an Excluded Contribution, plus                (vii)   the  amount  of  “run  rate”  cost  savings,  synergies  and  operating  expense         reductions or other operating improvements (including, in each case, as a result of any Specified         Transaction) projected by the Administrative Borrower in good faith to result from actions taken,         committed to be taken or with respect to which substantial steps have been taken or are expected         in  good  faith  to  be  taken  no  later  than  twenty-four  (24)  months  after  the  end  of  such  period         (calculated  on  a  pro  forma  basis  as  though  such  cost  savings,  operating  expense  reductions  or                                           -17

 

                other operating improvements and synergies had been realized on the first day of such period for                 which  Consolidated  EBITDA  is  being  determined  and  if  such  cost savings,  operating  expense                 reductions or other operating improvements and synergies were realized during the entirety of such                 period),  net  of  the  amount  of  actual  benefits  realized  during  such  period  from  such  actions;                 provided  that such cost savings, operating expense reductions  or other operating  improvements                 and synergies are reasonably identifiable and factually supportable in the good faith judgment of                 the Administrative Borrower (it is understood and agreed that “run-rate” means the full recurring                 benefit for a period that is associated with any action taken, committed to be taken or with respect                 to  which  substantial  steps  have  been  taken  or  are  expected to be  taken); provided the  amounts                 under this clause (vii) in any Test Period together with any increase pursuant to Section 1.08(c)(E),                 in each case, other than related to the Transactions, shall in the aggregate not exceed 25.0% of                 Consolidated EBITDA for such Test Period (calculated after giving effect to adjustments under                 this clause (vii) and all other applicable adjustments pursuant to this definition of “Consolidated                 EBITDA”); plus                        (viii)  [reserved]; plus                         (ix)   cash  receipts  (or  any  netting  arrangements  resulting  in  reduced  cash                expenditures) not representing Consolidated EBITDA or Consolidated Net Income in any period                to  the  extent  non-cash  gains  relating  to  such  income  were  deducted  in  the  calculation  of                Consolidated  EBITDA pursuant  to paragraph (b)  below  for any previous period and not added                back, plus                         (x)    solely  for  purposes  of  determining  compliance  with  the  Consolidated  Fixed                 Charge  Coverage  Ratio  required  under  Section  7.11,  the  Cure  Amount,  if  any, received by the                 Parent Borrower shall be included in Consolidated EBITDA pursuant to Section 8.04, plus                         (xi)   such other adjustments and addbacks (i) previously identified and set forth in the                lender presentation furnished to the Lenders prior to the Closing Date, (ii) evidenced or contained                in a due diligence quality of earnings report made available to the Administrative Agent prepared                by  (x)  a  “big  four”  nationally  recognized  accounting  firm  or  (y)  any  other  accounting  firm                reasonably acceptable to the Administrative Agent or (iii) consistent with Regulation S-X,                 (b)     decreased  (without  duplication) by, to the extent included in determining Consolidated         Net  Income for such period, any non-cash gains with respect to cash actually received in a prior period         unless such cash did not increase, or was otherwise not included in, Consolidated EBITDA in any prior         period.          Notwithstanding  anything  to  the  contrary  contained  herein,  for purposes  of  determining  Consolidated  EBITDA of the Parent Borrower under this Agreement for any period that includes any of the fiscal quarters ended  June 30, 2018, September 30, 2018, December 31, 2018 and March 31, 2019, Consolidated EBITDA of the Parent  Borrower for such fiscal quarters shall be deemed to be $51,635,000, $54,427,000, $63,392,000 and $44,756,000,  respectively, in each case, for such periods as may be subject to addbacks and adjustments (without duplication)  pursuant to Section 1.08 for the applicable Test Period.          For the avoidance of doubt, (i) Consolidated EBITDA shall be calculated, including pro forma adjustments, in  accordance with Section 1.08  and (ii) reference to Consolidated EBITDA of the Parent Borrower means such Consolidated EBITDA calculated on a consolidated basis with respect to the Parent Borrower and the Restricted Subsidiaries.          “Consolidated  Fixed  Charge  Coverage  Ratio”  means  for  any  period,  the  ratio  of  (A)(i)  Consolidated EBITDA,   minus  (ii)  the  aggregate  amount  of  all  Capital  Expenditures  made  by the  Parent  Borrower  and  its  Restricted Subsidiaries during such period (other than Capital Expenditures to the extent financed with the proceeds  of  any  Disposition  (other  than  the  sale  of  inventory  in  the  ordinary course of business)), or the proceeds of any  incurrence of Indebtedness (other than the incurrence of any Loans), but including Capital Expenditures to the extent                                                   -18

 

 financed  with  proceeds  of  Loans), minus (iii)  the  aggregate  amount  of  all  cash  payments  made  by  the  Parent  Borrower and its Restricted Subsidiaries in respect of income taxes or income tax liabilities (net of cash income tax  refunds) during such period; to (B) Consolidated Fixed Charges for such period.          “Consolidated  Fixed  Charges”  means  with  respect  to  any  Person  for  any  period,  the  sum  of  (i)  Consolidated Interest Expense plus (ii) scheduled payments of principal on long-term Indebtedness for borrowed  money (including principal payments in respect of Capitalized Lease Obligations to the extent allocated to principal,  but  excluding  payments  in  respect  of  any  intercompany  debt  and any  payments  in  respect  of  purchase  price  adjustments and earnouts) plus (iii) solely for the purpose of calculating the Consolidated Fixed Charge Coverage  Ratio for making Restricted Payments in reliance on the Payment Conditions, any such Restricted Payments made in  cash  plus  (iv)  scheduled  cash  dividends  and  scheduled  cash  distributions  to  holders  of  any  class  or  series  of  Disqualified Equity Interests or any class or series of Preferred Stock declared or paid in accordance with Section  7.06(f).          “Consolidated  Interest  Expense”  means  with  respect  to  any  Person  for  any  period,  total  cash  interest expense  for  such  period  (net  of  any  cash  interest  income  for  such  period)  with  respect  to  all  outstanding Indebtedness, calculated on a consolidated basis in accordance with GAAP, to the extent such expense was deducted in  computing  Consolidated  Net  Income  plus  consolidated  capitalized  interest  for  such  period,  whether  paid  or  accrued, plus net payments (positive or negative) under interest rate swap agreements (other than in connection with  the early termination thereof), but in any event to exclude to the extent not added back to Consolidated EBITDA as  interest  expense (A)  fees  and expenses  associated with  the Transactions and the agency fee described in Section  2.09(b), (B) costs associated with obtaining or breakage costs in respect of Secured Hedge Agreements or Secured  Cash  Management  Agreements,  (C) fees  and expenses associated  with any asset  sales, acquisitions,  Investments,  equity issuances  or  debt  issuances (in each  case,  whether or not consummated) and (D) amortization of deferred  financing costs.          “Consolidated  Net Income” means,  with respect to any Person for any period, the Net Income of such  Person  and  its  Restricted  Subsidiaries  for  such  period,  on  a  consolidated  basis,  and  otherwise  determined  in  accordance with GAAP; provided, however, that, without duplication:                  (a)    any net after-tax effect of extraordinary, non-recurring, exceptional or unusual gains or         losses, charges or expenses (including all fees and expenses related thereto), losses, charges or expenses         relating  to  any  strategic  initiatives  (including any multi-year strategic initiatives), Transaction Expenses,         restructuring  costs  and  reserves,  relocation  costs,  severance  costs  and  expenses,  one-time  compensation         charges, closing and  consolidation costs  for facilities, signing, upfront, retention or completion bonuses,         executive recruiting and retention costs (including payments made to employees pursuant to non-compete         agreements), transition costs, costs incurred in connection with non-ordinary course intellectual property         development, integration costs (whether in connection with Permitted Acquisitions, other acquisitions or         otherwise), business optimization expenses (including costs and expenses relating to business optimization         programs, and  new systems design,  retention  charges, system establishment  costs (including information         technology systems), technology upgrades and implementation costs and project start-up costs), operating         expenses attributable to the implementation of cost-savings initiatives, consulting fees and curtailments and         modifications to pension and post-retirement employee benefit plans, in all cases above for such period,         shall be excluded;                  (b)    the cumulative effect of a change in accounting principles and changes as a result of the         adoption or modification of accounting policies during such period whether effected through a cumulative         effect adjustment or a retroactive application, in each case in accordance with GAAP, shall be excluded;                  (c)    any  net  after-tax  effect  of  any  fees  (including  finder’s  fees,  broker’s fees  or any other         fees), expenses or charges incurred during such period (including, without limitation, any premiums, make-         whole  or  penalty  payments),  or  any  amortization  thereof  for  such  period,  in  connection  with  any         Investment,  Permitted  Acquisition  or  any  other  acquisition  (other  than  any  such other  acquisition  in  the         ordinary course of business) permitted under this Agreement, Disposition (other than in the ordinary course         of business), or other transfer (other than any such transfer in the ordinary course of business), incurrence         or repayment of indebtedness (including such fees, expenses or charges related to the offering and issuance                                                  -19

 

of the First Lien Loans, Initial Revolving Credit Commitments, Second Lien Notes and the syndication and incurrence of any securities or credit facilities), issuance of Equity Interests, recapitalization, refinancing transaction  or  amendment  or  modification  of  any  debt  instrument  (including  any  amendment  or  other modification of any securities, the First Lien Credit Agreement, the Second Lien Notes, any other credit facilities  or  any  other  debt  instrument)  and  including,  in  each  case,  any  such  transaction  whether consummated on, after or prior to the Closing Date and any such transaction undertaken but not completed, and  any  charges  or  non-recurring  merger  costs  incurred  during  such  period  as  a  result  of  any  such transaction, in each case whether or not successful or consummated (including, for the avoidance of doubt, the effects of expensing all transaction related expenses in accordance with FASB Accounting Standards Codification Topic 805, Business Combinations), shall be excluded;         (d)     accruals and reserves that are established or adjusted within 12 months after the Closing Date that are so required to be established or adjusted as a result of the Transactions (or within 12 months after the closing of any Permitted Acquisition or any other acquisition (other than any such other acquisition in  the ordinary course of business) that are so required  to be established or adjusted as a result of such Permitted Acquisition or such other acquisition) in accordance with GAAP shall be excluded;         (e)     any  net  after-tax  effect  of  gains  or  losses  on  disposal,  abandonment  (including  asset retirement costs) or discontinuance of disposed, abandoned or discontinued operations, as applicable, in each case other than in the ordinary course of business, as determined in good faith by the Administrative Borrower, shall be excluded;         (f)     any  net  after-tax  effect  of  gains  or  losses  (less  all  fees, expenses  and  charges  relating thereto) attributable to asset dispositions or abandonments or the sale or other disposition of any Equity Interests of any Person, in each case other than in the ordinary course of business, as determined in good faith by the Administrative Borrower, shall be excluded;         (g)     the Net Income for such period of any Person that is an Unrestricted Subsidiary shall be excluded, and the Net Income for such period of any Person that is not a Subsidiary or that is accounted for by the equity method of accounting shall be excluded; provided that Consolidated Net Income of a Person shall be increased by the amount of dividends or distributions or other payments that are actually paid in cash or Cash Equivalents (or to the extent subsequently converted into cash or Cash Equivalents) to such Person or a Restricted Subsidiary thereof in respect of such period by any Subsidiary of such Person that is not a Subsidiary or that is accounted for by the equity method of accounting;         (h)     [reserved];         (i)     effects  of  adjustments  (including  the  effects  of such  adjustments pushed  down  to such Person  and  its  Restricted  Subsidiaries)  in  such  Person’s  consolidated  financial  statements  pursuant  to GAAP attributable to the application of recapitalization accounting or purchase accounting, as the case may be, in relation to the Transactions or any consummated Permitted Acquisition or other acquisition (other than  any  such  other  acquisition  in  the  ordinary  course  of  business)  or  Investments  permitted  under  this Agreement consummated prior to or after the Closing Date or the amortization or write-off or write-down of any amounts thereof pursuant to GAAP, net of taxes, shall be excluded;         (j)     any net after-tax effect of income (loss) from the early extinguishment or conversion of (i) Indebtedness, (ii) Swap Contracts or (iii) other derivative instruments shall be excluded;         (k)     any  impairment  charge  or  asset  write-off  or  write-down  (other  than  write-offs,  write- downs  or  impairments with respect  to  accounts receivable in the  normal course or inventory), including impairment  charges  or  asset  write-offs  or  write-downs  related  to  intangible  assets,  long-lived  assets, investments in debt and equity securities or as a result of a change in law or regulation or in connection with any  disposition  of  assets,  in  each  case,  pursuant  to  GAAP,  and the  amortization  of  intangibles  arising pursuant to GAAP shall be excluded;                                           -20

 

        (l)    other non-cash expenses, charges and losses during such period shall be excluded, in each case  other  than  (A)  any  non-cash  expense,  charge  or  loss  charge  either  (i)  expressly  excluded  from Consolidated  Net  Income  pursuant  to  another  clause  of  this  definition  or  (ii)  expressly  added  back  to Consolidated  EBITDA  pursuant  to  the  definition  thereof  or  (B)  any  non-cash  charge  representing amortization of a prepaid cash item that was paid and not expensed in a prior period; provided that if any non-cash charges or expenses referred to in this clause (l) represents an accrual or reserve for potential cash item in any future period, (i) such Person may elect not to exclude such non-cash charge or expense in the current period or (ii) to the extent such Person elects to exclude such non-cash charge, the cash payment in respect  thereof  in  such  future  period  shall  be  subtracted  from Consolidated  Net  Income  in  such  future period to such extent paid;         (m)     other  non-cash  gains during such  period shall be excluded  other than  (x) to the extent expressly excluded from Consolidated Net Income pursuant to another clause of this definition, (y) to the extent expressly deducted from Consolidated EBITDA pursuant to the definition thereof, or (z) any non- cash gains that represent the reversal of an accrual or reserve for any anticipated cash charges in any prior period (other than any such accrual or reserve that has been, or, had this Agreement been in effect at such time,  would  be,  excluded  in  calculating  Consolidated  Net  Income  in  accordance  with  this  definition); provided that in the case of any non-cash gain, the cash receipt in such future period in respect of any non- cash gain which was excluded from the calculation of Consolidated Net Income pursuant to this clause (m) shall be added to Consolidated Net Income in such future period to such extent received;         (n)     any equity-based or non-cash compensation charge or expense, including any such charge or  expense  arising  from  grants  of  stock  appreciation  rights,  equity  incentive  programs  or  similar  rights, stock  options,  restricted  stock  or  other  rights  to,  and  any  cash  charges  associated  with  the  rollover, acceleration, or payout of, Equity Interests by management of such Person or of a Restricted Subsidiary or any of its direct or indirect parent companies in connection with the Transactions, shall be excluded;         (o)     any  expenses,  charges  or  losses  to  the  extent  covered  by  insurance  or  indemnity  and actually  reimbursed,  or,  so  long  as  such  Person  has  made  a  determination  that  there  exists  reasonable evidence that such amount will in fact be paid-for or reimbursed by the insurer or indemnifying party and only to the extent that such amount is in fact paid-for or reimbursed within 365 days of the date of such determination (with a deduction to be applied to Consolidated Net Income in the applicable future period for any amount so added back in any prior period to the extent not so paid for or reimbursed within the applicable 365-day period), shall be excluded;         (p)     any  net  pension  or  other  post-employment  benefit  costs  representing  amortization  of unrecognized prior service costs, actuarial losses, including amortization of such amounts arising in prior periods,  amortization of  the unrecognized  net obligation (and  loss  or  cost) existing at  the date of initial application of Statement of Financial Accounting Standards Nos. 87, 106 and 112, and any other items of a similar nature, shall be excluded;         (q)     any non-cash compensation expense resulting from the application of FASB Accounting Standards Codification Topic 718, Compensation—Stock Compensation or FASB Accounting Standards Codification Subtopic 505-50, Equity-Based Payments to Non-Employees, shall be excluded; and         (r)     the following items shall be excluded:                  (i)    any net unrealized gain or loss (after any offset) resulting in such period from        Swap Contracts and the application of Accounting Standards Codification Topic 815, Derivatives        and Hedging;                 (ii)    any net unrealized gain or loss (after any offset) resulting in such period from        currency  transaction  or  translation  gains  or  losses  including  those  related  to  currency        remeasurements of Indebtedness (including any net loss or gain resulting from (A) Swap Contracts        for currency exchange risk and (B) resulting from intercompany indebtedness among such Person                                           -21

 

               and its Restricted Subsidiaries) and any other foreign currency transaction or translation gains and                losses, to the extent such gain or losses are non-cash items;                        (iii)  any  non-cash  adjustments  resulting  from  the  application  of  Accounting                Standards Codification Topic 460, Guarantees, or any comparable regulation; and                        (iv)   earn-out obligations and other contingent consideration obligations (including to                the  extent  accounted  for  as  bonuses,  compensation  or  otherwise (and  including  deferred                performance  incentives  in  connection  with  Permitted  Acquisitions  whether  or  not  a  service                component  is  required  from  the  transferor  or  its  related  party))  and  adjustments  thereof  and                purchase price adjustments.         In addition, to the extent not already included in the Consolidated Net Income of such Person in any period and so long as the expenses, charges and losses with respect to which such amounts relate have not been excluded from  Consolidated  Net  Income  of  such  Person  in  any  period,  notwithstanding  anything  to  the  contrary  in  the foregoing,  Consolidated  Net  Income  shall  include  the  amount  of proceeds  received  from  business  interruption insurance  and  reimbursements  of  any  expenses  and  charges  that  are  covered  by  indemnification  or  other reimbursement  provisions  in  connection  with  any  acquisition,  Permitted  Acquisition,  Investment  or  any  sale, conveyance, transfer or other disposition of assets permitted under this Agreement.         For the avoidance of doubt, Consolidated Net Income shall be calculated, including pro forma adjustments, in accordance with Section 1.08.         “Consolidated Total Net Debt” means, as of any date of determination, (a) the aggregate principal amount of Indebtedness of the Parent Borrower and the Restricted Subsidiaries outstanding on such date, in an amount that would be reflected on a balance sheet (but excluding the notes thereto) prepared as of such date on a consolidated basis in accordance with GAAP (but  excluding  the effects of any discounting of Indebtedness resulting from the application  of  purchase  accounting  or  recapitalization  accounting  in  connection  with  the  Transactions  or  any Permitted Acquisition or any other acquisition permitted under this Agreement) consisting only of Indebtedness for borrowed  money  and  obligations  in  respect  of  Capitalized  Leases  or  other  purchase  money  Indebtedness,  plus, without  duplication,  other  than  for  purposes  of  determining  compliance  with  Section  7.11  (including  Pro  Forma Compliance with Section 7.11), the aggregate undrawn amount of Designated Revolving Commitments in effect on such date, minus (b) the aggregate amount of cash and Cash Equivalents (other than Restricted Cash), in each case, included on the consolidated balance sheet of the Parent Borrower and the Restricted Subsidiaries as of such date; provided that Consolidated Total Net Debt shall not include Indebtedness (i) in respect of letters of credit, except to the extent of obligations in respect of amounts drawn under standby letters of credit that are unreimbursed for at least two (2) Business Days after such amount is drawn, (ii) owed by Unrestricted Subsidiaries and (iii) obligations in  respect of Cash Management Services; it being understood, for the avoidance of doubt, that obligations under Swap Contracts do not constitute Consolidated Total Net Debt.         “Contingent Obligations” means, with respect to any Person, any obligation of such Person guaranteeing any leases, dividends or other obligations that do not constitute Indebtedness (“primary obligations”) of any other Person  (the  “primary  obligor”)  in  any  manner,  whether  directly  or  indirectly,  including  any  obligation  of  such Person, whether or not contingent,                 (a)    to  purchase  any  such  primary  obligation  or any property  constituting  direct or indirect        security therefor;                 (b)    to advance or supply funds                         (i)    for the purchase or payment of any such primary obligation, or                        (ii)    to maintain working capital or equity capital of the primary obligor or otherwise                to maintain the net worth or solvency of the primary obligor; or                                                  -22

 

               (c)    to  purchase  property,  securities  or  services  primarily  for  the  purpose  of  assuring  the        owner of any such primary obligation of the ability of the primary obligor to make payment of such primary        obligation against loss in respect thereof.         “Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of  any  agreement,  instrument  or  other  undertaking  to  which  such  Person  is  a  party  or  by  which  it  or  any  of  its property is bound.         “Control”, “Controlled” and “Controlling” have the meaning specified in the definition of “Affiliate.”         “Controlled Account” means each deposit account maintained by a Loan Party at a Collection Bank and subject to an Account Control Agreement.         “Controlled  Investment  Affiliate”  means,  as  to  any  Person,  any  other  Person,  other  than  the  Sponsor, which directly or indirectly is in Control of, is Controlled by, or is under common Control with such Person and is organized by such Person (or any Person Controlling such Person) primarily for making direct or indirect equity or debt investments in a Borrower and/or other companies.         “Covered Entity” has the meaning specified in Section 10.22(b).         “Covered Party” has the meaning specified in Section 10.22(a).         “Credit Extension” means each of the following: (a) a Borrowing and (b) an LC Credit Extension.         “Cure Amount” has the meaning specified in Section 8.04(a).         “Cure Expiration Date” has the meaning specified in Section 8.04(a).         “Debt Assumption” has the meaning set forth in Section 2.01(f)(ii).         “Debt  Fund  Affiliate”  means  any  bona  fide  debt  fund  or  an  investment  vehicle  that  is  engaged  in  the making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of business and with respect to which the Sponsor and investment vehicles managed or advised by the Sponsor that are not engaged primarily in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course, have fiduciary duties to the third-party investors in such fund or investment vehicle independent of their duties to the Borrowers or the Sponsor and do not make investment  decisions  for  such  entity,  but  shall  in  any  event  exclude  the  Borrowers  and  any  of  their  respective Subsidiaries.         “Debtor  Relief  Laws”  means  the  Bankruptcy  Code  of  the  United  States  and  all  other liquidation, conservatorship,  bankruptcy,  assignment  for  the  benefit  of  creditors,  moratorium,  rearrangement,  receivership, insolvency, reorganization or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.         “Default” means any event that is, or with the passage of time or the giving of notice or both, in each case, as set forth under Section 8.01, without cure or waiver, would be an Event of Default.         “Default  Rate”  means  an  interest  rate  equal  to  (a)  the  Base  Rate  plus  (b)  the  Applicable  Rate,  if any, applicable to Base Rate Loans plus (c) 2.00% per annum; provided that with respect to a Eurocurrency Rate Loan, the  Default  Rate  shall  be  an  interest  rate  equal  to  the  interest  rate  (including  any  Applicable  Rate)  otherwise applicable to such Loan plus 2.00% per annum, in each case, to the fullest extent permitted by applicable Laws.         “Default Right” has the meaning specified in Section 10.22(b).                                                  -23

 

        “Defaulting Lender” means, subject to Section 2.17(b), any Lender that, as reasonably determined by the  Administrative Agent (a) has refused (which refusal may be given verbally or in writing and has not been retracted)  or failed to perform any of its funding obligations hereunder, including in respect of its Loans or participations in  respect of LC Obligations or Swing Line Loans or any other amounts required to be paid by it, which refusal or  failure  is  not  cured  within  two  (2)  Business  Days  after  the  date  of  such  refusal  or  failure,  (b)  has  notified  the  Borrowers or Administrative Agent (which notification has not been withdrawn in writing) that it does not intend to  comply  with  its  funding  obligations  or  has  made  a  public  statement  to  that  effect  with  respect  to  its  funding  obligations hereunder or under other agreements in which it commits to extend credit, (c) has failed, within three (3)  Business Days after request by the Administrative Agent, to confirm that it will comply with its funding obligations;  provided  that  a  Lender  shall  cease  to  be  a  Defaulting  Lender  pursuant  to  this  clause  (c)  upon  receipt  of  such confirmation by the Administrative Agent or the Borrowers, or (d) has, or has a direct or indirect parent company that has, after the date of this Agreement, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or a custodian appointed for it; provided that a Lender shall not be a Defaulting  Lender solely  by virtue of  the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement  of  judgments  or  writs  of  attachment  on  its  assets  or  permit  such  Lender  (or  such  Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender or (iii) become the subject of a Bail-In Action.          “Designated  Preferred  Stock”  means  Preferred  Stock  of  the  Parent  Borrower  or  any  direct or indirect parent company thereof (in each case other than Disqualified Equity Interests) that is issued for cash (other than to the Parent Borrower, a Restricted Subsidiary or an employee stock ownership plan or trust established by the Parent Borrower  or  any  Subsidiary)  and  is  designated  as  Designated  Preferred  Stock  pursuant  to  a  certificate  of  a Responsible Officer of the Administrative Borrower delivered to the Administrative Agent on or promptly after the issue date thereof, the cash proceeds of which shall not be, and have not been, designated an Excluded Contribution.          “Designated  Revolving  Commitments” means  any  commitments  to  make  loans  or  extend  credit  on  a  revolving basis to any Borrower or any of its Restricted Subsidiaries by any Person other than any Borrower or any  of  its  Restricted  Subsidiaries  that  have  been  designated  pursuant  to  a  certificate  of  a  Responsible  Officer  of  the  Administrative Borrower delivered to the Administrative Agent as “Designated Revolving Commitments” until such  time  as  the  Administrative  Borrower  subsequently  delivers  a  certificate  of  a  Responsible  Officer  of  the  Administrative Borrower to the Administrative Agent to the effect that such commitments shall no longer constitute  “Designated Revolving Commitments.”          “Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction and any sale or issuance of Equity Interests in a Restricted Subsidiary) of any property by any  Person,  including  any  sale,  assignment,  transfer  or  other  disposal,  with  or  without  recourse,  of  any  notes  or accounts  receivable  or  any  rights  and  claims  associated  therewith,  whether  in  a  single  transaction  or  a  series  of related  transactions; provided  that  “Disposition”  and  “Dispose”  shall  not  include  any  issuance  by  the  Parent Borrower of any of its Equity Interests to another Person.          “Disqualified  Equity  Interests”  means  any  Equity  Interest  that,  by  its  terms  (or  by  the  terms  of  any  security or other Equity Interests into which it is convertible or for which it is exchangeable), or upon the happening  of  any  event  or  condition  (a)  matures  or  is  mandatorily  redeemable  (other  than  (i)  solely  for  Qualified  Equity  Interests and cash in lieu of fractional shares or (ii) solely at the discretion of the issuer), pursuant to a sinking fund  obligation or otherwise (except as a result of a change of control, asset sale or similar event so long as any rights of  the holders thereof upon the occurrence of a change of control, asset sale or similar event shall be subject to the prior  repayment  in full of the Loans and all other Obligations  (other than  contingent  indemnification obligations  as to  which no claim has been asserted) and the termination of the Commitments and the termination of all outstanding  Letters of Credit (unless the Outstanding Amount of the LC Obligations related thereto has been Cash Collateralized,  back-stopped by a letter of credit reasonably satisfactory to the applicable Issuing Bank or deemed reissued under  another  agreement  reasonably  acceptable  to  the  applicable  Issuing  Bank))  that  are  accrued  and  payable  and  the  termination  of  the  Commitments),  (b)  is  redeemable at the option of  the holder thereof  (other than (i)  solely for  Qualified Equity Interests and cash in lieu of fractional shares or (ii) as a result of a change of control, asset sale or                                                  -24

 

similar event so long as any rights of the holders thereof upon the occurrence of a change of control, asset sale or similar  event  shall  be  subject  to  the  prior  repayment  in  full  of  the  Loans  and  all  other  Obligations  (other  than contingent  indemnification  obligations  as  to  which  no  claim  has  been  asserted)  and  the  termination  of  the Commitments and the termination of all outstanding Letters of Credit (unless the Outstanding Amount of the LC Obligations related thereto has been Cash Collateralized, back-stopped by a letter of credit reasonably satisfactory to the applicable Issuing Bank or deemed reissued under another agreement reasonably acceptable to the applicable Issuing Bank)), (c) provides for the scheduled payments of dividends in cash or (d) is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety-one (91) days after the Latest Maturity Date at the time of issuance of such Equity Interests; provided that any Equity Interests held by any future, current or former employee, director, officer, member of management, independent contractor or consultant (or their respective Controlled Investment Affiliates or  Immediate  Family  Members)  of  the  Parent  Borrower,  any  of  its  Subsidiaries,  any  direct  or  indirect  parent companies  of  the  Parent  Borrower  or  any  other  entity  in  which  the  Parent  Borrower  or  any  of  its  Restricted Subsidiaries has an Investment and is designated in good faith as an “affiliate” by the Board of Directors (or the compensation  committee  thereof)  of  the  applicable  Borrower,  in each  case  pursuant  to  any  co-invest  agreement, equity subscription or shareholders’ agreement, any management, shareholder, director or employee equity plan, any stock option plan or any other management or employee benefit plan or agreement shall not constitute Disqualified Equity  Interests  solely  because  it  may  be  required  to  be  repurchased  by  the  Parent  Borrower  (or  any  direct  or indirect parent thereof) or a Subsidiary in order to satisfy applicable statutory or regulatory obligations or as a result of  such  employee’s,  director’s,  officer’s,  management  member’s,  independent  contractor’s  or  consultant’s termination of employment or service, as applicable, death or disability.         “Disqualified Institutions” means (i) any competitors of the Sponsor, any Borrower, the Company and its Subsidiaries, or Walgreens Co. that have been specified in writing by the Administrative Borrower or the Sponsor (a) to the Commitment Parties prior to the Closing Date or (b) to the Administrative Agent after the Closing Date (and  any  such  entity’s  Affiliates  that  are  identified  as  such  pursuant  to  this  clause  (i)  or  those  that  are  clearly identifiable as such on the basis of their name (in each case, other than bona fide diversified debt funds)) (other than those excluded pursuant to clause (ii) hereof), (ii) those particular banks, financial institutions, other institutional lenders and other Persons that have been specified in writing by the Administrative Borrower or the Sponsor (a) to the Commitment Parties prior to March 14, 2019 or (b) as mutually agreed by the Administrative Borrower and the Commitment Parties (if prior to the Closing Date) or the Administrative Agent (from and after the Closing Date) (and  any  such  entity’s  Affiliates  that  are  identified  as  such  pursuant  to  this  clause  (ii)  or  those  that  are  clearly identifiable  as  such  on  the  basis  of  their  name)  and  (iii)  Excluded  Affiliates; provided that  any  Person  that  is  a Lender or Participant and subsequently becomes a Disqualified Institution (but was not a Disqualified Institution at the  time  it  became  a  Lender  or  Participant)  shall  be  deemed  to not  be  a  Disqualified  Institution  hereunder  with respect to any Loans, Commitments or participations held by it prior to becoming a Disqualified Institution.         “Dollar” and “$” mean lawful money of the United States.         “Dollar  Amount”  means  with  respect  to  any  LC  Obligation  or  Revolving  Credit  Loan  (or  any  risk participation therein),  (A)  if denominated in Dollars, the amount  thereof  and (B) if denominated in an Available Currency other than Dollars, the equivalent amount thereof converted to Dollars as determined by the Administrative Agent or the Issuing Bank on the basis of the Spot Rate for the purchase of Dollars with such other currency.         “Domestic Subsidiary” means any Subsidiary that is organized under the Laws of the United States, any state thereof or the District of Columbia.         “Dominion Period” means any period (a) commencing on the date on which (i) a Specified ABL Default has occurred and is continuing or (ii) Specified Availability is less than the greater of (x) 10.0% of the Line Cap (without  giving  effect  to  any  increase  thereof  during  an  Agent Advance  Period)  as  then  in  effect  and  (y) $10,000,000, for a period of five (5) consecutive Business Days and (b) ending on the first (1st) date thereafter on which (i) no Specified ABL Default is continuing and (ii) Specified Availability has been equal to or greater than the greater of (x) 10.0% of the Line Cap (without giving effect to any increase thereof during an Agent Advance Period) as  then  in  effect  and  (y)  $10,000,000,  for  a  period  of  twenty  (20)  consecutive  calendar  days;  provided,  that  a                                                  -25

 

Dominion  Period  shall  only  begin  upon  the  written  request  of  the  Administrative  Agent  delivered  to  the Administrative Borrower, which request may be made in its discretion or at the discretion of the Required Lenders.         “EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA  Member  Country  which  is  a  parent  of  an  institution  described  in  clause  (a)  of  this  definition,  or  (c)  any financial  institution  established  in  an  EEA  Member  Country  which  is  a  subsidiary  of  an  institution  described  in clause (a) or (b) of this definition and is subject to consolidated supervision with its parent.         “EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.         “EEA  Resolution  Authority”  means  any  public  administrative  authority  or  any  person  entrusted  with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.         “Elective Guarantor” has the meaning set forth in the defined term “Guarantors”.         “Eligible Accounts” means all of the Accounts owned by any Loan Party, except any Accounts as to which any of the exclusionary criteria set forth below applies; provided that the face amount of an Account (and Eligible Account) shall be reduced by, without duplication, to the extent not reflected in such face amount, the amount of all discounts, claims, credits or credits pending, unapplied cash amounts, contractual allowances, promotional program allowances, rebates, price adjustments, finance and service charges or other allowances (including any amount that any Loan Party may be obligated to rebate to a customer pursuant to the terms of any agreement or understanding). Eligible Accounts shall not include any Account of a Loan Party that:         (a)     the Account Debtor of which is not a Third Party Payor;         (b)     does  not  arise  from  the  sale  of  goods  or  the  performance  of  services  by  a  Loan  Party  in  the ordinary course of its business;                  (c)     (i) upon which any Loan Party’s right to receive payment is not absolute (other than as          a  result  of  rights  to  return  inventory  in  the  ordinary  course  of  business  of  such  Loan  Party)  or  is          contingent upon the fulfillment of any condition whatsoever, (ii) as to which any Loan Party is not able to          bring suit or otherwise enforce its remedies against the Account Debtor through judicial process or (iii)          represents a progress billing consisting of an invoice for goods sold or used or services rendered pursuant          to  a  contract  under  which  the Account Debtor’s obligation to pay that invoice is subject to any Loan          Party’s completion of further performance under such contract;                  (d)     to the extent any Account Debtor has or has asserted a right of setoff, or has asserted a          defense, counterclaim or dispute as to such Account;                  (e)     is not a true and correct statement of bona fide indebtedness incurred in the amount of          the  Account  for  merchandise  sold  to  or  services  rendered  and  accepted  by  the  applicable  Account          Debtor;                  (f)     is  an  Account  that  has  not  been  invoiced,  unless  the  initial  date  of  service  that          generated such Account occurred less than sixty (60) days prior to the applicable date of determination;          provided that the portion  of the Borrowing Base attributable to Accounts that have not been invoiced          (and  that  are  not  otherwise  excluded  from  Eligible  Accounts  pursuant  to  the  other  clauses  of  the          definition of “Eligible Accounts”) shall not, as of any date of determination, account for more than 10%          the Borrowing Base; provided, however, that the amount of Eligible Accounts that are excluded because          they exceed the foregoing percentage shall be determined based on all of the otherwise Eligible Accounts                                                  -26

 

being included in the Borrowing Base prior to giving effect to any eliminations based upon the foregoing limit;         (g)     is a Medicare Account or a Medicaid Account, or is a Governmental Entity Account that is not a Medicare Account or a Medicaid Account, unless in each case the applicable Loan Party has complied  with  (to  the  extent  required  by  Law)  the  Federal  Assignment  of  Claims  Act  of  1940,  as amended  from  time  to  time  (31  U.S.C.  §  3727  et  seq.  (the  “Assignment  of  Claims  Act”)  or  any applicable similar statute; provided that, notwithstanding the foregoing, Medicare Accounts, Medicaid Accounts and other Governmental Entity Accounts as to which the Assignment of Claims Act (or other applicable similar statute) has not been complied with (to the extent required by Law) and that are not otherwise excluded from Eligible Accounts as a result of any other clause of the definition of “Eligible Accounts”, shall constitute Eligible Accounts, but the portion of the Borrowing Base attributable to such Accounts shall not, as of any date of determination, account for more than 35% of the Borrowing Base; provided, however,  that  the  amount  of  Eligible  Accounts  that  are  excluded  because  they  exceed  the foregoing percentage shall be determined based on all of the otherwise Eligible Accounts being included in the Borrowing Base prior to giving effect to any eliminations based upon the foregoing limit;         (h)     is the obligation of an Account Debtor (including any Governmental Entity) located in a jurisdiction other than the United States or any state or territory thereof unless payment thereof is (i) assured by an irrevocable letter of credit payable in Dollars issued by a financial institution reasonably acceptable  to  the  Administrative  Agent  and  such  irrevocable  letter  of  credit  is  delivered  to  the Administrative Agent (including any delivery of an electronic letter of credit) or (ii) insured by a credit insurer reasonably acceptable to the Administrative Agent;         (i)     to  the  extent  any  Loan  Party  is  liable  for  goods  sold  or  services  rendered  by  the applicable Account Debtor to the applicable Loan Party, but only to the extent of the potential offset;         (j)     arises with respect to goods that are delivered on a bill-and-hold, cash-on delivery basis or placed on consignment, guaranteed sale or other terms by reason of which the payment by the Account Debtor is or may be conditional, other than rights to return inventory in the ordinary course of business;         (k)     is not paid within one hundred and twenty (120) days following its original service date or which has been written off the books of such Loan Party or otherwise designated as uncollectible by such Loan Party;         (l)     is an  Account in respect of which the Account Debtor obligated upon such Account suspends  business,  makes  a  general  assignment  for  the  benefit  of  creditors  or  fails  to  pay  its  debts generally as they come due;         (m)     is an Account in respect of which a Bankruptcy Event has occurred with respect to the Account Debtor obligated upon such account; provided that so long as post-petition financing is being provided  to  such  Account  Debtor,  post-petition  accounts  of  such  Account  Debtor  may  be  deemed Eligible Accounts by and to the extent approved by the Administrative Agent, in its Permitted Discretion, on a case-by-case basis;         (n)     is an Account as to which the Administrative Agent’s Lien thereon, on behalf of itself and the Secured Parties, is not a first priority perfected lien subject only to First Priority Priming Liens;         (o)     is an Account with respect to which the representations or warranties pertaining to such Accounts set forth in any Loan Document are untrue in any material respect;         (p)     is payable in any currency other than Dollars;                                         -27

 

                 (q)     is not  owned  by a Loan  Party  free and  clear of  all Liens other than Liens permitted           hereunder;                   (r)     is  the  obligation  of  an  Account  Debtor  if  50%  or  more  of  the  dollar  amount  of  all           Accounts  owing  by  that  Account  Debtor  are  ineligible  under  the criteria  listed  in  clause  (k)  of  this           definition;                   (s)     is evidenced by a judgment, instrument or chattel paper;                   (t)     is an Account to the extent that such Account, together with all other Accounts owing           by such Account Debtor as of any date of determination exceed 25% of all Eligible Accounts of the Loan           Parties (or such higher percentage as the Administrative Agent may establish for such Account Debtor           from time to time) but only to the extent of the obligations owing by such Account Debtor in excess of           such percentage; provided, however, that the amount of Eligible Accounts that are excluded because they           exceed  the  foregoing  percentage  shall  be  determined  based  on  all  of  the  otherwise  Eligible  Accounts           being included in the Borrowing Base prior to giving effect to any eliminations based upon the foregoing           limit;                   (u)     is an Account as to which any check, draft or other items of payment has previously           been received which has been returned unpaid or otherwise dishonored;                   (v)     consists of finance charges as compared to obligations to such Loan Party for goods           sold;                   (w)     is an Account with respect to which the Account Debtor is subject to any US sanctions           administered by OFAC or any similar applicable law, including a person named on the list of “Specially           Designated Nationals and Blocked Persons” maintained by OFAC or which is a designated person named           on any similar applicable list;                   (x)     is an Account arising out of a sale made or services rendered by any Loan Party to an           Affiliate of any Loan Party or to a Person controlled by an Affiliate of any Loan Party (including any           employees,  officers,  directors  or  stockholders  of  such);  provided  that  Accounts  of  (i)  other  portfolio           companies (other than a Loan Party) of the Sponsor or (ii) Walgreens or any of its Affiliates shall not be           excluded by this clause (x) to the extent such sale is made or services are rendered on arm’s length terms;                   (y)     is an Account that was not paid in full, and a Loan Party created a new receivable for           the unpaid portion of the Account; or                   (z)     is an Account representing any manufacturer’s or supplier’s credits, rebates, discounts,           incentive plans or similar arrangements entitling a Loan Party to discounts on future purchase therefrom           (but ineligibility shall be limited to the amount thereof).          “Eligible Assignee” has the meaning specified in Section 10.07(a)(i).          “Eligible Cash” means domestic Unrestricted Cash subject to a first-priority Lien (other than First Priority Priming Liens arising by operation of law) in favor of the Administrative Agent owned by any Loan Party that is held  in  a  deposit  account  that  is  maintained  with  the  Administrative  Agent  and,  with  respect  to  which  the Administrative Agent  has received an Account Control Agreement, provided that Eligible Cash shall in no event include cash in any Exempt Account.          “Eligible Customs Broker” means a customs broker which has its principal assets, place of organization  and place of principal business in the United States which is reasonably acceptable to the Administrative Agent and  with  which  the  Administrative  Agent  has  entered  into  an  Imported  Goods  Agreement,  or  which  is  otherwise  reasonably acceptable to the Administrative Agent in its Permitted Discretion.                                                   -28

 

       “Eligible In-Transit Inventory” means on any date, any Inventory of a Loan Party that is in-transit from a location outside the United  States to a location inside the United States that meets all of the criteria for Eligible Inventory  on  such  date  (other  than  that  it  is  in-transit  or  is not  within  the  United  States); provided  that  (i)  such Inventory has been identified to the contract between the vendor and a Loan Party and, under the terms of sale of such Inventory, title and risk of loss have passed with respect to such Inventory from the vendor to a Loan Party on or before such date; (ii) such Inventory is insured in accordance with the provisions of this Agreement; (iii) such Inventory has been paid for by a Loan Party or the purchase price is supported by a commercial letter of credit or the Administrative Agent has otherwise satisfied itself that a final sale of such Inventory to a Loan Party has occurred; and (iv) an Acceptable Document of Title has been issued in accordance with clause (a) of the definition thereof and delivered to a Loan Party, the Administrative Agent, an Eligible NVOCC or an Eligible Customs Broker.         “Eligible  Inventory”  means  all  of  the  Inventory  owned  by  any  Loan  Party,  except  any  Inventory  as  to which any of the exclusionary criteria set forth below applies.  Eligible Inventory shall not include any Inventory of a Loan Party that:         (a)    consists of work-in-process;                  (b)     is obsolete, unsalable, shopworn, damaged or unfit for sale;                  (c)     is not  of a type held for sale by the applicable Loan Party in the ordinary course of          business or consistent with past practice as is being conducted by each such Loan Party;                  (d)     is not subject to a first priority Lien in favor of the Administrative Agent on behalf of          the Secured Parties, subject only to First Priority Priming Liens;                  (e)     is not  owned  by a Loan  Party  free and  clear of  all Liens other than Liens permitted          hereunder;                  (f)     is placed on consignment unless Eligible Reserves have been established with respect          thereto;                  (g)     is  covered  by  a  negotiable  document  of  title,  unless,  at  the  Administrative  Agent’s          request,  such  document  has  been  delivered  to  the  Administrative  Agent  or  an  agent  thereof  and  the          amount of any shipping fees, costs and expenses are reflected in Reserves;                  (h)     consists of goods that are slow moving (to the extent not included in determining Net          Orderly  Liquidation  Value)  or  constitute  spare  parts  (not  intended  for  sale),  packaging  and  shipping          materials, promotional products (not intended for sale), or supplies used or consumed in a Loan Party          business;                  (i)     is  manufactured,  assembled  or  otherwise  produced  in  violation  of  the  Fair  Labor          Standards Act and subject to the “hot goods” provisions contained in Title 25 U.S.C.  215(a)(i);                  (j)     is  not  covered  by  property  or  casualty  insurance  required  by  the  terms  of  this          Agreement (except to the extent of any deductible thereunder);                  (k)     consists  of  goods  which  have been  returned  or  rejected by  the  buyer and are not in          salable condition;                  (l)     is Inventory with respect to which the representations or warranties pertaining to such          Inventory set forth in any Loan Document are untrue in any material respect;                                                  -29

 

       (m)     does not conform in all material respects to all standards imposed by any governmental agency, division or department thereof which has regulatory authority over such goods or the use or sale thereof;         (n)     is Commingled Inventory;         (o)     is located in a jurisdiction (i) other than in the United States unless such Inventory is owned by a Loan Party and supported by an irrevocable letter of credit payable in Dollars issued by a financial  institution  reasonably  acceptable  to  the  Administrative  Agent  and  such  irrevocable  letter  of credit is delivered to the Administrative Agent (including any delivery of an electronic letter of credit) or (ii) other than in the United States containing Inventory with an aggregate value of less than $200,000;         (p)     is subject to a license agreement or other arrangement with a third party which, in the Administrative Agent’s Permitted Discretion, restricts the ability of the Administrative Agent to exercise its rights under the Loan Documents with respect to such Inventory unless such third party has entered into an agreement in form and substance reasonably satisfactory to the Administrative Agent permitting the Administrative Agent to exercise its rights with respect to such Inventory or the Administrative Agent has otherwise agreed to allow such Inventory to be eligible in its Permitted Discretion;         (q)     consists  of  Hazardous  Materials  or  goods  that  can  be  transported  or  sold  only  with licenses that are not readily available;         (r)     (i)  is  not  located  on  premises  owned,  leased  or  rented  by  a  Loan  Party  unless  such Inventory  is  stored  with  a  bailee  or  warehouseman  and  either  (x)  a  reasonably  satisfactory  and acknowledged  bailee  or  warehouseman  letter  has  been  received  by  the  Administrative  Agent  or  (y) Eligible Reserves reasonably satisfactory to the Administrative Agent have been established with respect thereto or (ii) is located on leased or rented premises unless either (x) a Collateral Access Agreement has been  delivered  to  the  Administrative  Agent  or  (y)  Rent  Reserves  have  been  established  with  respect thereto, provided that this clause (ii) shall not apply unless Rent Reserves are permitted to be imposed upon Inventory at the relevant location pursuant to the terms of the definition of such term; provided that in the event any Inventory that would be ineligible under this clause (r) because subclause (x) of any of clauses (i) or (ii) is not satisfied, the Administrative Agent may not unreasonably refuse to impose the Reserves referred to in subclause (y) of such clause to cause such ineligibility; provided, further, that this clause (r) shall not exclude any (A) Inventory in-transit between domestic locations of Loan Parties or (B) any Eligible In-Transit Inventory in an amount not to exceed 1% of the then applicable Borrowing Base  (the  amount of  Eligible In-Transit Inventory  that is excluded  because they  exceed the foregoing percentage shall be determined based on  all  of  the otherwise Eligible Inventory being included in the Borrowing Base prior to giving effect to any eliminations based upon the foregoing limit);         (s)     subject to the Acquired Asset Borrowing Base, is acquired in a Permitted Acquisition unless and until the Administrative Agent has completed or received an appraisal of such Inventory and established Reserves (if applicable) therefor in its Permitted Discretion;         (t)     is  Inventory  for  which  any  contract  relating  to  such  Inventory expressly  includes retention  of  title  in  favor  of  the  vendor  or  supplier  thereof  or  a  conditional  sale;  provided  that  such Inventory shall not be excluded from Eligible Inventory solely pursuant to this clause (t) to the extent that either (i) such  retention  of  title or conditional  sale is not  effective under applicable Law to give such vendor or supplier ownership of such Inventory or a Lien, in each case prior in right to the Lien of the Administrative  Agent  therein  or  (ii)  (A)  the  Administrative  Agent  shall  have  received  evidence reasonably satisfactory to it that the full purchase price of such Inventory has, or will have, been paid prior  to  or  upon  the  delivery  of  such  Inventory  to  the  relevant  Loan  Party  or  (B)  Eligible  Reserves reasonably satisfactory  to  the Administrative Agent  have been  established  with respect thereto (which Reserves the Administrative Agent may not unreasonably refuse to establish if subclauses (i) and (ii)(A) do not apply);                                         -30

 

                (u)     is Inventory that has expired or will expire within thirty (30) days of the relevant date          of determination; or                  (v)     prior to the date on which the Specified Post-Closing Undertaking is satisfied, is NLC          Inventory in excess of $13,200,000.         “Eligible NVOCC” means an NVOCC which has its principal assets, place of organization and place of principal business in the United States and with which the Administrative Agent has entered into an Imported Goods Agreement or which is otherwise reasonably acceptable to the Administrative Agent.         “Eligible Reserves” means Reserves against the Borrowing Base established or modified in the Permitted Discretion of the Administrative Agent subject to the following:  (a) the amount of any Eligible Reserves shall have a  reasonable  relationship  to  the  event,  condition  or  other  matter  that  is  the  basis  for  the  establishment  of  such Reserve  or  such  modification  thereto,  (b)  except  as  otherwise  expressly  provided  in  the  definition  of  Eligible Account or Eligible Inventory, no Reserves shall be established or modified to the extent they are duplicative of Reserves or modifications already accounted for through eligibility or other criteria (including collection/advance rates), (c) any rent reserves will be subject to the limitations set forth in the definition of “Rent Reserve”, (d) no Reserves  will  be  imposed  relating  to  surety bonds, except  to the extent  (i)  Borrowing Base assets are subject to perfected Liens securing reimbursement obligations in respect of surety bonds which Liens are pari passu with or have priority over the Liens in favor of the Administrative Agent for the benefit of the Secured Parties, (ii) sureties have made demands for cash collateral which have not been satisfied or (iii) any surety takes any remedial action with respect to any Borrowing Base assets, whether pursuant to such surety’s Liens or otherwise, or delivers notice to any Loan Party that such surety intends to take such action, (e) no Reserves may be taken and no changes to the eligibility  standards  shall  be  made  after  the  Closing  Date  based  on  circumstances,  conditions,  events  or contingencies known to the Administrative Agent as of the Closing Date and, in the case of Reserves, for which no Reserves were imposed on the Closing Date, and for which Accounts or Inventory, were not deemed ineligible on the Closing Date, unless such circumstances, conditions, events or contingencies shall have changed in any material adverse respect since the Closing Date, (f) no Reserve may be taken after the Closing Date based on circumstances known to the Administrative Agent as of the Closing Date for which no Reserve was imposed on the Closing Date, and no Reserve taken on the Closing Date may be increased, unless, in each case, such circumstances, conditions, events or contingences shall have changed in any material adverse respect since the Closing Date and (g) other than Bank Product Reserves, no Reserves will be imposed relating to obligations under any Secured Hedge Agreement or Secured Cash Management Agreement, in each case, without the written consent of the Administrative Borrower.         Subject  to  the  limitations  above,  the  Administrative  Agent  shall  have  the  right,  upon  at  least  five  (5) Business Days’ prior written notice to the Administrative Borrower (which notice shall include a reasonably detailed description of such Reserve being established, modified or eliminated), to establish, modify or eliminate Reserves against the Borrowing Base, but without duplication, from time to time in its Permitted Discretion, except that any such  Reserves shall not be duplicative of adjustments of  amounts included in the Borrowing Base.  During such notice  period,  the  Administrative  Agent  shall,  if  requested,  discuss  any  such  Reserve  or  change  with  the Administrative Borrower and the Loan Parties may take such action as may be required so that the event, condition or matter that is the basis for such Reserve or change no longer exists or exists in a manner that would result in the establishment of a lower Reserve or result in a lesser change, in each case, in a manner and to the extent reasonably satisfactory to the Administrative Agent; provided that during such five (5) Business Day period, Borrowings that would cause the Revolving Credit Exposure to exceed the Line Cap (after giving effect to such proposed Reserve) shall not be permitted.         “EMU” means the economic and monetary union as contemplated in the Treaty on European Union.         “Environment” means indoor air, ambient air, surface water, groundwater, drinking water, land surface, subsurface strata, and natural resources such as wetlands, flora and fauna.         “Environmental Laws” means any applicable Law (including common law) relating to the prevention of pollution or the protection of the Environment and natural resources, and the protection of human health and safety as  it  relates  to  Hazardous  Materials,  including  any  applicable provisions  of  the  Comprehensive  Environmental                                                  -31

 

Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., the Clean Water Act, 33 U.S.C. § 1251 et seq., the Clean Air Act, 42 U.S.C. § 7401 et seq., the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq., and the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq., and all analogous state or local statutes, and the regulations promulgated pursuant thereto.         “Environmental  Liability”  means  any  liability,  contingent  or  otherwise  (including  any  liability  for damages,  costs  of  investigation  and  remediation,  fines,  penalties  or  indemnities),  of  the  Loan  Parties  or  any Restricted Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage or treatment of any Hazardous Materials, (c) exposure to any Hazardous Materials, or (d) the Release or threatened Release of any Hazardous Materials, including, in each case, any such liability which any Loan Party has retained either contractually or by operation of law.         “Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental Law.         “Equity Interests” means, with respect to any Person, all of the shares, interests, rights, participations or other equivalents (however designated) of capital stock of (or other ownership or profit interests or units in) such Person and all of the warrants, options or other rights for the purchase, acquisition or exchange from such Person of any  of  the  foregoing  (including  through  convertible  securities),  excluding  from  the foregoing any  debt  securities convertible into Equity Interests, whether or not such debt securities include any right of participation with Equity Interests, until any such conversion.         “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 is under common control with a Loan Party within the meaning of Section 414(b) or (c) of the Code or Section 4001 of ERISA (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).         “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by a Loan Party or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by a Loan Party or any ERISA Affiliate from a Multiemployer Plan or written notification to a Loan Party or any ERISA Affiliate that a Multiemployer Plan is insolvent (within the meaning of Section 4245 of ERISA) or in “endangered” or “critical” status  (within  the  meaning  of  Section 432  of  the  Code  or  Section 305  of  ERISA);  (d) a  determination  that  any Pension  Plan  is  in  “at  risk”  status  (within  the  meaning  of  Section 430(i)(4)  of  the  Code  or  Section 303(i)(4)  of ERISA); (e)  the filing of a written notice of intent to terminate, the treatment of a Pension Plan or Multiemployer Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the receipt of written notice by a Loan  Party  or  any  ERISA  Affiliate  regarding  the  commencement  of  proceedings  by  the  PBGC  to  terminate  a Pension  Plan  or  Multiemployer  Plan;  (f)  an  event  or  condition  which  constitutes  grounds  under  Section 4042  of ERISA for, and that could reasonably be expected to result in, the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; (g) with respect to a Pension Plan, the failure to satisfy the minimum funding standard of Section 412 of the Code or Section 302 of ERISA, whether or not waived; (h) the failure by a  Loan  Party or any ERISA Affiliate to make when due any required contribution to a Multiemployer Plan, (i) the occurrence of a nonexempt prohibited transaction (within the meaning of Section 4975 of the Code or Section 406 of ERISA) which could result in liability to a Loan Party; or (j) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon a Loan Party or any ERISA Affiliate.         “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.                                                  -32

 

       “Euro” means the lawful single currency of the EMU.         “Eurocurrency Rate” means:                (a)     for  any  Interest  Period  with  respect  to  a  Eurocurrency  Rate Loan,  the  rate  per  annum        equal to the London Interbank Offered Rate (“LIBOR”), as published on the applicable Bloomberg screen        page  (or  such  other  commercially  available  source  providing  quotations  as  may  be  designated  by  the        Administrative Agent from time to time) (in such case, the “LIBOR Rate”) at approximately 11:00 a.m.,        London time, two (2) Business Days prior to the commencement of such Interest Period, for deposits of the        Available Currency (for delivery on the first day of such Interest Period) with a term equivalent to such        Interest Period; and                (b)     for any interest  calculation with respect to a Base Rate Loan on any date, the rate per        annum equal to the LIBOR Rate, at or about 11:00 a.m., London time, two (2) Business Days prior to such        date for Dollar deposits with a term of one (1) month commencing that day;                 provided that to the extent a comparable or successor rate is approved pursuant to the provisions        of Section 3.03, “Eurocurrency Rate” shall mean the “LIBOR Successor Rate”; provided, further, that in all        cases (a) or (b), the Eurocurrency Rate shall not be less than 0.00% per annum; provided, further, that in all        cases (a) or (b), on and after the Amendment No. 1 Effective Date, the Eurocurrency Rate shall not be less        than 0.25% per annum.         “Eurocurrency Rate Loan” means a Loan that bears interest at a rate based on clause (a) of the definition of “Eurocurrency Rate.”         “Event of Default” has the meaning specified in Section 8.01.         “Excess  Availability”  means  as  of  any  date  of  determination,  the  amount  by  which  (a)  the  Line  Cap (without giving effect to any increase thereof during an Agent Advance Period) as of such date exceeds (b) the Total Revolving Credit Exposure as of such date.         “Exchange Act” means the Securities Exchange Act of 1934, as amended.         “Excluded  Affiliate”  means,  with  respect  to  any  Agent  or  Agent-Related  Person  and their  respective Affiliates and controlling Persons, (i)  any of their Affiliates that is engaged as principals primarily in private equity, mezzanine  financing  or  venture  capital  or  any  of  such  Affiliate’s  officers,  directors,  employees,  legal  counsel, independent auditors, professionals and other experts or agents other than, in each case, any Over the Wall Person or (ii) any of their Affiliates and/or any of their Affiliates’ employees, officers, directors, legal counsel, professionals and other experts or agents that are engaged directly or indirectly in a sale of the Company and its subsidiaries as buy-side or sell-side representative and acting in such capacity other than, in each case, any Over the Wall Person.         “Excluded Assets” means (i) any fee owned Real Property and any leasehold rights and interests in Real Property  (including  landlord  or  other  third-party  waivers,  non-disturbance  agreements,  estoppels,  bailee  waivers, warehouseman  waivers  and  collateral  access  letters),  (ii)  motor  vehicles,  aircraft  and  other  assets  subject  to certificates of title, to the extent a Lien therein cannot be perfected by the filing of a UCC financing statement, (iii) commercial  tort  claims  where  the  applicable  Loan  Party’s  reasonable  expectation  of  recovery  is  less  than $5,000,000, (iv) any governmental or regulatory licenses or state or local franchises, charters and authorizations to the extent that the Administrative Agent may not (or is restricted from) validly possess a security interest therein under  applicable  Laws  (including,  without  limitation,  rules  and  regulations  of  any  Governmental  Authority  or agency)  or  the  pledge  or  creation  of  a  security  interest  in  which  would  require  governmental  consent,  approval, license or authorization (to the extent such consent, approval, license or authorization was not obtained (it being understood and agreed that the Loan Parties shall be under no obligation to obtain such consent, approval, license or authorization)), other than to the extent such prohibition, limitation or restriction is rendered ineffective under the UCC or other applicable Law, (v) any particular asset or right under contract, if the pledge thereof or the security interest therein is prohibited or restricted by applicable Law (including any requirement to obtain the consent of any                                                  -33

 

 Governmental Authority or regulatory authority), other than to the extent such prohibition or restriction is rendered  ineffective under the UCC or other applicable Law, (vi) (A) Margin Stock, (B) Equity Interests in any Person other  than wholly-owned Restricted Subsidiaries (but, in the case of the Equity Interests of any Person that is not a wholly-  owned  Restricted  Subsidiary,  only  to  the  extent  the  organizational  documents  or  similar  agreement  with  equity  holders of such Person do not permit the pledge of such Equity Interests so long as such prohibition exists), (C)  voting Equity Interests or Indebtedness treated as equity for U.S. federal income tax purposes of first tier Foreign  Subsidiaries that are CFCs and first tier CFC Holdcos in excess of 65% of the issued and outstanding voting Equity  Interests or Indebtedness treated as equity for U.S. federal income tax purposes thereof and (D) Equity Interests in  any  Broker-Dealer  Regulated  Subsidiary,  Unrestricted  Subsidiary,  Captive  Insurance  Subsidiary,  not-for-profit  Subsidiary,  in  each  case  of  this  clause  (D)  that  are  not  Guarantors,  (vii)  any  lease,  license  or  agreement  or  any  property subject to such lease, license or agreement, in each case, to the extent that a grant of a security interest  therein (A) would violate or invalidate such lease, license or agreement or create a right of termination in favor of  any other party thereto (other than a Loan Party after giving effect to the applicable anti-assignment provisions of the  UCC) or (B) would require governmental, regulatory or third-party (other than a Loan Party) approval, consent or  authorization  pursuant  to  the  terms  thereof  (in  each  case  after  giving  effect  to  the  applicable  anti-assignment  provisions of the UCC) (other than proceeds and receivables thereof, the assignment of which is expressly deemed  effective under the UCC notwithstanding such  prohibition) not  obtained (without any requirement to obtain such  approval, consent or authorization) (in each case of clauses (A) and (B), (1) after giving effect to the applicable anti-  assignment provisions of the UCC and (2) only to the extent that such limitation on such pledge or security interest is  not otherwise prohibited pursuant to Section 7.09), (viii) letter of credit rights, except to the extent perfection of the  security interest  therein  is  accomplished  by the filing of  a UCC financing  statement  (it being  understood  that no  actions  shall  be  required  to  perfect  a  security  interest  in  letter  of  credit  rights,  other  than  the  filing  of  a  UCC  financing  statement),  (ix)  any  intent-to-use  trademark  application  prior  to  the  filing,  and  acceptance  by  the  U.S.  Patent and Trademark Office, of a “Statement of Use” or “Amendment to Allege Use” with respect thereto, to the  extent, if any, that, and solely during the period, if any, in which the grant of a security interest therein would impair  the  validity  or  enforceability  of  such  intent-to-use  trademark application  under  applicable  federal  law,  (x)  assets  where the burden or cost (including adverse tax or regulatory consequences) of obtaining a security interest therein  or perfection thereof exceeds the practical benefit to the Lenders afforded thereby as reasonably determined by the  Administrative Borrower in good faith in consultation with  the Administrative Agent; (xi) segregated funds held in a  fiduciary  capacity  for  others  (that  are  not  Loan  Parties),  (xii) any  property  subject  to  a  Lien  permitted  by  Section 7.01(b), (u) (limited to Capitalized Leases, Attributable Indebtedness and purchase money security interest and  other  similar  arrangements incurred  pursuant  thereto),  (w) or (aa) (to the extent  relating to a Lien  originally  incurred pursuant  to  Section 7.01(b),  (u) or (w) subject to the limitations set forth in this clause (xii)), (xiii) any  assets  of  any  Foreign  Subsidiary,  CFC  or  CFC  Holdco  (including Equity  Interests  of  any  Subsidiary  of  such  Subsidiary) and (xiv) the Cash Collateral Account (as such term is defined in the First Lien Credit Agreement as in  effect on the Closing Date); provided, however, that Excluded Assets shall not include any Proceeds, substitutions or  replacements of any Excluded Assets referred to in clause (i) through (xiv) (unless such Proceeds, substitutions or  replacements  would  independently  constitute  Excluded  Assets  referred  to  in  clauses  (i)  through  (xiv)).  Notwithstanding the foregoing, for so long as a Subsidiary is an Elective Guarantor, the assets or property purported  to  be  pledged  as  Collateral,  or  in  which  a  security  interest  if  purported  to  be  granted pursuant  to  any Collateral  Document, by such Subsidiary shall be deemed not to be Excluded Assets so long as such Subsidiary is an Elective  Guarantor.          “Excluded Contribution” means the amount of cash capital contributions to the Parent Borrower or net  proceeds  from  the  sale  or  issuance  of  Qualified  Equity  Interests  of  the  Parent  Borrower  (or  issuances  of  debt  securities that have been converted into or exchanged for Qualified Equity Interests) (other than Refunding Capital  Stock,  any  Designated  Preferred  Stock,  any  Equity  Interests  issued  pursuant  to  any  management,  shareholder,  director  or  employee  equity  plan,  any  stock  option  plan  or  any other  management  or  employee  benefit  plan  or  agreement of the Parent  Borrower or any amount  to the extent  used  in the Cure Amount) and designated by  the  Administrative  Borrower  to  the  Administrative  Agent  as  an  Excluded  Contribution  pursuant  to  a  certificate  of  a  Responsible Officer of the Administrative Borrower delivered to the Administrative Agent on or promptly after the  date such capital contributions are made or such Equity Interests are sold or issued.          “Excluded Subsidiary” means (a) any Subsidiary that is not a wholly-owned Subsidiary of a Borrower or a  Guarantor,  (b)  any  Subsidiary  that  is  prohibited  or  restricted by  applicable  Law  or  by  Contractual  Obligations  existing on the Closing Date (or, in the case of any newly acquired Subsidiary, in existence at the time of acquisition                                                  -34

 

but  not  entered  into  in  anticipation  of  such  acquisition  and  the  Collateral  and  Guarantee  Requirement)  from guaranteeing  the  Obligations  (including  any  requirement  for  governmental  (including  regulatory)  or  third-party (other than a Loan Party) consent, approval, license or authorization (to the extent such consent, approval, license or authorization was not obtained (it being understood and agreed that the Loan Parties shall be under no obligation to obtain such consent, approval, license or authorization))), (c) any Subsidiary where the burden or cost (including adverse  tax  or  regulatory  consequences  to  the  Borrowers  or  any of  their  direct  or  indirect  parent  companies  or Subsidiaries) of obtaining a Guarantee by such Subsidiary would outweigh the practical benefit to be obtained by the Lenders  as  reasonably  determined  by  the  Administrative  Borrower  in  good  faith  in  consultation  with  the Administrative Agent, (d) any Foreign Subsidiary, (e) any Domestic Subsidiary that is (i) a Subsidiary of a Foreign Subsidiary that is a CFC or (ii) a CFC Holdco, (f) any not-for-profit Subsidiaries, (g) any Unrestricted Subsidiaries, (h) [reserved], (i) any Captive Insurance Subsidiary, (j) any Broker-Dealer Regulated Subsidiary, (k) [reserved], (l) any  Subsidiary  of  the  Borrowers  that  is  not  a  Material  Domestic  Subsidiary  and  (m)  any  Subsidiary  acquired pursuant  to  a  Permitted  Acquisition  or  other  permitted  Investment  that  is  prohibited  from  providing  a  guarantee pursuant to the terms of any permitted Indebtedness (and such prohibition was not entered into in anticipation of such  acquisition); provided  that  no  Borrower  shall  constitute  an  Excluded  Subsidiary.   Notwithstanding  the foregoing,  for  so  long  as  a  Subsidiary  is  an  Elective  Guarantor,  such  Subsidiary  shall  be  deemed  not  to  be  an Excluded Subsidiary.         “Excluded Swap Obligation” means, with respect to any Guarantor, (a) any Swap Obligation if, and to the extent  that,  all  or  a  portion  of  the Guarantee of  such  Guarantor  of, or the grant  by such  Guarantor of a security interest  to  secure,  such  Swap  Obligation  (or  any  Guarantee  thereof)  is  or  becomes  illegal  or  unlawful  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) (i) by virtue of such Guarantor’s failure to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder (determined after giving effect to any applicable keepwell, support, or other agreement for the benefit of such Guarantor), at the time the Guarantee of (or grant of such security interest by, as applicable) such Guarantor would otherwise have become effective with respect to such Swap Obligation but for such Guarantor’s failure to constitute an “eligible contract participant” as such time or (ii) in the case of a Swap Obligation that is subject to a clearing requirement pursuant to section 2(h) of the Commodity Exchange Act, because such Guarantor is a “financial entity,” as defined in section 2(h)(7)(C) of the Commodity Exchange Act, at the time the Guarantee of (or grant of such security interest by, as applicable) such Guarantor becomes or would become effective with respect to such Swap Obligation or (b) any other  Swap  Obligation  designated  as  an  “Excluded  Swap  Obligation”  of  such  Guarantor  as  specified  in  any agreement  between  the  relevant  Loan  Parties  and  hedge  bank  applicable  to  such  Swap  Obligations.  If  a  Swap Obligation arises under a Master Agreement governing more than one Swap, such exclusion shall apply only to the portion  of such Swap Obligation  that is attributable to Swaps for which such Guarantee or security interest is or becomes  illegal  under  the  Commodity  Exchange  Act  or  any  rule,  regulation  or  order  of  the  Commodity  Futures Trading Commission (or the application or official interpretation of any thereof).         “Exempt  Accounts”  means  deposit  accounts,  securities  accounts  or  other  similar accounts  (i)  for  the funding  of  payroll  obligations,  employee  benefit  or  health  benefit  obligations,  worker’s  compensation,  tax obligations, escrow arrangements, a segregated account to be set up to hold Preferred Redemption Cash or holding funds owned by Persons other than the Loan Parties, (ii) that constitute or are linked to zero-balance accounts, (iii) that are accounts in jurisdictions other than the United States or any state or territory thereof, (iv) that are accounts held by any Non-Loan Party Subsidiary, (v) the Cash Collateral Account (as such term is defined in each of the First Lien Credit Agreement and the Second Lien Financing Documents, (vi) Governmental Receivables Accounts and (vii) that are accounts other than those described in clauses (i) through (vi) and are accounts held by Loan Parties with respect to which the average daily balance of the funds maintained on deposit therein for the three (3) month period ending on the date of determination does not exceed, individually, $5,000,000; provided that if on the last day of any fiscal quarter of the Parent Borrower the aggregate average daily balance of funds on deposit therein for the  three  (3)  month  period  ending  on  the  date  of  determination on  deposit  in  all  deposit  accounts  or  securities accounts  that  are  Exempt  Accounts  pursuant  to  this  clause  (vii)  on  such  date  exceeds  $10,000,000,  the Administrative Borrower shall select which of such accounts shall cease to be Exempt Accounts and take all steps necessary to comply with Sections 2.19 and 6.11 in respect thereof, in each case within thirty (30) days after the end of such fiscal quarter.                                                  -35

 

       “Existing Letters of Credit” means the Letters of Credit issued prior to, and outstanding on, the Closing Date and set forth on Schedule 1.01F.         “Extended Revolving Credit Commitments” has the meaning provided in Section 2.16(b).         “Extended Revolving Credit Loans” means any loan made pursuant to any Extended Revolving Credit Commitments.         “Extending Lender” has the meaning provided in Section 2.16(b).         “Extension” has the meaning provided in Section 2.16(b).         “Extension Amendment” has the meaning provided in Section 2.16(d).         “Extension Offer” has the meaning provided in Section 2.16(b).         “Facility” means a given Class of Revolving Credit Commitments.         “fair market value” means, with respect to any asset or liability, the fair market value of such asset or liability as determined by the Administrative Borrower in good faith.         “FATCA” means current Sections 1471 through 1474 of the Code (or any amended or successor version thereof  that  is  substantively  comparable  and  not  materially  more  onerous  to  comply  with),  any  current  or  future regulations  or  official  interpretations  thereof  and  any  agreement  entered  into  pursuant  thereto,  including  any intergovernmental agreements and any rules or guidance implementing such intergovernmental agreements.         “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System on such day, as published by the Federal Reserve Bank on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole  multiple  of 1/100  of  1.00%)  charged  to  the  Administrative  Agent  on  such  day  on  such  transactions  as determined by the Administrative Agent; provided, further, that if the Federal Funds Rate is less than zero, it shall be deemed to be zero for the purposes of this Agreement.         “Financial Covenant” means the covenant set forth in Section 7.11.         “Financial  Covenant  Event  of  Default”  means  the  occurrence  of  an  Event  of  Default  under  Section 8.01(b)(ii)(C) solely as a result of a breach of the Financial Covenant under Section 7.11 (in each case, subject to Section 8.04).         “Financial Officer” means the chief financial officer, controller, treasurer, chief accounting officer or such other financial officer with equivalent duties, as appropriate, of the applicable Borrower or Borrowers.         “First  Lien  Agent” means  Bank of America, N.A.,  in its capacity  as  “Administrative Agent” under the First  Lien  Credit  Agreement  as  of  the  Closing  Date  and  shall  include  any  successor  agent  under  the  First  Lien Financing Documents.         “First Lien Credit Agreement” means the “First Lien Credit Agreement” as defined in the ABL Intercreditor Agreement.         “First Lien Financing Documents” means the “First Lien Financing Documents” as defined in the ABL Intercreditor Agreement.                                                  -36

 

       “First Lien Loans” means the “Loans” (or comparable term), as defined in the First Lien Credit Agreement.         “First Lien Obligations” means the “First Lien Obligations” as defined in the ABL Intercreditor Agreement.         “First Lien Secured Parties” means the “First Lien Claimholders” as defined in the ABL Intercreditor Agreement.         “First  Priority  Priming  Lien”  means  (i)  any  Lien  permitted  hereunder  on  such  Collateral  which  as  a matter of law has priority over the respective Liens on such Collateral created in favor of the Administrative Agent for the  benefit of the Secured  Parties  pursuant  to  the relevant  Collateral Document  and (ii) without limitation of clause (i), any Lien on Collateral located on premises subject to a lease or held in a warehouse and in which the landlord or warehouseman thereunder has a first priority perfected security interest in such Collateral.         “Foreign Subsidiary” means any direct or indirect Restricted Subsidiary of the Parent Borrower that is not a Domestic Subsidiary.         “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to an Issuing Bank, such Defaulting Lender’s Pro Rata Share or other applicable share provided under this Agreement of the outstanding LC Obligations other than LC Obligations, as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swing  Line  Lender,  such  Defaulting  Lender’s  Pro  Rata  Share  or  other  applicable  share  provided  under  this Agreement of Swing Line Loans other than Swing Line Loans, as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.         “Fund” means any Person (other than a natural person (or a holding company, investment vehicle or trust for,  or  owned  and  operated  for  the  primary  benefit  of  a  natural  Person))  that  is  engaged  in  making,  purchasing, holding  or  otherwise investing in commercial loans and similar extensions of credit  in the ordinary course of  its activities.         “GAAP” means generally accepted accounting principles in the United States of America, as in effect from time  to  time; provided, however,  that  if  the  Administrative  Borrower  notifies  the  Administrative  Agent  that  the Administrative  Borrower  requests  an  amendment  to  any  provision hereof  to  eliminate  the  effect  of  any  change occurring after the Closing Date in GAAP or in the application thereof (including through conforming changes made consistent with IFRS) on the operation of such provision (or if the Administrative Agent notifies the Administrative Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether  any  such  notice  is  given  before  or  after  such  change  in  GAAP  or  in  the  application  thereof  (including through conforming changes made consistent with IFRS), then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.         “Governmental  Authority”  means  any  nation  or  government,  any  state  or  other  political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative tribunal, central bank or other entity  exercising  executive,  legislative,  judicial,  taxing,  regulatory  or  administrative  powers  or  functions  of  or pertaining  to  government  (including  any  supranational  bodies  such  as  the  European  Union  or  European  Central Bank).         “Governmental Entity” means the United States of America, any state thereof, any political subdivision of any  state  thereof  and  any  agency  or  instrumentality  of  the  United  States  of  America  or  any  state  or  political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory, or administrative functions of or pertaining to government. Payments from Governmental Entities will be deemed to include payments governed under  the  Social  Security  Act,  including  payments  under  Medicare,  Medicaid  and  TRICARE/CHAMPUS,  and payments administered or regulated by CMS; provided that for purposes of the definition of “Third Party Payor”,                                                  -37

 

 Governmental  Entities  with  respect  to  Medicaid  Accounts  and  Medicare  Accounts  shall  be  treated  as  separate  entities in the manner identified in the Borrowing Base Certificate.          “Governmental  Entity  Account”  means  any  Account  payable  pursuant  to  an  agreement  entered  into  between a Governmental Entity and a Loan Party.          “Government Receivables Account” has the meaning specified in Section 2.19.          “Guarantee” means, as to any Person, without duplication, (a) any obligation, contingent or otherwise, of  such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness (the “primary obligor”)  in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to  purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness, (ii) to purchase or  lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness of the  payment or performance of such Indebtedness, (iii) to maintain working capital, equity capital or any other financial  statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary  obligor to pay such Indebtedness, or (iv) entered into for the purpose of assuring in any other manner the obligee in  respect of such Indebtedness of the payment or performance thereof or to protect such obligee against loss in respect  thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness of any other  Person, whether or not such Indebtedness is assumed by such Person (or any right, contingent or otherwise, of any  holder  of  such  Indebtedness  to  obtain  any  such  Lien); provided  that  the  term  “Guarantee”  shall  not  include  endorsements for collection or deposit, in either case in the ordinary course of business, or customary and reasonable  indemnity obligations in effect on the Closing Date or entered into in connection with any acquisition, Permitted  Acquisition  or  disposition  of  assets  permitted  under  this  Agreement  (other  than  such  obligations  with  respect  to  Indebtedness).  The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable  amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not  stated  or  determinable,  the  maximum  reasonably  anticipated  liability  in  respect  thereof  as  determined  by  the  guaranteeing Person in good faith.  The term “Guarantee” as a verb has a corresponding meaning.          “Guaranteed Obligations” has the meaning specified in Section 11.01.          “Guarantor Joinder Agreement” means a joinder agreement substantially in the form of the Guarantor  Joinder Agreement attached as Exhibit H-1 hereto or in such other form agreed by the Administrative Agent and the  Administrative Borrower.          “Guarantors” means (i) in the case of the Secured Obligations of the Parent Borrower, each Subsidiary  Borrower and each Restricted Subsidiary of the Parent Borrower that is a Material Domestic Subsidiary (other than a  Subsidiary  Borrower  or  an  Excluded  Subsidiary  unless  such  Excluded  Subsidiary  is  then  an  Elective Guarantor)  (including  those  listed  on  Schedule I  hereto)  and  any  Material  Domestic  Subsidiary  that  shall  have  become  a  Guarantor  pursuant  to  Section 6.11  and  (ii)  in  the  case  of  the  Secured  Obligations  of  any  other  Loan  Party,  the Parent Borrower, each other Subsidiary Borrower and each Restricted Subsidiary of the Parent Borrower that is a Material Domestic Subsidiary (other than a Subsidiary Borrower or an Excluded Subsidiary unless such Excluded Subsidiary is then an Elective Guarantor) (including those listed on Schedule I hereto) and any Material Domestic  Subsidiary that shall have become a Guarantor pursuant to Section 6.11.  The Parent Borrower in its sole discretion  may  designate  any  wholly-owned  Restricted  Subsidiary that is not  required to be a Guarantor (such  a Restricted  Subsidiary, an “Elective Guarantor”) to Guarantee the Secured Obligations by causing such Restricted Subsidiary  to  execute  this  Agreement  on  the  Closing  Date  or  a  Guarantor  Joinder  Agreement,  and  any  such  Restricted  Subsidiary shall be a Guarantor and Loan Party for all purposes; provided, further, that the Administrative Agent  may prohibit a Foreign Subsidiary from becoming an Elective Guarantor if it determines, in its reasonable credit  judgment but after consultation with the Administrative Borrower, that such Foreign Subsidiary would not provide  customary credit support for the Secured Obligations, which determination may be based upon (A) the amount and  enforceability of the Guaranty that would be provided by the proposed Elective Guarantor, (B) the enforceability of  any security interest that may be granted with respect to any Collateral located in the relevant jurisdiction and/or (C)  such proposed Elective Guarantor is organized in a country that is not a member of the Organization for Economic  Cooperation and Development or that is the target of any U.S. sanctions program administered by OFAC.                                                   -38

 

       “Guaranty” means, collectively, the guaranty of the Secured Obligations by the Guarantors pursuant to this Agreement.         “Hazardous Materials” means all materials, pollutants, contaminants, chemicals, compounds, constituents, substances  or  wastes,  in  any  form,  including  petroleum  or  petroleum  distillates,  asbestos  or  asbestos-containing materials, polychlorinated biphenyls, radon gas, or toxic mold that are regulated pursuant to, or which could give rise to liability under, applicable Environmental Law based on their dangerous or deleterious properties.         “Historical Average Utilization” means for the purposes of the definition of Commitment Fee Rate, in the case  of  each  Start  Date,  an  amount  equal  to  (x)  the  sum  of  each  day’s utilization  of  the Total Revolving  Credit Commitments, as determined by the amount of the Total Revolving Credit Exposure (which, for this purpose, will not include Swing Line Exposure) at such time, during the most recently ended fiscal quarter for which a Quarterly Pricing  Certificate  has  been  delivered  divided by  (y)  the  number  of  days  in  such  fiscal  quarter,  expressed  as  a percentage of the Total Revolving Credit Commitments.         “Historical Excess Availability” means for the purposes of the definition of Applicable Rate, in the case of each Start Date, an amount equal to (x) the sum of each day’s Excess Availability during the most recently ended fiscal quarter for which a Quarterly Pricing Certificate has been delivered divided by (y) the number of days in such fiscal quarter.         “IFRS”  means  international  accounting  standards  as  promulgated  by  the  International  Accounting Standards Board.         “Immediate Family Members” means with respect to any individual, such individual’s child, stepchild, grandchild or more remote descendant, parent, stepparent, grandparent, spouse, former spouse, qualified domestic partner, sibling, mother-in-law, father-in-law, son-in-law and daughter-in-law (including adoptive relationships) and any  trust,  partnership  or  other  bona  fide  estate-planning  vehicle  the  only  beneficiaries  of  which  are  any  of  the foregoing individuals or any private foundation or fund that is controlled by any of the foregoing individuals or any donor-advised fund of which any such individual is the donor.         “Impacted Loans” has the meaning specified in Section 3.03.         “Imported Goods Agreement” means an imported goods agreement, in form and substance acceptable to the Administrative Agent, duly executed by an Eligible Customs Broker.         “Incremental Amendment” has the meaning specified in Section 2.14(c).         “Incremental Equivalent Debt” means Indebtedness permitted to be incurred by the Parent Borrower or any  of  its  Subsidiaries  pursuant  to  and  subject  to  the  limitations  of  Section  2.14(g)  of  the  First  Lien  Credit Agreement (as in effect on the date hereof and regardless of whether then in effect).         “Incremental Facility” has the meaning specified in Section 2.14(a).         “Incremental Facility Closing Date” has the meaning specified in Section 2.14(c).         “Incremental Lenders” has the meaning specified in Section 2.14(c).         “Incremental Revolving Credit Commitments” has the meaning specified in Section 2.14(a).         “Incremental  Revolving  Credit  Loans”  means  any  loan  made  pursuant  to  any  Incremental  Revolving Credit Commitments.         “Indebtedness” means, as to any Person at a particular time, without duplication, all of the following:                                                  -39

 

               (a)    all  obligations  of  such  Person  for  borrowed  money  and  all  obligations  of  such  Person        evidenced by bonds, debentures, notes, loan agreements or other similar instruments;                 (b)    the maximum amount (after giving effect to any prior drawings or reductions which may        have  been  reimbursed)  of  all  outstanding  letters  of  credit  (including  standby  and  commercial),  bankers’        acceptances, bank guaranties, surety bonds, performance bonds and similar instruments issued or created by        or for the account of such Person;                 (c)    net obligations of such Person under any Swap Contract;                 (d)    all obligations of such Person to pay the deferred purchase price of property (other than        (i)  trade  accounts  and  accrued  expenses  payable  in  the  ordinary  course  of  business,  (ii)  any  earn-out        obligations,  including  deferred  or  other  contingent  purchase  price  obligations  (including  deferred        performance incentives, whether or not a service component is required from the transferor or its related        party), until such obligation becomes a liability  on the  balance sheet of such Person in accordance with        GAAP and is not paid after becoming due and payable and (iii) accruals for payroll and other liabilities        accrued in the ordinary course of business);                 (e)    all Attributable Indebtedness;                 (f)    all  obligations  of  such  Person in respect  of Disqualified Equity Interests, if and to the        extent that the foregoing would constitute indebtedness or a liability in accordance with GAAP;                 (g)    indebtedness  (excluding  prepaid  interest  thereon)  of  the  types  described  in  clauses  (a)        through  (f)  above  secured  by  a  Lien  on  property  owned  or  being purchased  by  such  Person  (including        indebtedness  arising  under  conditional  sales  or  other  title  retention  agreements  and  mortgage,  industrial        revenue bond, industrial development bond and similar financings), whether or not such indebtedness shall        have been assumed by such Person or is limited in recourse; and                 (h)    to the extent not otherwise included above, all Guarantees of such Person in respect of        Indebtedness described in clauses (a) through (g) in respect of any of the foregoing.         For  all  purposes  hereof,  the  Indebtedness  of  any  Person  shall  (A)  include  the  Indebtedness  of  any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner, except to the extent such Person’s liability for such Indebtedness is otherwise limited and only to the extent such Indebtedness would be included in the calculation of Consolidated Total Net Debt, (B) in the case of the Parent Borrower and the Restricted Subsidiaries, exclude all intercompany Indebtedness in the ordinary course of business having a term not exceeding 364 days (inclusive of any roll-over or extensions of terms) and (C) exclude (i) deferred compensation payable to officers, directors or employees of such Person or any of its Subsidiaries, (ii) deferred rent, deferred revenue and deferred taxes, in each case, in the ordinary course of business, (iii) payments and distributions to dissenting stockholders of such Person pursuant to applicable law, (iv) any obligation to pay the redemption price for the Company’s Preferred Stock with Preferred Redemption Cash, (v) any obligations attributable to the exercise of appraisal rights and the settlement of any claims or actions (whether actual, contingent or potential) with respect thereto, (vi) trade liabilities and accounts and accrued expenses payable in the ordinary course of business, (vii) any purchase price adjustment or earn-out obligation until such obligation is not paid after becoming due and payable and (viii) accruals for payroll, obligations under employment arrangements and other liabilities accrued in the ordinary course of business.  The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.  The amount of Indebtedness  of  any  Person  for  purposes  of  clause  (g)  that  is  expressly  made  non-recourse  or  limited  recourse (limited solely to the assets securing such Indebtedness) to such Person shall be deemed to be equal to the lesser of (i)  the  aggregate  unpaid  amount  of  such  Indebtedness  and  (ii)  the  fair market  value  of the property encumbered thereby as determined by such Person in good faith.         “Indemnified  Taxes”  means,  with  respect  to  any  Agent  or  any  Lender,  all  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, other                                                  -40

 

than (i) any Taxes imposed on or measured by its net income, however denominated, and franchise (and similar) Taxes imposed on it, imposed by a jurisdiction as a result of such recipient being organized in or having its principal office  or  applicable  lending  office  in  such  jurisdiction, or as  a result of any connection  between such  Lender or Agent and such jurisdiction other than any connections arising from executing, delivering, being a party to, engaging in any transactions pursuant to, performing its obligations under, receiving payments under, or enforcing, any Loan Document, (ii) any Taxes (other than Taxes described in clause (i) above) imposed by a jurisdiction as a result of such recipient being organized in or having its principal office or applicable lending office in such jurisdiction, or as a result of any connection between such Lender or Agent and such jurisdiction other than any connections arising from  executing,  delivering, being  a party to, engaging in any  transactions  pursuant  to,  performing  its  obligations under, receiving payments under, or enforcing, any Loan Document, (iii) any Taxes attributable to the failure by or inability of such Agent or Lender to deliver the documentation required to be delivered pursuant to Section 3.01(d), (iv) any branch profits Taxes imposed by the United States under Section 884(a) of the Code, or any similar Tax, imposed by any other jurisdiction in which such Lender or Agent is located, (v) in the case of a Lender (other than an assignee pursuant to a request by a Borrower under Section 3.07), any U.S. federal withholding Tax that is in effect and would apply to amounts payable with respect to an applicable interest in a Loan or Commitment under a law in effect at the time the Lender acquires such interest in the applicable Commitment or, to the extent a Lender acquires an interest in a Loan not funded pursuant to a prior Commitment, acquires such interest in such Loan, or designates a new Lending Office, except to the extent such Lender (or its assignor, if any) was entitled, immediately prior  to  the  time  of  designation  of  a  new  Lending  Office  (or  assignment  or  applicable  acquisition),  to  receive additional amounts from the Borrowers or Guarantors with respect to such Tax pursuant to Section 3.01 and (vi) any Taxes imposed under FATCA.         “Indemnitees” has the meaning specified in Section 10.05.         “Independent Financial Advisor” means an accounting, appraisal, investment banking firm or consultant of nationally recognized standing that is, in the good faith judgment of the Administrative Borrower, qualified to perform the task for which it has been engaged and that is independent of the Borrowers and their Affiliates.         “Information” has the meaning specified in Section 10.08.         “Initial Revolving Borrowing” means one or more borrowings of Revolving Credit Loans on the Closing Date in an amount not to exceed the aggregate amounts specified or referred to in, and solely for the purposes set forth in, the definition of the term “Permitted Initial Revolving Credit Borrowing Purposes”; provided that, without limitation, Letters of Credit may be issued on the Closing Date to backstop or replace letters of credit, guarantees and performance or similar bonds outstanding on the Closing Date (including deemed issuances of Letters of Credit under this Agreement resulting from an existing issuer of letters of credit outstanding on the Closing Date agreeing to become an Issuing Bank under this Agreement).         “Initial Revolving Credit Commitment” means, as to each Revolving Credit Lender, its Revolving Credit Commitment  as  of  the  Closing  Date.   The  amount  of  each  Revolving  Credit  Lender’s  Initial  Revolving  Credit Commitment is set forth in Schedule 1.01A hereto under the caption “Initial Revolving Credit Commitment” or in the  Assignment  and  Assumption,  in  each  case,  as  may  be  amended pursuant  to  any  Incremental  Amendment (including, without limitation, Amendment No. 1) or Extension Amendment pursuant to which such Lender shall have assumed, increased or decreased its Revolving Credit Commitment, as the case may be.         “Insurer”  means  any  person  (other  than  a  Governmental  Entity)  which  in the  ordinary  course  of  its business or activities agrees to pay for healthcare goods and services received by individuals, including commercial insurance companies, nonprofit insurance companies (such as the Blue Cross, Blue Shield entities), employers or unions  which  selfinsure  for  employee  or  member  health  insurance,  prepaid  health  care  organizations,  preferred provider organizations, health maintenance organizations or any other similar person. “Insurer” includes insurance companies issuing health, personal injury, workers’ compensation or other types of insurance but does not include any individual guarantor.         “Intellectual Property Security Agreement” has the meaning specified in the Security Agreement.                                                  -41

 

       “Intercompany Note” means a promissory note substantially in the form of Exhibit G or such other form as agreed by the Administrative Agent.         “Intercreditor Agreements” means the ABL Intercreditor Agreement and, to the extent permitted under this  Agreement,  any  other  lien  subordination  and  intercreditor arrangement  reasonably  satisfactory  to  the Administrative Borrower and the Administrative Agent, collectively, in each case to the extent then in effect.         “Interest Payment Date” means, (a) as to any Eurocurrency Rate Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date of the Facility under which such Loan was made; provided that if any Interest Period for a Eurocurrency Rate Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates and (b) as to any Base Rate Loan (including a Swing Line Loan), the first calendar day of each April, July, October and January and the Maturity Date of the Facility under which such Loan was made.         “Interest  Period” means,  as  to each  Eurocurrency  Rate Loan, the period commencing on the date such Eurocurrency Rate Loan is disbursed or converted to or continued as a Eurocurrency Rate Loan and ending on the date one, two,  three or six  months thereafter or,  to  the extent agreed by each Lender of such Eurocurrency Rate Loan, twelve months or less than one month thereafter, as selected by the Administrative Borrower in its Committed Loan Notice; provided that:                  (i)   any Interest Period that would otherwise end on a day that is not a Business Day shall be        extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in        which case such Interest Period shall end on the immediately preceding Business Day;                 (ii)   any  Interest  Period  (other  than  an  Interest  Period  having  a  duration  of  less  than  one        month)  that  begins  on  the  last  Business  Day  of  a  calendar  month  (or  on  a  day  for  which  there  is  no        numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the        last Business Day of the calendar month at the end of such Interest Period; and                (iii)   no Interest Period shall extend beyond the applicable Maturity Date.         “Inventory” means “inventory” as such term is defined in Article 9 of the UCC.         “Investment”  means,  with  respect  to  any  Person,  all  investments  by  such  Person  in  other  Persons (including  Affiliates)  in  the  form  of  loans  (including  guarantees),  advances  or  capital  contributions  (excluding accounts receivable, credit card and debit card receivables, trade credit, advances to customers, commission, travel and  similar  advances  to  any  future,  present  or  former  employees,  directors,  officers,  independent  contractors, members  of  management,  manufacturers  and  consultants,  in  each  case  made in the ordinary  course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities issued by any other  Person  and  the  purchase  or  other  acquisition  (in  one  transaction  or  a  series  of  transactions)  of  all  or substantially all of the property and assets or business of another Person or assets constituting a business unit, line of business,  book  of  business  or  division  of  such  Person  (excluding,  in  the  case  of  the  Parent  Borrower  and  the Restricted Subsidiaries, intercompany advances or indebtedness in the ordinary course of business having a term not exceeding  364  days  (inclusive  of  any  roll  over  or  extensions  of  terms)).  For  purposes  of  the  definitions  of “Unrestricted Subsidiary” and “Permitted Investments” and the covenants described under Sections 6.14 and 7.06:                 (1)    “Investments” shall  include the portion (proportionate to the Parent Borrower’s Equity        Interest in such Subsidiary) of the fair market value of the net assets of a Subsidiary at the time that such        Subsidiary is designated an Unrestricted Subsidiary; provided that upon a redesignation of such Subsidiary        as  a  Restricted  Subsidiary,  the  Parent  Borrower  shall  be  deemed  to  continue  to  have  a  permanent        “Investment” in an Unrestricted Subsidiary in an amount (if positive) equal to:                        (a)     the  Parent  Borrower’s  “Investment”  in  such  Subsidiary  at  the  time  of  such                redesignation; less                                                  -42

 

                       (b)    the  portion  (proportionate  to  the  Parent  Borrower’s  Equity  Interest  in  such                 Subsidiary)  of  the  fair  market  value  of  the  net  assets  of  such Subsidiary  at  the  time  of  such                 redesignation; and                  (2)    any property transferred to or from an Unrestricted Subsidiary shall be valued at its fair         market value at the time of such transfer.          For  purposes  of  covenant  compliance,  the  amount  of  any  Investment  at  any  time  shall  be  the  amount  actually invested (measured at the time made), without adjustment for subsequent increases or decreases in the value  of such Investment, less any Returns in respect of such Investment.          “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s  and BBB- (or the equivalent) by S&P (or, if at any time neither Moody’s nor S&P shall be rating such obligations,  an  equivalent  rating  by  any  other  nationally  recognized  statistical  rating  agency  selected  by  the  Administrative  Borrower).          “Investment Grade Securities” means:                  (a)    securities  issued  or  directly  and  fully  guaranteed  or  insured  by  the  United  States         government or any agency or instrumentality thereof (other than Cash Equivalents);                 (b)     debt securities or debt instruments with an Investment Grade Rating, but excluding any         debt securities or debt instruments constituting loans or advances among the Borrowers and the Subsidiaries         and their respective equity holders;                 (c)     investments in any fund that invests exclusively in investments of the type described in         clauses  (a)  and  (b)  which  fund  may  also  hold  immaterial  amounts  of  cash  pending  investment  or         distribution; and                 (d)     corresponding instruments in countries other than the United States customarily utilized         for high quality investments.          “IP Rights” has the meaning specified in Section 5.15.          “ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998” published by  the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the  time of issuance).          “Issuing Bank” means as the context may require, (i) Bank of America, N.A. and/or (ii) any other Lender reasonably  acceptable  to  the  Administrative  Agent  and  the  Administrative  Borrower,  which  has  agreed  to act as Issuing Bank hereunder.  An Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates or branches of such Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate or branch with respect to Letters of Credit issued by such Affiliate or branch and for all purposes of the Loan Documents.  References herein and in the other Loan Documents to Issuing Banks shall be deemed to refer to the Issuing Bank in respect of the applicable Letter of Credit or to all Issuing Banks, as the context requires.          “Junior  Financing”  means  any  Indebtedness  (other  than  First  Lien  Obligations) that constitutes (i) any  Subordinated  Indebtedness  having  an  aggregate amount  outstanding in excess of the Threshold Amount, (ii) any  junior  lien  Indebtedness  (including  the  Second  Lien  Notes)  with  respect  to  ABL  Priority  Collateral,  having  an  aggregate  amount  outstanding  in  excess  of  the  Threshold  Amount,  and  (iii)  unsecured  Indebtedness  incurred  pursuant to Section 7.03(m)(i), Section 7.03(v) or Section 7.03(s).                                                   -43

 

       “Junior Financing Documentation” means any documentation governing any Junior Financing (other than any  lien  subordination  and  intercreditor  arrangement  with  respect  to  such  Junior  Financing  to  which  the Administrative Agent is a party).         “Latest Maturity Date” means, at any date of determination and with respect to the specified Loans or Commitments (or in the absence of any such specification, all outstanding Loans and Commitments hereunder), the latest  Maturity  Date  applicable  to  any  such  Loans  or  Commitments  hereunder  at  such  time,  including  the  latest maturity date of any Extended Revolving Credit Commitment or any Incremental Revolving Credit Commitments (including the 2020 Incremental Revolving Credit Commitments), in each case as extended in accordance with this Agreement from time to time.         “Laws”  means,  collectively,  all  international,  foreign,  federal,  state  and  local  statutes,  treaties,  rules, guidelines,  regulations,  ordinances,  codes  and  administrative  or  judicial  precedents  or  authorities,  including  the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority.         “LC Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the relevant Issuing Bank.         “LC Borrowing” means an extension of credit resulting from a drawing under any Letter of Credit which has  not  been  reimbursed  on  the  date  when  made  (or,  in  accordance  with  Section  2.03(e),  the  following  day)  or refinanced as a Revolving Credit Borrowing.         “LC Credit Extension” means with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof (other than pursuant to the terms of an Auto Renewal Letter of Credit), or the increase of the amount thereof.         “LC Disbursement” means a payment made by any Issuing Bank pursuant to a Letter of Credit.         “LC Documents” means with respect to any Letter of Credit, the LC Application, and any other document, agreement and instrument entered into by the applicable Issuing Bank and the Parent Borrower (or any Subsidiary) or in favor of such Issuing Bank and relating to such Letter of Credit.         “LC Exposure” means at any time, the sum of (i) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (ii) the aggregate amount of all LC Disbursements in respect of Letters of Credit that have not yet been reimbursed by or on behalf of the applicable Borrower at such time.  For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.10.  For all purposes of this Agreement, if as of any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.         “LC Obligations” means as of any date of determination, the LC Exposure.         “LC  Sublimit”  means  an  amount  equal  to  the  lesser  of  (a)  the  Line  Cap  and  (b) $30,000,000,  as  such amount may be increased from time to time in accordance with Section 2.14.  The LC Sublimit is part of, and not in addition to, the Revolving Credit Commitments.         “LCT Consummation Date” has the meaning specified in Section 1.08(g).         “LCT Election” has the meaning specified in Section 1.08(g).         “LCT Test Date” has the meaning specified in Section 1.08(g).                                                  -44

 

       “Lender” has the meaning specified in the introductory paragraph to this Agreement and, as the context requires, includes an Issuing Bank and the Swing Line Lender, the 2020 Incremental Lenders and any Incremental Lenders and their respective successors and assigns as permitted hereunder, each of which is referred to herein as a “Lender.”         “Lending Office” means, as to any Lender, such office or offices as a Lender may from time to time notify the Administrative Borrower and the Administrative Agent.         “Letter of Credit” means any letter of credit issued hereunder (including the Existing Letters of Credit). A Letter  of  Credit  may  be  a  commercial  letter  of  credit  or  a  standby  letter  of  credit; provided, however,  that  any commercial letter of credit issued hereunder shall provide solely for cash payment upon presentation of a sight draft.         “LIBOR Successor Rate” has the meaning specified in Section 3.03.         “LIBOR Screen Rate” means the LIBOR quote on the applicable screen page the Administrative Agent designates to determine LIBOR (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time).         “LIBOR Successor Rate Conforming Changes” means, with respect to any proposed LIBOR Successor Rate, any conforming changes to the definition of Base Rate, Interest Period, timing and frequency of determining rates and making payments of interest and other administrative matters as may be appropriate, in the discretion of the Administrative Agent and the Administrative Borrower, to reflect the adoption of such LIBOR Successor Rate and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice  (or,  if  the  Administrative  Agent  determines  that  adoption  of  any  portion  of  such  market  practice  is  not administratively feasible or that no market practice for the administration of such LIBOR Successor Rate exists, in such other manner of administration as the Administrative Agent determines with the consent of the Administrative Borrower (such consent not to be unreasonably withheld, delayed or conditioned)).         “Lien”  means  any  mortgage,  deed  of  trust,  pledge,  hypothecation,  collateral  assignment,  deposit arrangement, encumbrance, lien (statutory or other), charge, or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of  way  or other  encumbrance on title to  Real Property, and any Capitalized  Lease having substantially the same economic  effect  as  any  of  the  foregoing); provided  that  in  no  event  shall  an  operating  lease  in  and  of  itself  be deemed a Lien.         “Limited Condition Transaction” means any (1) acquisition whose consummation is not conditioned on the availability of, or on obtaining, third party financing, (2) repurchase, repayment or prepayment of Indebtedness that requires the delivery of an irrevocable notice (provided that such notice may be conditioned on the occurrence of  another  transaction)  or  (3)  Restricted  Payment  (but  in  the  case  of  this  clause  (3),  solely  to  the  extent  such Restricted Payment is consummated in connection with a transaction separately subject to clause (1) or (2) above).         “Line Cap” means at any time, the lesser of (i) 100% (or, during an Agent Advance Period, 110%) of the Borrowing Base at such time and (ii) the Total Revolving Credit Commitments in effect at such time.         “Loan”  means  an  extension  of  credit  under  Article  II  by  a  Lender  to the  Borrowers  in  the  form  of  a Revolving Credit Loan or a Swing Line Loan, including any Agent Advance.         “Loan Documents” means, collectively, (i) this Agreement, (ii) the Notes, (iii) the Collateral Documents, (iv) any  Incremental  Amendment  or  Extension  Amendment,  (v)  each  LC  Application,  (vi)  each  Intercreditor Agreement,  (vii) Amendment  No. 1 and  any  other  document  or  instrument  designated  by  the  Administrative Borrower  and  the  Administrative  Agent  as  a  “Loan  Document”  and (viii)  any  amendment  or  joinder  to  this Agreement.         “Loan Parties” means, collectively, the Borrowers and each Guarantor.                                                  -45

 

       “London  Banking  Day”  means  any  day  on  which  dealings  in  Dollar  deposits  are  conducted  by  and between banks in the London interbank eurodollar market.         “Management  Stockholders”  means  any  present  or  former  members  of  management  of  the  Parent Borrower or any Restricted Subsidiary who  are investors  in  the Parent  Borrower or any direct or indirect parent thereof, including, for the avoidance of doubt any future members of management of the Parent Borrower or any Restricted Subsidiary who are investors in the Parent Borrower or any direct or indirect parent thereof, including, for the avoidance of doubt any future member of management who is elected, appointed or hired when the Permitted Holders (excluding such future Person) have the right or the ability by voting power, contract or otherwise to elect or designate for election at least a majority of the Board of Directors of the Parent Borrower.         “Mandatory Borrowing” has the meaning assigned in Section 2.01(e).         “Margin Stock” shall have the meaning assigned to such term in Regulation U of the Board of Governors of the United States Federal Reserve System, or any successor thereto.         “Market Capitalization” means an amount equal to (i) the total number of issued and outstanding shares of common Equity Interests of the Parent Borrower on the date of the declaration of a Restricted Payment permitted pursuant to Section 7.06(i) multiplied by (ii) the arithmetic mean of the closing prices per share of such common Equity Interests on the principal securities exchange on which such common Equity Interests are traded for the 30 consecutive trading days immediately preceding the date of declaration of such Restricted Payment.         “Master Agreement” has the meaning specified in the definition of “Swap Contract.”         “Material  Adverse  Effect”  means  (I)  on  the  Closing  Date,  for  the  representations  with  respect  to  the Company and its subsidiaries, a Beta Material Adverse Effect and (II) on the Closing Date (other than as described in clause (I)) and after the Closing Date (a) a material and adverse effect on the business, financial condition or results of operations of the Parent Borrower and its Restricted Subsidiaries, taken as a whole, (b) a material and adverse effect on the rights or remedies, taken as a whole, of the Administrative Agent or any Lender under the Loan Documents or (c) a material and adverse effect on the ability of the Loan Parties, taken as a whole, to perform their material payment obligations under the Loan Documents.         “Material Domestic Subsidiary” means, at any date of determination, each of the Domestic Subsidiaries of  the  Parent  Borrower  (a)  whose  total  assets  (when  consolidated  with  the  total  assets  of  each  of  its  Restricted Subsidiaries) at the last day of the most recent Test Period were equal to or greater than 3.75% of Total Assets at such  date  or  (b)  whose  gross  revenues  (when  consolidated  with  the  gross  revenues  of  each  of  its  Restricted Subsidiaries) for such Test Period were equal to or greater than 3.75% of the consolidated gross revenues of the Parent Borrower and the Restricted Subsidiaries for such period, in each case determined in accordance with GAAP; provided that if, at any time and from time to time after the Closing Date, for the purposes of Section 6.11, Domestic Subsidiaries not meeting the thresholds set forth in clauses (a) or (b) that are not Guarantors or previously designated as a Material Domestic Subsidiary pursuant to clause (i) below comprise in the aggregate more than 7.50% of Total Assets as of the end of the most recently ended fiscal quarter of the Parent Borrower for which financial statements have been delivered pursuant to Section 6.01 or more than 7.50% of the consolidated gross revenues of the Parent Borrower and the Restricted Subsidiaries for such Test Period, then the Parent Borrower shall, not later than forty- five (45) days after the date by which financial statements for such quarter are required to be delivered pursuant to this  Agreement  (or  such  longer  period  as  the  Administrative  Agent  may  agree  in  its  reasonable  discretion),  (i) designate in writing to the Administrative Agent one or more of such Domestic Subsidiaries as “Material Domestic Subsidiaries”  to  the  extent  required  such  that  the  foregoing  condition  ceases  to be true and  (ii) comply  with the provisions of Section 6.11 applicable to such Subsidiary.         “Material Foreign Subsidiary” means, at any date of determination, each of the Foreign Subsidiaries of the  Parent  Borrower  (a)  whose  total  assets  (when  consolidated  with  the  total  assets  of  each  of  its  Restricted Subsidiaries) at the last day of the most recent Test Period were equal to or greater than 3.75% of Total Assets at such  date  or  (b)  whose  gross  revenues  (when  consolidated  with  the  gross  revenues  of  each  of  its  Restricted Subsidiaries) for such Test Period were equal to or greater than 3.75% of the consolidated gross revenues of the                                                  -46

 

 Parent Borrower and the Restricted Subsidiaries for such period, in each case determined in accordance with GAAP;  provided for the purposes of the provisions of the definition of “Collateral and Guarantee Requirement” that if, at any time and from time to time after the Closing Date, Foreign Subsidiaries not meeting the thresholds set forth in clauses (a) or (b) and not otherwise previously designated as a Material Foreign Subsidiary pursuant to clause (i) below comprise in the aggregate more than 7.50% of Total Assets as of the end of the most recently ended fiscal quarter of the Parent Borrower for which financial statements have been delivered pursuant to Section 6.01 or more  than 7.50% of the consolidated gross revenues of the Parent Borrower and the Restricted Subsidiaries for such Test  Period, then the Parent Borrower shall, not later than forty-five (45) days after the date by which financial statements  for such quarter are required to be delivered pursuant to this Agreement (or such longer period as the Administrative  Agent may agree in its reasonable discretion), designate in writing to the Administrative Agent one or more of such  Foreign  Subsidiaries  as  “Material  Foreign  Subsidiaries”  to  the extent  required  such  that  the  foregoing  condition  ceases to be true.          “Material IP” means intellectual property owned by the Loan Parties that, if disposed, would reasonably  be expected to result in a Material Adverse Effect.          “Material Non-Public Information” means information which is (a) not publicly available (or could not  be derived from publicly available information) and (b) material (as reasonably determined by the Administrative  Borrower)  with  respect  to  the  Parent  Borrower  and  its  Subsidiaries  or their respective securities for purposes  of  United States federal and state securities laws.          “Material Subsidiary” means any Material Domestic Subsidiary or any Material Foreign Subsidiary.  For  the avoidance of doubt, no formal designation of a Material Subsidiary (other than for purposes of Section 6.11 and  complying with the provisions of the definition of “Collateral and Guarantee Requirement” in each case, as set forth  in the definitions of Material Domestic Subsidiary and Material Foreign Subsidiary) shall be required.          “Maturity Date” means (i) with respect to the Initial Revolving Credit Commitments (including the 2020  Incremental Revolving Credit Commitments), the fifth anniversary of the Closing Date, (ii) with respect to any Class  of  Extended  Revolving  Credit  Commitments,  the  final  maturity  date  as  specified  in  the  applicable  Extension  Amendment,  and  (iii)  with  respect  to  any  Incremental  Revolving Credit  Loans  or  Incremental  Revolving  Credit  Commitments, the final maturity date as specified in the applicable Incremental Amendment; provided that, in each  case, if such day is not a Business Day, the Maturity Date shall be the Business Day immediately succeeding such  day.          “Maximum Rate” has the meaning specified in Section 10.10.          “Medicaid”  means,  collectively,  the  health  care  assistance  program  for  low  income  individuals  administered by the states pursuant to the terms of Title XIX of the Social Security Act (42 U.S.C. §§1396 et seq.)  and  any  statutes  succeeding  thereto,  and  all  laws,  rules,  regulations,  manuals,  orders,  guidelines  or  requirements  (whether or not having the force of law) pertaining to such program, in each case as the same may be amended,  supplemented or otherwise modified from time to time.          “Medicaid  Account”  means  an  Account  payable  pursuant  to  an  agreement  entered  into  between  any  Governmental Entity or other entity administering Medicaid in such state and a Loan Party under which such Loan  Party agrees to provide services for Medicaid patients.          “Medicare” means the program of health benefits for the aged and disabled administered by CMS pursuant  to the terms of Title XVIII of the Social Security Act, codified at 42 U.S.C. 1395 et seq and any statutes succeeding  thereto,  and  all  laws,  rules,  regulations,  manuals,  orders  or  guidelines  (whether  or  not  having  the  force  of  law)  pertaining to such program, in each case as the same may be amended, supplemented or otherwise modified from  time to time.                                                   -47

 

       “Medicare  Account”  means  an  Account  payable  pursuant  to  an  agreement  entered  into  between  any Governmental Entity or other entity administering Medicare in any state and a Loan Party under which such Loan Party agrees to provide services for Medicare patients.         “Merger” has the meaning set forth in the preliminary statements to this Agreement.         “Merger Agreement” has the meaning set forth in the preliminary statements to this Agreement.         “Merger Sub 1” has the meaning set forth in the preliminary statements to this Agreement.         “Merger Sub 2” has the meaning set forth in the preliminary statements to this Agreement.         “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.         “Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA and subject to Title IV of ERISA, to which a Loan Party or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding six plan years, has made or been obligated to make contributions.         “Net  Income”  means,  with  respect  to  any  Person,  the  net  income  (loss)  of  such  Person,  determined  in accordance with GAAP and before any reduction in respect of Preferred Stock dividends.         “NLC Facility” means the dedicated warehouse facility called the “National Logistics Center” and located at 11403 Bluegrass Parkway, Suite 400, Louisville, KY, 40299.         “NLC Inventory” means Inventory of the Omega Entities and the Beta Entities maintained and stored at the  NLC  Facility; provided,  that  the  NLC  Inventory  shall  not  include  any  Inventory  held  at  the  pharmacy  store located at the same address as the NLC Facility.         “NOLV” or “Net Orderly Liquidation Value” means the orderly liquidation value (net of all liquidation expenses, costs of sale, commissions, operating expenses and retrieval and related costs) of Inventory, as determined pursuant to the most recent third-party appraisal of such Inventory delivered to the Administrative Agent pursuant to Section 6.02(g) by an appraiser reasonably satisfactory to the Administrative Agent, and in each case expressed as a percentage  of  the  net  book  value  of  such  Inventory  determined  in  accordance  with  GAAP.   The  Net  Orderly Liquidation Value for each such category of Inventory will be increased or reduced promptly upon receipt by the Administrative Agent of each updated appraisal.         “Non-Consenting Lender” has the meaning specified in Section 3.07.         “Non-Defaulting Lender” means, at any time, a Lender that is not a Defaulting Lender.         “Non-Loan Party” means any Restricted Subsidiary that is not a Loan Party.         “Note” means a Revolving Credit Note or a Swing Line Note, as the context may require.         “Notice of Intent to Cure” has the meaning specified in Section 8.04(a).         “Noticed Hedge” means a Secured Hedge Agreement in respect of which a notice has been delivered to the Administrative Agent by the applicable Qualified Counterparty and the Administrative Borrower that confirms that such  Secured  Hedge  Agreement  shall  be  deemed  a  “Noticed  Hedge” hereunder  for  all  purposes,  including  the application of Reserves and Section 8.03, so long as the establishment of a Bank Product Reserve with respect to such Noticed Hedge would not result in the Borrowing Base being less than the Total Revolving Credit Exposure; provided  that,  if  the  amount  of  Secured  Hedge  Obligations  arising  under  such  Secured  Hedge  Agreement  is increased in accordance with the definition of “Secured Hedge Obligation,” then such Secured Hedge Obligations shall only constitute a Noticed Hedge to the extent that a Bank Product Reserve can be established with respect to                                                  -48

 

such  Secured  Hedge  Agreement  without  causing  the  Borrowing  Base to be less than  the Total Revolving Credit Exposure.         “NVOCC” means a non-vessel operating common carrier.         “Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party and its Restricted Subsidiaries arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest, fees and other amounts that accrue after the commencement by or against any Loan Party or Restricted Subsidiary of any proceeding under any Debtor Relief Laws  naming  such  Person  as  the  debtor  in  such  proceeding,  regardless  of  whether  such  interest,  fees  and  other amounts are allowed claims in such proceeding; provided that (i) the Obligations shall exclude all Excluded Swap Obligations and  (ii) in  no  event  shall “Obligations” include any obligations  of any Loan  Party  arising  under any Secured Hedge Agreement or any Secured Cash Management Agreement.  Without limiting the generality of the foregoing, the Obligations of the Loan Parties under the Loan Documents (and their Restricted Subsidiaries to the extent they have obligations under the Loan Documents) include the obligation (including guarantee obligations) to pay  principal,  interest,  Letter  of  Credit  fees, reimbursement obligations, charges, expenses, fees, Attorney  Costs, indemnities and other amounts payable by any Loan Party under any Loan Document (including any reimbursement obligations in respect of any of the foregoing that the Administrative Agent has paid or advanced on behalf of such Loan Party pursuant to the terms of the Loan Documents).         “OFAC” has the meaning specified in Section 5.18(c).         “OID” means original issue discount.         “Omega” has the meaning set forth in the preliminary statements to this Agreement.         “Omega III” has the meaning set forth in the preliminary statements to this Agreement.         “Omega Annual Financial Statements” means the audited consolidated statements of operations, shareholders’ equity and cash flows of Omega III for the fiscal years ended December 31, 2016, December 31, 2017, and December 31, 2018, and the related audited consolidated balance sheets as of the end of such fiscal years.         “Omega Entities” means Omega and its Subsidiaries that are Subsidiaries of Omega prior to giving effect to the Transactions.         “Omega Parent” has the meaning set forth in the preliminary statements to this Agreement.         “Omega Quarterly Financial Statements” means the unaudited consolidated statement of operations of Omega III for the fiscal quarters ending March 31, 2018, June 30, 2018, September 30, 2018, and March 31, 2019 and the related unaudited consolidated balance sheet as of the end of such fiscal quarters.         “Omega Subsidiaries” means the Subsidiaries that are Subsidiaries of Omega prior to giving effect to the Transactions.         “Organization  Documents”  means,  (a)  with  respect  to  any  corporation,  the  certificate  or  articles  of incorporation  and  the  bylaws  (or  equivalent  or  comparable  constitutive  documents  with  respect  to  any  non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the  partnership,  joint  venture  or  other  applicable  agreement  of  formation  or  organization  and  any  agreement, instrument,  filing  or  notice  with  respect  thereto  filed  in  connection  with  its  formation  or  organization  with  the applicable  Governmental  Authority  in  the  jurisdiction  of  its  formation  or  organization  and,  if  applicable,  any certificate or articles of formation or organization of such entity.                                                  -49

 

       “Other Taxes” has the meaning specified in Section 3.01(b).         “Outstanding Amount” means (a) with respect to the Revolving Credit Loans and Swing Line Loans on any date, the outstanding principal Dollar Amount thereof after giving effect to any borrowings and prepayments or repayments of Revolving Credit Loans and Swing Line Loans, as the case may be, occurring on such date; and (b) with respect to any LC Obligations on any date, the outstanding Dollar Amount thereof on such date after giving effect to any related  LC  Credit  Extension  occurring  on such  date and  any other changes thereto as of such date, including as a result of any reductions in the maximum amount available for drawing under related Letters of Credit taking effect on such date.         “Over the Wall Person” means any directors, officers or senior employees of any Agent or Agent-Related Person or any of their Affiliates who are required, in accordance with industry regulations, or the applicable Agent or such Affiliate’s internal policies and procedures to act in a supervisory or managerial capacity and the applicable Agent’s  and  such  Affiliates’  internal  legal,  compliance,  risk  management,  conflicts  clearance  and  other  support personnel and credit and investment committee members.         “Overnight Rate” means, for any day (a) with respect to any amount denominated in Dollars, the greater of the Federal Funds Rate and an overnight rate determined by the Administrative Agent, an Issuing Bank, or the Swing Line Lender, as applicable, in accordance with banking industry rules on interbank compensation (b) with respect to any  amount  denominated  in  any  Available  Currency  other  than  Dollars,  the  rate  of  interest  per  annum  at  which overnight  deposits  in  such  Available  Currency,  in  an  amount  approximately  equal  to  the  amount  with  respect to which such rate is being determined, would be offered for such day by a branch or Affiliate of the Administrative Agent or the Issuing Bank, as applicable, in the applicable offshore interbank market for such Available Currency to major banks in such interbank market.         “Parent Borrower” has the meaning specified in the introductory paragraph to this Agreement.         “Participant” has the meaning specified in Section 10.07(e).         “Participant Register” has the meaning specified in Section 10.07(e).         “Payment Conditions” means that each of the following conditions are satisfied:  (a) there is no Specified ABL Default existing immediately before or immediately after the action or proposed action, (b)(i)(A) pro forma Specified Availability and (B) pro forma 20-Day Specified Availability, in each case, is equal to or greater than (ii) the greater of (A) in the case of Restricted Payments pursuant to Section 7.06(a), (x) 15.0% of the Line Cap (without giving effect to any increase thereof during an Agent Advance Period) and (y) $15,000,000 or (B) in the case of Permitted  Investments  pursuant  to  clause  (3)  or  (32)  thereof,  the incurrence of Indebtedness  pursuant  to  Section 7.03(v) or the making of a designation pursuant to Section 6.14, (x) 12.5% of the Line Cap (without giving effect to any  increase  thereof  during  an  Agent  Advance  Period)  and  (y)  $12,500,000,  (c)  the  Consolidated  Fixed  Charge Coverage Ratio determined on a Pro Forma Basis with respect to the most recently ended Test Period is greater than 1.00:1.00; provided, however, that the condition set forth in the immediately preceding clause (c) shall not apply if, pro forma for any of the actions described in clauses (b)(ii)(A) and (b)(ii)(B) above, the Parent Borrower has (X)(1) pro forma Specified Availability and (2) pro forma 20-Day Specified Availability, in each case, that is equal to or greater than (I) the greater of (x) in the case of Restricted Payments pursuant to Section 7.06(a), (a) $20,000,000 and (b) 20% of the Line Cap (without giving effect to any increase thereof during an Agent Advance Period) or (y) in the case  of  Permitted  Investments  pursuant  to  clause  (3)  or  (32)  thereof,  the  incurrence  of  Indebtedness  pursuant  to Section 7.03(v) or the making of a designation pursuant to Section 6.14, (a) $17,500,000 and (b) 17.5% of the Line Cap (without giving effect to any increase thereof during an Agent Advance Period) and (d) the Parent Borrower shall  have  delivered  to  the  Administrative  Agent  a  certificate of  a  Responsible  Officer  of  the  Parent  Borrower certifying  as  to  compliance  with  preceding  clauses  (a)  through (c)  and  demonstrating  (in  reasonable  detail)  the calculations required by preceding clauses (b) and (c).         “PBGC” means the Pension Benefit Guaranty Corporation.                                                  -50

 

       “Pension Plan” means  any “employee pension benefit plan” (as  such  term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA and is sponsored or maintained by any Loan Party or any ERISA Affiliate or to which any Loan Party or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five (5) plan years.         “Permitted  Acquisition”  means  any  Investment  of  the  type  described  in  clause  (3)  of  the  definition  of “Permitted Investments” or any acquisition of assets constituting a business unit, book of business, line of business or  division  of,  or  all  or  substantially  all  of  the  assets  of  another  Person  or  any  Equity  Interests  in  a  Person that becomes a Restricted Subsidiary, in each case, to the extent constituting a Permitted Investment or permitted under Section 7.06.         “Permitted  Discretion”  means  reasonable  (from  the  perspective  of a secured asset-based lender) credit judgment exercised in good faith in accordance with customary business practices of the Administrative Agent for comparable asset-based lending transactions.         “Permitted Holder” means any of (i) the Sponsor, (ii) Walgreens Co., (iii) any Management Stockholder, (iv) any Permitted Transferee of any of the foregoing Persons and (v) any “group” (within the meaning of Section 13(d) or Section 14(d) of  the Exchange Act  as  in  effect  on the Closing  Date) of which any of the foregoing are members; provided that in the case of such “group” and without giving effect to the existence of such “group” or any other “group,” such Persons specified in clauses (i), (ii), (iii) or (iv) above, collectively, have beneficial ownership, directly  or  indirectly,  of  more  than  50%  of  the  aggregate  ordinary  voting  power  represented  by  the  issued  and outstanding Equity Interests of the Parent Borrower held by such “group”.         “Permitted Initial Revolving Credit Borrowing Purposes” means one or more Borrowings of Revolving Credit Loans on the Closing Date (i) in an aggregate amount not to exceed $20,000,000, to finance the Transactions (including the payment of any Transaction Expenses), (ii) for working  capital needs, (iii) to finance upfront fees (including, for the avoidance of doubt, ticking fees) and OID payable in respect of the Revolving Credit Agreements, the First Lien Loans or the Second Lien Notes, and (iv) to cash collateralize existing letters of credit, guarantees and similar bonds outstanding on the Closing Date.         “Permitted Investments” means:                 (1)    any Investment by the Parent Borrower or any of its Restricted Subsidiaries in the Parent        Borrower or any of its Restricted Subsidiaries; provided that any Investment by the Loan Parties in Non-        Loan  Parties  pursuant  to  this  clause  (1)  shall  be  (x)  made  in  the  ordinary  course  of  business  or  (y)        otherwise, shall not exceed an aggregate amount equal to the greater of (x) $73,500,000 and (y) 35.0% of        Trailing  Four  Quarter  Consolidated  EBITDA  (with  the  amount  of  each  Investment  and  Consolidated        EBITDA  being  measured  at  the  time  such  Investment  is  made  and  without  giving  effect  to  subsequent        changes in value, but subject to adjustment as set forth in the definition of Investment);                (2)     any Investment in assets that were cash, Cash Equivalents or Investment Grade Securities        when such Investment was made;                (3)     any Investment by the Parent Borrower or any of its Restricted Subsidiaries in a Person        (including, to the extent constituting an Investment in assets of a Person that represents substantially all of        its assets or a division, business unit, book of business, line of business or product line of such Person) that        is engaged (directly or through entities that will be Restricted Subsidiaries) in a business permitted pursuant        to Section 7.07, in each case, if as a result of such Investment:                         (i)    such Person becomes a Restricted Subsidiary; or                        (ii)    such  Person,  in  one  transaction  or  a  series  of  related  transactions,  is               amalgamated, merged or consolidated with (to the extent such Person is a Restricted Subsidiary),                                                  -51

 

        merged or consolidated into, or transfers or conveys substantially all of its assets (or such division,         line of business, book of business, business unit or product line) to, or is liquidated into, the Parent         Borrower or any of its Restricted Subsidiaries;          and,  in  each  case,  any  Investment  held  by such Person; provided that such Investment  was  not acquired  by  such  Person  in  contemplation  of  such  amalgamation, merger,  consolidation,  transfer, conveyance or liquidation; provided that (A) the aggregate amount of Investments by Loan Parties pursuant to this clause (3) in assets (other than Equity Interests) that are not (or do not become at the time of such acquisition)  directly  owned  by  a  Loan  Party  or  in  Equity  Interests of Persons  that do not become Loan Parties,  shall  not  exceed  the greater  of $35,000,000  and  15.0% of  Trailing  Four  Quarter  Consolidated EBITDA;  provided, further,  if any acquisition  of  Equity  Interests made pursuant  to this clause (3) is in connection with a Permitted Acquisition of a Person (or Persons) pursuant to which greater than 60% of the Consolidated  EBITDA attributable to such  Person (or Persons) is directly generated by such Person (or Persons) that become Guarantors, then the provisions set forth in this proviso shall not apply; provided, further,  that  if  any  Investment  made  pursuant  to  this  proviso  is  in  Equity  Interests  of  a  Person  that subsequently becomes a Loan Party, such Investment shall thereafter be deemed permitted under clause (1) (without giving effect to the proviso thereto) and shall not be included as having been made pursuant to this clause (3) and (B) the Parent Borrower is in compliance with the Payment Conditions immediately after giving effect to such Investment on a Pro Forma Basis;          (4)    any  Investment  in  securities  or  other  assets  not  constituting  Cash  Equivalents  and received in connection with a Disposition made pursuant to Section 7.05 hereof;          (5)    any  Investment  (a)  made  in  connection  with  the  Transactions;  or  (b)  existing  on  the Closing Date or made pursuant to binding commitments in effect on the Closing Date, in each case under this clause (b) as listed under Schedule 1.01E, or an Investment consisting of any extension, modification, replacement,  renewal  or  reinvestment  of  any  such  Investment  or binding  commitment  existing  on  the Closing  Date; provided  that  the  amount  of  any  such  Investment  or  binding  commitment  may  only  be increased (i) as  required  by the  terms of such Investment or binding commitment as in existence on the Closing Date (including as a result of the accrual or accretion of interest or OID or the issuance of pay-in- kind securities) or (ii) as otherwise permitted under this Agreement;         (6)     any Investment acquired by the Parent Borrower or any of its Restricted Subsidiaries:                  (i)    in exchange for any other Investment, accounts receivable or endorsements for        collection  or  deposit  held  by  any  the  Parent  Borrower  or  any  such  Restricted  Subsidiary  in        connection with or as a result of a bankruptcy, workout, reorganization or recapitalization of, or        settlement of delinquent accounts and disputes with or judgments against, the issuer of such other        Investment or accounts receivable (including any trade creditor or customer); or                 (ii)    in satisfaction of judgments against other Persons; or                 (iii)  as  a  result  of  a  foreclosure  by  the  Parent  Borrower  or  any  of  its  Restricted        Subsidiaries with respect to any secured Investment or other transfer of title with respect to any        secured Investment in default; or                 (iv)   as a result of the settlement, compromise or resolution of litigation, arbitration or        other disputes with Persons who are not Affiliates;         (7)     Investments in Swap Contracts permitted under Section 7.03(f) and Cash Management Services  permitted under Section 7.03(l) and First Lien Banking Services Obligations (as defined in the ABL Intercreditor Agreement);         (8)     [reserved];                                           -52

 

        (9)    Investments the payment for which consists of Equity Interests (other than Disqualified Equity  Interests)  of  the  Parent  Borrower; provided  that  such  Equity  Interests  may  not  be  designated  an Excluded Contribution;         (10)    guarantees  of  Indebtedness  which  guarantees  are  permitted  under  Section  7.03, performance  guarantees,  guarantees  of  obligations  other  than  Indebtedness  and  Contingent  Obligations incurred in the ordinary course of business and the creation of Liens on the assets of the Parent Borrower or any of its Restricted Subsidiaries in compliance with Section 7.01;         (11)    any transaction to the extent it constitutes an Investment that is permitted by and made in accordance with the provisions of Section 7.08 (except transactions described in clauses (a), (b), (f), (g), (j), (n), (q), (s), (w), (y) and (z) of such Section);         (12)    Investments consisting of purchases or other acquisitions of inventory, supplies, services, material or equipment or the licensing or contribution of intellectual property pursuant to customary joint marketing arrangements with other Persons;         (13)    Investments taken together with all other Investments made pursuant to this clause (13) (without giving effect to the sale of an Unrestricted Subsidiary to the extent the proceeds of such sale do not consist  of,  or  have  not  been  subsequently  sold  or  transferred  for,  cash,  Cash  Equivalents  or  marketable securities)  not  to  exceed  the  sum of  (I)  the  greater  of  (x)  $85,000,000  and  (y)  40.0%  of  Trailing  Four Quarter Consolidated EBITDA and (II) unused amounts under clause (26) below and Section 7.06(x) (with the  amount  of each  Investment  and  Trailing  Four  Quarter Consolidated EBITDA  being measured at the time  such  Investment  is  made  and  without  giving  effect  to  subsequent  changes  in  value  but  subject  to adjustment as set forth in the definition of Investment);         (14)    [reserved];         (15)    loans and advances  to, or guarantees of  Indebtedness  of, any future, present or former officers,  directors,  employees,  independent  contractors,  consultants,  advisors,  service  providers  and members of management (or their Controlled Investment Affiliates or Immediate Family Members) of the Parent Borrower or any of its Restricted Subsidiaries in an aggregate amount not to exceed the greater of $16,000,000  and  7.50%  of  Trailing  Four  Quarter  Consolidated  EBITDA  (with  the  amount  of  each Investment being measured at the time such Investment is made and without giving effect to subsequent changes in value, but subject to adjustment as set forth in the definition of Investment);         (16)    loans  and  advances  to  or  notes  received  from  (i)  employees,  directors,  officers, independent contractors, members of management, managers, advisors, service providers and consultants of the Parent Borrower or any of its Restricted Subsidiaries for business-related travel expenses, entertainment expenses, moving expenses and other similar expenses or payroll advances, in each case incurred in the ordinary course of business or consistent with past practices or (ii) future, present and former employees, directors,  officers,  independent  contractors,  members  of  management,  managers,  advisors,  service providers and consultants of the Parent Borrower or any of its Restricted Subsidiaries and, in each of the cases in clause (ii), their Controlled Investment Affiliates and Immediate Family Members, to fund such Person’s purchase of  Equity Interests of the Parent  Borrower; provided that, to the extent such loans or advances are made in cash, the amount of such loans and advances used to acquire such Equity Interest shall be contributed to such Borrower in cash as common equity;         (17)    advances, loans or extensions of  trade credit  in the ordinary course of business by the Parent Borrower or any of its Restricted Subsidiaries;         (18)    any Investment in any Subsidiary or any joint venture in connection with intercompany cash management arrangements or related activities arising in the ordinary course of business;                                           -53

 

        (19)   Investments consisting of purchases and acquisitions of assets or services in the ordinary course of business;          (20)   Investments  made  in  the  ordinary  course  of  business  in  connection  with  obtaining, maintaining or renewing client contacts;          (21)   Investments  in  prepaid  expenses,  negotiable  instruments  held  for  collection  and  lease, utility  and  workers  compensation,  performance  and  similar  deposits  entered  into  as  a  result  of  the operations of the business in the ordinary course of business;         (22)    Investments in the ordinary course of business consisting of Uniform Commercial Code Article 3 endorsements for collection or deposit and Article 4 customary trade arrangements with customers consistent with industry practices;         (23)    any Investment by any Captive Insurance Subsidiary in connection with its provision of insurance  to  the  Parent  Borrower  or  any  of  its  Subsidiaries,  which  Investment  is  made  in  the  ordinary course of business of such Captive Insurance Subsidiary, or by reason of applicable law, rule, regulation or order,  or  that is required or approved by any regulatory  authority  having  jurisdiction over such  Captive Insurance Subsidiary or its respective business, as applicable;         (24)    Investments consisting of promissory notes and other deferred payment obligations and noncash consideration delivered as the purchase consideration for a Disposition permitted by Section 7.05;         (25)    loans and advances to any direct or indirect shareholder of the Parent Borrower in lieu of and not in excess of the amount of (after giving effect to any other loans, advances or Restricted Payments in respect thereof) Restricted Payments to the extent permitted to be made in cash to such shareholder in accordance  with  Section  7.06,  such  Investment  being  treated  for  purposes  of  the  applicable  clause  of Section 7.06 at the time such loan or advance is made, including any limitations, as if a Restricted Payment made pursuant to such clause;         (26)    any  investment  in  a  joint  venture or other business  permitted pursuant  to  Section  7.07 taken together with all other Investments made pursuant to this clause (26) (without giving effect to the sale of an Unrestricted Subsidiary to the extent the proceeds of such sale do not consist of, or have not been subsequently sold or transferred for, cash, Cash Equivalents or marketable securities) that are at that time outstanding,  not  to  exceed  the  greater  of  (x)  $73,500,000  and  (y)  35.0%  of  Trailing  Four  Quarter Consolidated EBITDA (with the amount of each Investment being measured at the time made and without giving  effect  to  subsequent  changes  in  value,  but  subject  to  adjustment  as  set  forth  in  the  definition  of Investment); provided that if any Investment made pursuant to this proviso is in Equity Interests of a Person that subsequently becomes a Loan Party, such Investment shall thereafter be deemed permitted under clause (1) (without giving effect to the proviso thereto) and shall not be included as having been made pursuant to this clause (26);         (27)    Investments  in  deposit  accounts,  securities  accounts  and  commodities  accounts maintained  by  any  Borrower  or  any  Restricted  Subsidiary,  so  long  as  such  accounts  are  used  only  to maintain cash and Cash Equivalents;         (28)    Investments  constituting  promissory  notes  issued  by  any  employee  or  independent contractors of the Parent Borrower or any of its Restricted Subsidiaries in connection with any Permitted Acquisition permitted under this Agreement of a Person that becomes a Restricted Subsidiary as a result thereof (the “Target”) by the Parent Borrower or any of its Restricted Subsidiaries in which such employee or independent contractor purchases Equity Interests of the Target, which purchase is financed with funds loaned  or  advanced  by  the  Parent  Borrower  or  any  of  its  Restricted  Subsidiaries  to  such  employee  in connection with such Permitted Acquisition; provided that no Event of Default under Sections 8.01(a) or 8.01(f) (with respect to the Parent Borrower) has occurred and is continuing or would result therefrom;                                           -54

 

                (29)   loans and advances to employees or independent contractors of the Parent Borrower or         any of its Restricted Subsidiaries so long as such loan or advance (x) constitutes an advance of one-time         payment for the purpose of recruitment or retention or (y) is made for the purposes of funding of capital         expenditures in the ordinary course of business;                 (30)    Investments  consisting  of  cash  earnest  money  deposits  in  connection  with  a  Permitted         Acquisition or other Investment permitted hereunder;                 (31)    First Lien Loans repurchased by the Parent Borrower or a Restricted Subsidiary pursuant         to and in accordance with the terms of the First Lien Credit Agreement so long as such First Lien Loans are         immediately cancelled;                  (32)    Investments  so  long  as  the  Payment  Conditions  are  satisfied  immediately  after  giving         effect thereto on a Pro Forma Basis;                 (33)    Investments made in connection with a Permitted Reorganization; and                 (34)    Investments  in  any  Person  to  which  any  Borrower  or  any  Restricted  Subsidiary         outsources  operational  activities  or  otherwise  related  to  the  outsourcing  of  operational  activities  in  the         ordinary course of business in an aggregate amount not to exceed $2,500,000.          “Permitted Ratio Debt” means Indebtedness permitted to be incurred by the Parent Borrower or any of its Subsidiaries  pursuant  to and  subject  to  the limitations of the definition of Permitted Ratio Debt in the First Lien Credit Agreement (as in effect on the date hereof and regardless of whether then in effect).          “Permitted  Reorganization”  means  any  re-organization  or  other  similar  activities  among  the  Parent Borrower and its Restricted Subsidiaries related to Tax planning and re-organization, so long as, after giving effect thereto, (a) the Loan Parties are in compliance with the Collateral and Guarantee Requirement and Sections 6.11 and  6.13, (b) taken as a whole, the value of the Collateral securing the Obligations and the Guarantees by the Guarantors of the Obligations are not materially reduced, (c) the Liens in favor of the Administrative Agent for the benefit of the Secured Parties under the Collateral Documents are not materially impaired and (d) no Unrestricted Subsidiaries are formed except as otherwise permitted under this Agreement (other than pursuant to this term).          “Permitted  Transferees”  means  (a)  in  the  case  of  the  Sponsor,  (i)  any  Affiliate  of  the  Sponsor  (but excluding  any  portfolio  company  of  any  of  the  foregoing),  (ii) any  managing  director,  general  partner,  limited partner, director, officer or employee of the Sponsor or any of its Affiliates (collectively, the “Sponsor Associates”), (iii) the heirs, executors, administrators, testamentary trustees, legatees or beneficiaries of any Sponsor Associate and (iv) any trust, the beneficiaries of which, or a corporation or partnership, the stockholders or partners of which, include only  a Sponsor Associate, his or her spouse (or former spouse), parents, siblings, members of his or her immediate family (including adopted children and step children) and/or direct lineal descendants; (b) in the case of Walgreens Co., any of its subsidiaries; and (c) in the case of any Management Stockholder, (i) his or her executor, administrator,  testamentary  trustee,  legatee  or  beneficiaries, (ii)  his  or  her  spouse  (or  former  spouse),  parents, siblings, members of his or her immediate family (including adopted children and step children) and/or direct lineal descendants or (iii) a trust, the beneficiaries of which, or a corporation or partnership, the stockholders or partners of which, include only a Management Stockholder and his or her spouse (or former spouse), parents, siblings, members of his or her immediate family (including adopted children) and/or direct lineal descendants.          “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.          “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established or maintained by any Loan Party (for any current or former employee or other service provider to any Loan Party) or,  with  respect  to  any  such  plan  that  is  subject  to  Section 412  of  the  Code  or  Title  IV  of  ERISA,  any  ERISA Affiliate.                                                   -55

 

       “Platform” means IntraLinks, IntraAgency, SYNDTRAK or another similar electronic system.         “Pledged Debt” has the meaning specified in the Security Agreement.         “Pledged Equity” has the meaning specified in the Security Agreement.         “Preferred  Stock”  means  any  Equity  Interest  with  preferential  rights  of  payment  of  dividends  upon liquidation, dissolution or winding up to shares of Equity Interests of any other class of such Person.         “Pro Forma Balance Sheet” means a pro forma consolidated balance sheet of the Company as of March 31, 2019, prepared after giving effect to the Transactions as if the Transactions had occurred as of such date.         “Pro Forma Basis” and “Pro Forma Effect” means, with respect to compliance with any test or covenant or calculation of any ratio hereunder, the determination or calculation of such test, covenant or ratio (including in connection with Specified Transactions) in accordance with Section 1.08.         “Pro  Forma  Compliance”  means,  with  respect  to  the  Financial  Covenant,  compliance  on a  Pro  Forma Basis with such covenant in accordance with Section 1.08.         “Pro Rata Share” means, with respect to each Lender, at any time a fraction (expressed as a percentage, carried  out  to  the  ninth  decimal  place),  the  numerator  of  which  is  the  amount  of  the  Commitments  under  the applicable Facility or Facilities at such time and the denominator of which is the amount of the Total Revolving Credit  Commitments  under  the  applicable  Facility  or  Facilities at  such  time; provided  that,  in  the  case  of  the Revolving Credit Commitments of any Class, if such Commitments have been terminated, then the Pro Rata Share of each Lender shall be determined based on the Pro Rata Share of such Lender immediately prior to such termination and after giving effect to any subsequent assignments made pursuant to the terms hereof.         “Proceeding” has the meaning specified in Section 10.05.         “Proceeds” has the meaning specified in the Security Agreement.         “Projections” has the meaning specified in Section 6.01(c).         “PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.         “Public Lender” has the meaning specified in Section 6.02.         “QFC” has the meaning specified in Section 10.22(b).         “QFC Credit Support” has the meaning specified in Section 10.22.         “Qualified  Counterparty”  means  (i)  with  respect  to  any  Secured  Hedge  Agreement  or  Secured  Cash Management Agreement, any Person that is the Administrative Agent, Arranger or a Lender or an Affiliate of the Administrative Agent, Arranger or a Lender at the time it enters into a Secured Hedge Agreement or Secured Cash Management  Agreement  in  its  capacity  as  a  party  thereto  or  (ii)  with  respect  to  any  Secured  Cash  Management Agreement,  any  other  Person  that,  in  each  case,  is  designated  a  “Qualified  Counterparty”  with  respect  to  such Secured Cash Management Agreement in a writing from the Administrative Borrower to the Administrative Agent. If such Person is not already party hereto as the Administrative Agent or a Lender, such Person shall be required to deliver to the Administrative Agent a letter agreement reasonably satisfactory to it (i) appointing the Administrative Agent as its agent under the applicable Loan Documents and (ii) agreeing to be bound by Sections 10.05, 10.08, 10.15, 10.16 and 10.21 and Article IX as if it were a Lender in order to qualify as a “Qualified Counterparty”.         “Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that at the time the  relevant  guarantee  or  grant  of  the  relevant  security  interest  becomes  effective  with  respect  to  such  Swap                                                  -56

 

Obligation  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.         “Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity Interests.         “Qualified Primary Equity Offering” means the issuance by the Parent Borrower of its common Equity Interests in an underwritten primary public offering (other than a public offering pursuant to a registration statement on Form S-8) pursuant to an effective registration statement filed with the U.S. Securities and Exchange Commission in accordance with the Securities Act (whether alone or in connection with a secondary public offering).         “Quarterly  Financial  Statements”  means  the  Beta  Quarterly  Financial  Statements  and  the  Omega Quarterly Financial Statements.         “Quarterly Pricing Certificate” has the meaning specified in the definition of Applicable Rate.         “Real Property” means, collectively, all right, title and interest (including any leasehold, mineral or other estate) in and to any and all parcels of or interests in real property owned or leased by any Person, whether by lease, license or other means, together with, in each case, all easements, hereditaments and appurtenances relating thereto, all  improvements  and  appurtenant  fixtures  and  equipment,  all  general  intangibles  and  contract  rights  and  other property and rights incidental to the ownership, lease or operation thereof.         “Refinancing Equivalent Debt” means Indebtedness permitted to be incurred by the Parent Borrower or any  of  its  Subsidiaries  pursuant  to  and  subject  to  the  limitations  of  Section  2.15(h)  of  the  First  Lien  Credit Agreement (as in effect on the date hereof and regardless of whether then in effect).         “Refinancing  Indebtedness”  means  (x)  Indebtedness  incurred  by  the  Parent  Borrower  or  any  of  its Restricted  Subsidiaries,  (y)  Disqualified  Equity  Interests  issued  by  the  Parent  Borrower  or  any  of  its  Restricted Subsidiaries  or  (z)  Preferred  Stock  issued  by  any  Restricted  Subsidiary,  which,  in  each  case,  serves  to  extend, replace, refund, refinance, renew or defease any Indebtedness, Disqualified Equity Interests or Preferred Stock, so long as:                 (a)    the  principal  amount  (or  accreted  value,  if  applicable)  of such  new  Indebtedness,  the        amount of such new Preferred Stock or the liquidation preference of such new Disqualified Equity Interests        does not exceed the principal amount  of (or  accreted value, if applicable), plus any accrued and unpaid        interest on, the Indebtedness, the amount of, plus any accrued and unpaid dividends on, the Preferred Stock,        or  the  liquidation  preference  of,  plus  any  accrued  and  unpaid  dividends  on,  the  Disqualified  Equity        Interests,  being so  extended, replaced, refunded, refinanced, renewed  or defeased (such  Indebtedness or        Disqualified  Equity  Interests  or  Preferred  Stock,  the  “Applicable  Refinanced  Debt”),  plus  an  amount        equal  to  any  existing  commitments  unutilized  under  such  Applicable  Refinanced  Debt  to  the  extent        permanently terminated at the time of incurrence of such Refinancing Indebtedness plus the amount of any        tender premium or penalty or premium required to be paid under the terms of the instrument or documents        governing such Applicable Refinanced Debt and any defeasance costs and any fees and expenses (including        OID,  upfront  fees  or  similar  fees)  incurred  in  connection  with the  issuance  of  such  new  Indebtedness,        Preferred  Stock  or  Disqualified  Equity  Interests  or  the  extension,  replacement,  refunding,  refinancing,        renewal or defeasance of such Applicable Refinanced Debt;                 (b)    such Refinancing Indebtedness has a Weighted Average Life to Maturity at the time such        Refinancing  Indebtedness  is  incurred  which  is  not  less  than  the  remaining  Weighted  Average  Life  to        Maturity  of the Indebtedness,  Disqualified Equity  Interests or Preferred Stock being extended, replaced,        refunded, refinanced, renewed or defeased;                 (c)    such Refinancing Indebtedness has a final scheduled maturity date equal to or later than        the final scheduled maturity date of the Indebtedness, Preferred Stock or Disqualified Equity Interests being                                                  -57

 

        so  extended, replaced, refunded, refinanced, renewed or defeased (or, if earlier, the date that is 91 days         after the Latest Maturity Date);                 (d)     to  the  extent  such  Refinancing  Indebtedness  extends,  replaces,  refunds,  refinances,         renews  or  defeases  (i)  Subordinated  Indebtedness  (other  than  Subordinated  Indebtedness  assumed  or         acquired in a Permitted Acquisition or any other acquisition and, in each case, not created in contemplation         thereof) such Refinancing Indebtedness is subordinated to the Obligations at least to the same extent as the         Indebtedness  being  extended,  replaced,  refunded,  refinanced,  renewed  or  defeased  or  (ii)  Disqualified         Equity Interests or Preferred Stock, such Refinancing Indebtedness must be Disqualified Equity Interests or         Preferred Stock, respectively;                 (e)     if  the  Applicable  Refinanced  Debt  was  unsecured,  any  Refinancing  Indebtedness  in         respect thereof shall be unsecured;                 (f)     other than  any Person  that is required  to be an obligor or guarantor on the Applicable         Refinanced  Debt  permitted  under  Section  7.03,  no  Person  shall  be  an  obligor  or  guarantor  on  any         Refinancing  Indebtedness  in  respect  thereof  unless  such  Person is a Borrower or a Guarantor of the         Obligations;          provided, further, that clauses (b) and (c) of this definition will not apply to any extension, replacement,  refunding, refinancing, renewal or defeasance of any Indebtedness other than Indebtedness incurred under Sections  7.03(m)(ii),  (s),  (w)  (to  the  extent  originally  Refinancing  Indebtedness  in  respect  of  the  foregoing)  or  (z),  any  Subordinated Indebtedness (other than Subordinated Indebtedness assumed or acquired in a Permitted Acquisition  or any other acquisition and, in each case, not created in contemplation thereof), Disqualified Equity Interests and  Preferred Stock.          “Refunding Capital Stock” has the meaning specified in Section 7.06(c).          “Register” has the meaning specified in Section 10.07(d).          “Reimbursement Obligations” means the obligation of the applicable Borrower to reimburse each Issuing Bank pursuant to Section 2.03(e) for amounts drawn under Letters of Credit issued by such Issuing Bank.          “Related Indemnified Person” of an Indemnitee means (1) any Controlling Person or Controlled Affiliate of  such  Person,  (2)  the  respective  directors,  officers,  or  employees  of  such  Indemnitee  or  any  of  its  Controlling Persons or Controlled Affiliates and (3) the respective agents or representatives of such Indemnitee or any of its Controlling Persons or Controlled Affiliates, in the case of this clause (3), acting on behalf of or at the instructions of such Indemnitee, such Controlling Person or such Controlled Affiliate; provided that each reference to a Controlled Affiliate,  director,  officer  or  employee  in  this  definition  pertains  to  a  Controlled  Affiliate,  director,  officer  or employee  involved  in  the  negotiation,  syndication,  administration  or  enforcement  of  this  Agreement  and  the Facilities.          “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, shareholders, agents, representatives and advisors of such Person and of such Person’s Affiliates.          “Release”  means  any  spilling,  leaking,  seepage,  pumping,  pouring,  emitting,  emptying,  discharging,  injecting, escaping, leaching, dumping, disposing, depositing, dispersing or migrating in, into, onto or through the  Environment.          “Released Guarantor” has the meaning specified in Section 11.09.          “Rent Reserve” means a reserve established by the Administrative Agent (upon at least five (5) Business  Days’ prior written notice to the Administrative Borrower) equal to the lesser of (x) two (2) months’ rent and (y) the  amount  of  Eligible  Inventory  in  the  most  recent  Borrowing  Base Certificate  for  such  location  in  respect  of  rent                                                   -58

 

 payments made by a Loan Party for each distribution center, warehouse or other location (a) that is in a jurisdiction  providing lessors with statutory or common law Lien rights on personal property located at such location securing  payment of rent and other charges that prime a previously perfected security interest, (b) that is subject to a lease that  grants to the landlord a Lien on property that would otherwise constitute Eligible Inventory which has priority over  the respective Liens on such Collateral created in favor of the Administrative Agent or (c) where Inventory of Loan  Parties with a book value in excess of $2,500,000 (as reported to the Administrative Agent by the Administrative  Borrower  from  time  to  time  as  requested  by  the  Administrative  Agent)  is  located  at  such  distribution  center,  warehouse  or  other  location,  unless,  in  each  case,  such  location  is  subject  to a  Collateral  Access  Agreement, as  adjusted from time to time by the Administrative Agent in its Permitted Discretion; provided, however, that no Rent  Reserves will be established for locations acquired in a Permitted Acquisition unless a Collateral Access Agreement  has  not  been  delivered  to  the  Administrative  Agent  within  fifteen  (15)  days  after  the  consummation  of  such  Permitted Acquisition.          “Reportable  Event”  means  any  of  the  events  set  forth  in  Section 4043(c)  of  ERISA  or  the  regulations  issued thereunder, other than events for which the otherwise applicable notice period has been waived by regulation or otherwise by the PBGC.          “Representative” has the meaning specified in Section 10.08.          “Request  for  Credit  Extension”  means  (a)  with  respect  to a  Borrowing,  continuation  or conversion  of Revolving Credit Loans, a Committed Loan Notice, (b) with respect to an LC Credit Extension, an LC Application, and (c) with respect to a Swing Line Loan, a Swing Line Loan Notice.          “Required Lenders” means as of any date of determination, the holders of more than 50.0% of the Total  Revolving Credit Commitments then in effect or, if the Revolving Credit Commitments have been terminated, the  Total Revolving Credit Exposure; provided that unused Revolving Credit Commitments of, and the portion of the  Outstanding Amount of all Revolving Credit Loans, Swing Line Loans and all LC Obligations held, or deemed held  by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.  In the  event that there are (x) less than three (3) unaffiliated Lenders party to the Loan Documents, the Required Lenders  shall be all Lenders or (y) three (3) or more unaffiliated Lenders party to the Loan Documents, the Required Lenders  shall  include  each  Lender,  if,  and  only  if,  at  the  time  of  any relevant  amendment,  consent,  waiver  or  other  modification  (1)  Specified  Availability  has  been  less  than  the greater  of  (a)  15.0%  of  the  Line  Cap  and  (b)  $15,000,000 for a period of five (5) consecutive Business days and (2) such Lender’s Revolving Credit Commitment  at such time is greater than 65% of its Revolving Credit Commitment as of the Closing Date.          “Required Class Lenders” means as of any date of determination, with respect to one or more Facilities,  the holders of more than 50.0% of the Total Revolving Credit Commitments then in effect under such Facility or  Facilities  or,  if such  Revolving  Credit Commitments have been terminated, the Total Revolving Credit Exposure  under such  Facility  or Facilities; provided that unused Revolving Credit Commitments of, and the portion of the  Outstanding Amount of all Revolving Credit Loans, Swing Line Loans and all LC Obligations held, or deemed held  by, any Defaulting Lender under such Facility or Facilities shall be excluded for purposes of making a determination  of Required Lenders.          “Reserves” means  reserves, if any,  established against the Borrowing  Base as the Administrative Agent  from time to time hereunder determines is necessary in its Permitted Discretion, including (but without duplication),  (i) Rent Reserves, (ii) potential dilution related to Accounts; provided, no Reserves shall be imposed on the first 5%  of dilution of Accounts and thereafter no dilution Reserve shall exceed 1% for each incremental whole percentage in  dilution over 5%, (iii) sums that the Loan Parties are or will be required  to  pay  (such  as  taxes, assessments and  insurance  premiums)  and  have  not  yet  paid,  (iv)  amounts  owing  by  any  Loan  Party  to  any  Person  to  the  extent  secured by a Lien on, or trust over, any Collateral, (v) the full amount of any liabilities or amounts which rank or are  capable of ranking in priority to the Administrative Agent’s Liens and/or for amounts which may represent costs  relating to the enforcement of such Liens including, (a) the expenses and liabilities incurred by any administrator (or  other insolvency officer) and any remuneration of such administrator (or other insolvency officer) and (b) amounts  subject to First Priority Priming Liens of the type described in clause (i) of the definition thereof, (vi) Bank Product  Reserves, (vii) reserves described in Section 7.14 and (viii) reserves with respect to such other events, conditions or  contingencies that the Administrative Agent, in its Permitted Discretion, determines reserves should be established                                                  -59

 

 (without  duplication  of  any  reserves  established  pursuant  to foregoing clauses  (i)  through (v)) from time to time  hereunder; provided that, from and after the date on which the Specified Post-Closing Undertaking is satisfied and  the assets of the Beta Entities are included in the Borrowing Base, the Administrative Agent may in its Permitted  Discretion  institute  a  reserve  in  an  amount  equal  to  the aggregate outstanding amount  of Specified Beta Vendor  Obligations as of the applicable date of determination.          “Responsible Officer” means the chief executive officer, president, vice president, chief financial officer,  chief operating officer, chief administrative officer, secretary or assistant secretary, controller, treasurer or assistant  treasurer or other similar officer or Person performing similar functions of a Loan Party and, solely for purposes of  notices given pursuant to Article II, any other officer or employee of the applicable Loan Party so designated by any  of the foregoing officers in a notice to the Administrative Agent or any other officer or employee of the applicable  Loan  Party  designated  in or pursuant to an agreement between the applicable Loan Party and the Administrative  Agent.   Any  document  delivered  hereunder  that  is  signed  by  a  Responsible  Officer  of  a  Loan  Party  shall  be  conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the  part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of  such  Loan  Party.   Unless  otherwise  specified,  all  references  herein  to  a  “Responsible  Officer”  shall  refer  to  a  Responsible Officer of the Administrative Borrower.          “Restricted Cash” means cash and Cash Equivalents which are listed as “Restricted” on the consolidated  statement of financial condition of the Parent Borrower and the Restricted Subsidiaries; provided, that (i) cash and  Cash  Equivalents  restricted  under  the  Loan  Documents,  the  First  Lien  Financing  Documents,  the  Second  Lien  Financing Documents or any other agreement, document or instrument evidencing Indebtedness that is secured by  Liens on the Collateral that rank pari passu with the Liens on the Collateral securing the Obligations, the First Lien Obligations  or  the  Second  Lien  Obligations  shall  not  be  deemed to  be  “Restricted  Cash”  as  a  result  of  such restrictions  and  (ii)  cash  and  Cash  Equivalents  maintained  by  any  Foreign  Subsidiary  that  is  subject  to  minority shareholder approval before being distributed to the Parent Borrower (a “Shareholder Restriction”) shall not be deemed to be “Restricted Cash” as a result of such Shareholder Restriction.          “Restricted Investment” means an Investment other than a Permitted Investment.          “Restricted Payment” has the meaning specified in Section 7.06.          “Restricted  Subsidiary”  means  any  Subsidiary  of  the  Parent  Borrower  other  than  an  Unrestricted Subsidiary; provided  that  upon  the  occurrence  of  an  Unrestricted  Subsidiary  ceasing  to  be  an  Unrestricted Subsidiary, such Subsidiary shall be included in the definition of “Restricted Subsidiary.”          “Returns”  means,  with  respect  to  any  Investment,  any  dividends,  distributions,  interest,  fees,  premium, return  of  capital,  repayment  of  principal,  income,  profits  (from  a  Disposition  or  otherwise)  and  other  amounts received or realized by a Borrower or a Restricted Subsidiary in respect of such Investment.          “Revolving  Credit  Borrowing”  means  a  borrowing  consisting  of  Revolving  Credit  Loans  of  the same Class and Type and, in the case of Eurocurrency Rate Loans, having the same Interest Period made by each of the Revolving Credit Lenders.          “Revolving Credit Commitment” means, as to each Revolving Credit Lender, its obligation to (a) make Revolving Credit Loans (including any obligation to make Incremental Revolving Credit Loans pursuant to the 2020  Incremental  Revolving  Credit  Commitments)  to  the  Borrowers,  (b)  purchase  participations  in  LC  Obligations  in  respect  of  Letters  of  Credit  and  (c)  purchase  participations  in  Swing  Line  Loans,  as  such  commitment  may  be  adjusted in accordance with this Agreement, including (a) reduced from time to time pursuant to Section 2.06 and  (b)  reduced  or  increased  from  time  to  time  pursuant  to  (i)  assignments  by  or  to  such  Revolving  Credit  Lender  pursuant to an Assignment and Assumption, (ii) an Incremental Amendment (including Amendment No. 1) or (iii) an  Extension.          “Revolving Credit Exposure” means, as to each Revolving Credit Lender, the sum of the amount of the Outstanding Amount of such Revolving Credit Lender’s Revolving Credit Loans and its Pro Rata Share or other                                                   -60

 

applicable share provided for under this Agreement of the Dollar Amount of the LC Obligations and the Swing Line Obligations at such time.         “Revolving  Credit  Facility”  means,  at  any  time,  the  aggregate  amount  of  the  Revolving  Credit Commitments at such time.         “Revolving  Credit  Lender”  means,  at  any  time,  any  Lender  that  has  a  Revolving  Credit  Commitment (including the 2020 Incremental Revolving Credit Commitments) at such time or, if Revolving Credit Commitments have terminated, Revolving Credit Exposure.         “Revolving Credit Loans” means any loan made pursuant to the Initial Revolving Credit Commitments, any  loan  made  pursuant  to  any  Incremental  Revolving  Credit  Commitments (including the  2020  Incremental Revolving Credit Commitments) or any loan made pursuant to any Extended Revolving Credit Commitments, as the context may require.         “Revolving  Credit  Note”  means  a  promissory  note  of  the  Borrowers  payable  to  any  Revolving  Credit Lender  or  its  registered  assigns,  in  substantially  the  form  of Exhibit  C-1  hereto,  evidencing  the  aggregate Indebtedness of the Borrowers to such Revolving Credit Lender resulting from the Revolving Credit Loans made by such Revolving Credit Lender to the Borrowers.         “S&P” means  Standard &  Poor’s Ratings Services, a subsidiary of S&P Global Inc., and any successor thereto.         “Same Day Funds” means immediately available funds.         “Scheduled Unavailability Date” has the meaning specified in Section 3.03.         “SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.         “Second  Lien  Collateral  Agent”  means  Ankura  Trust,  LLC,  as collateral agent  under the  Second Lien Notes Indenture as of the Closing Date and shall include any successor collateral agent under the Second Lien Notes Indenture.         “Second Lien Financing Documents” means the “Second Lien Financing Documents” as defined in the ABL Intercreditor Agreement.         “Second Lien Notes” means the Parent Borrower’s Senior Secured Second Lien PIK Toggle Floating Rate Notes issued on the Closing Date in an aggregate principal amount of $400,000,000.         “Second  Lien  Notes  Indenture”  means  the  “Second  Lien  Notes  Indenture”  as  defined  in  the  ABL Intercreditor Agreement.         “Second Lien Notes Indenture Incremental Equivalent Debt” shall mean “Additional Junior Debt” and “Additional Second Lien Debt” as defined in the Second Lien Notes Indenture (as in effect on the Closing Date and regardless whether then in effect).         “Second  Lien  Obligations”  means  the  “Second  Lien  Obligations”  as  defined  in  the  ABL  Intercreditor Agreement.         “Secured  Cash  Management  Agreement”  means  any  Cash  Management  Agreement  permitted  under Article  VII  that  is  entered  into  by  and  between  any  Borrower  or  any  Restricted  Subsidiary  and  any  Qualified Counterparty  to  the  extent  designated  by  the  Administrative  Borrower  and  such  Qualified  Counterparty  as  a “Secured Cash Management Agreement” in writing to the Administrative Agent.  The designation of any Secured                                                  -61

 

Cash Management Agreement shall not create in favor of such Qualified Counterparty any rights in connection with the management or release of Collateral or of the obligations of any Guarantor under the Loan Documents.         “Secured Cash Management Obligations” means all obligations owing to any Qualified Counterparty by any Borrower or any Restricted Subsidiary under any Secured Cash Management Agreement.         “Secured Hedge Agreement” means any Swap Contract permitted under Article VII that is entered into by and between any Borrower or any Restricted Subsidiary and any Qualified Counterparty (including Swap Contracts in  effect  as  of  the  Closing  Date)  to  the  extent  designated  by  the  Administrative  Borrower  and  such  Qualified Counterparty as a “Secured Hedge Agreement” in writing to the Administrative Agent; provided, that no such Swap Contract shall be designated as, or shall constitute, a Secured Hedge Agreement if such Swap Contract constitutes a “Secured  Hedge  Agreement”  (as  defined  in  the  First  Lien  Credit Agreement).   The  designation  of  any  Secured Hedge  Agreement  shall  not  create  in  favor  of  such  Qualified  Counterparty  any  rights  in  connection  with  the management or release of Collateral or of the obligations of any Guarantor under the Loan Documents.         “Secured Hedge Obligations” means all obligations owing to any Qualified Counterparty by any Borrower or any Restricted Subsidiary under any Secured Hedge Agreement.         “Secured  Obligations”  means,  collectively,  the  Obligations,  the  Secured  Hedge  Obligations  and  the Secured Cash Management Obligations.         “Secured Parties” means, collectively, the Administrative Agent, the Arrangers, the Lenders, the Issuing Banks,  the  Swing  Line  Lenders,  the  Qualified  Counterparties  and  each  co-agent  or  sub-agent  appointed  by  the Administrative Agent from time to time pursuant to Section 9.05.         “Securities Act” means the Securities Act of 1933, as amended.         “Security Agreement” means a security agreement substantially in the form of Exhibit F.         “Security Agreement Supplement” has the meaning specified in the Security Agreement.         “Senior  Representative”  means,  with  respect  to  any  series  of  secured  or  subordinated Indebtedness permitted to be incurred under this Agreement, the trustee, administrative agent, collateral agent, security agent or similar agent under the indenture or agreement pursuant to which such Indebtedness is issued, incurred or otherwise obtained, as the case may be, and each of their successors in such capacities.         “Solvent” and “Solvency” mean, with respect to the Parent Borrower and its Subsidiaries on the Closing Date, after giving effect to the Transactions and the incurrence of the indebtedness and obligations being incurred in connection  therewith,  that  on  such  date  (a)  the  sum  of  the  debt  (including  contingent  liabilities)  of  the  Parent Borrower and its Subsidiaries, taken as a whole, does not exceed the present fair saleable value (on a going concern basis)  of  the  assets  of  the  Parent  Borrower  and  its  Subsidiaries,  taken  as  a  whole;  (b) the  capital  of  the  Parent Borrower and its Subsidiaries, taken as a whole, is not unreasonably small in relation to the business of the Parent Borrower and its Subsidiaries, taken as a whole, contemplated as of the Closing Date; and (c) the Parent Borrower 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  debts  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).         “Specified ABL Default” means any Event of Default under (a) Section 8.01(a), (b) Section 8.01(d) (solely as a result of a breach of representations or warranties with respect to the Borrowing Base), (c) Section 8.01(b)(i), (d) Section 8.01(b)(ii)(C) (solely as a result of a breach of Section 7.11 (but subject to Section 8.04)), (e) Section 8.01(b)(ii)(A) or (f) Section 8.01(f).                                                  -62

 

       “Specified Availability” means as of any date of determination, (a) Excess Availability plus (b) the amount (if  any,  and  not  to  be  less  than  zero)  by  which  (i)  the  Borrowing  Base  exceeds  (ii)  the  Total  Revolving  Credit Commitments, in each case as of such date; provided that the amount attributable to clause (b) shall not exceed 2.5% of the Total Revolving Credit Commitment.         “Specified Beta Vendor Agreement” has the meaning specified in Section 6.18.         “Specified Beta Vendor Financing Statements” has the meaning specified in Section 6.18.         “Specified Beta Vendor Obligations” has the meaning specified in Section 6.18.         “Specified Event of Default” means any Event of Default under Section 8.01(a) or, solely with respect to the Parent Borrower, Section 8.01(f).         “Specified Junior Financing Obligations” means any obligations in respect of any Junior Financing in respect of which any Loan Party is an obligor in a principal amount in excess of the Threshold Amount.         “Specified  Merger Agreement Representations” means the representations and warranties made by or with respect to the Company in the Merger Agreement as are material to the interests of the Lenders, but only to the extent that the Purchaser (as defined in the Merger Agreement) (or its Affiliates) has the right (determined without regard  to  any  notice  provisions  but  taking  into  account  any  applicable  cure  provisions)  pursuant  to  the  Merger Agreement to  terminate its (or their) obligations  to  consummate the  Merger (or the right pursuant  to the Merger Agreement to decline to consummate the Merger) as a result of a breach of such representations and warranties.         “Specified Post-Closing Undertaking” has the meaning specified in Section 6.18.         “Specified  Representations”  means  those  representations  and  warranties  made  by  the  Loan  Parties  in Sections  5.01(a)  (only  with  respect  to  organizational  existence  of  the  Loan  Parties),  5.01(b),  5.02(a),  5.02(b)(i) (limited to any contravention arising out of the execution, delivery and performance of the Loan Documents), 5.04, 5.12, 5.16, 5.18(a)(ii), 5.18(b), 5.18(c)(ii) and 5.19 (subject to the proviso at the end of Section 4.01(a)).         “Specified  Transaction”  means  (a)  the  Transactions,  (b)  any  designation  of  operations  or  assets  of  the Parent Borrower or any of its Restricted Subsidiaries as discontinued operations (as defined under GAAP), (c) any Investment  that  results  in  a  Person  becoming  a  Restricted  Subsidiary,  (d)  any  designation  of  a  Subsidiary  as  a Restricted Subsidiary or an Unrestricted Subsidiary, (e) any Permitted Acquisition, (f) any Disposition that results in a Restricted Subsidiary ceasing to be a Subsidiary of the Parent Borrower or any Disposition of a business unit, line of business, book of business or division of the Parent Borrower or any of its Restricted Subsidiaries, in each case whether by merger, consolidation, amalgamation or otherwise or (g) any incurrence or repayment of Indebtedness (other than Indebtedness incurred or repaid under any revolving credit facility or line of credit in the ordinary course of business for working capital purposes), a Restricted Payment or Incremental Revolving Credit Commitment, in each case, that by the terms of this Agreement requires a financial ratio or test to be calculated on a “Pro Forma Basis” or after giving “Pro Forma Effect.”         “Sponsor”  means  Madison  Dearborn  Partners,  LLC  and  any  of  its  Affiliates  and  funds  or  partnerships managed or advised by any of them or any of their respective Affiliates, but not including, however, any portfolio company of any of the foregoing.         “Sponsor  Management  Agreement”  means  a  management  services  agreement  or  similar  agreement among  the  Sponsor  or  certain  of  the  management  companies  associated  with  the  Sponsor  or  its  advisors,  if applicable, and one or more Loan Parties.         “Spot  Rate”  means,  for  any  currency,  on  any  relevant  date  of  determination  in  connection  with  the issuance,  incurrence,  amendment  increasing  or  decreasing  the  amount,  or  payment  of,  a  Letter  of  Credit  or Revolving Credit Loan, as applicable, and such additional dates as the Administrative Agent or the Issuing Bank, as applicable, shall determine, the rate determined by the Administrative Agent or the Issuing Bank, as applicable, to be                                                  -63

 

the rate quoted by the Administrative Agent or the Issuing Bank, as applicable, as the spot rate for the purchase by the  Administrative  Agent  or  the  Issuing  Bank,  as  applicable,  of  such  currency  with  another currency  through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to the date as of which the foreign exchange computation is made; provided that the Administrative Agent or the Issuing Bank, as applicable, may obtain such spot rate from another financial institution designated by the Administrative Agent or the Issuing Bank, as applicable, if the Administrative Agent or the Issuing Bank, as applicable, does not have  as  of  the  date  of  determination  a  spot  buying  rate  for  any  such  currency  and provided, further,  that  the Administrative Agent or the Issuing Bank, as applicable, may use such spot rate quoted on the date as of which the foreign exchange computation is made in the case of any Revolving Credit Loan or Letter of Credit denominated in an  Available  Currency  other  than  Dollars.   Once  the  Spot  Rate  is  revalued  by  the  Administrative  Agent  or  the Issuing Bank, as applicable, it will advise the Administrative Borrower and Revolving Credit Lenders of the new Spot Rate.         “Subordinated Indebtedness” means, with respect to the Obligations,                 (a)    any Indebtedness of any Borrower which is by its terms junior in right of payment to the        Obligations, and                 (b)    any Indebtedness of any Guarantor which is by its terms junior in right of payment to the        Guarantee of such entity of the Obligations.         “Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity (excluding, for the avoidance of doubt, any charitable organizations and any other Person that meets the  requirements  of  Section  501(c)(3)  of  the  Code)  of  which  (i)  a  majority  of  the  shares  of  securities  or  other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned or (ii) the management of which is otherwise controlled, directly or indirectly, through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Parent Borrower.         “Successor Parent Borrower” has the meaning specified in Section 7.04(d).         “Supermajority  Required  Lenders”  means at any time, the holders of  more than 66.67% of  the Total Revolving Credit Commitments then in effect or, if the Revolving Credit Commitments have been terminated, the Total Revolving Credit Exposure; provided that the Revolving Credit Exposure and Revolving Credit Commitment of any Defaulting Lender shall be disregarded in making any determination under this definition.  In the event that there  are  (x)  less  than  three  (3)  unaffiliated  Lenders  party  to  the  Loan  Documents,  the  Supermajority  Required Lenders  shall  be  all  Lenders  or  (y)  three  (3)  or  more  unaffiliated  Lenders  party  to  the  Loan  Documents,  the Supermajority Required Lenders shall include each Lender, if, and only if, at the time of any relevant amendment, consent waiver or other modification (1) Specified Availability has been less than the greater of (a) 15.0% of the Line Cap and (b) $15,000,000 for a period of five (5) consecutive Business days and (2) such Lender’s Revolving Credit Commitment at such time is greater than 65% of its Revolving Credit Commitment as of the Closing Date.         “Supported QFC” has the meaning specified in Section 10.22.         “Swap”  means  any  agreement,  contract,  or  transaction  that  constitutes a  “swap”  within  the  meaning  of section 1a(47) of the Commodity Exchange Act.         “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward  rate  transactions,  commodity  swaps,  commodity  options, forward  commodity  contracts,  equity  or  equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any                                                  -64

 

master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any  such  master  agreement,  together  with  any  related  schedules,  a  “Master  Agreement”),  including  any  such obligations or liabilities under any Master Agreement.         “Swap  Obligation” means,  with  respect  to  any  Guarantor,  any  obligation  to  pay  or perform  under  any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.         “Swap  Termination  Value”  means,  in  respect  of  any  one  or  more  Swap  Contracts,  after  taking  into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or  after  the  date  such  Swap  Contracts  have  been  closed  out  and termination  value(s)  determined  in  accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid- market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).         “Swing Line Borrowing” means a request for Swing Line Loans.         “Swing Line Exposure” means at any time, with respect to any Lender, shall be the sum of such Lender’s participation obligations with respect to Swing Line Loans under Section 2.04(b).         “Swing  Line  Lender”  means  Bank  of  America,  N.A.,  in  its  capacity  as  a  lender  of  Swing  Line  Loans hereunder.         “Swing Line Loan” has the meaning specified in Section 2.04(a).         “Swing Line Loan Notice” means a notice of Swing Line Borrowing, pursuant to Section 2.04(a), which, if in  writing,  shall  be  substantially  in  the  form  of  Exhibit B  hereto  or  such  other  form  as  may  be  approved  by  the Administrative Agent and agreed by the Administrative Borrower (including any form on an electronic platform or electronic  transmission  system  as  shall  be  approved  by  the  Administrative  Agent),  appropriately  completed  and signed by a Responsible Officer of the Administrative Borrower.         “Swing Line Note” means a promissory note of the Borrowers payable to any Swing Line Lender or its registered  assigns,  in  substantially  the  form  of  Exhibit  C-2  hereto,  evidencing  the  aggregate  Indebtedness  of  the Borrowers to such Swing Line Lender resulting from the Swing Line Loans made by such Swing Line Lender to the Borrowers.         “Swing Line Obligations” means as of any date of determination, the aggregate principal amount of all Swing Line Loans outstanding.         “Swing Line Sublimit” means an amount equal to the lesser of (a) $20,000,000 and (b) the Line Cap at such time.  The Swing Line Sublimit is part of, and not in addition to, the Revolving Credit Commitments.         “Taxes” means all present or future taxes, duties, levies, imposts, assessments or withholdings imposed by any Governmental Authority including interest, penalties and additions to tax.         “Term Loan Leverage Ratio” has the meaning specified in Section 1.08(a).         “Term  Loan  Priority  Collateral”  means  the  “Term  Loan  Priority  Collateral”  as  defined  in  the  ABL Intercreditor Agreement.                                                  -65

 

       “Test  Period”  means,  for  any  date  of  determination  under  this  Agreement,  the  four  consecutive  fiscal quarters of the Parent Borrower most recently ended as of such date of determination for which financial statements are available.         “Third Party Payor” means any Governmental Entity, Insurer or similar entity or any other Person (other than a natural person) that is obligated to make payments on any Account.         “Threshold Amount” means $50,000,000.         “Total  Assets”  means  the  total  assets  of  the  Parent  Borrower  and  the  Restricted  Subsidiaries  on  a consolidated basis in accordance with GAAP, as shown on the most recent balance sheet of the Parent Borrower delivered  pursuant  to  Section  6.01(a)  or  (b)  (and,  in  the  case of  any  determination  relating  to  any incurrence of Indebtedness or any Investment, Restricted Payment or Permitted Acquisition or other acquisition, on a Pro Forma Basis including any property or assets being acquired or disposed of in connection therewith) or, for the period prior to the time any such statements are so delivered pursuant to Section 6.01(a) or (b), the Pro Forma Balance Sheet.         “Total Revolving Credit Commitments” means as of any date of determination, the aggregate amount of the  Revolving  Credit  Commitments (including,  without  limitation, the  2020  Incremental  Revolving Credit Commitments) then in effect.         “Total Revolving Credit Exposure” means as of any date of determination, the aggregate amount of the Revolving Credit Exposure of all Lenders outstanding as of such date.         “Trailing  Four  Quarter  Consolidated  EBITDA”  means  Consolidated  EBITDA  for  the  most  recently ended Test Period (determined on a Pro Forma Basis in accordance with Section 1.08).         “Transaction  Expenses”  means  any  fees,  premiums,  expenses  or  other  costs  incurred  or  paid  by  the Sponsor, the Parent Borrower or any of its (or their) Subsidiaries in connection with the Transactions (including fees and expenses in connection with hedging transactions and this Agreement, the other Loan Documents, the First Lien Financing  Documents,  the  Second  Lien  Financing  Documents  and  the  transactions  contemplated  hereby  and thereby).         “Transactions”  means,  collectively,  (a)  the  Merger  and  other  related  transactions  contemplated  by  the Merger Agreement, (b) the Debt Assumption, (c) the funding of the First Lien Loans, the Revolving Credit Loans and the Second Lien Notes on the Closing Date and the execution and delivery of Loan Documents, the First Lien Financing Documents and the Second  Lien Financing Documents to be entered into on the Closing Date, (d) the payment of Transaction Expenses and (e) the Closing Date Refinancing.         “Treasury Capital Stock” has the meaning specified in Section 7.06(c).         “Type” means, with respect to a Loan, its character as a Base Rate Loan or a Eurocurrency Rate Loan.         “Uniform Commercial Code” or “UCC” means the Uniform Commercial Code (or similar code or statute) as  the same may  from time to time be in effect in the State of New York  or the Uniform Commercial Code (or similar code or statute) of another jurisdiction, to the extent it may be required to perfect a security interest in or otherwise apply to any item or items of Collateral.         “United States” and “U.S.” mean the United States of America.         “United States Tax Compliance Certificate” has the meaning specified in Section 3.01(d)(ii)(C) and is in substantially the form of Exhibit I hereto.         “Unrestricted Cash” means cash that is not Restricted Cash.                                                  -66

 

       “Unrestricted  Subsidiary”  means  any  Subsidiary  of  the  Parent  Borrower  designated  by  the Board of Directors of the Administrative Borrower as an Unrestricted Subsidiary pursuant to Section 6.14 subsequent to the Closing Date.         “USA  Patriot  Act”  means  the  Uniting  and  Strengthening  America  by  Providing  Appropriate  Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56.         “U.S. Special Resolution Regimes” has the meaning specified in Section 10.22.         “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  of  each  then remaining scheduled installment, sinking fund, serial maturity or other required scheduled payments of principal, including  payment  at  final  scheduled  maturity,  in  respect  thereof,  by  (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; provided  that  AHYDO  Payments  and  the  effects  of  any  prepayments  or amortization made on such Indebtedness shall be disregarded in making such calculation.         “wholly-owned” means, with respect to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which (other than (x) director’s qualifying shares and (y) shares issued to foreign nationals to the extent required by applicable Law) are owned by such Person and/or by one or more wholly-owned Subsidiaries of such Person.         “Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write- down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the  applicable EEA  Member Country,  which  write-down  and conversion  powers are described in the EU Bail-In Legislation Schedule.         “Yen” means the lawful currency of Japan.      Section 1.02                Other Interpretive Provisions.         With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:                 (a)    The meanings of defined terms are equally applicable to the singular and plural forms of        the defined terms.                 (b)    The  words  “herein,”  “hereto,”  “hereof”  and  “hereunder”  and  words  of  similar  import        when used in any Loan Document shall refer to such Loan Document as a whole and not to any particular        provision thereof.                 (c)    References  in  this  Agreement  to  an  Exhibit,  Schedule,  Article,  Section,  clause  or        subclause refer (A) to the appropriate Exhibit or Schedule to, or Article, Section, clause or subclause in this        Agreement or (B) to the extent such references are not present in this Agreement, to the Loan Document in        which such reference appears.                 (d)    The term “including” is by way of example and not limitation.                 (e)    The word “or” is not exclusive.                 (f)    The  term  “documents”  includes  any  and  all  instruments,  documents,  agreements,        certificates,  notices,  reports,  financial  statements  and  other writings,  however  evidenced,  whether  in        physical or electronic form.                                                  -67

 

        (g)    In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”; and the word “through” means “to and including.”          (h)    Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.          (i)    For purposes of determining compliance with any Section of Article VII at any time, in the event that any Lien, Investment, Indebtedness (at the time of incurrence or upon application of all or a portion of the proceeds thereof as permitted under the Loan Documents), Disposition, Restricted Payment, Affiliate  transaction,  Contractual  Obligation  or  prepayment  of Indebtedness  meets  the  criteria of one or more  than  one  of  the  categories of  transactions  permitted pursuant  to any clause of such  Sections,  such transaction  (or  portion  thereof)  at  any  time  shall  be  permitted  under  one  or  more  of  such  clauses  as determined by the Administrative Borrower in its sole discretion at such time (or any later time from time to time, in each case, as determined by the Administrative Borrower in its sole discretion at such time) and thereafter  may  be  reclassified  by  the  Administrative  Borrower  in  any  manner  not  prohibited  by  this Agreement.          (j)    The  words  “asset”  and  “property” shall be construed  as having 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.         (k)     All references to any Person shall be constructed to include such Person’s successors and assigns  (subject  to  any restriction 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  of  the  functions thereof.         (l)     The words “principal amount” shall include the liquidation preference of any Disqualified Equity Interests and Preferred Stock.         (m)     For avoidance of doubt, except where the context shall otherwise require, any reference to  any  employee,  director,  officer,  member  of  management,  independent  contractor,  advisor,  service provider or consultant shall refer to any future, current or former employee, director, officer, member of management, independent contractor, advisor, service provider or consultant.         (n)     All references to “in the ordinary course of business” of any Borrower or any Subsidiary thereof  means  (i)  in  the  ordinary  course  of  business  of,  or  in  furtherance  of  an  objective  that  is  in  the ordinary course of business of any Borrower or such Subsidiary, as applicable, (ii) customary and usual in the  industry  or  industries  of  the  Borrowers  and  their  Subsidiaries  in  the  United  States  or  any  other jurisdiction  in  which  the  Borrowers  or  any  Subsidiary  does  business,  as  applicable,  or  (iii)  generally consistent  with  the  past  or  current  practice  of  the  Borrowers  or  such  Subsidiary,  as  applicable,  or  any similarly situated businesses in the United States or any other jurisdiction in which the Borrowers or any Subsidiary does business, as applicable.          (o)    All references to “knowledge” of any Loan Party or any Restricted Subsidiary means the actual knowledge of a Responsible Officer.          (p)    All certifications to be made hereunder by an officer or representative of a Loan Party shall be made by such person in his or her capacity solely as an officer or a representative of such Loan Party, on such Loan Party’s behalf and not in such Person’s individual capacity.          (q)    Any reference herein to a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, shall be deemed to apply to a division of or by a limited  liability  company,  or  an  allocation  of  assets  to  a  series  of  a  limited  liability  company  (or  the unwinding of such a division or allocation), as if it were a merger, transfer, consolidation, amalgamation,                                           -68

 

        consolidation, assignment, sale or transfer, or similar term, as applicable, to, of or with a separate Person.         Any division of a limited liability company shall constitute a separate Person hereunder (and each division         of any limited liability company that is a Subsidiary, Restricted Subsidiary, Unrestricted Subsidiary, joint         venture or any other like term shall also constitute such a Person or entity), and to the extent any covenant         in any Loan Document is applicable to such limited liability company immediately prior to such division,         such covenant shall apply to any Person resulting from such division immediately after such division.  For         the  avoidance  of  doubt,  for  purposes  of  Section  6.11,  any  Person  resulting  from  such  division  of  a         Restricted Subsidiary constitutes a new Restricted Subsidiary that is created or acquired after the Closing         Date.                 (r)     References in this Agreement to any direct or indirect parent of the Parent Borrower shall         include Omega Parent.       Section 1.03                Accounting Terms.          All accounting terms not specifically or completely defined herein shall be construed in conformity with,  and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to  this Agreement shall be prepared in conformity with, GAAP, except as otherwise specifically prescribed herein.  Notwithstanding anything to the contrary contained herein, all such financial statements shall be prepared, and all  financial covenants contained herein or in any other Loan Document shall be calculated, in each case, without giving  effect to any election under FASB ASC 825 (or any similar accounting principle) permitting a Person to value its  financial  liabilities  at  the  fair  value  thereof.   Notwithstanding  any  other  provision  contained  herein,  (a)  any  obligation of any Person that would have been treated as an operating lease for purposes of GAAP as of December  14, 2018 (whether or not such obligation was in effect on such date) shall be accounted for as an operating lease for  purposes of this Agreement, notwithstanding any actual or proposed change in GAAP (whether on a prospective or  retroactive basis) after such date and shall not be treated as Indebtedness, Attributable Indebtedness or a Capitalized  Lease and (b) 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,  without  giving  effect  to  Statement  of Financial  Accounting  Standards 141R or ASC 805 (or any other financial accounting standard having a similar result or effect).       Section 1.04                Rounding.          Any  financial  ratios  required  to  be  maintained  by  the  Parent  Borrower  pursuant  to  this  Agreement  (or required to be satisfied in order for a specific action to be permitted under this Agreement) shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding up if there is no nearest number).       Section 1.05                References to Agreements, Laws, Etc.          Unless  otherwise  expressly  provided  herein,  (a)  references  to  Organization  Documents,  agreements (including the Loan Documents, the First Lien Financing Documents and the Second Lien Financing Documents) and other Contractual Obligations shall be deemed to include all subsequent amendments, restatements, refinancings, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, refinancings, extensions, supplements and other modifications are not prohibited by any Loan Document; and (b) references  to  any  Law  shall  include  all  statutory  and  regulatory  provisions  consolidating,  amending,  replacing, supplementing or interpreting such  Law.   Any term or section reference herein or in the other Loan Documents which  refers  to  a  defined  term  or  section  reference  in  any  Organization  Document,  agreement,  Contractual Obligation  or  Law  shall  be  deemed  to  be  a  cross-reference  to  the  same  or  comparable  defined  term  or  section reference,  as  applicable,  in  any  such  amendment,  refinancing,  restatement,  renewal,  restructuring,  extension, supplement or other modification to such Organization Document, agreement, Contractual Obligation or any such consolidation, amendment, replacement, supplement or interpretation of such Law.                                                   -69

 

     Section 1.06                Times of Day.          Unless  otherwise  specified, all references herein to times  of  day  shall  be references  to  New York, New York time (daylight or standard, as applicable).       Section 1.07                Timing of Payment or Performance.          Except  as  otherwise  provided  herein,  when  the  payment  of  any  obligation  or  the  performance  of  any covenant, duty or obligation is stated to be due or performance required on a day which is not a Business Day, the date of such payment (other than as described in the definition of Interest Period) or performance shall extend to the immediately succeeding Business Day.       Section 1.08                Pro Forma Calculations.          (a)    Notwithstanding  anything  to  the  contrary  herein,  financial  ratios  and  tests,  including  the Consolidated Fixed Charge Coverage Ratio or any leverage ratio used in any First Lien Financing Document or any  Second Lien Financing Document in connection with the incurrence of Indebtedness permitted by Section 7.03 or  Liens  permitted  by  Section  7.01  (each,  a  “Term  Loan  Leverage  Ratio”),  and  compliance  with  covenants  determined by reference to Consolidated EBITDA or Total Assets, shall be calculated in the manner prescribed by  this Section 1.08; provided that notwithstanding anything to the contrary in clauses (b), (c), (d) or (e) of this Section  1.08, when  calculating  any such ratio or test for purposes of the definition of “Applicable Rate” or Section 7.11  (other than for the purpose of determining Pro Forma Compliance with Section 7.11), the events described in this  Section 1.08 that occurred subsequent to the end of the applicable Test Period shall not be given pro forma effect  and (B) when calculating any such ratio or test for purposes of the incurrence of any Indebtedness, cash and Cash  Equivalents resulting from the incurrence of any such Indebtedness shall be excluded from the pro forma calculation  of any applicable ratio or test for purposes of determining net Indebtedness.  In addition, whenever a financial ratio  or test is to be calculated on a pro forma basis, the reference to the “Test Period” for purposes of calculating such  financial  ratio  or  test  shall be deemed  to  be a  reference to, and  shall  be based on,  the most recently ended  Test  Period for which internal financial statements of the Parent Borrower are available (as determined in good faith by  the  Administrative  Borrower)  (it  being understood  that  for purposes of  determining  Pro  Forma Compliance with  Section 7.11, if no Test Period with an applicable level cited in Section 7.11 has passed, the applicable level shall be  the level for the first Test Period cited in Section 7.11 with an indicated level).  For the avoidance of doubt, the  provisions of the foregoing sentence shall not apply for purposes of calculating any such ratio or test for purposes of  the  definition  of  “Applicable  Rate”  or  Section  7.11  (other  than  for  the  purpose  of  determining  Pro  Forma  Compliance  with  Section  7.11),  each  of  which  shall  be  based  on the  financial  statements  delivered  pursuant  to  Section 6.01(a) or (b), as applicable, for the relevant Test Period.          (b)     For purposes of calculating any financial ratio or test or compliance with any covenant determined  by reference to Consolidated EBITDA or Total Assets (including the Consolidated Fixed Charge Coverage Ratio or  any Term Loan Leverage Ratio), Specified Transactions (with any incurrence or repayment of any Indebtedness in  connection  therewith  to be subject to clause (d)  of this Section 1.08 (other than  Indebtedness incurred  or  repaid  under any revolving credit facility or line of credit)) that have been made (i) during the applicable Test Period or (ii)  if applicable as described in clause (a) above, subsequent to such Test Period and prior to or simultaneously with the  event for which the calculation of any such ratio is made shall be calculated on a pro forma basis assuming that all  such  Specified  Transactions  (and  any  increase  or  decrease  in  Consolidated  EBITDA,  Total  Assets  and  the  component financial definitions used therein attributable to any Specified Transaction) had occurred on the first day  of the applicable Test Period (or, in the case of Total Assets, on the last day of the applicable Test Period).  If since  the beginning of any applicable Test Period any Person that subsequently became a Restricted Subsidiary or was  merged, amalgamated or consolidated with or into the Parent Borrower or any of its Restricted Subsidiaries since the  beginning  of  such  Test  Period  shall  have  made  any  Specified  Transaction  that  would  have  required  adjustment  pursuant to this Section 1.08, then such financial ratio or test (or Consolidated EBITDA or Total Assets) shall be  calculated to give pro forma effect thereto in accordance with this Section 1.08.          (c)     Whenever pro forma  effect  is  to  be  given  to  the  Transactions,  a  Specified  Transaction  or  the  implementation of an operational initiative or operational change, the pro forma calculations shall be made in good                                                   -70

 

faith  by  a  responsible  financial  or  accounting  officer  of  the  Administrative  Borrower  and  may  include,  for  the avoidance of doubt, the amount of “run-rate” cost savings, operating expense reductions, operating initiatives, other operating improvements and synergies projected by the Administrative Borrower in good faith to be realized as a result of specified actions taken, committed to be taken or expected to be taken (in the good faith determination of the  Administrative  Borrower)  (calculated  on  a  pro  forma  basis  as  though  such  cost  savings,  operating  expense reductions, operating initiatives, other operating improvements and synergies had been realized on the first day of such period and as if such cost savings, operating expense reductions and synergies were realized during the entirety of such period) and “run-rate” means the full recurring benefit for a period that is associated with any action taken, committed  to  be  taken  or  with  respect  to  which  substantial  steps  have  been  taken  or  are  expected  to  be  taken (including  any  savings  expected  to  result  from  the  elimination of  a  public  target’s  compliance  costs  with  public company requirements) net of the amount of actual benefits realized during such period from such actions, and any such adjustments shall be included in the initial pro forma calculations of such financial ratios or tests and during any subsequent Test Period in which the effects thereof are expected to be realized relating to the Transactions, such Specified Transaction or such implementation of an operational initiative or operational change; provided that (A) such amounts are reasonably identifiable and factually supportable in the good faith judgment of the Administrative Borrower, (B) except as set forth in the definition of Consolidated EBITDA, such actions are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken no later than twenty-four (24) months after the date of the Transactions, such Specified Transaction or implementation of such operational initiative or operational change, (C) no amounts shall be added pursuant to this clause (c) to the extent duplicative of any amounts that are otherwise added back in computing Consolidated EBITDA (or any other components thereof), whether through a pro forma adjustment or otherwise, with respect to such period, (D) it is understood and agreed that, subject to compliance with the other provisions of this Section 1.08(c), amounts to be included in pro forma calculations pursuant to this Section 1.08(c) may be included in Test Periods in which the Specified Transaction to which  such  amounts relate to is no  longer being given pro forma effect pursuant to Section 1.08(b) and (E) any increase in Consolidated EBITDA as a result of cost savings, operating expense reductions, operating initiatives, other operating improvements and synergies pursuant to this Section 1.08(c) (other than related to the Transactions) shall be subject to the limitation set forth in clause (a)(vii) of the definition of Consolidated EBITDA.         (d)     In the event that (w) the Parent Borrower or any of its Restricted Subsidiaries incurs (including by assumption  or  guarantees)  or  repays  (including  by  redemption,  repayment,  amortization,  retirement,  discharge, defeasance or extinguishment) any Indebtedness (other than Indebtedness incurred or repaid under any revolving credit facility or line of credit), (x) the Parent Borrower or any of its Restricted Subsidiaries issues, repurchases or redeems Disqualified Equity Interests, (y) any Restricted Subsidiary issues, repurchases or redeems Preferred Stock or (z) other than for the purposes of determining compliance with Section 7.11 (including Pro Forma Compliance with  Section 7.11),  any Borrower or any of its Restricted Subsidiaries establishes or eliminates (or designates or undesignates) any Designated Revolving Commitments, in each case included in the calculations of any financial ratio or test, (i) during the applicable Test Period or (ii) subsequent to the end of the applicable Test Period and prior to or simultaneously with the event for which the calculation of any such ratio is made, then such financial ratio or test shall be calculated giving pro forma effect to such incurrence or repayment of Indebtedness, or such issuance or redemption of Disqualified Equity Interests or Preferred Stock, in each case to the extent required, as if the same had occurred  on  the  last  day  of  the  applicable  Test  Period  (except in  the  case  of  the  Consolidated  Fixed  Charge Coverage  Ratio  (or  similar  ratio),  in which  case such  incurrence, assumption, guarantee,  redemption, repayment, retirement, discharge, defeasance or extinguishment of Indebtedness or such issuance, repurchase or redemption of Disqualified Equity Interests or Preferred Stock will be given effect, as if the same had occurred on the first day of the applicable Test Period) and for all purposes, other than for the purposes of determining compliance with Section 7.11 (including Pro Forma Compliance with Section 7.11),  such financial ratio or test shall be calculated giving pro forma  effect  to  the  full  amount  of  any  undrawn  Designated  Revolving  Commitments  as  if  such  full  amount  of Indebtedness thereunder had been incurred thereunder throughout such period.         (e)     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 the event for which the calculation of the Consolidated Fixed Charge Coverage Ratio (or similar ratio) is made had been the applicable rate for the entire period  (taking  into  account  any  interest  hedging  arrangements  applicable  to  such  Indebtedness).   Interest  on  a Capitalized  Lease  Obligation  shall  be  deemed  to  accrue at an  interest  rate reasonably determined by a  Financial Officer of the Administrative Borrower to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP.  Interest on Indebtedness that may optionally be determined at an interest rate based upon a                                                 -71

 

 factor of a prime or similar rate, a Eurocurrency Rate interbank offered rate, or other rate, shall be determined to  have been based upon the rate actually chosen, or if none, then based upon such optional rate chosen as the Parent  Borrower or such Restricted Subsidiaries may designate.          (f)    (I) In connection  with the calculation of the Consolidated Fixed Charge Coverage Ratio or any Term  Loan  Leverage  Ratio  for  purposes  of  incurring  Indebtedness  (including  Preferred  Stock)  or  Disqualified Equity Interests under  this  Agreement, no effect (pro forma or otherwise) shall be given to any Indebtedness (or Preferred Stock) or Disqualified Equity Interests being incurred (or commitments obtained) on the same date (or on a such other subsequent date which otherwise require Pro Forma Effect to be given to such incurrence (or obtaining of  commitments))  pursuant  to  any  fixed  dollar  basket  or  basket based  on  Consolidated  EBITDA;  and  (II)  in connection with the calculation of the Consolidated Fixed Charge Coverage Ratio or any Term Loan Leverage Ratio for purposes of incurring any Lien under this Agreement, no effect (pro forma or otherwise) shall be given to any Liens being incurred on the same date (or on a such other subsequent date which otherwise require Pro Forma Effect to be given to such incurrence) pursuant to any fixed dollar basket or basket based on Consolidated EBITDA.          (g)    Notwithstanding  anything  in  this  Agreement  or  any  Loan  Document  to  the  contrary,  when  (a) determining compliance with any provision of this Agreement which requires the calculation of the Consolidated Fixed Charge Coverage Ratio or any Term Loan Leverage Ratio, (b) determining compliance with any provision of this  Agreement  which  requires  that  no  Default,  Event  of  Default  or  Specified  ABL  Default  has  occurred,  is continuing  or  would  result  therefrom,  (c)  determining  compliance  with  any  provision  of  this  Agreement  which requires compliance with any representations and warranties set forth herein, (d) testing availability under baskets set forth in this Agreement (including baskets measured as a percentage of Consolidated EBITDA) or (e) calculating Excess Availability, Historical Excess Availability, and/or Specified Availability, in each case in connection with a Limited Condition Transaction, the date of determination of such ratio or other provisions, determination of whether any  Default,  Event  of  Default  or  Specified  ABL  Default  has  occurred,  is  continuing  or  would  result  therefrom, determination of compliance with any representations or warranties or the availability under any baskets shall, at the option of the Administrative Borrower (the Administrative Borrower’s election to exercise such option in connection with any Limited Condition Transaction, an “LCT Election”, which LCT Election may be in respect of one or more of  clauses  (a), (b), (c), (d) and (e) above), be deemed to be the date the definitive agreements (or other relevant definitive documentation) for such Limited Condition Transaction are entered into (the “LCT Test Date”).  If on a pro forma basis after giving effect to such Limited Condition Transaction and the other transactions to be entered into in connection therewith (including any incurrence or issuance of Indebtedness, Disqualified Equity Interests or Preferred Stock and the use of proceeds thereof), with such ratios and other provisions calculated as if such Limited Condition Transaction or other  transactions had occurred at the beginning of the most recent Test Period ending prior to the LCT Test Date for which internal financial statements are available (as determined in good faith by the Administrative  Borrower),  the  Parent  Borrower  could  have  taken such  action  on  the  relevant  LCT  Test  Date  in compliance with the applicable ratios, default provisions or other provisions, such ratios, default provisions or other provisions shall be deemed to have been complied with on such date (the “LCT Consummation Date”); provided  that  (i)  on  the  relevant  LCT  Test  Date,  the  Payment  Conditions shall  be  required  to  be  satisfied  and  (ii)  on  the  relevant  LCT  Consummation  Date,  sufficient  Excess  Availability exists  for  purposes  of  the  incurrence  of  any  extension of credit under the Revolving Credit Facility in connection with such Limited Condition Transaction (if  Loans are to be made or Letters of Credit are to be issued) on such date.  For the avoidance of doubt, (i) if, following  the LCT Test Date, any of such ratios, default provisions or other provisions are exceeded or breached as a result of  fluctuations in such ratio (including due to fluctuations in Consolidated EBITDA or other components of such ratio  (including  due  to  fluctuations  of  the  Target  of  any  Limited  Condition  Transaction,  including  its  cash  and  Cash  Equivalents or the amount of such Indebtedness)) or other provisions at or prior to the consummation of the relevant  Limited Condition Transaction, such ratios, default provisions or other provisions will not be deemed to have been  exceeded or failed to have been satisfied as a result of such fluctuations solely for purposes of determining whether  the Limited Condition Transaction is permitted hereunder and (ii) such ratios and compliance with such conditions  shall  not  be  tested  at  the  time  of  consummation  of  such  Limited  Condition  Transaction  or  related  Specified  Transactions.  If the Administrative Borrower has made an LCT Election for any Limited Condition Transaction,  then in connection with any subsequent calculation of any ratio, basket availability or compliance with any other  provision hereunder (other than actual compliance with the Financial Covenant) on or following the relevant LCT  Test Date and prior to the earliest of the date on which such Limited Condition Transaction is consummated and the  date  that  the  definitive  agreement  for  such  Limited  Condition  Transaction  is  terminated  or  expires  without  consummation of such Limited Condition Transaction, any such ratio, basket or compliance with any other provision                                                  -72

 

 hereunder  shall  be  calculated  on  a pro forma basis  assuming  such  Limited  Condition  Transaction  and  other  transactions  in  connection  therewith  (including  any  incurrence or  issuance  of  Indebtedness,  Disqualified  Equity  Interests  or  Preferred  Stock,  and  the  use  of  proceeds  thereof) had  been  consummated  on  the  LCT  Test  Date;  provided that for purposes of any such calculation of the Consolidated Fixed Charge Coverage Ratio, Consolidated  Fixed Charges will be calculated using an assumed interest rate for the Indebtedness to be incurred in connection  with  such  Limited  Condition  Transaction  based  on  the  indicative  interest  margin  contained  in  any  financing  commitment  documentation  with  respect  to  such  Indebtedness  or, if  no  such  indicative interest  margin  exists,  as  reasonably determined by the Administrative Borrower in good faith.       Section 1.09                Currency Generally.          For purposes of determining compliance with Sections 7.01, 7.03, 7.05, 7.06 and 7.13 and the definition of  Permitted Investments with respect to any amount of Indebtedness or Investment in a currency other than Dollars, no  Default shall be deemed to have occurred solely as a result of changes in rates of currency exchange occurring after  the  time  such  Indebtedness  or  Investment  is  incurred  (so  long  as  such  Indebtedness  or  Investment,  at  the  time  incurred, made or acquired, was permitted hereunder).          For  purposes  of  determining  any  leverage-based  ratio  or  test  under  this  Agreement,  the  amount  of  Indebtedness shall reflect the currency translation effects, determined in accordance with GAAP, of Swap Contracts  permitted  hereunder  for  currency  exchange  risks  with  respect  to  the  applicable  currency  in  effect  on  the  date of  determination of the Dollar equivalent of such Indebtedness.       Section 1.10                Letters of Credit.          Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the Dollar Amount of the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the Dollar Amount of the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.                                             ARTICLE II.                          THE COMMITMENTS AND CREDIT EXTENSIONS                  .          (a)     [Reserved].          (b)     The Revolving Credit Borrowings.   Subject  to  the  terms  and  conditions  set  forth  herein,  each Revolving  Credit  Lender  with  a  Revolving  Credit  Commitment  severally  agrees  to  make  loans  denominated  in Dollars or another Available Currency pursuant to Section 2.02 from its applicable Lending Office to the Borrowers from time to time, on any Business Day during the Availability Period, in an aggregate principal amount at any one time  outstanding  that  will  not  (after  giving  effect  to  any  concurrent  use  of  the  proceeds  thereof  to  repay  LC Disbursements) result in (i) such Lender’s Revolving Credit Exposure exceeding such Lender’s Revolving Credit Commitment  or  (ii)  the  Total  Revolving  Credit  Exposure  exceeding  the  Total  Revolving  Credit  Commitments. Within the limits of each Revolving Credit Lender’s Revolving Credit Commitment, and subject to the other terms and  conditions  hereof,  the  Borrowers  may  borrow  under  this  Section 2.01(b),  prepay  under  Section 2.05,  and reborrow under this Section 2.01(b) without premium or penalty (subject to Section 3.05) during the Availability Period.  Revolving Credit Loans may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.                   (c)     Total Revolving Credit Exposure.  Notwithstanding  anything  herein  to  the  contrary,           subject to Section 2.01(d), Revolving Credit Loans shall not be made (and shall not be required to be           made) by any Lender in any instance where the incurrence thereof (after giving effect to the use of the           proceeds  thereof  on  the  date  of  the  incurrence  thereof  to  repay  any  amounts  theretofore  outstanding                                                   -73

 

pursuant to this Agreement) would cause the Total Revolving Credit Exposure to exceed the Line Cap at such time.         (d)     Agent Advance.  In  the  event  that  (i)  any  Borrower  is  unable  to  comply  with  the limitation set forth in Section 2.01(c) or (ii) such Borrower is unable to satisfy the conditions precedent to the making of Revolving Credit Loans set forth in Section 4.02, in either case, the Lenders, subject to the immediately  succeeding  proviso,  hereby  authorize  the  Administrative  Agent  (including  through  an Affiliate or branch), for the account of the applicable Lenders, to make Revolving Credit Loans to such Borrower,  in  either  case  solely  in  the  event  that  the  Administrative  Agent  in  its  Permitted  Discretion deems  necessary  or  desirable  (A)  to  preserve  or  protect  the  Collateral,  or  any  portion  thereof,  (B)  to enhance the likelihood of repayment of the Obligations or (C) to pay any other amount chargeable to any Borrower pursuant to the terms of this Agreement, including, expenses and fees, which Revolving Credit Loans may only be made as Base Rate Loans (each, an “Agent Advance”) for a period commencing on the date the Administrative Agent first receives a Committed Loan Notice requesting an Agent Advance or  otherwise makes  an Agent Advance until the earlier of (x) the date such Borrower is again able to comply with the Borrowing Base limitations and the conditions precedent to the making of Revolving Credit Loans, or obtain an amendment or waiver with respect thereto, (y) the date that is thirty (30) days after  the  funding  of  the  initial  Agent  Advances  and  (z)  the  date  the  Required  Lenders  instruct  the Administrative Agent to cease making Agent Advances (in each case, the “Agent Advance Period”); provided that the Administrative Agent shall not make any Agent Advance to the extent that at the time of  the  making  of  such  Agent  Advance,  the  amount  of  such  Agent  Advance  (I)  when  added  to  the aggregate outstanding amount of all other Agent Advances made to the Borrowers at such time, would exceed  10%  of  the  Borrowing  Base  at  such  time  or  (II)  when  added  to  the  Total  Revolving  Credit Exposure as then in effect (immediately prior to the incurrence of such Agent Advance), would exceed the  Total  Revolving  Credit  Commitments  at  such  time.   Agent  Advances  may  be  made  by  the Administrative Agent in its sole discretion and the Borrowers shall have no right whatsoever to require that any Agent Advances be made.         (e)     Mandatory Borrowing. On any Business Day (but in any event no less frequently than once per week), the Administrative Agent may, in its sole discretion give notice to the Lenders that the Administrative Agent’s  outstanding  Agent Advances  shall  be funded  with one or more Borrowings of Revolving  Credit  Loans (provided that such notice shall be deemed to have been  automatically given upon  the  occurrence  of  an  Event  of  Default  under  Section  8.01(f)  or  upon  the  exercise of any of  the remedies  provided  in  the  last  paragraph  of  Section  7.01),  in  which  case  one  or  more  Borrowings  of Revolving  Credit  Loans  constituting  Base  Rate  Loans  (each  such Borrowing, a “Mandatory Borrowing”) shall be made on the immediately succeeding Business Day by all applicable Lenders pro rata based on each such Lender’s Pro Rata Share (determined before giving effect to any termination of the Revolving Credit Commitments pursuant to Section 8.02) and the proceeds thereof shall be applied directly  by  the  Administrative  Agent  to  repay  the  Administrative  Agent  for  such  outstanding  Agent Advances.   Each  Lender  hereby  irrevocably  agrees  to  make  Revolving  Credit  Loans  upon  one  (1) Business Day’s notice pursuant to each Mandatory Borrowing in the amount and in the manner specified in  the  preceding  sentence  and  on  the  date  specified  in  writing by  the  Administrative  Agent notwithstanding  (i)  the  amount  of  the  Mandatory  Borrowing  may  not  comply  with  the  minimum Borrowing amounts otherwise required hereunder, (ii) whether any conditions specified in Section 4.02 are  then  satisfied,  (iii)  whether  a  Default  or  an  Event  of  Default  then  exists,  (iv)  the  date  of  such Mandatory  Borrowing,  (v)  the  amount  of  the  Borrowing  Base  at  such  time  and  (vi)  whether  such Lender’s  Revolving  Credit  Commitment  has  been  terminated  at  such  time.   In  the  event  that  any Mandatory Borrowing cannot for any reason be made on the date otherwise required above (including, as a  result  of  the  commencement  of  a  proceeding  under  any  Debtor  Relief  Law  with  respect  to  any Borrower), then each Lender hereby agrees that it shall forthwith purchase (as of the date the Mandatory Borrowing would otherwise have occurred, but adjusted for any payments received from the Borrowers on or after such date and prior to such purchase) from the Administrative Agent such participations in the outstanding Agent Advances as shall be necessary to cause the applicable Lenders to share in such Agent Advances ratably based upon their respective Revolving Credit Commitments (determined before giving effect to any termination of the Revolving Credit Commitments pursuant to Section 8.02); provided that (x) all interest payable on the Agent Advances shall be for the account of the Administrative Agent until                                        -74

 

          the date as of which the respective participation is required to be purchased and, to the extent attributable           to the purchased participation, shall be payable to the participant from and after the time any purchase of           participations is actually made and (y) at the time any purchase of participations pursuant to this sentence           is actually made, the purchasing Lender shall be required to pay the Administrative Agent interest on the           principal amount of the participation purchased for each day from and including the day upon which the           Mandatory  Borrowing  would  otherwise  have  occurred  to  but  excluding the date of payment for such           participation,  at  the  overnight  Federal  Funds  Rate  for  the  first  three  (3)  days  and  at  the  interest  rate           otherwise applicable to Revolving Credit Loans maintained as Base Rate Loans hereunder for each day           thereafter.                   (f)     Debt Assumption. Notwithstanding anything herein or in the Loan Documents to the           contrary:                  (i)    On the Closing Date, immediately after the consummation of the Merger and upon the         effectiveness of thisthe Existing Credit Agreement, the Initial Borrower shall bebecame the sole Borrower         hereunderunder the Existing Credit Agreement and under the Loan Documents.                  (ii)   On the Closing Date, immediately after the payment of any Transaction Expenses payable         on the Closing Date, the Company will becomebecame a party hereto and to the Loan Documents and will         bebecame the Parent Borrower and all rights, title, interests, liabilities, duties and obligations (including the         Indebtedness  and  Obligations  of  the  Initial  Borrower)  in,  to  and  under  this  Agreement,  the  other  Loan         Documents  and  any  other  documents  in  connection  therewith shall be,  and shall be  deemed to be,were         assumed by the Company and the Company agreesagreed to pay, perform and discharge all of the Initial         Borrower’s obligations and covenants as “Parent Borrower” and a “Loan Party” thereunder in accordance         with  the  terms  of  this  Agreement  and  the  other  Loan  Documents  and  otherwise  be  liable  for  such         Indebtedness and to  perform and discharge all of the Obligations and any and all obligations under this         Agreement, the other Loan Documents and any other documents in connection therewith (the transactions         described  in  this  Section  2.01(f)(ii),  collectively,  the  “Debt  Assumption”).  Immediately  after  the  Debt         Assumption,  the  Closing  Date  Refinancing shall bewas  consummated. For the  avoidance of  doubt,  any         references to “this Agreement” in this Section 2.01(f)(ii) shall mean: (x) prior to the Amendment No. 1         Effective Date, the Existing Credit Agreement and (y) on and after the Amendment No. 1 Effective Date,         the Existing Credit Agreement as amended pursuant to Amendment No. 1.       Section 2.02                Loans and Borrowings.          (a)    Each Revolving Credit Loan (other than a Swing Line Loan or an Agent Advance) shall be made as part of a Borrowing consisting of Revolving Credit Loans made by the Lenders ratably in accordance with their respective Revolving Credit 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.  Any Agent Advance and any Swing Line Loan shall be made in accordance with the procedures set forth in Section 2.01 and Section 2.04, respectively.          (b)    Subject to Section 3.03, (i) each Revolving Credit Borrowing shall be comprised entirely of Base Rate Loans or Eurocurrency Rate Loans as the Administrative Borrower may request in accordance herewith, (ii) each Revolving Credit Borrowing consisting of Base Rate Loans shall be comprised entirely of Base Rate Loans and (iii)  each  Revolving  Credit  Borrowing  consisting  of  Eurocurrency  Rate  Loans  shall  be  comprised  entirely  of Eurocurrency Rate Loans.  Each Lender at its option may make any Eurocurrency Rate Loan or Base Rate Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided, that any exercise of such option shall not affect the obligation of the applicable Lender to make such Loan and the obligation of the applicable Borrower to repay such Loan in accordance with the terms of this Agreement.          (c)    At the commencement of each Interest Period for any Eurocurrency Rate Loan, such Borrowing shall be in an increment of $500,000 or a whole multiple of $500,000 in excess thereof; provided, that a Revolving Credit Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Revolving Credit Commitments under the applicable Revolving Credit Facility or that is required to finance the reimbursement of an                                                   -75

 

 LC  Disbursement  as  contemplated  by  Section  2.03(e).   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 ten (10) Interest  Periods outstanding.          (d)    Notwithstanding  any  other  provision  of  this  Agreement,  the  Borrowers  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 applicable Maturity Date for such Borrowing.          (e)     To  request  a  Revolving  Credit  Borrowing  (other  than  a  Swing Line  Loan),  the  Administrative Borrower shall notify the Administrative Agent of such request electronically (such notice in respect of the initial Credit  Extensions,  or  in  connection  with  any  Permitted  Acquisition  or  other  transaction  permitted  under  this agreement,  may  be  conditioned  on  the  occurrence  of  the  Closing Date  or  the  occurrence  of  such  Permitted Acquisition or other transaction, as applicable, so long as the Borrowers indemnify the Lenders for any amounts that would be payable under Section 3.05) (a) in the case of a Eurocurrency Rate Loan, not later than 12:00 noon, New York City time, three (3) Business Days before the date of the proposed Borrowing (other than Eurocurrency Rate Loans to be incurred on the Closing Date for which notice may be given not later than 12:00 noon, New York City time,  one  (1)  Business  Day prior to  the Closing Date) and (b) in the case of a Base Rate Loan  including Agent Advances),  not  later than  12:00 noon, New York  City  time,  on the date of  the proposed  Borrowing.  Each  such Committed Loan Notice submitted electronically shall be irrevocable and shall specify the following information in compliance with Section 2.02:                  (i)    the applicable Borrower with respect to such Borrowing;                  (ii)   the currency and aggregate amount of the requested Borrowing;                  (iii)  the date of such Borrowing, which shall be a Business Day;                  (iv)   whether such Borrowing is to be an Base Rate Loan or a Eurocurrency Rate Loan;                  (v)    in  the  case  of  a  Eurocurrency  Rate  Loan,  the  initial  Interest  Period  to  be  applicable                        thereto,  which  shall  be  a  period  contemplated  by  the  definition  of  the  term  “Interest                        Period”;                  (vi)   the location and number of the account to which funds are to be disbursed;                  (vii)  the Borrowing Base at such time; and                  (viii) in the case of an Base Rate Loan, whether the Revolving Credit Loans made pursuant to                        such Borrowing constitute Agent Advances (it being understood that the Administrative                        Agent shall be under no obligation to make such Agent Advance).          If  no  election  as  to  the  Type  of Revolving  Credit  Borrowing  is specified,  then  the requested Revolving Credit Borrowing shall be deemed to be a Base Rate Loan.  If no Interest Period is specified with respect to any requested Eurocurrency Rate Loan, then the Administrative Borrower shall be deemed to have selected an Interest Period of one (1) month’s duration.  Promptly following receipt of a Committed Loan Notice in accordance with this Section  2.02(e),  the  Administrative  Agent  shall  advise  each  applicable  Lender  under  the  relevant  Facility  of  the details  thereof  and  of  the  amount  of  such  Lender’s  Loan  to  be  made  as  part  of  the  requested  Borrowing.   The Administrative Agent may act without liability upon the basis of communications submitted electronically of such Borrowing  or  prepayment,  as  the case may  be,  believed by  the Administrative Agent in good faith to  be from  a Responsible Officer of the Administrative Borrower.       Section 2.03                Letters of Credit.          (a)    Subject  to  the  terms  and  conditions  set  forth  herein,  any  Issuing  Bank,  in  reliance  on  the agreements  of  the  Lenders  set  forth  in  Section  2.03(d),  agrees to  issue  trade  and  standby  Letters  of  Credit                                                   -76

 

 denominated  in  Dollars  or  another  Available  Currency  for  the  account  of  any  Borrower,  or  the  account  of  such  Borrower  for  the  benefit  of  any  Restricted  Subsidiary,  in  each case,  on  any  Business  Day  during  the  applicable  Availability  Period in such form as may be approved from time to time by such Issuing Bank; provided, that no  Issuing Bank shall have any obligation to issue any Letter of Credit if, after giving effect to such issuance, (i) the LC  Exposure with respect to Letters of Credit would exceed the LC Sublimit, (ii) the Total Revolving Credit Exposure  would exceed the Line Cap at such time, or (iii) such Letter of Credit is to be issued in any currency other than  Dollars.  Additionally, no Issuing Bank shall be under any obligation to issue or renew any Letter of Credit if the  Letter of Credit is to be denominated in a currency other than Dollars.  Subject to the terms and conditions set forth  herein, the Administrative Borrower may request the issuance of Letters of Credit for the benefit of any Borrower or  applicable Restricted Subsidiary, in a form reasonably acceptable to the applicable Issuing Bank, at any time and  from time to time during the Availability Period (but not later than the date that is three (3) Business Days prior to  the Maturity Date, unless Cash Collateralized or backstopped on terms reasonably acceptable to the Issuing Bank  and the Administrative Agent)); provided, further, that, notwithstanding anything to the contrary herein, no Issuing  Bank shall have any obligation to issue any Letter of Credit if the issuance of such Letter of Credit would violate one  or more policies of such Issuing Bank applicable to letters of credit generally.  In the event of any inconsistency  between the terms and conditions of this Agreement and the terms and conditions of the LC Application or other  agreement  submitted  by  the  Administrative  Borrower  to,  or  entered  into  by  the  applicable  Borrower  with,  the  applicable Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.  Any purported grant of a security interest in any LC Document shall be null and void.          (b)    To  request  the  issuance  of  a  Letter  of  Credit  (or  the  amendment,  renewal  or  extension  of  an outstanding Letter of Credit), the Administrative Borrower shall hand deliver or fax (or transmit electronically if (i) Bank of America, N.A. is the applicable Issuing Bank or (ii) arrangements for doing so have been approved by any other  applicable  Issuing  Bank)  to  the  applicable  Issuing  Bank  and  the  Administrative  Agent  (at  least  three  (3) Business  Days  (or  such  shorter  period  as  may  be  agreed  by  the  applicable  Issuing  Bank  and  the  Administrative Agent)  in  advance  of  the  requested  date  of  issuance,  amendment,  renewal  or  extension)  a  notice  requesting  the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the  date of issuance, amendment,  renewal  or extension  (which shall  be a Business  Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section 2.03), the amount and currency of such Letter of Credit, the applicable Borrower with respect to such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit.  If requested by an Issuing Bank, the Administrative Borrower also shall submit a LC 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 Administrative Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (A) the LC Exposure with respect to Letters of Credit shall not exceed the LC Sublimit, (B) the Total Revolving Credit Exposure shall not exceed the sum of the Total Revolving Credit Commitments at such time and (C) the Total Revolving Credit Exposure shall not exceed the Line Cap at such time.          (c)    Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) (A) with respect to any standby Letter of Credit, the date that is one (1) year after the date of issuance of such standby Letter of Credit (or, in the case of any renewal or extension thereof, the date that is one (1) year after the date of such renewal or extension) and (B) with respect to any trade Letter of Credit, the date that is one hundred eighty (180) days after the date of issuance of such trade Letter of Credit and (ii) the date that is three (3) Business Days prior to the Maturity Date (unless other provisions or arrangements reasonably satisfactory to the applicable Issuing Bank shall have been made with respect to such Letter of Credit).  If the Administrative Borrower so requests in any notice requesting  the  issuance  of  a  Letter  of  Credit,  the  applicable  Issuing  Bank  shall  issue  a  Letter  of  Credit  that  has automatic  renewal  provisions  (each,  an  “Auto  Renewal  Letter  of  Credit”); provided,  that  the  Administrative  Borrower shall be required to make a specific request to the applicable Issuing Bank for any such renewal.  Once an  Auto Renewal Letter of Credit has been issued, the Lenders shall be deemed to have authorized the renewal of such  Letter of Credit at any time to an expiry date not later than the earlier of (i) the date that is one (1) year from the date  of such renewal (or such longer period as may be agreed by the applicable Issuing Bank three (3) Business Days  prior to the Maturity Date (unless other provisions or arrangements reasonably satisfactory to the applicable Issuing  Bank shall have been made with respect to such Letter of Credit); provided, that the applicable Issuing Bank shall  not permit any such renewal if such Issuing Bank has determined that it would have no obligation at such time to                                                   -77

 

 issue such Letter of Credit in its renewed form under the terms hereof (by reason of the provisions of Section 4.02 or  otherwise).          (d)    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, the applicable Issuing Bank hereby  grants  to  each  Lender  (with  respect  to  each  Letter  of  Credit),  and  each Lender  hereby acquires  from the applicable  Issuing  Bank,  a  participation  in  such  Letter  of  Credit  equal  to  such  Lender’s  Pro  Rata  Share  of  the aggregate  amount  available  to  be  drawn  under  such  Letter  of Credit.  In consideration and in furtherance of the foregoing, (A) each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the applicable Issuing Bank, such Lender’s Pro Rata Share of each LC Disbursement with respect to a Letter of Credit made by such Issuing Bank, in Dollars, and not reimbursed by the applicable Borrower on the date due as provided in paragraph (e) of this Section 2.03, or of any reimbursement payment required to be refunded to the applicable Borrower for any reason in respect thereof.  Each Lender acknowledges and agrees that its obligation to  acquire  participations  pursuant  to  this  Section  2.03(d)  in  respect  of  Letters  of  Credit  and  such  Lender’s obligations  under  Section  2.03(e)  are  absolute  and  unconditional  and  shall  not  be  affected  by  any  circumstance including  (i) any setoff, counterclaim,  recoupment,  defense  or other right that such Lender may have  against the applicable Issuing Bank, the applicable Borrower or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other conditions specified in Article IV, (iii) any adverse change in the condition (financial or otherwise) of the applicable Borrower, (iv) any breach of this Agreement or any other Loan Document by the Borrowers, any other Loan Party or any other Lender or any reduction in or termination of the Revolving Credit Commitments or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.          (e)    If  any  Issuing  Bank  shall  make  any  LC  Disbursement  in  respect  of  a  Letter  of  Credit,  the applicable Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement, in the same currency as the LC Disbursement, not later than 2:00 p.m., New York City time, on the Business Day that the Administrative Borrower receives notice that such LC Disbursement is made (or, if the Administrative Borrower receives such notice after 12:00 noon, New York City time, not later than 2:00 p.m.,  New York City time on the Business Day immediately following the day that the Administrative Borrower receives  such notice); provided, that (if the conditions of Sections 4.02(a), (b) and (d) are satisfied) the applicable Borrower shall have the absolute and unconditional right to require that such payment be financed with a Borrowing of Base Rate  Loans,  in  each  case  in  an  equivalent  amount  and,  to  the  extent  so  financed,  the  applicable  Borrower’s obligation to make such payment shall be discharged and replaced by the resulting Revolving Credit Borrowing.  If the  applicable  Borrower  fails  to  make  such  payment  when  due,  or  finance such  payment  in accordance with the proviso to the preceding sentence, the applicable Issuing Bank shall promptly notify the Administrative Agent of the applicable LC Disbursement and the Administrative Agent shall promptly notify each Lender of the applicable LC Disbursement, the payment then due from the applicable Borrower in respect thereof and such Lender’s Pro Rata Share thereof.  Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Pro Rata Share of the payment then due from the applicable Borrower by wire transfer of immediately available funds to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders not later than 3:00 p.m., New York City time, on the date such notice is received (or, if such Lender shall have received such notice later than 1:00 noon, New York City time on such day, not later than 10:00 a.m., New York City time, on  the  immediately  following  Business  Day),  and  the Administrative Agent  shall promptly  pay  to  the applicable Issuing  Bank the amounts so received by it from the Lenders.  Promptly following receipt by the Administrative Agent  of  any  payment  from  the  applicable  Borrower  pursuant  to  this  paragraph,  the  Administrative  Agent  shall distribute such payment to the applicable Issuing Bank or, to the extent that Lenders have made payments pursuant to this paragraph to reimburse such Issuing Bank, then to such Lenders and such Issuing Bank as their interests may appear.   Any  payment  made  by  a  Lender  pursuant  to  this  paragraph  to  reimburse  any  Issuing  Bank  for  any  LC Disbursement (other than the funding of Base Rate Loans or Eurocurrency Rate Loans as contemplated above) shall not  constitute  a  Loan  and  shall  not  relieve  the  applicable  Borrower  of  its  obligation  to  reimburse  such  LC  Disbursement.   If  any  Lender  shall  not  have  made  its  Pro  Rata  Share  of  an  LC  Disbursement  available  to  the  Administrative Agent as provided above, such Lender and the applicable Borrower severally agree to pay interest on  such amount, for each day from and including the date such amount is required to be paid in accordance with this  Section 2.03(e) to but excluding the date such amount is paid, to the Administrative Agent for the account of the  applicable Issuing Bank at (i) in the case of the Borrowers, a rate per annum equal to the interest rate applicable to                                                   -78

 

 Base Rate Loans and (ii) in the case of such Lender, for the first such day, the Federal Funds Rate, and for each day  thereafter, the Base Rate.          (f)    Each Borrower’s obligation to reimburse LC Disbursements as provided in Section 2.03(e) and each Lender’s obligations under paragraphs  (d)  and (e) of  this Section 2.03  shall be absolute,  unconditional  and irrevocable,  and  shall  be  performed  strictly  in  accordance  with  the  terms  of  this  Agreement  under  any  and  all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement,  or  any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the applicable 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, (iv) any adverse change in the exchange rate or  in  the  availability  of  an  Available  Currency  to  any  Borrower  or  any  of  the  Restricted  Subsidiaries  or  in  the relevant currency markets generally, or (v) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 2.03, constitute a legal or equitable discharge of, or provide a right of setoff against, each Borrower’s obligations hereunder.  None of the Administrative Agent, the Lenders or the Issuing Banks, or any of their respective Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating  to  any  Letter  of  Credit  (including  any  document  required  to  make  a  drawing  thereunder),  any  error  in interpretation of technical terms or any consequence arising from causes beyond the control of the applicable Issuing Bank; provided, that the provisions of this Section 2.03(f) shall not be construed to excuse the applicable Issuing Bank  from  liability  to  any  Borrower  to  the  extent  of  any  direct  damages  (as  opposed  to  indirect,  consequential, special  and  punitive  damages,  claims  in  respect  of  which  are  hereby  waived  by  such  Borrower  to  the  extent permitted by applicable law) suffered by such Borrower that are caused by 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, bad faith or willful misconduct on the part of any Issuing Bank (as finally determined by a court of competent jurisdiction), the applicable 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 material compliance with the terms of a Letter of Credit, the applicable Issuing Bank may, in its sole discretion, in good faith 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)    Each Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit issued by such Issuing Bank.  Each Issuing Bank shall promptly  notify  the  Administrative  Agent  and  the  Administrative  Borrower  electronically  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 applicable Borrower of its obligation to reimburse  such Issuing Bank and the Lenders with respect to any such LC Disbursement.          (h)     If any Issuing Bank shall make any LC Disbursement, then, unless the applicable Borrower 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 applicable Borrower reimburses such LC Disbursement, at the rate per annum equal to the Base Rate; provided,  that, if the applicable Borrower fails to reimburse such LC Disbursement, including by requiring that such payment  be financed with a Base Rate Loan pursuant to paragraph (e) of this Section 2.03, then Section 2.08(b) shall apply.  Interest  accrued  pursuant  to  this  paragraph  shall  be  for  the  account  of  the  applicable  Issuing  Bank,  except  that  interest accrued on and after the date of payment by any Lender pursuant to paragraph (e) of this Section 2.03 to  reimburse such Issuing Bank shall be for the account of such Lender to the extent of such payment.          (i)    An  Issuing  Bank  may  resign  upon  thirty  (30)  days’  prior  written  notice  to  the  Administrative Borrower and the Administrative Agent.  An Issuing Bank may be replaced at any time by written agreement among the  Borrowers,  the  Administrative  Agent,  the  replaced  Issuing  Bank  (provided,  that  no  consent  of  the  replaced Issuing  Bank  will  be  required  if  it  has  no  Letters  of  Credit  or  Reimbursement  Obligations  with  respect  thereto                                                  -79

 

 outstanding)  and  the  successor  Issuing  Bank.   The  Administrative  Agent  shall  notify  the  Lenders  of  any  such  resignation or replacement  of such  Issuing Bank.   At the time any such resignation or replacement shall become  effective, the Borrowers shall pay all unpaid fees in respect of the Revolving Credit Facility, in each case, accrued  for the account of the replaced Issuing Bank pursuant to Section 2.09(d).  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  resignation  or  replacement  of  an  Issuing  Bank  hereunder, the resigned or replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights  and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such  replacement, but shall not be required to renew existing Letters of Credit or issue additional Letters of Credit.          (j)    If any Event of Default under Section 8.01(f) with respect to the Parent Borrower or any Borrower shall occur and be continuing or if the Loans have been accelerated pursuant to Section 8.02 as a result of any Event of Default, on the Business Day that the Administrative Borrower receives notice from an Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure representing greater than 50.0% of the total LC Exposure), in each case, demanding the deposit of Cash Collateral pursuant to this paragraph, the applicable Borrower, shall deliver Cash Collateral to the Administrative Agent, for the benefit of the  applicable Lenders, an  amount in cash equal to 102% of  the applicable LC Exposure as of such date.  Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the Letter of Credit  obligations  (including  related  fees  and  expenses)  of  the  applicable  Borrower  under  this  Agreement.   The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account.  Other than any interest earned on the investment of such deposits, which investments shall be made in Cash  Equivalents  at  the  option  and  reasonable  discretion  of  the  Administrative  Agent  and  at  the  applicable Borrower’s risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall  accumulate  in  such  account.   Moneys  in  such  account  shall  be  released  by  the  Administrative  Agent  to be applied by the Administrative Agent to reimburse the applicable Issuing Bank for LC Disbursements for which it has not been reimbursed and to pay all fees and expenses relating to Letters of Credit that were not otherwise paid when due  and,  to  the  extent  not  so  applied,  shall  be  held  for  the  satisfaction  of  the  reimbursement  obligations  of  the applicable  Borrower  for  the  applicable  LC  Exposure  at  such  time  or,  if  the  maturity  of  the  Loans  has  been accelerated (but subject to the consent of Lenders with LC Exposure representing greater than 50.0% of the total LC Exposure),  be  applied  to  satisfy  other  obligations  of  such  Borrower  under  this  Agreement.   If  any  Borrower  is required to provide an amount of Cash Collateral hereunder as a result of the occurrence of an Event of Default specified above, such amount (to the extent not applied as aforesaid) shall be returned to such Borrower within two (2) Business Days after such Event of Default has been cured or waived (unless the Revolving Credit Commitments have been terminated and the Obligations have been accelerated, in each case in accordance with Section 8.02).          (k)    If the Maturity Date of any Class of Revolving Credit Commitments occurs prior to the expiration  of any Letter of Credit, then (i) if one or more other Classes of Revolving Credit Commitments in respect of which  the Maturity Date shall not have occurred are then in effect and such Letter of Credit would otherwise be available  under such Class of Revolving Credit Commitments, such Letter of Credit shall automatically be deemed to have  been issued (including for purposes of the obligations of the Lenders to purchase participations therein and to make  payments in respect thereof pursuant to Sections 2.03(d) and (e)) under (and ratably participated in by the Lenders  pursuant to) the Revolving Credit Commitments in respect of which the Maturity Date shall not have occurred up to  an  aggregate  amount  not  to  exceed  the  aggregate  amount  of  the  unutilized  Revolving  Credit  Commitments  thereunder  at  such  time  (it  being  understood  that  no  partial  face  amount  of  any  Letter  of  Credit  may  be  so  reallocated) and (ii) to the extent not reallocated pursuant to the immediately preceding clause (i), the applicable  Borrower shall Cash Collateralize any such Letter of Credit in accordance with Section 2.03(j). For the avoidance of  doubt, commencing on the Maturity Date of any Class of Revolving Credit Commitments, the sublimit for Letters of  Credit  under any  Class of Revolving Credit Commitments that has not so then matured shall be as agreed in the  relevant Extension Amendment with the applicable Lenders.          (l)     If  the  Maturity  Date  occurs  prior  to  the  expiration  of  any  Letter  of  Credit,  then  the  applicable Borrower shall Cash Collateralize any such Letter of Credit in accordance with Section 2.03(j).                                                   -80

 

        (m)    If any LC Exposure exists at the time a Lender becomes a Defaulting Lender then:                 (i)     all or any part of the LC Exposure of such Defaulting Lender shall be reallocated among         the non-Defaulting Lenders in accordance with their respective Pro Rata Share in respect of the Revolving         Credit  Facility,  but  only  to  the  extent  (A)  the  sum  of  all  non-Defaulting  Lenders’  Revolving  Credit         Exposure  plus  such  Defaulting  Lender’s  LC  Exposure  does  not  exceed  the  total  of  all  non-Defaulting         Lenders’ Revolving Credit Commitments and (B) the Revolving Credit Exposure of each non-Defaulting         Lender after giving effect to such reallocation does not exceed the Revolving Credit Commitment of such         non-Defaulting Lender;                 (ii)    if the reallocation described in clause (i) above cannot, or can only partially, be effected,         each Borrower shall, within three (3) Business Days following notice by the Administrative Agent, Cash         Collateralize for the benefit of each applicable Issuing Bank in accordance with Section 2.03(j) only such         Borrower’s obligations corresponding to such Defaulting Lender’s LC Exposure (after giving effect to any         partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 8.02         for so long as such LC Exposure is outstanding;                 (iii)   if a Borrower Cash Collateralizes any portion of such Defaulting Lender’s LC Exposure         pursuant to clause (ii) above, such Borrower shall not be required to pay any fees to such Defaulting Lender         pursuant to Section 2.09(d) with respect to such Defaulting Lender’s LC Exposure during the period such         Defaulting Lender’s LC Exposure is Cash Collateralized except to the extent of such fees that became due         and  payable  by  such  Borrower  prior  to  the  date  such  Lender  became  a  Defaulting  Lender  (it  being         understood  that  any  Cash  Collateral  provided  pursuant  to  this  Section  2.03  shall  be  released  promptly         following the termination of the Defaulting Lender status of the applicable Lender);                 (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  2.09(c)  and  (d)  shall  be  adjusted  in         accordance with such non-Defaulting Lenders’ Pro Rata Share; 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,  (A)  without  prejudice  to  any  rights  or         remedies of any Issuing Bank or any other Lender hereunder, all fees payable under Section 2.09(d) with         respect to such Defaulting Lender’s LC Exposure shall be payable to each applicable Issuing Bank until and         to the extent that such LC Exposure is reallocated and/or Cash Collateralized and (B) the applicable Issuing         Bank will  have no obligation to issue new Letters of Credit, or to extend or renew existing Letters of Credit         to  the  extent  LC  Exposure  would  exceed  the  non-Defaulting  Lenders’  Revolving  Credit  Commitments,         unless  such  Borrower’s  obligations  corresponding  to  such  Defaulting  Lender’s  LC  Exposure  is  Cash         Collateralized to the Issuing Bank’s reasonable satisfaction.          (n)    Schedule 1.01F contains a schedule of certain letters of credit issued prior to the Closing Date by Bank of America, N.A. for the account of the Beta Entities and the Omega Entities. On the Closing Date (i) such letters of credit, to the extent outstanding, shall be deemed to be Letters of Credit issued pursuant to this Section 2.03  for  the  account  of  the  Borrowers,  (ii)  the  face  amount  of such  letters  of  credit  shall  be  included  in  the calculation  of  LC  Obligations  and  (iii)  all  liabilities  of  the Borrowers  with  respect  to  such letters  of credit  shall constitute Obligations.       Section 2.04                Swing Line Loans.          (a)    Subject to the terms and conditions set forth herein, the Swing Line Lender may in its discretion, and  in  reliance  upon  the  agreements  of  the  other  Lenders  set  forth  in  this Section  2.04, make available loans in Dollars to the Borrowers (the “Swing Line Loans”) from time to time during the Availability Period in an aggregate principal amount  at any time outstanding that will not result in (i) the aggregate principal amount of outstanding Swing Line Loans exceeding the Swing Line Sublimit or (ii) the Total Revolving Credit Exposure exceeding the Line Cap at such time; provided, further, that the Swing Line Lender shall not be required to make a Swing Line                                                   -81

 

 Loan  to  refinance  an  outstanding  Swing  Line  Loan.   Within  the  foregoing  limits  and  subject  to  the  terms  and  conditions set forth herein, the Borrowers may borrow, prepay and reborrow Swing Line Loans.  To request a Swing  Line Loan, the Administrative Borrower shall notify the Administrative Agent of such request electronically in the  form of a Swing Line Loan Notice, not later than 2:00 p.m., New York City time, on the day of a proposed Swing  Line Loan.  Each such Swing Line Loan Notice shall be irrevocable and shall specify the requested date (which shall  be a Business Day) and amount of the requested Swing Line Loan.  The Administrative Agent will promptly advise  the Swing Line Lender of any such Swing Line Loan Notice received from the Administrative Borrower.  The Swing  Line  Lender  shall  make  each  Swing  Line  Loan  available  to  the  Borrowers  by  means  of  a  credit  to  the  account  identified  in  the  Swing  Line  Loan  Notice  (including,  in  the  case  of  a  Swing  Line  Loan  made  to  finance  the  reimbursement of a LC Disbursement, by remittance to the applicable Issuing Bank, and in the case of repayment of  another Loan or fees or expenses as provided by Section 2.04(c), by remittance to the Administrative Agent to be  distributed to the Lenders) on the requested date of such Swing Line Loan.          (b)    Settlement of Swing Line Loans among Lenders and Administrative Agent shall take place on a date determined from time to time by Administrative Agent (but at least weekly, unless the settlement amount is less than $5,000,000), on a pro rata basis in accordance with the settlement report delivered by Administrative Agent to the Lenders.  Between settlement dates, Administrative Agent may in its discretion apply payments on Revolving Credit  Loans  to  Swing  Line  Loans,  regardless  of  any  designation  by  Administrative  Borrower  or  any  provision herein to the contrary.          (c)    In addition, the Swing Line Lender may by written notice given to the Administrative Agent not later than 4:00 p.m., New York City time, on any Business Day require the Lenders to acquire participations on such Business  Day  in  all  or  a  portion  of  the  Swing  Line  Loans  outstanding.   Such  notice  shall  specify  the  aggregate amount  of  Swing  Line  Loans  in  which  Lenders  will  participate.  Promptly  upon  receipt  of  such  notice,  the Administrative  Agent  will  give  notice  thereof  to  each  Lender,  specifying  in  such  notice  such  Lender’s  Pro  Rata Share of such Swing Line Loan or Loans.  Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of the Swing Line Lender, such Lender’s  Pro  Rata  Share  of  such  Swing  Line  Loan  or  Loans.   Each  Lender  acknowledges  and  agrees  that  its obligation to acquire participations in Swing Line Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or termination of the Revolving Credit Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Each Lender shall comply with its obligation under this paragraph by  wire transfer of  immediately  available funds,  in the same manner as provided in Section 2.12 with respect to Loans made by such Lender (and Section 2.12 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Swing Line Lender the amounts so received by it from the Lenders.  The Administrative Agent shall notify the Administrative Borrower of any participations in any Swing Line Loan acquired pursuant to this paragraph.  Any amounts received by the Swing Line Lender from the Borrowers (or other party on behalf of any Borrower) in respect of a Swing Line Loan after receipt by the Swing Line  Lender  of  the  proceeds  of  a  sale  of  participations  therein  shall  be  promptly  remitted  to  the  Administrative Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent to the Lenders that shall have made their payments pursuant to this paragraph and to the Swing Line Lender, as their interests may appear; provided that any such payment so remitted shall be repaid to the Swing Line Lender or  the  Administrative  Agent,  as  applicable,  if  and  to  the  extent  such  payment  is  required  to  be  refunded  to  any Borrower for any reason.  The purchase of participations in a Swing Line Loan pursuant to this paragraph shall not relieve the Borrowers of any default in the payment thereof.       Section 2.05                Prepayments.          (a)    Optional.  (i)  The Borrowers may, upon notice to the Administrative Agent by the Borrowers, at any time or from time to time voluntarily prepay any Class or Classes of Revolving Credit Loans of any Class or Classes in whole or in part without premium or penalty (other than as required by Section 3.05); provided that (1) such notice must be received by the Administrative Agent not later than 11:30 a.m. (A) three (3) Business Days prior to any date of prepayment of Eurocurrency Rate Loans and (B) on the date of prepayment of Base Rate Loans; (2) any  prepayment  of Eurocurrency Rate Loans shall  be in a minimum principal amount of $1,000,000, or a whole multiple of $500,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding; and  (3)  any  prepayment  of  Base  Rate  Loans  shall  be  in  a  minimum  principal  amount  of  $500,000 or  a  whole                                                  -82

 

 multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding.  Each such notice shall specify the date and amount of such prepayment and the Class(es) and Type(s) of Loans to be  prepaid.  The Administrative Agent will promptly notify each Appropriate Lender of its receipt of each such notice,  and of the amount of such Lender’s Pro Rata Share or other applicable share provided for under this Agreement of  such  prepayment.   If such  notice is given  by the  Borrowers, the Borrowers  shall make such  prepayment  and the  payment amount specified in such notice shall be due and payable on the date specified therein.  Any prepayment of  a  Eurocurrency  Rate  Loan  shall  be  accompanied  by  all  accrued  interest  thereon,  together  with  any  additional  amounts  required  pursuant  to  Section  3.05.   In  the  case  of  each  prepayment  of  the  Loans  pursuant  to  this  Section 2.05(a), the Borrowers may in its sole discretion select the Class or Classes of Borrowing or Borrowings  (and the order of maturity of principal payments) to be repaid, and such payment shall be paid to the Appropriate  Lenders  in  accordance  with  their  respective  Pro  Rata  Shares  or other  applicable  share  provided  for  under  this  Agreement; provided  that  optional  prepayments  shall  be  applied  (i)  first,  to  accrued  interest  on  the  amount  of  Revolving  Credit  Loans  prepaid,  and  (ii)  second,  to  the  outstanding  principal  amount  of  any  class  of  Revolving  Credit  Loans.  Notwithstanding anything to the contrary in this Agreement, (x) after any Extension, the Borrower  may voluntarily prepay  any Borrowing  of any  Class of non-extended Revolving  Credit Loans (and terminate the  related Revolving Credit Commitment) pursuant to which the related Extension Offer was made or may voluntarily  prepay  any  Borrowing  of  any  Extended  Revolving  Credit  Loans  (and  terminate  the  related  Extended  Revolving  Credit Commitment) pursuant to which the related Extension Offer was made without any obligation to voluntarily  prepay  the  corresponding  non-extended  Revolving  Credit  Loans  and  (y)  after  the  incurrence  or  issuance  of  any  Revolving Credit Loans pursuant to any Incremental Revolving Credit Commitments, the Borrower may voluntarily  prepay (and terminate the related Commitment with respect to) any Borrowing of any other Revolving Credit Loans  without  any  obligation  to  voluntarily  prepay (or terminate the related  Commitment  with respect to) any Class  of  Loans issued under any Incremental Revolving Credit Commitments, or may voluntarily prepay (and terminate the  related Commitment with respect to) any Borrowing of any Class of Loans issued under any Incremental Revolving  Credit Commitments without any obligation to voluntarily prepay (or terminate the related Commitment with respect  to) any Revolving Credit Loans.        (ii)    The  Borrowers  may,  upon  notice  to  the  Swing  Line  Lender  (with  a  copy  to  the  Administrative  Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in part without premium  or penalty; provided that (1) such notice must be received by the Swing Line Lender and the Administrative Agent  not later than 1:00 p.m. on the date of the prepayment, and (2) any such prepayment shall be in a minimum principal  amount of $100,000 or a whole multiple of $50,000 in excess thereof or, if less, the entire principal amount thereof  then outstanding.  Each such notice shall specify the date and amount of such prepayment.  If such notice is given by  the Borrowers, the Borrowers shall make such prepayment and the payment amount specified in such notice shall be  due and payable on the date specified therein.        (iii)   Notwithstanding anything to the contrary contained in this Agreement, the Borrowers may rescind  (or delay the date of prepayment identified in) any notice of prepayment under Section 2.05(a)(i) or 2.05(a)(ii) if  such  prepayment  would  have  resulted  from  a  refinancing  of  all  or  a  portion  of  the  applicable  Facility  or  the  occurrence  of  another  event,  which  refinancing  or  other  event  shall  not  be  consummated  or  shall  otherwise  be  delayed; provided that the Borrowers shall pay to the applicable Lenders all amounts payable under Section 3.05 in  connection with such rescission.          (b)     Mandatory.  (i) If for any reason, at any time the Total Revolving Credit Exposure exceeds the  Line Cap, the applicable Borrowers shall within one (1) Business Day after receipt of written notice thereof from the  Administrative  Agent  prepay  Revolving  Credit  Loans  and/or  Cash Collateralize  Letters  of  Credit  (in  accordance  with Section 2.03(j)) in an aggregate amount equal to the amount that Total Revolving Credit Exposure exceeds the  Line Cap.        (ii)    Amounts to be applied pursuant to this Section 2.05(b) shall be applied to reduce Revolving Credit  Exposure (it being understood that Revolving Credit Exposure shall be deemed reduced to the extent of any Cash  Collateralization of LC Exposure solely for purposes of determining whether any further mandatory prepayment is  required); provided that to the extent that any Revolving Credit Exposure is reduced by prepaying Revolving Credit Loans, such amounts shall be applied (A) first, to reduce outstanding Revolving Credit Loans consisting of Base Rate  Loans  and  (B)  any  amounts  remaining  after  each  such  application  shall  be  applied  to  prepay  outstanding Revolving  Credit  Loans  consisting  of  Eurocurrency  Rate  Loans  in  a  manner  that  minimizes  the  amount  of  any                                                  -83

 

payments required to be made by the Borrowers pursuant to Section 3.05.  No permanent reduction of Revolving Credit Commitments will be required in connection with any prepayment pursuant to this Section 2.05.         (c)     Interest Funding Losses, Etc.  (i)  Except to the extent otherwise agreed by each Lender so being prepaid, all prepayments of Loans (other than any Revolving Credit Loan that is a Base Rate Loan and any Swing Line Loan) shall be accompanied by all accrued and unpaid interest thereon to but not including the date of such prepayment, together with, in the case of any such prepayment of a Eurocurrency Rate Loan on a date prior to the last day of an Interest Period therefor, any amounts owing in respect of such Eurocurrency Rate Loan pursuant to Section 3.05.       (ii)    Notwithstanding any of the other provisions of this Section 2.05, so long as no Event of Default shall have occurred and be continuing, if any prepayment of Eurocurrency Rate Loans is required to be made under this Section 2.05,  prior to the  last  day of the Interest Period therefor, in lieu of making any payment pursuant to this Section 2.05 in respect of any such Eurocurrency Rate Loan prior to the last day of the Interest Period therefor, the Borrowers  may,  in  its  sole  discretion,  irrevocably  deposit  an  amount  sufficient  to  make  any  such  prepayment otherwise required to be made thereunder together with accrued interest to the last day of such Interest Period into a Cash Collateral Account until the last day of such Interest Period, at which time the Administrative Agent shall be authorized (without any further action by or notice to or from any Borrower or any other Loan Party) to apply such amount to the prepayment of such Loans in accordance with this Section 2.05.  Upon the occurrence and during the continuance of any Event of Default, the Administrative Agent shall also be authorized (without any further action by  or  notice  to  or  from  the  Borrowers  or  any  other  Loan  Party) to  apply  such  amount to the prepayment  of the outstanding Loans in accordance with the relevant provisions of this Section 2.05.  Such deposit shall be deemed to be  a  prepayment  of  such  Loans  by  the  Borrowers  for  all  purposes  under  this  Agreement  at  the  time  of  such prepayment.      Section 2.06                Termination or Reduction of Commitments.         (a)    Optional.   The  Borrowers  may,  upon  written  notice  to  the  Administrative  Agent,  terminate the unused Commitments of any Class, or from time to time permanently reduce the unused Commitments of any Class, in each case without premium or penalty; provided that (i) any such notice shall be received by the Administrative Agent at least 11:00 a.m. three (3) Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $1,000,000, or any whole multiple of $500,000 in excess thereof or, if less, the entire amount thereof, (iii) any termination or permanent reduction of any Revolving Credit Commitments pursuant to this Section 2.06(a) shall be applied as directed by the Borrower, including as to any Class of Extended Revolving Credit Commitments or existing Revolving Credit Commitments (including any Incremental Revolving Credit  Commitments),  (iv)  if, after giving effect to any reduction of  the Revolving  Credit  Commitments, the LC Sublimit or the Swing Line Sublimit exceeds the amount of the Revolving Credit Facility, such sublimit shall be automatically  reduced  by  the  amount  of  such  excess  and  (v)  in  any  event,  the  applicable  Borrower  shall  not terminate or reduce the Revolving Credit Commitments if, after giving effect to any concurrent prepayment of the Revolving Credit Loans in accordance with Section 2.05, the Total Revolving Credit Exposure would exceed the Line Cap at such time.  Notwithstanding the foregoing, the Administrative Borrower may rescind or postpone any notice of termination of any Commitments prior to the effectiveness of such termination if such termination would have  resulted  from  a  refinancing  of  all  or  a  portion  of  the  applicable  Facility  or  other  conditional  event,  which refinancing or other conditional event shall not be consummated or otherwise shall be delayed.  Except as provided above, the amount of any such Revolving Credit Commitment reduction shall not be applied to the LC Sublimit or the Swing Line Sublimit unless otherwise specified by the Borrowers.         (b)    Mandatory.  The Revolving Credit Commitment of each Revolving Credit Lender of a Class shall automatically  and  permanently  terminate  on  the  Maturity  Date  for  such  applicable  Class  of  Revolving  Credit Commitments; provided that (x) the foregoing shall not release any Revolving Credit Lender from any liability it may have for its failure to fund Revolving Credit Loans, LC Credit Extensions or participations in Swing Line Loans that were required to be funded by it on or prior to such Maturity Date and (y) the foregoing will not release any Revolving Credit Lender from any obligation to fund its portion of LC Credit Extensions or participations in Swing Line Loans with respect to Letters of Credit issued or Swing Line Loans made prior to such Maturity Date, in each case,  other  than  to  the  extent  such  participations  have  been  reallocated  pursuant  to  the  terms  hereof.   The commitments  of  the  Issuing  Banks  to  issue,  amend,  renew  or  extend  any  Letters  of  Credit  shall  automatically                                                 -84

 

 terminate on the earlier to occur of (i) the termination of the Revolving Credit Commitments and (ii) the date that is  three (3) Business Days prior to the applicable Maturity Date.          (c)    Application of Commitment Reductions; Payment of Fees.   The  Administrative  Agent  will promptly  notify  the  Appropriate  Lenders  of  any  termination  or  reduction  of  unused  portions  the  unused Commitments of any Class under this Section 2.06.  Upon any reduction of unused Commitments of any Class, the Commitment  of  each  Lender  of  such  Class  shall  be  reduced by  such  Lender’s Pro  Rata Share of  the amount  by which such Commitments are reduced (other than the termination of the Commitment of any Lender as provided in Section 3.07).  All commitment fees accrued until the effective date of any termination of the Commitments of any Facility shall be paid on the effective date of such termination.       Section 2.07                Repayment of Loans.          (a)    [Reserved].          (b)    Revolving Credit Loans.  The Borrowers shall repay to the Administrative Agent for the ratable account  of  the  Appropriate  Lenders  on  the  Maturity  Date  for  any  Class  of  Revolving  Credit  Commitments  the aggregate outstanding principal amount  of all  Revolving  Credit Loans  made in respect of  such Revolving Credit Commitments.          (c)    Swing Line Loans.  The Borrowers shall repay the aggregate principal amount of each Swing Line Loan on the earlier to occur of (i) thirty (30) days after such Loan is made and (ii) the Latest Maturity Date for the Revolving Credit Commitments.       Section 2.08                Interest.          (a)    Subject to the provisions of Section 2.08(b), (i) each Eurocurrency Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Eurocurrency Rate for such Interest Period plus the Applicable Rate; (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate; and (iii) each Swing Line Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate for Revolving Credit Loans made under the Initial Revolving Credit Commitments.          (b)    During  the  continuance  of  an  Event  of  Default  under  Section 8.01(a),  the  Borrowers  shall  pay interest on past due amounts owing by it hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws; provided that no interest at the Default Rate shall accrue or be payable to a Defaulting Lender so long as such Lender shall be a Defaulting Lender.  Accrued and unpaid  interest  on  such  amounts  (including  interest  on  past  due  interest)  shall  be  due  and  payable  upon  written demand.          (c)    Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto  and  at  such  other  times  as  may  be  specified  herein.   Interest  hereunder  shall  be  due  and  payable  in accordance  with  the  terms  hereof  before  and  after  judgment,  and  before  and  after  the  commencement  of  any proceeding under any Debtor Relief Law.       Section 2.09                Fees.                 (a)     [Reserved].                 (b)     Agent Fees.  The Borrowers shall pay to the Agents and the Commitment Parties such         fees as shall have been separately agreed upon in writing in the amounts and at the times so specified.  Such         fees  shall  be  fully  earned  when  paid  and  shall  not  be  refundable  for  any  reason  whatsoever  (except  as         expressly agreed between the Borrowers and the applicable Agent or Commitment Party).                                                   -85

 

                (c)    Commitment Fee.  The Borrowers shall pay to the Administrative Agent for the account         of each Lender (other than any Defaulting Lenders) in accordance with its Pro Rata Share, a commitment         fee for the period from the Closing Date to but excluding the Maturity Date (or such earlier date on which         the Revolving Credit Commitments shall have expired or terminated) equal to the Commitment Fee Rate         divided by three hundred and sixty (360) days and multiplied by the number of days in the fiscal quarter         and  then multiplied  by  the  amount,  if  any,  by  which  the  Average  Facility  Balance  with  respect  to  the         Revolving Credit Facility for such fiscal quarter (or portion thereof that the Revolving Credit Commitments         are in effect) is less than the aggregate amount of the Revolving Credit Commitments; provided that if the         Revolving Credit Commitments are terminated on a day other than the first day of a fiscal quarter, then any         such fee payable for the fiscal quarter in which termination shall occur shall be paid on the effective date of         such termination and shall be based upon the number of days that have elapsed during such period.  The         foregoing  notwithstanding,  in  accordance  with  Section  2.14(b), the  applicable  lenders  may  consent  to  a         different Commitment Fee Rate to be paid pursuant to the terms of any applicable Incremental Amendment         or Extension Offer.  Accrued Commitment Fees shall be payable in arrears on the first day of each January,         April,  July  and  October  of  each  year  and  on  the  date  on  which  the  Revolving  Credit  Commitments         terminate,  commencing  on  September  30,  2019.   All  Commitment  Fees shall be payable for the actual         number of days elapsed (including the first day but excluding the last day).                 (d)     Letter of Credit Fees. (i) Each applicable Borrower agrees to pay 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         Eurocurrency Rate Loans on the average daily amount of such Lender’s LC Exposure in respect of Letters         of Credit (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period         from  and  including  the  Closing  Date  to  but  excluding  the  later of  the  date  on  which  such  Lender’s         Revolving  Credit  Commitment  terminates  and  the  date  on  which  such  Lender  ceases  to  have  any  LC         Exposure with respect to any Letters of Credit.  Each Borrower, severally but not jointly, agrees to pay to         each Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily         amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements)         attributable to the Letters of Credit issued by such Issuing Bank on account of such Borrower during the         period  from  and  including  the  Closing  Date  to  but  excluding  the  later  of  the  date  of  termination  of the         Revolving Credit Commitments and the date on which there ceases to be any LC Exposure attributable to         the Letters of Credit issued by such Issuing Bank, as well as such Issuing Bank’s standard fees with respect         to  the  issuance,  amendment,  renewal  or  extension  of  any  Letter of  Credit  or  processing  of  drawings         thereunder.   Accrued  participation  fees  and  fronting  fees  under  this  paragraph  (b)  shall  be  payable  in         Dollars on the first day of each January, April, July and October of each year and on the date on which the         Revolving Credit Commitments terminate, commencing on September 30, 2019; provided, that any such         fees  accruing  after  the  date  on  which  the  Revolving  Credit  Commitments terminate shall  be payable on         demand.  Any other fees payable to any Issuing Bank pursuant to this paragraph shall be payable within         thirty (30) days after written demand therefor.  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)       Section 2.10                Computation of Interest and Fees.          All computations of interest for Base Rate Loans (including Base Rate Loans determined by reference to  the Eurocurrency Rate) shall be made on the basis of a year of three hundred sixty-five (365) days, or three hundred  sixty-six  (366)  days,  as  applicable,  and  actual  days  elapsed.  All  other  computations  of  fees and interest shall  be  made on the basis of a three hundred  sixty (360) day year and actual days  elapsed, or,  in the case of interest in  respect of Loans denominated in an Available Currency other than Dollars as to which market practice differs from  the foregoing, in accordance with such market practice.  Interest shall accrue on each Loan for the day on which the  Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion  is paid; provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.12(a), bear interest for one (1) day.  In computing interest on any Loan, the day such Loan is made or converted to a Loan of a different Type shall be included for purposes of calculating interest on a Loan of such different Type and the date such Loan is repaid or converted to a Loan of a different Type, as the case may be, shall be excluded.  Each                                                   -86

 

 determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all  purposes, absent manifest error.       Section 2.11                Evidence of Indebtedness.          (a)    The  Credit  Extensions  made  by  each  Lender  shall  be  evidenced  by  one  or  more  accounts  or records  maintained  by  such  Lender  and  evidenced  by  one  or  more entries  in  the  Register  maintained  by  the Administrative  Agent,  acting  solely  for  purposes  of  United  States  Treasury  Regulation  Section 5f.103-1(c)  and Section 1.163-5(b) of the proposed United States Treasury Regulations, as agent for the Borrowers, in each case in the ordinary course of business.  The accounts or records maintained by the Administrative Agent and each Lender shall be prima facie evidence absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrowers and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrowers hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts  and  records  of  the  Administrative  Agent,  as  set  forth in  the  Register,  in  respect  of  such  matters,  the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender made through the Administrative Agent, the Borrowers shall execute and deliver to such Lender (through the Administrative Agent) a Note payable to such Lender, which shall evidence such Lender’s Loans in addition to such  accounts or records.  Each  Lender  may attach  schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.          (b)    In  addition  to  the  accounts  and  records  referred  to  in  Section 2.11(a),  each  Lender  and  the Administrative Agent shall maintain in accordance with its usual practice accounts or records and, in the case of the Administrative Agent, entries in the Register, evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swing Line Loans.  In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.          (c)    Entries  made  in  good  faith  by  the  Administrative  Agent  in  the  Register  pursuant  to Sections 2.11(a) and (b), and by each Lender in its account or accounts pursuant to Sections 2.11(a) and (b), shall be prima facie evidence of the amount of principal and interest due and payable or to become due and payable from the Borrowers to, in the case of the Register, each Lender and, in the case of such account or accounts, such Lender, under  this  Agreement  and  the  other  Loan  Documents,  absent  manifest  error; provided  that  the  failure  of  the Administrative Agent or such Lender to make an entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall not limit or otherwise affect the obligations of the Borrowers under this Agreement and the other Loan Documents.       Section 2.12                Payments Generally.          (a)    All payments to be made by the Borrowers shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein, all payments by the Borrowers hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the applicable Administrative Agent’s Office in Dollars and in Same Day Funds not later than 2:00 p.m. on the date specified herein.  The Administrative Agent will promptly distribute to each Appropriate Lender its Pro Rata Share (or other applicable share provided for under this Agreement) of such payment in like funds  as  received  by  wire  transfer  to  such  Lender’s  applicable Lending  Office.   All  payments  received  by  the Administrative Agent after 2:00 p.m. shall in each case be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by the Borrowers shall come due  on  a  day  other  than  a  Business  Day,  payment  shall  be  made  on  the  next  following  Business  Day,  and  such extension of time shall be reflected in computing interest or fees, as the case may be.          (b)     Unless the Borrowers or any Lender has notified the Administrative Agent, prior to the date, or in the case of any Base Rate Loans, prior to 1:00 p.m. on the date of such payment, any payment is required to be made by  it  to  the  Administrative  Agent  hereunder  (in  the  case  of  the  Borrowers,  for  the  account  of  any  Lender  or  an Issuing Bank hereunder or, in the case of the Lenders, for the account of any Swing Line Lender, Issuing Bank or                                                   -87

 

 Borrowers  hereunder),  that  the  Borrowers  or  such  Lender,  as  the  case may  be,  will  not make such  payment, the  Administrative Agent may assume that the Borrowers or such Lender, as the case may be, has timely made such  payment and may (but shall not be so required to), in reliance thereon, make available a corresponding amount to the  Person entitled thereto.  If and to the extent that such payment was not in fact made to the Administrative Agent in  Same Day Funds, then:                  (i)    if the Borrowers failed to make such payment, each Lender shall forthwith on demand         repay to the Administrative Agent the portion of such assumed payment that was made available to such         Lender in Same Day Funds, together with interest thereon in respect of each day from and including the         date such amount was made available by the Administrative Agent to such Lender to the date such amount         is repaid to the Administrative Agent in Same Day Funds at the applicable Overnight Rate from time to         time in effect; and                  (ii)   if any Lender failed to make such payment, such Lender shall forthwith on demand pay to         the  Administrative  Agent  the  amount  thereof  in  Same  Day  Funds, together  with  interest  thereon for the         period from the date such amount was made available by the Administrative Agent to the Borrowers to the         date such  amount  is  recovered by the Administrative Agent  (the “Compensation  Period”) at a rate per         annum  equal  to  the  applicable  Overnight  Rate  from  time  to  time in  effect.   When  such  Lender  makes         payment to the Administrative Agent (together with all accrued interest thereon), then such payment amount         (excluding  the  amount  of  any  interest  which  may  have  accrued  and  been  paid  in  respect  of  such  late         payment) shall constitute such Lender’s Loan included in the applicable Borrowing.  If such Lender does         not pay such amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent         may  make  a  demand  therefor  upon  the  Borrowers,  and  the  Borrowers  shall  pay  such  amount  to  the         Administrative Agent, together with interest thereon for the Compensation Period at a rate per annum equal         to the rate of interest applicable to the applicable Borrowing.  Nothing herein shall be deemed to relieve         any Lender from its obligation to fulfill its Commitment or to prejudice any rights which the Administrative         Agent or the Borrowers may have against any Lender as a result of any default by such Lender hereunder.          A written notice (including documentation reasonably supporting such request) of the Administrative Agent  to any Lender or the Borrowers with respect to any amount owing under this Section 2.12(b) shall be conclusive,  absent manifest error.          (c)    If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender  as  provided  in  the  foregoing  provisions  of  this  Article II,  and  such  funds  are  not  made  available  to  the Borrowers by the Administrative Agent because the conditions to the applicable Credit Extension set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest.          (d)    The obligations of the Lenders hereunder to make Loans and to fund participations in Letters of Credit and Swing Line Loans are several and not joint.  The failure of any Lender to make any Loan or to fund any such participation on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or purchase its participation.          (e)    Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.          (f)    Whenever any payment received by the Administrative Agent under this Agreement or any of the other Loan Documents is insufficient to pay in full all amounts due and payable to the Administrative Agent and the Lenders  or  in  respect  of  this  Agreement  and  the  other  Loan  Documents  on  any  date,  such  payment  shall  be distributed by the Administrative Agent and applied by the Administrative Agent and the Lenders in the order of priority set forth in Section 8.03.  If the Administrative Agent receives funds for application to the Obligations of the Loan Parties under or in respect of the Loan Documents under circumstances for which the Loan Documents do not specify  the  manner  in  which  such  funds  are  to  be  applied,  the  Administrative  Agent  may  (to  the  fullest  extent                                                   -88

 

 permitted by mandatory provisions of applicable Law), but shall not be obligated to, elect to distribute such funds to  each of the Lenders in accordance with such Lender’s Pro Rata Share or other applicable share provided for under  this  Agreement  of  the  sum  of  (a)  the  Outstanding  Amount  of  all Loans  outstanding  at  such  time  and  (b)  the  Outstanding  Amount  of all  LC  Obligations  outstanding at such  time,  in repayment  or prepayment  of such  of the  outstanding Loans or other Obligations then owing to such Lender.       Section 2.13                Sharing of Payments.          If, other than as expressly provided elsewhere herein or required by court order, any Lender shall obtain payment  of  any  principal  of  or  interest  on  account  of  the  Loans  made  by  it,  or  payment  in  respect  of  the participations  in  LC  Obligations  and  Swing Line Loans held by it, any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) in excess of its ratable share (or other share contemplated hereunder) thereof, such Lender shall immediately (a) notify the Administrative Agent of such fact, and (b) purchase from  the  other  Lenders  such  participations  in  the  Loans  made  by  them  and/or  such  subparticipations  in  the participations in LC Obligations or Swing Line Loans held by them, as the case may be, as shall be necessary to cause such purchasing Lender to share the excess payment in respect of any principal of or interest on such Loans or such participations, as the case may be, pro rata with each of them; provided that if all or any portion of such excess payment  is  thereafter  recovered  from  the  purchasing  Lender  under  any  of  the  circumstances  described  in Section 10.06 (including pursuant to any settlement entered into by the purchasing Lender in its discretion), such purchase shall to that extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender’s ratable share (according to the proportion of  (i)  the  amount  of  such  paying  Lender’s  required  repayment  to  (ii)  the  total  amount  so  recovered  from  the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered, without further interest thereon.  For the avoidance of doubt, the provisions of this paragraph shall not be construed to apply to (A) any payment made by the Borrowers or application of funds pursuant to and in accordance with  the express terms  of this Agreement as in effect from time to time (including the application of funds arising from the existence of a Defaulting Lender), (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant permitted hereunder, (C) [reserved], (D) in connection with a transaction pursuant to an Extension Amendment or Incremental Amendment, (E)  the  application  of  Cash  Collateral  as  provided  herein  (including  the  application  of  funds  arising  from  the existence  of  a  Defaulting  Lender)  or  (F)  non-pro  rata  payments and  repayments  permitted  pursuant  to  Section  2.16(b).  The Borrowers agree that any Lender so purchasing a participation from another Lender may, to the fullest  extent permitted by applicable Law, exercise all its rights of payment (including the right of setoff, but subject to  Section 10.09) with respect to such participation as fully as if such Lender was the direct creditor of the Borrowers  in the amount of such participation.  The Administrative Agent will keep records (which shall be conclusive and  binding in the absence of manifest error) of participations purchased under this Section 2.13 and will in each case  notify the Lenders following any such purchases or repayments.  Each Lender that purchases a participation pursuant  to  this  Section 2.13  shall  from  and  after  such  purchase  have  the  right  to  give  all  notices,  requests,  demands,  directions and other communications under this Agreement with respect to the portion of the Obligations purchased  to the same extent as though the purchasing Lender were the original owner of the Obligations purchased.          Notwithstanding anything to the contrary contained in this Section 2.13 or elsewhere in this Agreement, the  Borrower may extend the final maturity of Revolving Credit Commitments in connection with an Extension that is  permitted  under  Section 2.16  without  being  obligated  to  effect such  extensions  on  a  pro  rata  basis  among  the  Lenders (it being understood that no such extension (i) shall constitute a payment or prepayment of Revolving Credit  Loans, as applicable, for purposes of this Section 2.13. Furthermore, the Borrower may take all actions contemplated  by  Section 2.16  in  connection  with  any  Extension  (including  modifying  pricing,  amortization  and  repayments  or  prepayments), and in each  case such actions  shall be permitted, and the differing payments contemplated therein  shall be permitted without giving rise to any violation of this Section 2.13 or any other provision of this Agreement.       Section 2.14                Incremental Facilities.          (a)     At  any  time  and  from  time  to  time,  subject  to  the  terms  and  conditions  set  forth  herein,  the  Administrative Borrower may,  by notice to the Administrative Agent  (whereupon  the Administrative Agent shall  promptly  deliver  a  copy  of  such  notice  to  each  of  the  Lenders),  request  to  incur  one  or  more  increases  in  the  Revolving Credit Commitments (“Incremental Revolving Credit Commitments” or the “Incremental Facilities”);                                                  -89

 

 provided,  that  at  the  time  of  the  effectiveness  of  each  Incremental  Amendment,  no  Specified  ABL  Default  has occurred  and  is  continuing  or  shall  result  therefrom  (and,  in  connection  with  any  Incremental  Facility  to  fund  a Permitted Acquisition or permitted Investment, no Specified Event of Default shall have occurred and be continuing as  of  the  date  of  the  definitive  acquisition  agreements  for  such  Permitted  Acquisition  or  permitted  Investment entered into).  Notwithstanding anything to the contrary herein, without the consent of the Required Lenders, the aggregate principal amount of the Incremental Facilities shall not exceed $50,000,000 (which, for the avoidance of  doubt,  will be  reduced to  $25,000,000  following the  incurrence of the  2020  Incremental  Revolving Credit  Commitments on the Amendment No. 1 Effective Date).  All Incremental Revolving Commitments shall be in an  integral multiple of $250,000 and in an aggregate principal amount that is not less than $5,000,000 (or in such lesser  minimum amount agreed by the Administrative Agent); provided, that such amount may be less than the applicable  minimum amount if such amount represents all the remaining availability in respect of the Incremental Facilities.          (b)     Any  Incremental  Revolving  Commitment  shall  be  on  terms  identical  to  the  Revolving  Credit Commitments under the Revolving Credit Facility proposed to be increased thereby, including with respect to having the same Guarantors and being secured by the same Collateral on a pari passu basis with the applicable Facility  subject to such increase except that the Maturity Date of an Incremental Revolving Commitment shall be no earlier  (but  may  be  later)  than  the  Revolving  Credit  Commitments  proposed  to  be  increased.   Unless  the  Incremental  Revolving Commitment and the Revolving Credit Commitments proposed to be increased have different Maturity  Dates, such Incremental Revolving Commitment shall be deemed a Revolving Credit Commitment of the applicable  Revolving  Credit  Facility  or  both  Revolving  Credit  Facilities, as  the  case  may  be,  pursuant  to  the  applicable  Incremental  Amendment  (it  being  understood  that  an  Incremental Facility  establishing  Incremental  Revolving  Commitments will not create a separate Revolving Credit Facility and such Incremental Revolving Commitments  will  be  deemed  a  part  of  the  applicable  Revolving  Credit  Facility);  provided,  that  the  Applicable  Rate  and  the  Commitment Fee Rate, in each case applicable to the Revolving Credit Commitments and Revolving Credit Loans of  such  Revolving  Credit  Facility,  may  be  increased,  without  the  consent  of  any  Lender,  in  connection  with  the  incurrence of any Incremental Revolving Commitment such that the Applicable Rate and the Commitment Fee Rate  of such Revolving Credit Commitments are identical to those of the Incremental Revolving Commitments.          (c)     Each notice from any Borrower pursuant to this Section 2.14 shall set forth the requested amount  of  the  relevant  Incremental  Revolving  Commitments.   Any  Additional  Lenders  that  elect  to  extend  Incremental  Revolving  Commitments  shall  be  reasonably  satisfactory  to  the  Administrative  Borrower,  and,  to  the  extent  its  consent  would  be  required  with  respect  to  an  assignment  to  such  Additional  Lender  under  Section 10.07(b),  the  Administrative Agent, the Swing Line Lender and each Issuing Bank (in each case, any approval thereof not to be  unreasonably  withheld,  delayed  or  conditioned),  and,  if  not  already  a  Lender,  shall  become  a  Lender  under  this  Agreement pursuant to an Incremental Amendment.  Each Incremental Facility shall become effective pursuant to an  amendment  (each,  an  “Incremental  Amendment”)  to  this  Agreement  and,  as  appropriate,  the  other  Loan  Documents,  executed  by  the  Administrative  Borrower,  any  applicable  Borrowers,  such  Additional  Lender  or  Additional  Lenders  and  the  Administrative  Agent.   No  Incremental  Amendment  shall  require the consent  of  any  Lenders or any other Person other than the Administrative Borrower, any applicable Borrowers, the Administrative  Agent and the Additional Lenders with respect to such Incremental Amendment.  The Lenders hereby irrevocably  authorize the Administrative Agent to enter into Incremental Amendments and, as appropriate, amendments to the  other  Loan  Documents  as  may  be  necessary  in  order  to  establish new  tranches  or  sub-tranches  in  respect  of  the  existing Revolving Credit Commitments and such technical amendments as may be necessary or appropriate in the  opinion  of  the  Administrative  Agent,  the  Administrative  Borrower  and  the  applicable  Borrower  to  effect  the  provisions of this Section 2.14 (including to provide for class voting provisions applicable to the Additional Lenders  on  terms  comparable  to  the  provisions  of  Section  10.01).   In  addition,  if  so  provided  in  such  Incremental  Amendment and with the consent of the applicable Issuing Banks, participations in Letters of Credit expiring on or  after  the  Maturity  Date  shall  be  re-allocated  from  Lenders  holding  Revolving  Credit  Commitments  to  Lenders  holding Incremental Revolving Commitments, be deemed to be participation interests in respect of such Incremental  Revolving  Commitments and  the terms  of  such  participation interests (including  the participation fees applicable  thereto)  shall  be  adjusted  accordingly.   No  Lender  shall  be  obligated  to  provide  any  Incremental  Revolving  Commitments,  unless  it  so  agrees.   Revolving  Credit  Commitments  in  respect  of  any  Incremental  Revolving  Commitments  shall  become  Revolving  Credit  Commitments  under  this  Agreement.   The  effectiveness  of  any  Incremental Amendment (each, an “Incremental Facility Closing Date”) shall, unless otherwise agreed to by the  Administrative Agent and the Additional Lenders party thereto, be subject to (i) the payment in full of all fees and  expenses owing to the Administrative Agent and the Lenders in respect of such Incremental Facility, to the extent                                                  -90

 

 invoiced  prior  to  such  date  and  (ii)  on  the  date  of  the  effectiveness  of  the  Incremental  Revolving  Commitments  thereunder, no Specified ABL Default shall exist after giving effect to such Incremental Revolving Commitments  (or, in the case of a Permitted Acquisition, permitted Investment or Limited Condition Transaction, no Specified  ABL Default (as determined in accordance with Section 1.08(g)) shall exist on the LCT Test Date and no Specified  Event of Default shall exist on the date that such Incremental Revolving Commitments become effective).  Upon  each increase in the Revolving Credit Commitments of a Revolving Credit Facility pursuant to this Section 2.14,  each Lender under such Revolving Credit Facility immediately prior to such increase will automatically and without  further  act  be  deemed  to  have  assigned  to  each  Lender  providing  a  portion  of  the  Incremental  Revolving  Commitment (each an “Incremental Lender”) in respect of such increase, and each such Incremental Lender will  automatically  and  without  further  act  be  deemed  to  have  assumed,  a  portion  of  such  Lender’s  participations  hereunder  in  outstanding  Letters  of  Credit  under  the  applicable  Revolving  Credit  Facility  such  that,  after  giving  effect to each such deemed assignment and assumption of participations, the percentage of the aggregate outstanding  participations hereunder in Letters of Credit held by each Lender in such Revolving Credit Facility (including each  such Incremental Lender) will equal the percentage of the aggregate Revolving Credit Commitments of all Lenders  in such Revolving Credit Facility represented by such Lender’s Revolving Credit Commitment thereunder.  Each of  the  parties  hereto  hereby  agrees  that  the  Administrative  Agent may,  in  consultation  with  the  Administrative  Borrower,  take  any  and  all  actions  as  may  be  reasonably  necessary  to  ensure  that,  after  giving  effect  to  any  Incremental Revolving Commitment, the outstanding Revolving Credit Loans are held by the Lenders in accordance  with their respective Pro Rata Shares in respect of the applicable Revolving Credit Facility.  The foregoing may be  accomplished  at  the  discretion  of  the  Administrative  Agent,  following  consultation  with  the  Administrative  Borrower,  (A)  by  requiring  the  outstanding  Revolving  Credit  Loans  to  be  prepaid  with  the  proceeds  of  a  new  Revolving  Credit  Borrowing,  (B)  by  causing  non-increasing  Lenders  to  assign  portions  of  their  outstanding  Revolving Credit Loans to new or increasing Lenders, (C) by a combination of the foregoing or (D) by any other  means  agreed  to  by  the  Administrative  Agent  and  the  Administrative  Borrower,  and  any  such  prepayment  or  assignment shall be subject to Section 3.05 but shall otherwise be without premium or penalty.  The Administrative  Agent  and  the  Lenders  hereby  agree  that  the  minimum  borrowing, pro  rata  borrowing  and  pro  rata  payment  requirements contained elsewhere in this Agreement shall not apply to any of the transactions effected pursuant to  the immediately preceding sentence.  For the avoidance of doubt, no existing Lender shall be required to participate  in an Incremental Facility without its consent.       Section 2.15                Interest Elections.          (a)    Each Borrowing initially shall be of the Type specified in the applicable Committed Loan Notice and, in the case of a Eurocurrency Rate Loan, shall have an initial Interest Period as specified in such Committed Loan Notice; provided, that, if the Administrative Borrower fails to specify a Type of Loan in the Committed Loan  Notice, then the Loans shall be made as Base Rate Loans and if the Administrative Borrower requests a Borrowing  of Eurocurrency Rate Loans, but fails to specify an Interest Period, it will be deemed to have requested an Interest  Period of one month’s duration.  Thereafter, the Administrative Borrower may elect to convert such Borrowing to a  different  Type  or  to  continue  such  Borrowing  and,  in  the  case  of  a  Eurocurrency  Rate  Loan,  may  elect  Interest  Periods therefor, all as provided in this Section 2.15. The Administrative Borrower 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.  Notwithstanding any other provision of this Section 2.15, the Administrative  Borrower will not be permitted to change the currency of any Borrowing, except by repaying a Borrowing with a  new Borrowing.  This Section 2.15 shall not apply to Swing Line Borrowings or Agent Advances, which may not be  converted or continued.          (b)    To make an election pursuant to this Section 2.15, the Administrative Borrower shall notify the  Administrative Agent of such election electronically by the time that a Committed Loan Notice would be required  under Section 2.02(e) if the Administrative Borrower were requesting a Revolving Credit Borrowing of the Type resulting from such election to be made on the effective date of such election.  Each such Committed Loan Notice submitted electronically shall be irrevocable.          (c)    Each Committed Loan Notice submitted electronically shall specify the following information in compliance with Section 2.2(e):                                                   -91

 

                 (i)   the Borrower with respect to such Borrowing;                   (ii)  the Borrowing to which such Committed Loan Notice 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 (iv) and (v) below shall be         specified for each resulting Borrowing);                  (iii)  the effective date of the election made pursuant to such Committed Loan Notice, which         shall be a Business Day;                  (iv)   whether the resulting Borrowing is to be a Base Rate Loan or a Eurocurrency Rate Loan;         and                   (v)   if  the  resulting  Borrowing  is  a  Eurocurrency  Rate  Loan,  the Interest  Period  to  be         applicable  thereto  after  giving  effect  to  such  election,  which shall  be  a  period  contemplated  by  the         definition of the term “Interest Period”.          If  any  such  Committed  Loan  Notice  requests  a  Eurodollar  Borrowing  but  does  not  specify  an  Interest Period, then the Administrative Borrower shall be deemed to have selected an Interest Period of one (1) month’s duration.          (d)    Promptly following receipt of a Committed Loan Notice, the Administrative Agent shall advise each applicable Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.          (e)    If the Administrative Borrower fails to deliver a timely Committed Loan Notice with respect to a Eurocurrency Rate Loan 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 a Base Rate Loan. 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 Administrative Borrower, then, so long as  an  Event  of  Default  is  continuing  (x)  no  outstanding  Borrowing  may  be  converted  to  or  continued  as  a Eurocurrency  Rate  Loan  and  (y)  unless  repaid,  at  the  end  of  the  Interest  Period  applicable  thereto,  each Eurocurrency Rate Loan shall be converted to an Base Rate Loan.       Section 2.16                Extension of Revolving Credit Loans.          (a)    [Reserved].          (b)    Notwithstanding anything to the contrary in this Agreement, pursuant to one or more offers (each, an “Extension Offer”) made from time to time by the Administrative Borrower to all Lenders of any Revolving Credit  Facility  with  Revolving  Credit  Commitments  with  a  like  maturity  date  on  a  pro  rata  basis  (based  on  the aggregate outstanding principal amount of the Revolving Credit Commitments under such Revolving Credit Facility with  a  like  maturity  date)  and  on  the  same  terms  to  each  such  Lender,  the  Administrative  Borrower  is  hereby permitted to consummate from time to time transactions with individual Lenders that accept the terms contained in such Extension Offers to extend the maturity date of each such Lender’s Revolving Credit Commitments of such Revolving Credit Facility and otherwise modify the terms of such Revolving Credit Commitments pursuant to the terms of the relevant Extension Offer (including by increasing the interest rate or fees payable in respect of such Revolving  Credit  Commitments (and related outstandings)) (each, an “Extension”, and each  group of Revolving Credit  Commitments,  as  so  extended,  as  well  as  the  original  Revolving  Credit  Commitments  of  such  Revolving Credit Facility (not so extended), being a “tranche”; any Extended Revolving Credit Commitments shall constitute a separate  tranche  of  Revolving  Credit  Commitments  from  the  tranche  of  Revolving  Credit  Commitments  of  such Revolving Credit Facility from which they were extended), so long as the following terms are satisfied with respect to  each  applicable  Revolving  Credit  Facility:   (i)  except  as  to  pricing  (including  interest  rates,  fees  and  funding discounts),  conditions  precedent  and  maturity  (which  shall  be  set  forth  in  the  relevant  Extension  Offer),  the Revolving  Credit  Commitment  of  any  Lender  that  agrees  to  an  Extension  with respect  to such  Revolving  Credit Commitment  (an  “Extending  Lender”)  extended  pursuant  to  an  Extension  (an  “Extended  Revolving  Credit                                                   -92

 

 Commitment”), and the related outstandings, shall be a Revolving Credit Commitment (or related outstandings, as  the  case  may  be)  with  the  same  terms  as  the  original  Revolving Credit  Commitments  (and  related  outstandings)  (provided,  that  (1)  assignments  and  participations  of  Extended Revolving  Credit  Commitments  and  Extended  Revolving  Credit  Loans  shall  be  governed  by  the  same  assignment  and  participation  provisions  applicable  to  Revolving Credit Commitments and Revolving Credit Loans of such Revolving Credit Facility and (2) at no time  shall there be Revolving Credit Commitments hereunder (including Extended Revolving Credit Commitments and  any  original  Revolving  Credit  Commitments)  which  have  more  than  four  different  maturity  dates),  (ii)  if  the  aggregate principal amount of Revolving Credit Commitments in respect of which Lenders shall have accepted the  relevant Extension Offer shall exceed the maximum aggregate principal amount of Revolving Credit Commitments  offered to be extended by the Administrative Borrower pursuant to such Extension Offer, then the Revolving Credit  Loans  of  such  Lenders  shall  be extended  ratably up  to such  maximum amount  based on  the respective principal  amounts  (but  not  to  exceed  actual  holdings  of  record)  with  respect  to  which  such  Lenders  have  accepted  such  Extension Offer and (iii) all documentation in respect of such Extension shall be consistent with the foregoing.          (c)     With  respect  to  all  Extensions  consummated  by  the  Administrative  Borrower  pursuant  to  this  Section 2.16, (i) such Extensions shall not constitute voluntary or mandatory payments or prepayments for purposes  of  this  Agreement  and  (ii)  each  Extension  Offer  shall  specify  the  minimum  amount  of  Revolving  Credit  Commitments of each Revolving Credit Facility to be tendered.  The transactions contemplated by this Section 2.16  (including, for the avoidance of doubt, payment of any interest or fees in respect of any Extended Revolving Credit  Commitments on such terms as may be set forth in the relevant Extension Offer) shall not require the consent of any  Lender or any other Person (other than as set forth in clause (c) below), and the requirements of any provision of this  Agreement (including Sections 2.02(c), 2.05 and 2.12) or any other Loan Document that may otherwise prohibit any  such Extension or any other transaction contemplated by this Section 2.16 shall not apply to any of the transactions  effected pursuant to this Section 2.16.          (d)    No consent of any Lender or any other Person shall be required to effectuate any Extension, other than  the  consent  of  the  Administrative  Borrower,  each  applicable  Borrower  and  each  Lender  agreeing  to  such Extension with respect to one or more of its Revolving Credit Commitments (or a portion thereof) and the Issuing Bank  (if  applicable),  which  consent  shall  not  be  unreasonably  withheld,  conditioned  or  delayed.   All  Extended Revolving Credit Commitments and all obligations in respect thereof shall be Obligations under this Agreement and the  other  Loan  Documents  that  are  secured  by  the  Collateral  on a pari passu  basis  with  the  applicable  Facility subject to such Extension Amendment. The Lenders hereby irrevocably authorize the Administrative Agent to enter into  amendments  to  this  Agreement  and  the  other  Loan  Documents (an  “Extension  Amendment”)  with  the Administrative Borrower and each applicable Borrower as may be necessary in order to establish new tranches or sub-tranches in respect of Revolving Credit Commitments of each Revolving Credit Facility so extended and such technical  amendments  as  may  be  necessary  or  appropriate  in  the opinion  of  the  Administrative  Agent  and  the Administrative Borrower to effect the provisions of this Section 2.16 (including in connection with the establishment of such new tranches or sub-tranches, or to provide for class voting provisions applicable to the Additional Lenders on terms comparable to the provisions of Section 10.01).  In addition, if so provided in such Extension Amendment and  with  the  consent  of  the  applicable  Issuing  Banks,  participations  in Letters of  Credit  expiring  on or after the Maturity  Date  shall  be  re-allocated  from  Lenders  holding  Revolving  Credit  Commitments  to  Lenders  holding Extended Revolving Credit Commitments in accordance with the terms of such Extension Amendment; provided,  however,  that  such  participation  interests  shall,  upon  receipt  thereof  by  the  relevant  Lenders  holding  Extended  Revolving  Credit  Commitments,  be  deemed  to  be  participation  interests  in  respect  of  such  Extended  Revolving  Credit Commitments and the terms of such participation interests (including the commission applicable thereto) shall  be adjusted accordingly.          (e)    In connection with any Extension, the Administrative Borrower shall provide the Administrative Agent at least five (5) Business Days (or such shorter period as may be agreed by the Administrative Agent) prior written  notice  thereof,  and  shall  agree  to  such  procedures  (including  regarding  timing,  rounding  and  other adjustments  and  to  ensure  reasonable  administrative  management of  the  credit  facilities  hereunder  after  such Extension),  if  any,  as  may  be  established  by,  or  acceptable  to,  the  Administrative  Agent,  in  each  case  acting reasonably, to accomplish the purposes of this Section 2.16.          (f)    Notwithstanding anything to the contrary above, at any time and from time to time following the establishment of a Class of Extended Revolving Credit Commitments, the Administrative Borrower may offer any                                                  -93

 

 Lender of a Revolving Credit Facility that had been subject to an Extension Amendment (without being required to  make the same offer to any or all other Lenders) who had not elected to participate in such Extension Amendment  the right to convert all or any portion of its Revolving Credit Commitments into such Class of Extended Revolving  Credit Commitments of such Revolving Credit Facility; provided, that (i) such offer and any related acceptance shall  be  in  accordance  with  such  procedures,  if  any,  as  may  be  reasonably  requested  by,  or  acceptable  to,  the  Administrative  Agent;  (ii)  such  additional  Extended  Revolving  Credit  Commitments  shall  be  on  identical  terms  (including as to the proposed interest rates and fees payable, but excluding any arrangement, structuring or other fees  payable in connection therewith that are not generally shared with the relevant Lenders) with the existing Extended  Revolving Credit Commitments, (iii) any Lender which elects to participate in an Extension Amendment pursuant to  this clause (f) shall enter into a joinder agreement to the respective Extension Amendment, in form and substance  reasonably  satisfactory  to  the  Administrative  Agent  and  executed  by  such  Lender,  the Administrative Agent, the  Administrative  Borrower  and  any  other  applicable  Borrowers  and (iv)  any  such  additional  Extended  Revolving  Credit Commitments shall be in an aggregate principal amount that is not less than $1,000,000 (or, in the case of an  outstanding Class with an entire outstanding principal amount of existing Revolving Credit Commitments less than a  $1,000,000 that is to be refinanced in full, such outstanding principal amount or commitments), unless each of the  Administrative  Borrower  and  the  Administrative  Agent  otherwise consents.   Notwithstanding  anything  to  the  contrary contained herein, any Loans made as provided above shall be treated as part of the Class to which such  Loans are added, and shall not constitute a new Class of new Extended Revolving Credit Commitments.       Section 2.17                Defaulting Lenders.          (a)    Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:                 (i)     Waivers and Amendments.  That Defaulting Lender’s right to approve or disapprove any         amendment,  waiver  or  consent  with  respect  to  this  Agreement  shall  be  restricted  as  set  forth  in         Section 10.01.                  (ii)   Reallocation of Payments.   Any  payment  of  principal,  interest,  fees  or  other  amounts         received  by  the  Administrative  Agent  for  the  account  of  that  Defaulting  Lender  (whether  voluntary  or         mandatory, at maturity, pursuant to Article VIII or otherwise), 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 that         Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any         amounts owing by that Defaulting Lender to the Issuing Bank or Swing Line Lender hereunder; third, if so         determined by the Administrative Agent or requested by the Issuing Bank or Swing Line Lender, to be held         as  Cash  Collateral  for  future  funding  obligations  of  that  Defaulting  Lender  of  any  participation  in  any         Swing Line Loan or Letter of Credit; fourth, as the Borrowers may request (so long as no Default or Event         of Default has occurred and is continuing), to the funding of any Loan in respect of which that 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 and the Borrowers, to be held in a         non-interest bearing deposit account and released in order to satisfy obligations of that Defaulting Lender to         fund Loans under this Agreement; sixth, to the payment of any amounts owing to the Lenders, the Issuing         Bank or Swing Line Lender as a result of any judgment of a court of competent jurisdiction obtained by any         Lender, the Issuing Bank or Swing Line Lender against that Defaulting Lender as a result of that Defaulting         Lender’s breach of its obligations under this Agreement; seventh, so long as no Default or Event of Default         has occurred and is continuing, to the payment of any amounts owing to the Borrowers as a result of any         judgment of a court of competent jurisdiction obtained by the Borrowers against that Defaulting Lender as a         result  of  that  Defaulting  Lender’s  breach  of  its  obligations  under  this  Agreement;  and eighth,  to  that         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 Borrowings in respect of which that         Defaulting Lender has not fully funded its appropriate share and (y) such Loans or LC Borrowings were         made 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 Borrowings owed to, all Non-Defaulting Lenders on a pro rata         basis prior to being applied to the payment of any Loans of, or LC Borrowings owed to, that Defaulting         Lender.   Any  payments,  prepayments  or  other  amounts  paid  or  payable  to  a  Defaulting Lender  that are                                                  -94

 

        applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this         Section 2.17(a)(ii)  shall  be  deemed  paid  to  and  redirected  by  that  Defaulting  Lender,  and  each  Lender         irrevocably consents hereto.                 (iii)   Certain Fees.  That Defaulting Lender (x) shall not be entitled to receive any Commitment         Fee pursuant to Section 2.09(c) for any period during which that Lender is a Defaulting Lender (and the         Borrowers shall not be required to pay any such fee that otherwise would have been required to have been         paid  to  that  Defaulting  Lender)  and  (y)  shall be  limited  in  its  right  to  receive  Letter  of  Credit  fees  as         provided in Section 2.03(m).                 (iv)    Reallocation of Pro Rata  Share to  Reduce  Fronting  Exposure.   During  any  period  in         which there is a Defaulting Lender, for purposes of computing the amount of the obligation of each Non-         Defaulting  Lender  to  acquire, refinance or fund participations in Letters  of Credit  or Swing  Line Loans         pursuant  to  Sections  2.03  and  2.04,  the  “Pro  Rata  Share”  of  each  Non-Defaulting  Lender’s  Revolving         Credit  Loans  and  LC  Obligations  shall  be  computed  without  giving  effect  to  the  Revolving  Credit         Commitment  of  that  Defaulting  Lender; provided  that  the  aggregate  obligation  of  each  Non-Defaulting         Lender  under  a  Class  of  Revolving  Credit  Commitments  to  acquire,  refinance  or  fund  participations  in         Letters of Credit and Swing Line Loans shall not exceed the positive difference, if any, of (1) the Revolving         Credit Commitment under such Class of that Non-Defaulting Lender minus (2) the sum of (A) the aggregate         Outstanding Amount of the Revolving Credit Loans, (B) the aggregate Outstanding Amount of the Pro Rata         Share or other applicable share provided under this Agreement (immediately prior to giving effect to such         applicable reallocation) of the LC Obligations and (C) the aggregate Outstanding Amount of the Pro Rata         Share or other applicable share provided under this Agreement (immediately prior to giving effect to such         applicable  reallocation)  of  the  Swing  Line  Loans,  in  each  case,  under  such  Class  of  Revolving  Credit         Commitments of that Non-Defaulting Lender.          (b)     Defaulting Lender Cure.  If the Administrative Borrower, the Administrative Agent, Swing Line  Lender and each Issuing Bank agree in writing in their sole discretion that a Defaulting Lender should no longer be  deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the  effective  date  specified  in  such  notice  and  subject  to  any  conditions  set  forth  therein  (which  may  include  arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase that portion of  outstanding Loans of the other Lenders at par or take such other actions as the Administrative Agent may determine  to be necessary to cause the Revolving Credit Loans and funded and unfunded participations in Letters of Credit and  Swing Line Loans to be held on a pro rata basis by the Lenders in accordance with their Pro Rata Share or other  applicable  share  provided  under  this  Agreement  (without  giving effect  to  the  reallocation  of  such  Lender’s  participation pursuant to Section 2.17(a)(iv)), whereupon that Lender will cease to be a Defaulting Lender; provided  that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the  Borrowers while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise  expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a  waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender          (c)     Cash Collateralization.  At any time that there shall exist a Defaulting Lender, promptly upon the  written request of the Administrative Agent (with respect to any or all Fronting Exposure) or the Issuing Bank or the  Swing  Line  Lender  (solely  with  respect  to  such  Person’s  Fronting  Exposure  at  such  time),  the  Borrowers  shall  deliver to the Administrative Agent Cash Collateral (or, in the case of Fronting Exposure with respect to Swing Line  Loans, repay such Swing Line Loans) in an amount sufficient to cover all such Fronting Exposure that has not been  reallocated pursuant  to  Section 2.17(a)(iv) (after giving effect to any Cash Collateral provided by the Defaulting  Lender).   For  purposes  hereof,  “Cash  Collateralize”  means  to  pledge  and  deposit  with  or  deliver  to  the  Administrative  Agent,  for  the  benefit  of  (i)  the  relevant  Issuing  Bank  and  the  Lenders,  as  collateral  for  the  LC  Obligations or (ii) the Swing Line Lender and the Lenders, as collateral for the Swing Line Obligations, cash and  Cash Equivalents (if reasonably acceptable to the Administrative Agent and the relevant Issuing Bank or Swing Line  Lender,  as  applicable)  or  deposit  account  balances  (“Cash  Collateral”)  pursuant  to  documentation  in  form  and substance reasonably satisfactory to the Administrative Agent and the relevant Issuing Bank or Swing Line Lender, as  applicable  (which  documents  are  hereby  consented  to  by  the  Lenders).   Derivatives  of  such  term  have corresponding meanings.                                                   -95

 

         Section 2.18      Co-Borrowers.          (a)     Each  Borrower  accepts  joint  and  several  liability  hereunder in  consideration  of  the  financial accommodation  to  be  provided  by  the  Administrative  Agent,  the  Lenders  and  the  Issuing  Banks  under  this Agreement and the other Loan Documents, for the mutual benefit, directly and indirectly, of each Borrower and in consideration of the undertakings of each Borrower to accept joint and several liability for the obligations of each Borrower.          (b)    Each  Borrower  shall  be  jointly  and  severally  liable  for  the Obligations,  regardless  of  which Borrower actually receives the Loans hereunder or the amount of the Obligations received or the manner in which the  Administrative Agent  or any Lender accounts for the Obligations on its books and records. Each Borrower’s obligations with respect to Loans made to it, and each Borrower’s obligations arising as a result of the joint and several liability of such Borrower hereunder, with respect to Loans or LC Obligations made to and other Obligations owing  by  the  Borrowers  hereunder,  shall  be  separate  and  distinct  obligations,  but  all  such  obligations  shall  be primary obligations of each Borrower.          (c)     Each Borrower’s obligations arising as a result of the joint and several liability of such Borrower hereunder with respect to Loans made to, Letters of Credit issued on behalf of, and other Obligations owing by the Borrowers hereunder shall, to the fullest extent permitted by law, be unconditional irrespective of (A) the validity or enforceability, avoidance or subordination of the obligations of any other Borrower or of any promissory note or other document evidencing all or any part of the obligations of any other Borrower, (B) the absence of any attempt to  collect  the  Obligations  from  any  other  Borrower,  any  other  guarantor,  or  any  other  security  therefor,  or  the absence of any other action to enforce the same, (C) the waiver, consent, extension, forbearance or granting of any indulgence by the Administrative Agent or any Lender with respect to any provision of any instrument evidencing the obligations of any other Borrower, or any part thereof, or any other agreement now or hereafter executed by any other  Borrower  and  delivered  to  the  Administrative  Agent  or  any  Lender,  (D)  the  failure  by  the  Administrative Agent or any Lender to take any steps to perfect and maintain its security interest in, or to preserve its rights to, any security or collateral for the obligations  of any  other Borrower, (E) the Administrative Agent’s or any  Lender’s election, in any proceeding instituted under the Bankruptcy Code of the United States, of the application of Section 1111(b)(2) of the Bankruptcy Code of the United States, (F) any borrowing or grant of a security interest by any other Borrower, as Debtor In Possession under Section 364 of the Bankruptcy Code of the United States, (G) the disallowance of all or any portion of the Administrative Agent’s or any Lender’s claim(s) for the repayment of the obligations of any other Borrower under Section 502 of the Bankruptcy Code of the United States, or (H) any other circumstances  which  might  constitute  a  legal  or  equitable  discharge  or  defense  of  a  guarantor  or  of  any  other Borrower. With respect to each Borrower’s obligations arising as a result of the joint and several liability of such Borrower  hereunder  with  respect  to  Loans  made  to  the  Borrowers hereunder,  such  Borrower  waives,  until  the Obligations  shall  have  been  paid  in  full  and  this  Agreement  and  the  other  Loan  Documents  shall  have  been terminated,  any  right  to  enforce  any  right  of  subrogation  or  any  remedy  which  the  Administrative  Agent  or  any Lender now has or may hereafter have against such Borrower, any endorser or any guarantor of all or any part of the Obligations, and any benefit of, and any right to participate in, any security or collateral given to the Administrative Agent  or  any  Lender  to  secure  payment  of  the  Obligations  or  any  other  liability  of  any  Borrower  to  the Administrative Agent or any Lender.          (d)    Upon  the  occurrence  and  during  the  continuation  of  any  Event  of  Default,  the  Administrative Agent and the Lenders may proceed directly and at once, without notice, against any Borrower to collect and recover the full amount, or any portion of the Obligations, without first proceeding against any other Borrower or any other Person,  or  against  any  security  or  collateral  for  the  Obligations.  Each  Borrower  consents  and  agrees  that  the Administrative Agent and the Lenders shall be under no obligation to marshal any assets in favor of any Borrower or against or in payment of any or all of the Obligations.          (e)    Each Borrower hereby irrevocably appoints the Administrative Borrower as the borrowing agent and attorney-in-fact for the Borrowers, which appointment shall remain in full force and effect unless and until the Administrative Agent shall have received prior written notice signed by all of the Borrowers that such appointment has been revoked and that another Borrower has been appointed in the place of the Administrative Borrower.  Each  Borrower  hereby  irrevocably  appoints  and  authorizes  the  Administrative  Borrower  (i)  to  provide  to  the  Administrative Agent and receive from the Administrative Agent all notices with respect to Loans obtained for the                                                  -96

 

 benefit of any Borrower and all other notices and instructions under this Agreement and the other Loan Documents  and (ii) to take such action as the Administrative Borrower deems appropriate on its behalf to obtain Loans and to  exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement.  It is  understood that the handling of the Collateral of the Borrowers in a combined fashion, as more fully set forth herein  and  in  the  Collateral  Documents,  is  done  solely  as  an  accommodation  to  the  Borrowers  in  order  to  utilize  the  collective borrowing powers of the Borrowers in the most efficient and economical manner and at their request, and  that  neither  the  Agents  nor  the  Lenders  shall  incur  liability  to  the  Borrowers  as  a  result  hereof.   Each  of  the  Borrowers expects to derive benefit, directly or indirectly, from the handling of the Collateral in a combined fashion  since  the  successful  operation  of  each  Borrower  is  dependent  on  the  continued  successful  performance  of  the  integrated group          (f)    After  the  Closing  Date,  the  Administrative  Borrower  may,  at any  time  and  from  time  to  time, designate any Restricted Subsidiary that is a wholly-owned Domestic Subsidiary as a Borrower by delivery to the Administrative  Agent  of  a  Borrower  Joinder  Agreement  executed  by  such  Subsidiary  and  the  Administrative Borrower, together with any documentation and other information with respect to such additional Borrower required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including,  without  limitation,  the  PATRIOT  Act  requested  by  the  Administrative  Agent  (and  to  the  extent  not theretofore  delivered  on  the  Closing  Date  or  otherwise)  and  satisfied  the  Collateral  and  Guarantee  Requirement (including without limitation the actions as specified in Section 6.11 with respect to newly formed Subsidiaries), and upon  such delivery and satisfaction, such Subsidiary shall for all purposes of this Agreement and the other Loan Documents be a Borrower and a party to this Agreement. As soon as practicable upon receipt of a Borrower Joinder Agreement, the Administrative Agent shall furnish a copy thereof to each Lender.       Section 2.19                Cash Management          (a)    The  Parent  Borrower,  the  other  Borrowers  and  each  Loan  Party  shall,  along  with  the Administrative Agent and certain financial institutions selected by the Loan Parties, reasonably satisfactory to the Administrative Agent and located in the United States (the “Collection Banks”), enter into within 90 days after the Closing Date (or such longer period as the Administrative Agent may reasonably agree), and thereafter maintain, separate  Account  Control  Agreements  with  respect  to  all  deposit  accounts  (other  than  Exempt  Accounts).  Each Loan Party shall (x) instruct all Account Debtors of such Loan Party (other than any Governmental Entity) to remit all payments to the applicable “P.O.  Boxes” or “Lockbox Addresses” of the applicable Collection Bank (or to remit such  payments  to  the  applicable  Collection  Bank  by  electronic  settlement)  with  respect  to  all  Accounts  of  such Account  Debtor  which  remittances  shall  be  collected  by  the  applicable  Collection  Bank  and  deposited  in  the applicable Controlled Account of the applicable Loan Party and (y) (i) instruct each Account Debtor with respect to Governmental  Entity  Accounts  to  remit  all  payments  from  such  Account  Debtor  to  a  concentration  or  deposit account that is used solely to collect Governmental Entity Accounts and that is not subject to an Account Control Agreement  (each  such  account,  a  “Government  Receivables  Account”)  and  (ii)  deposit  or  cause  all  proceeds deposited in any Government Receivables Account to be deposited promptly, and in any event no later than the first Business  Day  after  its  receipt  of  such  proceeds,  in  a  concentration  account  which  is  a  Controlled  Account.   All amounts received by any Loan Party and any Collection Bank, in respect of any Account, in addition to all other cash  received  from  any  other  source  (other  than  cash  and  Cash  Equivalents  maintained  in  Exempt  Accounts  or otherwise by Loan Parties not to exceed $5,000,000 in the aggregate at any time), shall promptly upon receipt be deposited or swept into a Controlled Account.  The Loan Parties may close deposit accounts at any Collection Bank and/or open new deposit accounts, subject (in the case of opening any new deposit account) to the contemporaneous (or  such  longer  period  as  the  Administrative  Agent  may  reasonably  agree)  execution  and  delivery  to  the Administrative  Agent  of  an  Account  Control  Agreement  consistent  with  the  provisions  of  this  Section  2.19  and otherwise reasonably satisfactory to the Administrative Agent.          (b)    So  long  as  no  Dominion  Period  then  exists  in  respect  of  which  the  Administrative  Agent  has delivered notice thereof as contemplated by the definition thereof, the Loan Parties shall be permitted to withdraw cash and Cash Equivalents from Controlled Accounts to be used for working capital and general corporate purposes.  If  a  Dominion  Period  exists  and  the  Administrative  Agent  has  delivered  notice  thereof  as  contemplated  by  the  definition thereof, all  collected amounts held  in  the Controlled Accounts shall be applied as provided in Section  2.19(c).                                                   -97

 

        (c)    Each  Account  Control  Agreement  relating  to  a  Controlled  Account  shall  (unless  otherwise reasonably agreed by the Administrative Agent) include provisions that allow, during any Dominion Period if the Administrative Agent so elects, for all collected amounts held in such Controlled Account from and after the date requested  by  the  Administrative Agent, to be sent by  ACH or wire transfer or similar electronic transfer no  less frequently than once per Business Day to one or more accounts maintained with the Administrative Agent (each, an “Agent  Deposit  Account”).   Subject  to  the  terms  of  the  respective  Collateral  Document,  during  any  Dominion Period, all amounts received in an Agent Deposit Account shall be applied (and allocated) by the Administrative Agent on a daily basis in the following order:  (i) first, (A) if so elected by the Administrative Agent, to the payment (on a ratable basis) of any outstanding fees and expenses actually due and payable to the Administrative Agent under any of the Loan Documents and (B) to repay or prepay outstanding Loans advanced by the Administrative Agent on behalf of the Lenders pursuant  to  Section 2.01(d); (ii) second, to the extent  all amounts referred to in preceding  clause (i) have been paid in full, (A) if so elected by the applicable Issuing Bank or the Swing Line Lender, to pay  (on  a  ratable  basis)  all  outstanding expenses  actually due and payable to each  Issuing  Bank and  the Swing Line  Lender under any of the Loan Documents and (B) to repay all outstanding unpaid LC Disbursements and Swing Line  Exposure and all interest thereon; (iii) third, to the extent all amounts referred to in preceding clauses (i) and (ii)  have been paid in full, (A) to pay (on a ratable basis) all accrued and unpaid interest actually due and payable on the  Revolving Credit Loans and (B) if so elected by the applicable Secured Party, to pay all accrued and unpaid fees  actually due and payable to the Administrative Agent, the Issuing Banks, the Swing Line Lender, and the Lenders  under any of the Loan Documents with respect to the Revolving Credit Loans; (iv) fourth, to the extent all amounts  referred to in preceding clauses (i) through (iii), inclusive, have been paid in full, to repay (on a ratable basis) the  outstanding principal of Revolving Credit Loans (whether or not then due and payable); (v) fifth, to the extent all  amounts  referred  to  in  preceding  clauses  (i)  through  (iv),  inclusive,  have  been  paid  in  full,  to  the  Cash  Collateralization (on a ratable basis) of all LC Exposure in accordance with Section 2.03(j); (vi) sixth, to the extent  all amounts referred to in preceding clauses (i) through (v), inclusive, have been paid in full, to pay (on a ratable  basis) all other outstanding Obligations then due and payable to the Administrative Agent and the Lenders under any  of  the  Loan  Documents  with  respect  to  the  Revolving Credit Loans; and  (vii)  seventh,  to the extent  all amounts  referred to in preceding clauses (i) through (vi) inclusive, have been paid in full and so long as no Specified Event of  Default then exists, to be returned to the applicable Borrowers for such Borrowers’ own account.          (d)     Subject to the terms and conditions of Sections 10.04 and 10.05, all costs and expenses to effect the foregoing (including reasonable legal fees and disbursements of counsel) shall be paid by the Loan Parties.          (e)    The Administrative Agent agrees that immediately upon the termination of the Dominion Period it shall stop transferring amounts from the Controlled Accounts to accounts maintained with the Administrative Agent pursuant to this Section 2.19, and the Loan Parties shall be permitted to withdraw cash and Cash Equivalents from Controlled Accounts to be used for working capital and general corporate purposes.          (f)    Notwithstanding the foregoing, until the later of (x) nine (9) months after the date hereof (or such later date as may be agreed to by the Administrative Agent in its Permitted Discretion) and (y) thirty (30) days after the  date  on  which  the  Specified  Post-Closing  Undertaking  is  satisfied  in  accordance  with Section 6.18, Account Control Agreements shall not be required for the deposit accounts of any Beta Entity.                                             ARTICLE III.                    TAXES, INCREASED COSTS PROTECTION AND ILLEGALITY       Section 3.01                Taxes.          (a)    Except as provided in this Section 3.01, all payments made by or on account of the Borrowers or  Guarantors to or for the account of the Administrative Agent or any Lender under any Loan Document shall be made  free  and  clear  of  and  without  deduction  or  withholding  for  any Taxes,  except  as  required  by  any  Law.   If  the  Borrowers, any Guarantor or other applicable withholding agent shall be required by any Laws to deduct or withhold  any Taxes from or in respect of any sum payable under any Loan Document to any Agent or any Lender, (i) if the  Tax in question is an Indemnified Tax or Other Tax (as defined below), the sum payable by the Borrowers or any  Guarantor shall be increased as necessary so that after making all required deductions or withholdings (including  deductions or withholdings applicable to additional sums payable under this Section 3.01), each of such Lender (or  where any Agent receives the payments for its own account, such Agent) receives an amount equal to the sum it                                                  -98

 

would have received had no such deductions or withholdings been made, (ii) the applicable withholding agent shall make  such  deductions,  (iii) the  applicable  withholding  agent  shall  pay  the  full  amount  deducted  to  the  relevant taxation authority or other authority in accordance with applicable Laws, and (iv) within thirty (30) days after the date  of  such  payment  (or,  if  receipts  or  evidence  are  not  available  within  thirty  (30)  days,  as  soon  as  possible thereafter), if the Borrowers or any Guarantor is the applicable withholding agent, it shall furnish to such Agent or Lender  (as  the  case  may  be)  the  original  or  a  copy  of  a  receipt  evidencing  payment  thereof  or  other  evidence acceptable to such Agent or Lender.         (b)    In addition, the Borrowers agree to pay any and all present or future stamp, court or documentary Taxes  and  any  other  excise,  property,  intangible  or  mortgage  recording  Taxes,  imposed  by  any  Governmental Authority, which arise from the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, any Loan Document excluding, in each case, any such Tax imposed as a result of an Agent or Lender’s Assignment and Assumption, grant of a participation, transfer or assignment to or designation of a new applicable Lending  Office  or  other  office  for  receiving  payments  under  any  Loan  Document  (collectively,  “Assignment Taxes”), except for Assignment Taxes resulting from an assignment or participation that is requested or required in writing by the Borrowers (all such non-excluded taxes described in this Section 3.01(b) being hereinafter referred to as “Other Taxes”).         (c)     The Borrowers and each Guarantor agree to promptly indemnify each Agent and each Lender for (i)  the  full  amount  of  Indemnified  Taxes  and  Other  Taxes  payable  by  such  Agent  or  such  Lender  and  (ii)  any expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the Governmental Authority.  A certificate as to the amount of such payment or liability prepared in good faith and delivered by such Agent or Lender (or by an Agent on behalf of such Lender), accompanied by a written statement  thereof setting  forth  in reasonable detail the basis and  calculation of  such  amounts shall be conclusive absent manifest error.         (d)    Each Lender and Agent shall, at such times as are reasonably requested by the Borrowers or the Administrative Agent, provide the Borrowers and the Administrative Agent with any documentation prescribed by Law or reasonably requested by the Borrowers or the Administrative Agent certifying as to any entitlement of such Lender to an exemption from, or reduction in, withholding Tax with respect to any payments to be made to such Lender  under  the  Loan  Documents.   Each  such  Lender  and  Agent  shall,  whenever  a  lapse  in  time  or  change  in circumstances renders such documentation obsolete or inaccurate in any material respect, deliver promptly and on or before the date such documentation expires, becomes obsolete or inaccurate to the Borrowers and the Administrative Agent updated or other appropriate documentation (including any new documentation reasonably requested by the Borrowers or the Administrative Agent) or promptly notify the Borrowers and the Administrative Agent in writing of its  legal  ineligibility  to  do  so.  Unless  the  applicable  withholding  agent  has  received  forms  or  other  documents satisfactory  to  it  indicating  that  payments  under  any  Loan  Document  to  or  for  a  Lender  are  not  subject  to withholding Tax or are subject to such Tax at a rate reduced by an applicable tax treaty, the applicable withholding agent  shall  withhold  amounts  required  to  be  withheld  by  applicable  Law  from  such  payments  at  the  applicable statutory rate.  Notwithstanding any other provision of this clause (d), a Lender shall not be required to deliver any form pursuant to this clause (d) that such Lender is not legally eligible to deliver.  Without limiting the foregoing:                 (i)    Each  Lender  that  is  a  United  States  person  (as  defined  in  Section 7701(a)(30)  of  the        Code)  shall  deliver  to  the  Borrowers  and  the  Administrative  Agent  on  or  before  the  date  on  which  it        becomes a party to this Agreement and at the reasonable request of the Parent Borrower or Administrative        Agent two properly completed and duly signed original copies of Internal Revenue Service Form W-9 (or        any successor forms) certifying that such Lender is exempt from U.S. federal backup withholding.                 (ii)   Each Lender that is not a United States person (as defined in Section 7701(a)(30) of the        Code)  shall  deliver  to  the  Borrowers  and  the  Administrative  Agent  on  or  before  the  date  on  which  it        becomes a party to this Agreement (and from time to time thereafter upon the request of the Borrowers or        the Administrative Agent) whichever of the following is applicable:                                                  -99

 

                   (A)     two properly completed and duly signed original copies of Internal Revenue Service             Form  W-8BEN  or  W-8BEN-E,  as  applicable  (or  any  successor forms), claiming eligibility for the             benefits of an income tax treaty to which the United States is a party,                     (B)     two properly completed and duly signed original copies of Internal Revenue Service             Form W-8ECI (or any successor forms),                     (C)     in the case of a Lender claiming the benefits of the exemption for portfolio interest             under Sections 871(h) or 881(c) of the Code, (A) a certificate substantially in the form of Exhibit I             hereto (any such certificate a “United States Tax Compliance Certificate”) and (B) two properly             completed and duly signed original copies of Internal Revenue Service Form W-8BEN or W-8BEN-             E, as applicable (or any successor forms), or                     (D)     to the extent a Lender is not the beneficial owner (for example, where the Lender is             a  partnership,  or  is  a  Participant  holding  a  participation  granted  by  a  participating  Lender),  two             properly completed and duly signed original copies of Internal Revenue Service Form W-8IMY (or             any  successor  forms)  of  the  Lender,  accompanied  by  a properly completed  and  duly  signed  Form             W-8ECI,  W-8BEN,  W-8BEN-E,  United  States  Tax  Compliance  Certificate,  Form  W-9,  Form             W-8IMY or any other required information from each beneficial owner, as applicable (provided that,             if such Lender is a partnership (and not a participating Lender) and one or more beneficial owners are             claiming  the  portfolio  interest  exemption,  the  United  States  Tax  Compliance  Certificate  may  be             provided by such Lender on behalf of such beneficial owner(s)).                 (iii)  Each  Administrative  Agent  that  is  a  United  States  person  (as  defined  in        Section 7701(a)(30) of the Code) shall deliver to the Borrowers two properly completed and duly signed        original  copies  of  Internal  Revenue  Service  Form  W-9  (or  any  successor  forms)  with  respect  to  fees        received on its own behalf, certifying that such Administrative Agent is exempt from U.S. federal backup        withholding.   Each  Administrative  Agent  that  is  not  a  United  States  person  (as  defined  in        Section 7701(a)(30) of the Code) shall deliver to the Borrowers and the Administrative Agent two properly        completed and duly signed original copies of Internal Revenue Service Form W-8ECI (or any successor        forms) with respect to fees received on its own behalf and Internal Revenue Service Form W-8IMY, and        including required accompanying documentation with respect to payments to be received by it on behalf of        the Lenders, certifying that it is a “U.S. branch” and that the payments it receives for the account of others        are not effectively connected with the conduct of its trade or business within the United States and that it is        using such form as evidence of its agreement with the Borrower to be treated as a U.S. Person with respect        to  such  payments  (and  the  Borrower  and  the  Administrative  Agent  agree  to  so  treat  the  Administrative        Agent as a resident for tax purposes in the United States with respect to such payments as contemplated by        Section 1.1441-1(b)(2)(iv) of the United States Treasury Regulations).         (e)    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, such Lender shall deliver to the Borrowers and the Administrative Agent at the time or times prescribed by Laws and at such time or times reasonably requested by the Borrowers or the Administrative Agent such documentation prescribed by applicable Laws and such additional documentation reasonably requested by the Borrowers or the Administrative Agent as may be necessary for the Borrowers and the Administrative Agent to comply with their obligations under FATCA and to determine whether such Lender has or has not complied with such Lender’s obligations under FATCA and, if necessary, to determine the amount to deduct and withhold from such payment.         (f)    Each Lender hereby authorizes the Administrative Agent to deliver to the Loan Parties and to any successor Administrative Agent any documentation provided by such Lender to the Administrative Agent pursuant to Section 3.01(d) or (e) above.         (g)    Any Lender or Agent claiming any additional amounts payable pursuant to this Section 3.01 shall use its reasonable efforts to mitigate or reduce the additional amounts payable, which reasonable efforts may include                                                 -100

 

 a change in the jurisdiction of its Lending Office (or any other measures reasonably requested by the Borrowers) if  such  a  change  or  other  measures  would  reduce  any  such  additional  amounts  (or  any  similar  amount  that  may  thereafter  accrue)  and  would  not,  in  the  sole  determination  of such  Lender,  result  in  any  unreimbursed  cost  or  expense or be otherwise disadvantageous to such Lender.          (h)    If  any  Lender  or  Agent  determines,  in  its  sole  discretion  exercised  in  good  faith,  that  it  has received a refund in respect of any Indemnified Taxes or Other Taxes  as to which  indemnification or additional amounts have been paid to it by a Loan Party pursuant to this Section 3.01, it shall promptly remit to such Loan Party an amount equal to the amount of such refund (but only to the extent of indemnification or additional amounts paid by the Loan Party under this Section 3.01(h) with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses (including any Taxes) of the Lender or Agent, as the case may be, and without interest (other than any interest paid by the relevant taxing authority with respect to such refund net of any Taxes payable by any Agent or Lender on such interest); provided that the Loan Parties, upon the request of the Lender or Agent, as the case may be, shall promptly return such refund (plus any penalties, interest or other charges imposed by the relevant taxing authority) to such party in the event such party is required to repay such refund to the relevant taxing authority.  The Administrative Agent or such Lender, as the case may be, shall provide the Loan Party with a copy of any notice of assessment or other evidence reasonably available of the requirement to repay such refund received from the relevant taxing authority.  This Section shall not be construed to require any Agent  or  any  Lender  to  make  available  its  tax  returns  (or  any  other  information  relating  to  Taxes  that  it  deems confidential) to the Borrowers or any other person.          (i)    For the avoidance of doubt, a “Lender” shall, for purposes of this Section 3.01, include any Issuing Bank and any Swing Line Lender.       Section 3.02                Illegality.          If  any  Lender  reasonably  determines  that  any  Law  has  made  it  unlawful,  or  that  any  Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Eurocurrency Rate Loans, or to determine or charge interest rates based upon the Eurocurrency Rate in each case after the Closing Date, then, on written notice thereof by such Lender to the Borrowers through the Administrative Agent,  (i) any obligation of  such  Lender  to make or continue Eurocurrency  Rate Loans or to convert  Base Rate Loans to Eurocurrency Rate Loans shall be suspended, and (ii) if such notice asserts the illegality of such Lender making or maintaining Base Rate Loans the interest rate on which is determined by reference to the Eurocurrency Rate component of the Base Rate, the interest rate on which Base Rate Loans of such Lender shall, if necessary to avoid  such  illegality,  be  determined  by  the  Administrative  Agent  without  reference  to  the  Eurocurrency  Rate component of the Base Rate, in each case until such Lender notifies the Administrative Agent and the Borrowers that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, (x) the Borrowers shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all applicable Eurocurrency Rate Loans of such Lender to Base Rate Loans (the interest rate on which Base Rate Loans of  such  Lender  shall,  if  necessary  to  avoid  such  illegality,  be  determined  by  the  Administrative  Agent  without reference  to  the  Eurocurrency  Rate  component  of  the  Base  Rate),  either  on  the  last  day  of  the  Interest  Period therefor, if such Lender may lawfully continue to maintain such Eurocurrency Rate Loans to such day, or promptly, if such Lender may not lawfully continue to maintain such Eurocurrency Rate Loans and (y) if such notice asserts the illegality of such Lender determining or charging interest rates based upon the Eurocurrency Rate component of the Base Rate with respect to any Base Rate Loans, the Administrative Agent shall during the period of such suspension compute the Base Rate applicable to such Lender without reference to the Eurocurrency Rate component thereof until the Administrative Agent is advised in writing by such Lender that it is no longer illegal for such Lender to determine or charge interest rates based upon the Eurocurrency Rate.  Each Lender agrees to designate a different Lending Office if such designation will avoid the need for such notice and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender. Upon any such prepayment or conversion, the Borrowers shall  also pay  accrued  interest  on the amount so prepaid or converted and all amounts due, if any, in connection with such prepayment and conversion.                                                  -101

 

     Section 3.03                Inability to Determine Rates.          If, after the Closing Date, the Required Lenders reasonably determine that for any reason in connection with any request for a Eurocurrency Rate Loan or a conversion to or continuation thereof that (a) deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount, currency and Interest Period of such Eurocurrency Rate Loan (such Loans, the “Impacted Loans”), (b) adequate and reasonable means do not  exist  for  determining  the  Eurocurrency  Rate  for  any  requested  Interest  Period  with  respect  to  a  proposed  Eurocurrency Rate Loan or in connection with an existing or proposed Base Rate Loan, or (c) the Eurocurrency Rate  for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan does not adequately and fairly  reflect  the  cost  to  such  Lenders  of  funding  such  Loan,  the  Administrative  Agent  will  promptly  so  notify  the  Borrowers and each Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain Eurocurrency Rate  Loans shall be suspended, and (y) in the event of a determination described in the preceding sentence with respect to  the  Eurocurrency  Rate  component  of  the  Base  Rate,  the  utilization  of  the  Eurocurrency  Rate  component  in  determining the Base Rate shall be suspended, in each case until the Administrative Agent (upon the instruction of  the Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrowers may revoke any pending  request  for  a  Borrowing  of,  conversion  to  or  continuation  of  Eurocurrency  Rate  Loans  or,  failing  that,  will  be  deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified  therein.          Notwithstanding the foregoing, if the Administrative Agent has made the determination described in clause  (a)  of  this  Section  3.03,  the  Administrative  Agent,  with  the  consent  of  the  Parent  Borrower,  may  establish  an  alternative  interest  rate  for  the  Impacted  Loans,   in  which  case,  such  alternative rate of interest  shall apply  with  respect to the Impacted Loans until (1) the Administrative Agent revokes the notice delivered with respect to the  Impacted  Loans  under  clause  (a)  of  the  first  sentence  of  this  Section  3.03,  (2)  the  Administrative  Agent  or  the  Required  Lenders  notify  the  Administrative  Agent  and  the  Borrowers  that  such  alternative  interest  rate  does  not  adequately and fairly reflect the cost to such Lenders of funding the Impacted Loans, or (3) any Lender determines  that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for such  Lender or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference  to such alternative rate of interest or to determine or charge interest rates based upon such rate or any Governmental  Authority has imposed material restrictions on the authority of such Lender to do any of the foregoing and provides  the Administrative Agent and the Borrowers written notice thereof.          Notwithstanding  anything  to  the  contrary  in  this  Agreement  or  any  other  Loan  Documents,  if  the  Administrative Agent determines (which determination shall be conclusive absent manifest error), or the Borrowers  or  Required  Lenders  notify  the  Administrative  Agent  (with,  in  the  case  of  the  Required  Lenders,  a  copy  to  Borrowers) that the Borrowers or Required Lenders (as applicable) have determined, that:      (i) adequate  and  reasonable  means  do  not  exist  for  ascertaining LIBOR  for  any  requested  Interest  Period,             including, without limitation, because the LIBOR Screen Rate is not available or published on a current             basis and such circumstances are unlikely to be temporary; or      (ii)  the  administrator  of  the  LIBOR  Screen  Rate  or  a  Governmental  Authority  having  jurisdiction  over  the             Administrative Agent has made a public statement identifying a specific date after which LIBOR or the             LIBOR  Screen  Rate  shall  no  longer  be  made  available,  or  used  for  determining the interest  rate of             loans (such specific date, the “Scheduled Unavailability Date”), or      (iii) syndicated loans currently being executed, or that include language similar to that contained in this Section             3.03, are being executed or amended (as applicable) to incorporate or adopt a new benchmark interest             rate to replace LIBOR,          then,  reasonably  promptly  after  such  determination  by  the  Administrative  Agent  or  receipt  by  the Administrative Agent of such notice, as applicable, the Administrative Agent and the Parent Borrower may amend this  Agreement  to  replace  LIBOR  with  an  alternate  benchmark  rate  (including  any  mathematical  or  other adjustments  to  the  benchmark  (if  any)  incorporated  therein),  giving  due  consideration  to  any  evolving  or  then existing convention for similar U.S. dollar denominated syndicated credit facilities for such alternative benchmarks                                                  -102

 

   (any  such  proposed  rate,  a  “LIBOR  Successor  Rate”),  together  with  any  proposed  LIBOR  Successor  Rate   Conforming Changes (as defined in Section 1.01) and any such amendment shall become effective upon execution   by the Administrative Agent and the Administrative Borrower at 5:00 p.m. (New York time) on the fifth Business   Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Borrowers   unless, prior to such time,  Lenders comprising  the Required Lenders have delivered to the Administrative Agent   written notice that such Required Lenders do not accept such amendment.            If no LIBOR Successor Rate has been determined and the circumstances under clause (i) above exist or the   Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent will promptly so notify the   Borrowers and each Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain Eurocurrency Rate   Loans shall be suspended, (to the extent of the affected Eurocurrency Rate Loans or Interest Periods), and (y) the   Eurocurrency Rate component shall no longer be utilized in determining the Base Rate.  Upon receipt of such notice,   the Borrowers may revoke any pending request for a Borrowing of, conversion to or continuation of Eurocurrency   Rate  Loans  (to  the  extent  of  the  affected  Eurocurrency  Rate  Loans  or  Interest  Periods)  or,  failing  that,  will  be   deemed to have converted such request into a request for a Borrowing of Base Rate Loans (subject to the foregoing   clause (y)) in the amount specified therein.            Notwithstanding  anything  else  herein,  any  definition  of  LIBOR  Successor  Rate  shall  provide  that  in  no   event shall such LIBOR Successor Rate be less than zero for purposes of this Agreement; provided, that, on and    after the Amendment No. 1 Effective Date, any definition of LIBOR Successor Rate shall provide that in no event    shall such LIBOR Successor Rate be less than 0.25% for purposes of this Agreement.         Section 3.04                Increased Cost and Reduced Return; Capital Adequacy; Eurocurrency Rate Loan Reserves.            (a)     If  any  Lender  reasonably  determines  that  as  a  result  of  a  Change  in  Law,  there  shall  be  any    increase in the cost to such Lender of agreeing to make or making, funding or maintaining Eurocurrency Rate Loans    or  (as  the  case  may  be)  issuing  or  participating  in  Letters  of Credit,  or  a  reduction  in  the  amount  received  or    receivable by such Lender in connection with any of the foregoing (including any Taxes (other than (i) Indemnified    Taxes  or  Other  Taxes  or  (ii)  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 that are excluded from the definition of Indemnified Taxes    pursuant to clauses (i) through (vi) thereof), including by imposing, modifying or holding applicable any reserve,    special deposit, compulsory loan, insurance charge or similar requirement against its loans, loan principal, letters of    credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto, and    excluding for purposes of this Section 3.04(a) any such increased costs or reduction in amount resulting from reserve    requirements contemplated by Section 3.04(c) or the definition of Eurocurrency Rate), then from time to time within    fifteen (15) days after demand by such Lender setting forth in reasonable detail such increased costs (with a copy of    such demand to the Administrative Agent given in accordance with Section 3.06), the Borrowers shall pay to such    Lender such additional amounts as will compensate such Lender for such increased cost or reduction.            (b)     If any Lender reasonably determines that any Change in Law affecting such Lender or any Lending    Office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity requirements has or    would have the effect of reducing the rate of return on such Lender’s capital or on the capital of any such Lender’s    holding companies, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made    by it, or participations in or issuance of Letters of Credit by such Lender, to a level below that which such Lender or    such Lender’s holding companies could have achieved but for such Change in Law (taking into consideration such    Lender’s  policies  and  the  policies  of  such  Lender’s  holding  companies  with  respect  to  capital  adequacy  and    liquidity), then from time to time upon demand of such Lender (with a copy of such demand to the Administrative    Agent), the Borrowers will pay to such Lender, as the case may be, within fifteen (15) days after demand by such    Lender, such additional amount or amounts as will compensate such Lender or such Lender’s holding companies for    any such reduction suffered.            (c)     The Borrowers shall pay to each Lender, (i) as long as such Lender shall be required to maintain    reserves  with  respect  to  liabilities  or  assets  consisting  of  or  including  Eurocurrency  Rate  funds  or  deposits,    additional  interest  on  the  unpaid  principal  amount  of  each  applicable  Eurocurrency  Rate  Loan  of  the  Borrowers    equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in                                                   -103

 

 good faith, which determination shall be conclusive in the absence of manifest error), and (ii) as long as such Lender  shall  be  required  to  comply  with  any  reserve  ratio  requirement or  analogous  requirement  of  any  other  central  banking or financing regulatory authority imposed in respect of the maintenance of the Commitments or the funding  of any Eurocurrency Rate Loans of the Borrowers, such additional costs (expressed as a percentage per annum and  rounded  upwards,  if  necessary,  to  the  nearest  five  decimal  places)  equal  to  the  actual  costs  allocated  to  such  Commitment or Loan by such Lender (as determined by such Lender in good faith, which determination shall be  conclusive absent  manifest  error) which in  each  case shall be due and payable on each date on which interest is  payable on such Loan; provided that the Borrowers shall have received at least fifteen (15) days’ prior notice (with a  copy to the Administrative Agent) of such additional interest or cost from such Lender.  If a Lender fails to give  notice fifteen (15) days prior to the relevant Interest Payment Date, such additional interest or cost shall be due and  payable fifteen (15) days from receipt of such notice.       Section 3.05                Funding Losses.          Upon written demand of any Lender (with a copy to the Administrative Agent) from time to time, which  demand  shall  set  forth  in  reasonable  detail  the  basis  for  requesting  such  amount,  the  Borrowers  shall  promptly  compensate  such  Lender  for  and  hold  such  Lender  harmless  from  any  loss,  cost  or  expense  (excluding  loss  of  anticipated profits or margin) actually incurred by it as a result of:                  (a)    any continuation, conversion, payment or prepayment of any Eurocurrency Rate Loan of         the Borrowers on a day other than the last day of the Interest Period for such Loan; or                  (b)    any failure by the Borrowers (for a reason other than the failure of such Lender to make a         Loan) to prepay, borrow, continue or convert any Eurocurrency Rate Loan of the Borrowers on the date or         in the amount notified by the Borrowers;   including  any  loss  or  expense  (excluding  loss  of  anticipated  profits  or  margin)  arising  from  the  liquidation  or  reemployment of funds obtained by it to maintain such Eurocurrency Rate Loan or from fees payable to terminate  the deposits from which such funds were obtained.       Section 3.06                Matters Applicable to All Requests for Compensation.          (a)    If any Lender requests compensation under Section 3.04, or the Borrowers are required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01,  or  if  any  Lender  gives  a  notice  pursuant  to  Section  3.02,  then  such  Lender  shall  use  reasonable  efforts  to designate  a  different  Lending  Office  for  funding  or  booking  its  Loans  hereunder  or  issuing  Letters  of  Credit hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such Lender to any material unreimbursed cost or expense and would  not  otherwise  be  disadvantageous  to  such  Lender  in  any  material  economic,  legal  or  regulatory  respect; provided that nothing in this Section 3.06(a) shall affect or postpone any Obligations of the Borrowers or the rights of the Lenders under this Article III.          (b)    If any Lender requests compensation by the Borrowers under Section 3.04, the Borrowers may, by notice to such Lender (with a copy to the Administrative Agent), suspend the obligation of such Lender to make or continue  Eurocurrency  Rate  Loans  from  one  Interest  Period  to  another  Interest  Period,  or  to  convert  Base  Rate Loans into Eurocurrency Rate Loans, until the event or condition giving rise to such request ceases to be in effect (in which case the provisions of Section 3.06(d) shall be applicable); provided that such suspension shall not affect the right of such Lender to receive the compensation so requested.          (c)    Failure  or  delay  on  the  part  of  any  Lender  to  demand  compensation  pursuant  to  the  foregoing provisions of Section 3.01, 3.02, 3.03 or 3.04 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrowers shall not be required to compensate a Lender pursuant to the foregoing provisions of Section 3.01, 3.02, 3.03 or 3.04 for any increased costs incurred or reductions suffered more than one                                                  -104

 

 hundred and eighty (180) days prior to the date that such Lender notifies the Borrowers of the event giving rise to  such claim and of such Lender’s intention to claim compensation therefor (except that, if the circumstance 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).          (d)     If  the obligation of any Lender to make or continue any Eurocurrency Rate Loan or to convert  Base Rate Loans into Eurocurrency Rate Loans shall be suspended pursuant to Section 3.06(b) hereof, such Lender’s  applicable Eurocurrency Rate Loans shall be automatically converted into Base Rate Loans on the last day(s) of the  then  current  Interest  Period(s)  for  such  Eurocurrency  Rate  Loans  (or,  in  the  case  of  any  immediate  conversion  required by Section 3.02, on such earlier date as required by Law) and, unless and until such Lender gives notice as  provided  below  that  the  circumstances  specified  in  Section  3.02,  3.03  or  3.04  hereof  that  gave  rise  to  such  conversion no longer exist:                  (i)    to  the  extent  that  such  Lender’s  Eurocurrency  Rate  Loans  have been  so converted, all         payments  and  prepayments  of  principal  that  would  otherwise  be  applied  to  such  Lender’s  applicable         Eurocurrency Rate Loans shall be applied instead to its Base Rate Loans; and                  (ii)   all Loans that would otherwise be made or continued from one Interest Period to another         by such  Lender as  Eurocurrency  Rate Loans shall  be made or continued instead as Base Rate Loans (if         possible), and all Base Rate Loans of such Lender that would otherwise be converted into Eurocurrency         Rate Loans shall remain as Base Rate Loans.          (e)    If  any Lender gives notice to the Borrowers (with a copy to the Administrative Agent) that the circumstances specified in Section 3.02, 3.03 or 3.04 hereof that gave rise to the conversion of any of such Lender’s Eurocurrency Rate Loans pursuant to this Section 3.06 no longer exist (which such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when Eurocurrency Rate Loans made by other Lenders under the applicable Facility are outstanding, if applicable, such Lender’s Base Rate Loans shall be automatically converted, on the first day(s) of the next succeeding Interest Period(s) for such outstanding Eurocurrency Rate Loans, to the extent necessary so that, after giving effect thereto, all Loans held by the Lenders holding Eurocurrency Rate Loans under such Facility and by such Lender are held pro rata (as to principal amounts, interest rate basis, and Interest Periods) in accordance with their respective Commitments for the applicable Facility.          (f)    Any Agent or Lender claiming compensation under this Article III shall deliver a certificate to the Borrowers setting forth in reasonable detail the additional amount or amounts to be paid to it hereunder, which shall be conclusive on the absence of manifest error. In determining such amounts, such Agent or Lender may use any reasonable averaging and attribution methods.       Section 3.07                Replacement of Lenders under Certain Circumstances.          If (i) any Lender ceases to make Eurocurrency Rate Loans as a result of any condition described in Section 3.02  or  Section  3.04,  (ii)  the  Borrowers  are  required  to  pay  any  additional  amount  to  any  Lender  or  any Governmental Authority for the account of any Lender pursuant to Section 3.01 or 3.04, (iii) any Lender is a Non- Consenting Lender, (iv) any Lender becomes a Defaulting Lender, or (v) any other circumstance exists hereunder that  gives  the  Borrowers  the  right  to  replace  a  Lender  as  a  party  hereto,  then  the  Borrowers  may,  at  their  sole expense and effort, upon notice to such Lender and the Administrative Agent, (x) require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.07), all of its interests, rights and obligations under this Agreement (or, with respect to clause (iii) above, all of its interests, rights and obligations with respect to the Class of Loans or Commitments that is the subject of the related  consent,  waiver  and  amendment)  and  the  related  Loan  Documents  to  one  or  more  Eligible  Assignees (provided that neither the Administrative Agent nor any Lender shall have any obligation to the Borrowers to find a replacement Lender or other such Person) that shall assume such obligations (any of which assignee may be another Lender, if a Lender accepts such assignment); provided that:                                                  -105

 

                (a)    the Borrowers or the Assignee shall have paid to the Administrative Agent the assignment         fee specified in Section 10.07(b)(ii)(C) (unless otherwise waived by the Administrative Agent);                  (b)    such  Lender  shall  have  received  payment  of  an  amount  equal  to  the  applicable         outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it         hereunder  and  under  the  other  Loan  Documents  (including  any  amounts  under  Section  3.05)  from  the         assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrowers;                  (c)    such Lender being replaced pursuant to this Section 3.07 shall (1) execute and deliver an         Assignment and Assumption with respect to all, or a portion as applicable, of such Lender’s Commitment         and outstanding Loans and  participations  in LC Obligations  and Swing Line Loans,  and (2) deliver any         Notes  evidencing  such  Loans  to  the  Borrowers  or  Administrative Agent  (or  a  lost  or  destroyed  note         indemnity  in  lieu  thereof); provided  that  the  failure  of  any  such  Lender  to  execute  an  Assignment  and         Assumption  or  deliver  such  Notes  shall  not  render  such  sale  and  purchase  (and  the  corresponding         assignment) invalid and such assignment may be recorded in the Register and the Notes shall be deemed to         be canceled upon such failure;                  (d)    upon  such  payment  set  forth  in  clauses  (a)  and  (b)  above  and,  if  so  requested  by  the         assignee  Lender,  delivery  to  the  assignee  Lender  of  the  appropriate  Note  or  Notes  executed  by  the         Borrowers, the assignee Lender shall become a Lender hereunder and the assigning Lender shall cease to         constitute a Lender hereunder with respect to such assigned Loans, Commitments and participations, except         with respect to indemnification provisions under this Agreement, which shall survive as to such assigning         Lender;                  (e)    in the case of any such assignment resulting from a claim for compensation under Section         3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in         such compensation or payments thereafter;                  (f)    such assignment does not conflict with applicable Laws;                  (g)    any Lender that acts as an Issuing Bank may not be replaced in its capacity as an Issuing         Bank hereunder at any time when it has any Letter of Credit outstanding hereunder unless arrangements         reasonably satisfactory to such Issuing Bank (including the furnishing of a back-up standby letter of credit         in  form  and  substance,  and  issued  by  an  issuer,  reasonably  satisfactory  to  such  Issuing  Bank  or  the         depositing  of  cash  collateral  into  a  cash  collateral  account  in  amounts  and  pursuant  to  arrangements         reasonably satisfactory to such Issuing Bank) have been made with respect to each such outstanding Letter         of Credit; and                  (h)    the  Lender  that  acts  as  the  Administrative  Agent  cannot  be  replaced  in  its  capacity as         Administrative Agent other than in accordance with Section 9.06,          or (y) terminate the Commitment of such Lender or Issuing Bank, as the case may be, and (a) in the case of  a Lender (other than an Issuing Bank), repay all Obligations of the Borrowers owing to such Lender relating to the  Loans and participations held by such Lender as of such termination date and (b) in the case of an Issuing Bank,  repay all Obligations of the Borrowers owing to such Issuing Bank relating to the Loans and participations held by  the Issuing Bank as of such termination date and Cash Collateralize, cancel or backstop, or provide for the deemed  reissuance  under  another  facility,  on  terms  satisfactory  to  such  Issuing  Bank  any  Letters  of  Credit  issued  by  it;  provided that in the case of any such termination of the Commitment of a Non-Consenting Lender such termination  shall be sufficient (together with all other consenting Lenders) to cause the adoption of the applicable departure,  waiver or amendment of the Loan Documents and such termination shall, with respect to clause (iii) above, be in  respect of all of its interests, rights and obligations with respect to the Class of Loans or Commitments that is the  subject of the related consent, waiver and amendment.          Notwithstanding the foregoing, in addition if a Non-Consenting Lender is being replaced in connection with any Extension Amendment, the Borrowers shall have the option, with the consent of the Administrative Agent and                                                  -106

 

subject  to  at  least  three  Business  Days’  advance  notice  (which notice  may  be  rescinded  if  the  transaction contemplated  in  such  notice  is  not  consummated)  to  such  Non-Consenting  Lenders,  in  lieu  of  execution  of  an Assignment and Assumption as otherwise provided for in this clause (b), effect such assignment by purchasing any such  Non-Consenting  Lender’s  Loans  (which  shall  be  automatically  cancelled  upon  consummation  of  such acquisition)  and  unfunded  Commitments  at  par  (allocated  among  the  applicable  Lenders  in  the  same  manner  as would be required if such Loans were being optionally prepaid or such Commitments were being optionally reduced or  terminated  by  the  Borrowers),  accompanied  by  payment  of  any accrued  interest  and  fees  thereon  (and,  if applicable, any amounts payable pursuant to clause (e) of this Section and Section 3.05). By receiving such purchase price, the applicable Lenders shall automatically be deemed to have assigned such Loans or Commitments pursuant to the terms of an Assignment and Assumption, and accordingly no other action by such Lenders shall be required in connection therewith.         In the event that (i) the Borrowers or the Administrative Agent has requested that the Lenders consent to a departure or waiver of any provisions of the Loan Documents or agree to any amendment thereto, (ii) the consent, waiver or amendment in question requires the agreement of each affected Lender or all the Lenders with respect to a certain Class or Classes of the Loans and/or Commitments and (iii) the Required Lenders  have agreed (but solely to the extent required by Section 10.01) to such consent, waiver or amendment (including, in each case, by virtue of such Lender refusing to make or enter into an Extension Offer pursuant to Section 2.16), then any Lender who does not agree to such consent, waiver or amendment shall be deemed a “Non-Consenting Lender.”         In connection with any such replacement, if any such Non-Consenting Lender or Defaulting Lender does not execute and deliver to the Administrative Agent a duly executed Assignment and Assumption reflecting such replacement  within  five  (5)  Business  Days  of  the  date  on  which the  assignee  Lender executes  and  delivers  such Assignment  and  Assumption  to  such  Non-Consenting  Lender  or  Defaulting  Lender,  then  such  Non-Consenting Lender  or  Defaulting  Lender  shall  be  deemed  to  have  executed  and  delivered such  Assignment  and Assumption without any action on the part of the Non-Consenting Lender or Defaulting Lender.  Notwithstanding the foregoing, in  addition  if  a  Non-Consenting  Lender  is  being  replaced  in  connection  with  any  Extension  Amendment,  the Administrative Borrower shall have the option, with the consent of the Administrative Agent and subject to at least three Business Days’ advance notice (which notice may be rescinded if the refinancing or replacement transaction contemplated  in  such  notice  is  not  consummated)  to  such  Non-Consenting  Lenders,  in  lieu  of  execution  of  an Assignment and Assumption as otherwise provided for in this clause (y), to effect such assignment by purchasing any  such  Non-Consenting  Lender’s  Loans  (which  shall  automatically  be  cancelled  upon  consummation  of  such acquisition)  and  unfunded  Commitments  at  par  (allocated  among  the  applicable  Lenders  in  the  same  manner  as would be required if such Loans were being optionally prepaid or such Commitments were being optionally reduced or terminated by the Borrowers), accompanied by payment of any accrued interest, premium and fees thereon (and, if applicable, any amounts payable pursuant to the immediately preceding paragraphs).  By receiving such purchase price, the applicable Lenders shall automatically be deemed to have assigned such Loans or Commitments pursuant to the terms of an Assignment and Assumption and accordingly no other action by such Lenders shall be required in connection therewith.         A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver  by  such  Lender  or  otherwise,  the  circumstances  entitling  the  Borrowers  to  require  such  assignment  and delegation cease to apply.      Section 3.08                Survival.         All of the Loan Parties’ obligations under this Article III shall survive termination of the Total Revolving Credit Commitments and repayment of all other Obligations hereunder.                                                 -107

 

                                           ARTICLE IV.                        CONDITIONS PRECEDENT TO CREDIT EXTENSIONS       Section 4.01                Conditions to Initial Credit Extension.          The  obligation  of  each  Lender  to  make  a  Credit  Extension  hereunder on the Closing Date is subject to satisfaction (or waiver) of the following conditions precedent:                 (a)     The Administrative Agent’s receipt of the following, each of which shall be originals or         pdf copies or other facsimiles (followed promptly by originals) unless otherwise specified, each properly         executed by a Responsible Officer of the signing Loan Party:                          (i)   a Request for Credit Extension in accordance with the requirements hereof;                         (ii)   executed counterparts of this Agreement;                         (iii)   a Note executed by the Borrowers in favor of each Lender that has requested a                 Note at least three (3) Business Days in advance of the Closing Date;                         (iv)    a copy of  the charter or certificate of formation (or the equivalent thereof) of                 each Loan Party certified by the secretary of state of the state of formation, if applicable, of such                 Loan Party and the other Organization Documents of each Loan Party;                         (v)     subject  to  the  proviso  at  the  end  of  this  Section  4.01(a),  each  Collateral                Document  and  each  other  document  set forth  on Schedule 4.01 required to be executed on  the                Closing  Date  as indicated under such  Schedule 4.01, in each  case duly executed  by each  Loan                Party thereto, together with:                                (A)     subject to Section 10.20, certificates, if any, representing the Pledged                        Equity referred to therein accompanied by undated stock powers executed in blank and                        instruments evidencing the Pledged Debt indorsed in blank;                                (B)     evidence  of  all  other  actions,  recordings  and  filings  required  by  the                        Loan Documents that the Administrative Agent may deem reasonably necessary to satisfy                        the Collateral and Guarantee Requirement shall have been taken, completed or otherwise                        provided for in a manner reasonably satisfactory to the Administrative Agent (including                        the filing of); and                                (C)     proper financing statements (Form UCC-1 or the equivalent) for filing                        under the UCC or other appropriate filing offices of each jurisdiction as may be necessary                        to perfect the security interests purported to be created by the Security Agreement);                         (vi)    such certificates of good standing (to the extent such concept exists) from the                applicable  secretary  of  state  of  the  state  of  organization  of  each  Loan  Party,  certificates  of                resolutions  or  other  action  and  incumbency  certificates  evidencing  the  identity,  authority  and                capacity  of  each  Responsible  Officer  thereof  authorized  to  act as  a  Responsible  Officer  in                connection with this Agreement and the other Loan Documents to which such Loan Party is a party                or is to be a party on the Closing Date;                        (vii)    customary opinions from Kirkland & Ellis LLP and Taft, Stettinius & Hollister                LLP, counsel to the Loan Parties;                        (viii)   a  solvency  certificate  from  the  chief  financial  officer  of  the  Parent  Borrower                (after giving effect to the Transactions) substantially in the form of Exhibit D-3 hereto;                                                  -108

 

                       (ix)    an officer’s certificate dated as of the Closing Date, to the conditions set forth in                 Section 4.01(c) and (d) (solely with respect to the Specified Representations); and                         (x)    a Borrowing Base Certificate as of August 2, 2019;   provided, however, that, each of the requirements set forth in clause (v) above, including the delivery of documents  and  instruments  necessary  to  satisfy  the  Collateral  and  Guarantee  Requirement  (except  for  the  execution  and  delivery of the Security Agreement and to the extent that a Lien on the Collateral may be perfected solely by (x) the  filing  of  a  financing  statement  under  the  Uniform  Commercial  Code  or  (y)  the  delivery  of  stock  certificates  representing  the  Equity  Interests  of  the  Borrowers  and  the  Guarantors  required  to  be  pledged  pursuant  to  the  Collateral  and  Guarantee  Requirement  to  the  extent  (i) possession  of  such  stock  certificates  or  other  certificates  perfects a security interest therein and (ii) other than in the case of stock certificates representing Equity Interests of  the  Initial  Borrower,  such  stock  certificates  or  other  certificates  have  been  received from  the Company after the  Initial  Borrower’s  use  of  commercially  reasonable  efforts  to  receive  such  documents  and  instruments)  shall  not  constitute  conditions  precedent  to  any  Credit  Extension  on  the Closing  Date  after  the  Initial  Borrower’s  use  of  commercially reasonable efforts to satisfy such requirement on or prior to the Closing Date without undue burden or  expense; provided that the Borrowers  shall  deliver,  or cause to be delivered, such search results, documents and  instruments, or take or cause to be taken such other actions as may be required to perfect such security interests in  accordance with Section 6.17.          (b)     Payment of all fees, closing payments and expenses required to be paid hereunder and due to the  Administrative  Agent,  the  Commitment  Parties  and  the  Bookrunners,  and  in  the  case  of  expenses,  to  the  extent  invoiced at least three (3) Business Days prior to the Closing Date (except as otherwise reasonably agreed by the  Borrowers), required to be paid on the Closing Date.          (c)    Prior to or substantially concurrently with the initial Borrowing on the Closing Date, the Merger  shall be consummated in all material respects pursuant to the Merger Agreement (but without giving effect to any  amendments or modifications to the provisions thereof or express waivers or consents thereto that, in each case, are  materially adverse to the interests of the Commitment Parties without the consent of the Commitment Parties, such  consent not to be unreasonably withheld, conditioned or delayed (it being understood and agreed that (i) any change  in the Merger Consideration (as defined in the Merger Agreement) shall be deemed not to be adverse to the interests  of the Commitment Parties and (ii) any adverse modification to the definition of Beta Material Adverse Effect (or  adverse express waiver or express consent in respect of the definition of Beta Material Adverse Effect) without the  prior  written  consent  of  the  Commitment  Parties  (such  consent  not  to  be  unreasonably  withheld,  delayed  or  conditioned) shall be deemed to be materially adverse to the interests of the Commitment Parties); provided that in  each case the Commitment Parties shall be deemed to have consented to such modification, amendment, waiver or  consent  unless  they  shall  have  objected  thereto  within  3  Business  Days  of  receipt  of  written  notice  of  such  modification, amendment, consent or waiver.          (d)    The Specified Merger Agreement Representations and the Specified Representations shall be true  and correct in all material respects.          (e)    The  Commitment  Parties  shall  have  received  the  Annual  Financial  Statements  and  Quarterly Financial Statements.          (f)    The Commitment Parties shall have received the Pro Forma Balance Sheet.          (g)    So  long  as  requested  at  least  ten  (10)  business  days  prior  to  the  Closing  Date,  (x)  the Administrative  Agent  shall  have  received,  at  least  three  (3)  Business  Days  prior  to  the  Closing  Date,  all documentation and other information with respect to Borrowers and the Guarantors that is required by regulatory authorities  under  applicable  “know  your  customer”  and  anti-money  laundering  rules  and  regulations,  including, without limitation, the PATRIOT Act and (y) any Loan Party that qualifies as a “legal entity customer,” under the Beneficial  Ownership  Regulation  shall  deliver,  at  least  three  (3)  Business  Days  prior  to  the  Closing  Date,  a beneficial ownership certificate to the Commitment Parties, which certification shall be substantially similar in form  and substance to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly,                                                  -109

 

   in  May  2018,  by  the  Loan  Syndications  and  Trading  Association  and  Securities  Industry  and  Financial  Markets    Association, in relations to such Loan Party            (h)    Since March 14, 2019, there shall not have been a Beta Material Adverse Effect.            (i)    The  ABL  Intercreditor  Agreement  shall  have  been  executed  by  the  Borrowers  and  Guarantors    party thereto.            (j)    Prior to or substantially concurrently with the initial Borrowing on the Closing Date, the Closing   Date Refinancing shall have been consummated.            (k)    After giving effect to the Credit Extension made on the Closing Date (and the use of the proceeds   thereof), the Total Revolving Credit Exposure shall not exceed the Line Cap at such time.            Without limiting the generality of the provisions of Section 9.03, for purposes of determining compliance   with the conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to   have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder   to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall   have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.         Section 4.02                Conditions to All Credit Extensions after the Closing Date.  The agreement of each Lender and any Issuing Bank to make any extension of credit requested to be made by it hereunder on any date (other  than  (w)  the  initial  extensions  of  credit  on  the  Closing  Date  (except  with  respect  to  the  condition  precedent specified in clause (d) below), (x) Agent Advances, (y) a conversion of Loans to the other Type, or a continuation of Eurocurrency Rate Loans and (z) any amendment, modification, renewal or extension of a Letter of Credit which does not  increase  the  face  amount  of  such  Letter  of  Credit)  is  subject  to  the  satisfaction  (or  waiver)  of  the  following conditions precedent:            (a)    Representations and Warranties. The representations and warranties of each Loan Party set forth in    Article V and in each other Loan Document shall be true and correct in all material respects on and as of the date of    such  Credit  Extension  with  the  same  effect  as  though  made  on  and  as  of  such  date,  except  to  the  extent  such    representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all    material  respects  as  of  such  earlier  date;  provided  that  any  representation  and  warranty  that  is  qualified  as  to    “materiality,”  “Material  Adverse  Effect”  or  similar  language  shall  be  true  and  correct  (after  giving  effect  to  any    qualification therein) in all respects on such respective dates.            (b)     No Default. No Default or Event of Default shall exist or would result from such proposed Credit   Extension or from the application of the proceeds therefrom.            (c)    Request for Credit Extension.  Delivery of a Request for Credit Extension in accordance with the    requirements hereof.            (d)    Borrowing Base Limitations.  After giving effect thereto (and the use of the proceeds thereof) the    Total Revolving Credit Exposure would not exceed the Line Cap at such time.            Each Borrowing of a Loan (other than (w) the initial extensions of credit on the Closing Date (except with   respect to the condition precedent specified in clause (d) above), (x) Agent Advances, (y) a conversion of Loans to   the  other  Type,  or  a continuation  of  Eurocurrency  Rate  Loans and (z) any amendment, modification, renewal  or   extension of a Letter of Credit which does not increase the face amount of such Letter of Credit) by and issuance of a   Letter of Credit on behalf of one or more Borrowers hereunder shall constitute a representation and warranty by the   Parent Borrower and such Borrower as of the date of such extension of credit that the conditions contained in this   Section 4.02 have been satisfied.            Notwithstanding  anything  in  this  Section  4.02  to  the  contrary,  (i)  the  effectiveness  of  any  Incremental    Amendment shall be subject only to the conditions precedent set forth in Section 2.14 and to such conditions as are                                                    -110

 

 mutually agreed between the applicable Borrower and the Lenders party to the Incremental Amendment and (ii) the  effectiveness of any Extension Amendment shall be subject only to the conditions precedent set forth in Section 2.16  and  to  such  conditions  as  are  mutually  agreed  between  the  applicable  Borrower  and  the  Lenders  party  to  the  Extension Amendment.                                             ARTICLE V.                              REPRESENTATIONS AND WARRANTIES          Each Borrower and each of the Guarantors party hereto represent and warrant to the Agents, the Issuing  Banks and the Lenders (a) on and as of the Closing Date (provided that (x) the only representations and warranties  under this Article V the accuracy of which shall be a condition precedent under Section 4.01 to the Credit Extension  on the Closing Date shall be the Specified Representations and (y) for purposes of the making of the representations  and warranties in this Article V on the Closing Date, all references in this Article V to the Loan Parties (or any of  them) or the Restricted Subsidiaries or Subsidiaries of the Parent Borrower (or any of them) shall in each case be  references to such Persons after giving effect to the Transactions) and (b) after the Closing Date, at the time of each  Credit Extension (to the extent, in the case of clause (b), the representations and warranties in this Article V are  required to be true and correct in all material respects or otherwise as a condition to such Credit Extension pursuant  to Article IV) that:       Section 5.01                Existence, Qualification and Power; Compliance with Laws.          Each Loan Party and each Restricted Subsidiary that is a Material Subsidiary (a) is a Person duly organized  or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation, organization  or  formation  (to  the  extent  such  concept  exists  in  such  jurisdiction),  (b)  in  the  case  of  the  Loan  Parties  has  all  requisite corporate power, limited liability power or other organizational power and authority to execute, deliver and  perform its obligations under the Loan Documents to which it is a party, (c) is duly qualified and in good standing  (to the extent such concept exists in such jurisdiction) under the Laws of each jurisdiction where its ownership, lease  or operation of properties or the conduct of its business as currently conducted requires such qualification, (d) is in  compliance  with  all  applicable  Laws  (including  the  United  States  Foreign  Corrupt  Practices  Act  of  1977,  as  amended), orders, writs and injunctions and (e) has all requisite governmental licenses, authorizations, consents and  approvals to operate its business as currently conducted; except in each case referred to in clause (a) (other than with  respect to the Parent Borrower), (c), (d) or (e), to the extent that failure to do so could not reasonably be expected to  have, individually or in the aggregate, a Material Adverse Effect.       Section 5.02                Authorization; No Contravention.          The execution, delivery and performance by each Loan Party of each Loan Document to which such Person is a party (a) have been duly authorized by all necessary corporate or other organizational action, and (b) do not (i) contravene the terms of any of such Person’s Organization Documents, (ii) result in any breach or contravention of, or  the  creation  of  any  Lien  upon  any  of  the  property  or  assets of  such  Loan  Party  (other  than  as  permitted  by Section 7.01), or require any payment to be made under (x) any Contractual Obligation to which such Person is a party or (y) any material order, injunction, writ or decree of any Governmental Authority or any arbitral award to which  such  Person  or  its  property  is  subject  or  (iii)  violate  any  Law;  except  with  respect  to  any  breach  or contravention  or  payment  (but  not  creation  of  Liens)  referred  to  in  clauses  (ii)  and  (iii),  to  the  extent  that  such violation, breach, contravention or payment could not reasonably be expected to have a Material Adverse Effect.       Section 5.03                Governmental Authorization; Other Consents.          No material approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental  Authority  is  necessary  or  required  in  connection  with  the  execution,  delivery  or  performance  by, enforcement by the Administrative Agent of its rights under the Loan Documents against, any Loan Party of this Agreement or any other Loan  Document, the grant by  any Loan  Party  of the Liens  granted by it pursuant to the Collateral Documents, the perfection (if and to the extent required by the Collateral and Guarantee Requirement) or maintenance of the Liens created under the Collateral Documents (including the priority thereof) or the exercise by the Administrative Agent or any Lender of its rights under the Loan Documents or the remedies in respect of the                                                  -111

 

 Collateral pursuant to the Collateral Documents, except for (i) filings and registrations necessary to perfect the Liens  on  the  Collateral  granted  by  the  Loan  Parties  in  favor  of  the  Secured  Parties,  (ii)  the  approvals,  consents,  exemptions, authorizations, actions, notices and filings which have been duly obtained, taken, given or made and are  in full force and effect (except to the extent not required to be obtained, taken, given or made or in full force and  effect  pursuant  to  the  Collateral  and  Guarantee  Requirement)  and  (iii)  those  approvals,  consents,  exemptions,  authorizations or other actions, notices or filings, the failure of which to obtain or make could not reasonably be  expected to have, individually or in the aggregate, a Material Adverse Effect.       Section 5.04                Binding Effect.          This Agreement and each other Loan Document has been duly executed and delivered by each Loan Party  that  is  party  thereto.   This  Agreement  and  each  other  Loan  Document  constitutes  a  legal,  valid  and  binding  obligation of  such  Loan Party, enforceable against each  Loan Party that is a party thereto in accordance with its  terms, except as such enforceability may be limited by (i) Debtor Relief Laws and by general principles of equity  and principles of good faith and fair dealing and (ii) the effect of foreign Laws, rules and regulations as they relate to  pledges of Equity Interests in Foreign Subsidiaries.       Section 5.05                Financial Statements; No Material Adverse Effect.          (a)    As  of  the  Closing  Date,  the  Pro  Forma  Balance  Sheet,  a  copy  of which  has  heretofore  been  furnished  to  the  Administrative  Agent,  has  been  prepared  in  good  faith,  based  on  assumptions  believed  by  the  Borrowers to be reasonable as of the date of delivery thereof, and present fairly in all material respects on a pro  forma basis the estimated financial position of the Parent Borrower and their respective Subsidiaries as at March 31, 2019 (it being understood and agreed that such Pro Forma Balance Sheet need not be prepared in compliance with Regulation S-X of the Securities Act of 1933, as amended, or include adjustments for purchase or recapitalization accounting (including adjustments of the type contemplated by Financial Accounting Standards Board Accounting Standards Codification 805, Business Combinations (formerly SFAS 141R))).          (b)    Since the Closing Date, there has been no event, circumstance or change, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.       Section 5.06                Litigation.          Except as set forth on Schedule 5.06, (a) there are no actions, suits or proceedings, pending or (b) to the knowledge of any Borrower, there are no actions, suits, proceedings, claims or disputes overtly threatened in writing, in each case of (a) and (b), at law, in equity, in arbitration or before any Governmental Authority, by or against any Borrower or any Restricted Subsidiary or against any of their properties or revenues that either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.       Section 5.07                Ownership of Property; Liens.          Each of the Borrowers and each of its Restricted Subsidiaries has good record title to, or valid leasehold interests in, or easements or other limited property interests in, all Real Property necessary in the ordinary conduct of its business, free and clear of all Liens except as set forth on Schedule 5.07 and except for minor defects in title that do not materially interfere with its ability to conduct its business or to utilize such assets for their intended purposes and  Liens  permitted  by  Section 7.01  and  except  where  the  failure  to  have  such  title  or  other  interest  could  not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.       Section 5.08                Environmental Matters.          Except as could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect:                 (a)     each  Loan  Party  and  its  respective  properties  and  operations are and have been in         compliance  with  all  Environmental  Laws,  which  includes  obtaining  and  maintaining  all  applicable                                                  -112

 

       Environmental  Permits  required  under  such  Environmental  Laws  to  carry  on  the  business  of  the  Loan        Parties;                (b)     the  Loan  Parties  have  not  received  any  written  notice  that  alleges  any  of  them  is  in        violation of or potentially liable under any Environmental Laws and none of the Loan Parties nor any Real        Property is the subject of any claims, investigations, liens, demands, or judicial, administrative or arbitral        proceedings pending or, to the knowledge of any Borrower, threatened in writing, under any Environmental        Law or to revoke or modify any Environmental Permit held by any of the Loan Parties;                (c)     there has been no Release of Hazardous Materials on, at, under or from any Real Property        or facilities owned, operated or leased by any of the Loan Parties, or, to the knowledge of any Borrower,        Real Property formerly owned, operated or leased by any Loan Party or arising out of the conduct of the        Loan Parties, in any case, that could reasonably be expected to require investigation, remedial activity or        corrective action or cleanup under Environmental Laws or could reasonably be expected to result in the        Borrowers or any other Loan Party incurring liability under Environmental Laws; and                 (d)    there are no existing facts, circumstances or conditions arising out of or relating to the        operations of the Loan Parties or Real Property or facilities owned, operated or leased by any of the Loan        Parties  or,  to  the  knowledge  of  any  Borrower,  Real  Property  or facilities  formerly  owned,  operated  or        leased by the Loan Parties that could reasonably be expected to result in the Borrowers or any other Loan        Party incurring liability under Environmental Laws.      Section 5.09                Taxes.         Except as could not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, the Borrowers and the Restricted Subsidiaries have timely filed all tax returns required to be filed by them, and have paid all Taxes levied or imposed upon them or their properties, income, profits or assets, that are due and payable (including in their capacity as a withholding agent), except those which are being contested in good faith by appropriate actions diligently conducted and for which adequate reserves have been provided in accordance with GAAP.  There is no proposed Tax deficiency or assessment known to any Loan Parties against the Loan Parties or their Restricted Subsidiaries that, if made, could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  No written adjustment relating to any such returns and involving a material amount of tax has been proposed or otherwise assessed by a taxing authority, and there are no pending audits, proceedings or actions  related  to  the  assessment  or  collection  of  taxes  against  any  Loan  Party  that  could,  individually  or  in  the aggregate, in each case, reasonably be expected to have a Material Adverse Effect.      Section 5.10                ERISA Compliance.         (a)     Except as could not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, each Plan is in compliance in form and operation with its terms and with the applicable provisions of ERISA, the Code and other applicable federal or state Laws.         (b)     (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) neither any Loan Party, Restricted Subsidiary nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due but not delinquent under Section 4007 of ERISA);  (iii)  neither any Loan  Party, Restricted Subsidiary nor  any ERISA  Affiliate has  incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 of ERISA with respect to a Multiemployer Plan; and (iv) to the knowledge of the Borrowers, neither any Loan Party, nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA; except, with respect to each of the foregoing clauses of this Section 5.10(b), as could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.                                                 -113

 

     Section 5.11                Subsidiaries; Equity Interests.          As  of  the  Closing  Date  (after  giving  effect  to  the  Transactions),  no  Loan  Party  has  any  Material  Subsidiaries other than those specifically disclosed on Schedule 5.11 (it being understood that the disclosure of any  Subsidiary on Schedule 5.11 shall not be an admission that such Subsidiary is a Material Subsidiary), and all of the  outstanding  Equity  Interests  owned  by  the  Loan  Parties  (or  a  Subsidiary  of  any  Loan  Party)  in  such  Material  Subsidiaries  have  been  validly  issued  and  are  fully  paid  and  all  Equity  Interests  owned  by  a  Loan  Party  (or  a  Subsidiary of any Loan Party) in such Material Subsidiaries are owned free and clear of all Liens except (i) those  created under the Collateral Documents and (ii) any nonconsensual Lien that is permitted under Section 7.01.       Section 5.12                Margin Regulations; Investment Company Act.          (a)    Each Borrower is not 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  proceeds  of  any  Borrowings  or  drawings  under  any  Letter  of  Credit  will  be  used  for  any purpose that violates Regulation U of the Board of Governors of the United States Federal Reserve System.          (b)    None of the Borrowers or any Guarantor is required to be registered as an “investment company” under the Investment Company Act of 1940.       Section 5.13                Disclosure.                   (a)     No report, financial statement, certificate or other written information furnished by or           on  behalf  of  any  Loan  Party  concerning  the  Initial  Borrower,  Omega  Parent,  the  Company  or  their           respective  Subsidiaries  or  the  Transactions  (other  than  projected  financial  information, pro forma           financial information, budgets, estimates, other forward looking statements and information of a general           economic  or  industry  nature)  to  any  Agent  or  any  Lender  in  connection  with  the  transactions           contemplated  hereby and  the negotiation of  this  Agreement  or delivered hereunder or any other Loan           Document (as modified or supplemented by other information so furnished) when taken as a whole and as           supplemented contains any material misstatement of fact or omits to state any material fact necessary to           make the statements therein (when taken as a whole), in the light of the circumstances under which they           were made, not materially misleading.  With respect to written projected financial information and pro           forma financial information, the Borrowers represent that such written information was prepared in good           faith based upon assumptions believed to be reasonable at the time such information was furnished to the           Lenders  (it  being  understood  that  (i) such  projected  financial information  and pro forma  financial           information are not to be viewed as facts or a guarantee of performance and are subject to significant           uncertainties and contingencies many of  which  are beyond the control of the Parent Borrower and its           Subsidiaries and (ii) no assurance can be given that any particular financial projections will be realized,           and  that  actual  results  during  the  period  or  periods  covered  by  any  such  written  projected  financial           information and pro forma financial information may vary from such forecasts and that such variations           may be material and that no assurance can be given that the projected results will be realized).                   (b)     As  of  the  Closing  Date,  the  information  included  in  the  beneficial  ownership           certification delivered pursuant to Section 4.01(g) is true and correct in all material respects.       Section 5.14                Labor Matters.          Except as, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect:  (a) there are no strikes or other labor disputes against any Borrower or any of its Restricted Subsidiaries pending or, to the knowledge of the Borrowers, overtly threatened and (b) each Borrower and each of its Restricted Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable Laws dealing with wage and hour matters.                                                  -114

 

     Section 5.15                Intellectual Property; Licenses, Etc.          The Borrowers and the Restricted Subsidiaries own, license or otherwise possess the right to use (free and  clear of all Liens, except for the Liens permitted by Section 7.01) all of the intellectual property rights, including  without  limitation,  trademarks,  service  marks,  trade  names,  domain  names,  copyrights,  patents,  patent  rights,  licenses,  technology,  software,  know-how  database  rights,  design  rights,  works  of  authorship,  trade  secrets,  all  registrations and applications related  to  any of the above, and other intellectual property rights (collectively, “IP  Rights”)  that are necessary  for the operation of  their respective businesses  as  currently  conducted, except to the  extent the absence of such IP Rights, either individually or in the aggregate, could not reasonably be expected to  have a Material Adverse Effect.  To the knowledge of each Borrower, the operation of the respective businesses of  the Borrowers and the Restricted Subsidiaries as currently conducted does not infringe upon any IP Rights held by  any Person except for such infringements, individually or in the aggregate, which could not reasonably be expected  to  have  a  Material  Adverse  Effect.   No  claim  or  litigation  regarding  any  of  the  IP  Rights  is  pending  or,  to  the  knowledge  of  any  Borrower,  overtly  threatened  in  writing  against  any  Loan  Party  or  any  of  the  Restricted  Subsidiaries, which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse  Effect.       Section 5.16                Solvency.          On  the  Closing  Date,  after  giving  effect  to  the  Transactions,  the  Parent  Borrower  and  the  Restricted Subsidiaries, on a consolidated basis, are Solvent.       Section 5.17                [Reserved].       Section 5.18                USA Patriot Act, FCPA and OFAC.          (a)    To the extent applicable, each of the Guarantors, the Borrowers and the Restricted Subsidiaries is in compliance, in all material respects, with (i) the Trading with the Enemy Act and each of the foreign assets control regulations  of  the  United  States  Treasury  Department  (31  CFR  Subtitle  B,  Chapter  V)  and  any  other  enabling legislation or executive order relating thereto and (ii) the USA Patriot Act, solely for purposes of Section 4.01 to the extent  a  breach  or  violation  of  the  representation  in  this  clause  (ii)  would  reasonably  be  expected  to  result  in  a Material Adverse Effect.          (b)    No  part  of  the  proceeds  of  the  Loans  will  be  used  by  the  Guarantors,  the  Borrowers  or  any Restricted Subsidiary, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to  obtain,  retain  or  direct  business  or  obtain  any  improper  advantage,  in  violation  of  the  United  States  Foreign Corrupt Practices Act of 1977, as amended.          (c)    (i) None of the Guarantors, the Borrowers or any Restricted Subsidiaries nor, to the knowledge of any Borrower, any director or officer of any Guarantor, Borrower or Restricted Subsidiary is currently the subject of any U.S. sanctions program administered by the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”), and (ii) none of the Guarantors, the Borrowers or any Restricted Subsidiary will directly or indirectly knowingly use the proceeds of the Loans or otherwise knowingly make available such proceeds to any Person, for the purpose of financing the activities of any Person, or in any country or territory that, at the time of such financing, is the subject of any U.S. sanctions program administered by OFAC, except to the extent licensed or otherwise approved by OFAC.       Section 5.19                Collateral Documents.          Except as otherwise contemplated hereby or under any other Loan Documents and subject to the limitations set forth  in the Collateral and  Guarantee Requirement, the provisions of the Collateral Documents, together with such filings and other actions required to be taken hereby or by the applicable Collateral Documents (including the delivery to the Administrative Agent of any Pledged Debt and any Pledged Equity required to be delivered pursuant to the applicable Collateral Documents), are effective to create in favor of the Administrative Agent for the benefit                                                  -115

 

 of  the  Secured  Parties,  except  as  otherwise  provided  hereunder or  pursuant  to  the  applicable  Loan  Documents,  including subject to Liens permitted by Section 7.01, a legal, valid, enforceable and perfected Lien on all right, title  and interest of the respective Loan Parties in the Collateral described therein.   Notwithstanding anything herein (including this Section 5.19) or in any other Loan Document to the contrary, neither  the Borrowers nor any other Loan Party makes any representation or warranty as to (A) the effects of perfection or  non-perfection, the priority or the enforceability of any pledge of or security interest in any Equity Interests of any  Foreign Subsidiary that is not a Guarantor, or as to the rights and remedies of the Agents or any Lender with respect  thereto, under foreign Law, (B) the pledge or creation of any security interest, or the effects of perfection or non-  perfection, the priority or the enforceability of any pledge of or security interest to the extent such pledge, security  interest, perfection or priority is not required pursuant to the Collateral and Guarantee Requirement or (C) on the  Closing Date and until required pursuant to Section 6.13, 6.17 or 4.01(a)(v), the pledge or creation of any security  interest, or the effects of perfection or non-perfection, the priority or enforceability of any pledge or security interest  to the extent not required on the Closing Date pursuant to Section 4.01(a)(v).       Section 5.20                EEA Financial Institution and Covered Party.          No Loan Party is an EEA Financial Institution or a Covered Party.       Section 5.21                Accounts.          Without  limiting  the  statements  contained  in  any  Borrowing  Base  Certificate,  the  statements  in  each Borrowing Base Certificate are or will be (when such Borrowing Base Certificate is delivered) true and correct in all material respects.  The Administrative Agent may rely, in determining which Accounts are Eligible Accounts, on all statements and representations made by the Borrowers with respect thereto.  With respect to each Account at the time it is shown as an Eligible Account in a Borrowing Base Certificate:          (a)    it is genuine and in all material respects what it purports to be, and is not evidenced by a judgment;          (b)    it arises out of a completed, bona fide sale and delivery of goods or rendition of service and substantially in accordance with any purchase order, contract or other document relating thereto; and          (c)    it is for a sum certain, maturing as stated in the invoice covering such sale or rendition.       Section 5.22                Borrowing Base Calculation.          The calculation by the Administrative Borrower of each Borrowing Base in any Borrowing Base Certificate delivered to the Administrative Agent and the valuation thereunder is complete and accurate in all material respects as of the date of such delivery.                                             ARTICLE VI.                                    AFFIRMATIVE COVENANTS          So long as any Lender shall have any Commitment, any Loan or other Obligation (other than contingent  indemnification obligations as to which no claim has been asserted) or any Letter of Credit shall remain outstanding  (unless the Outstanding Amount of the LC Obligations related thereto has been Cash Collateralized or backstopped  by a letter of credit reasonably satisfactory to the applicable Issuing Bank or such Letter of Credit has been deemed  reissued  under another agreement  reasonably acceptable to the applicable Issuing Bank), then from and after the  Closing Date, the Parent Borrower shall, and shall cause the Restricted Subsidiaries to:       Section 6.01                Financial Statements.          Deliver to the Administrative Agent for prompt further distribution to each Lender:                                                  -116

 

        (a)    within one hundred and twenty (120) days after the end of each fiscal year of the Parent Borrower (or, in the case of financial statements for the fiscal year ended December 31, 2019, on or before the date that is one hundred and fifty (150) days after the end of such fiscal year), a consolidated statement of financial condition of the Parent Borrower and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, stockholders’ equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year (provided, in no event  shall any comparison be required to be furnished to the Administrative Agent with respect to any period occurring prior to the first day of the fiscal year of the Parent Borrower ended December 31, 2019; provided, further, in no event shall any prior year comparison financial be required to include information with respect to Omega and its Subsidiaries prior to the Closing Date), all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of any independent registered public  accounting  firm  of  nationally  recognized  standing  or  any  other  independent  registered  public accounting  firm  approved  by  the  Administrative  Agent  (such  consent  not  to  be  unreasonably  withheld, delayed  or  conditioned),  which  report  and  opinion  (i)  shall  be prepared  in  accordance  with  generally accepted  auditing  standards  and  (ii)  shall  not  be  subject to any “going  concern”  or like qualification or exception or any qualification or exception as to the scope of such audit (other than a “going concern” or like qualification or exception as a result of a prospective or actual default or event of default with respect to  any  financial  covenant  (including  the  Financial  Covenant),  or  the  impending  maturity  of  any Indebtedness);          (b)    within forty-five (45) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the Parent Borrower, beginning with the fiscal quarter ending September 30, 2019 (or, in the case of such financial statements for the first three such deliveries, on or before the date that is sixty (60) days after the end of such fiscal quarter), a consolidated unaudited statement of financial condition of the Parent Borrower and its Subsidiaries as at the end of such fiscal quarter and the related (i) consolidated unaudited statements of income or operations for such fiscal quarter and for the portion of the fiscal year then  ended  and  (ii)  consolidated  unaudited  statements  of  cash  flows for such fiscal quarter and for the portion of the fiscal year then ended, and beginning one full fiscal year following the Closing Date, setting forth,  in  each  case,  in comparative form the  figures for the  corresponding fiscal  quarter of  the previous fiscal year and the corresponding portion of the previous fiscal year (provided no comparison to any period prior to the Closing Date shall be required), all in reasonable detail and certified by a Responsible Officer of the Administrative Borrower as fairly presenting in all material respects the financial condition, results of operations  and  cash  flows  of  the  Parent  Borrower  and  their  Restricted  Subsidiaries  in  accordance  with GAAP, subject only to normal year-end adjustments and the absence of footnotes;         (c)     within  ninety  (90)  days  after  the  end  of  each  fiscal  year  of  the  Parent  Borrower (beginning with the fiscal year ended December 31, 2019), a reasonably detailed consolidated budget for the then-current fiscal year as customarily prepared by management of the Borrower for their internal use (including a projected consolidated balance sheet of the Parent Borrower and its Restricted Subsidiaries as of the end of such fiscal year and the related consolidated statements of projected cash flow and income for such  fiscal  year  and  a  summary  of  the  material  underlying  assumptions  applicable  thereto  (the “Projections”),  which  Projections  shall  in  each  case  be  accompanied  by  a  certificate  of  a  Responsible Officer stating that such Projections have been prepared in good faith on the basis of the assumptions stated therein, which assumptions were believed by the Borrowers to be reasonable at the time such Projections were furnished to the Administrative Agent, it being understood that such Projections are not to be viewed as facts or as a guarantee of performance or achievement of any particular results, are subject to significant uncertainties  and  contingencies  many of  which  are beyond  the control  of  the Parent  Borrower and their Restricted Subsidiaries, and that actual results may vary from such Projections and that such variations may be material and that no assurance can be given that the projected results will be realized; provided, that such Projections shall only be delivered to Lenders that are not Public Lenders;         (d)     simultaneously with the delivery of each set of consolidated financial statements referred to in Section 6.01(a) and Section 6.01(b) above, the related consolidating financial statements reflecting the adjustments  necessary  to  eliminate  the  accounts  of  Unrestricted  Subsidiaries  (if  any  and  which  are  not required to be audited and may be in footnote form only) from such consolidated financial statements; and                                          -117

 

               (e)    within  ten  (10)  Business  Days  after  the  Closing  Date   (x)  a consolidated  unaudited        statement of financial condition of the Company and its Subsidiaries as at June 30, 2019 and the related (i)        consolidated unaudited statements of income or operations for the fiscal quarter ended June 30, 2019 and        for the portion of the fiscal year then ended and (ii) consolidated unaudited statements of cash flows for the        fiscal quarter ended June 30, 2019 and for the portion of the fiscal year then ended and (y) a consolidated        unaudited statement of financial condition of Omega III and its Subsidiaries as at June 30, 2019 and the        related (i) consolidated unaudited statements of income or operations for the fiscal quarter ended June 30,        2019 and for the portion of the fiscal year then ended and (ii) consolidated unaudited statements of cash        flows for the fiscal quarter ended June 30, 2019 and for the portion of the fiscal year then ended, all in        reasonable detail and certified by a Responsible Officer of the Company or Omega III, as applicable, as        fairly presenting in all material respects the financial condition, results of operations and cash flows of the        Company or Omega III, as applicable, and their respective Subsidiaries in accordance with GAAP, subject        only to normal year-end adjustments and the absence of footnotes.         Notwithstanding the foregoing, the obligations in paragraphs (a) through (e) of this Section 6.01 may be satisfied with respect to such applicable financial information by furnishing the Parent Borrower’s Form 10-K, 10-Q or 8-K, as applicable, filed with the SEC (or, with respect to clause (e) only, by furnishing the Company’s or the Parent  Borrower’s,  as  applicable,  Form  10-Q  or  8-K  filed  with  the  SEC); provided  that  to  the  extent  such information is in lieu of information required to be provided under Section 6.01(a), such materials are, to the extent applicable, accompanied by a report and opinion of any independent registered public accounting firm of nationally recognized  standing  or  any  other  independent  registered  public accounting  firm  approved  by  the  Administrative Agent (such consent not to be unreasonably withheld, delayed or conditioned), which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit (other than a “going concern”  or  like  qualification or exception  as  a result  of  a prospective or actual default  or  event  of default  with respect  to  any  financial  covenant  (including  the  Financial  Covenant),  or  the  impending  maturity  of  any Indebtedness).         Any financial statement required to be delivered pursuant to Section 6.01(a), (b) or (e) shall not be required to include purchase accounting or recapitalization accounting adjustments relating to the Transactions or any other acquisition to the extent it is not practicable to include any such adjustments in such financial statement.      Section 6.02                Certificates; Other Information.         Deliver to the Administrative Agent for prompt further distribution to each Lender:                 (a)    no later than five (5) Business Days after the delivery of the financial statements referred        to in Section 6.01(a) and Section 6.01(b), a duly completed Compliance Certificate signed by a Responsible        Officer of the Administrative Borrower (it being understood and agreed that such Compliance Certificate        shall require a calculation of the Financial Covenant regardless of whether the Financial Covenant is then        being tested);                 (b)    promptly after the same are publicly available, copies of all annual, regular, periodic and        special reports and registration statements which any Borrower or any Restricted Subsidiary files with the        SEC or with any Governmental Authority that may be substituted therefor (other than amendments to any        registration  statement  (to  the  extent  such  registration  statement,  in  the  form  it  became  effective,  is        delivered), exhibits to any registration statement and, if applicable, any registration statement on Form S-8)        and in any case not otherwise required to be delivered to the Administrative Agent pursuant to any other        clause of this Section 6.02;                (c)     promptly after the furnishing thereof, copies of any amendment, written modification or        waiver of the First Lien Credit Agreement or the Second Lien Notes Indenture;                (d)     together with the delivery of each Compliance Certificate pursuant to Section 6.02(a), a        list  of  each  Subsidiary of the Borrowers  that identifies  each  Subsidiary as a Restricted Subsidiary or an                                                 -118

 

        Unrestricted Subsidiary as of the date of delivery of such Compliance Certificate (to the extent that there         have been any changes in the identity or status as a Restricted Subsidiary or Unrestricted Subsidiary of any         such Subsidiaries since the later of the Closing Date or the most recent list provided);                 (e)     promptly, such additional information regarding the business, legal, financial or corporate         affairs of the Loan Parties or any of their respective Restricted Subsidiaries, or compliance with the terms         of the Loan Documents, as the Administrative Agent or any Lender through the Administrative Agent may         from time to time reasonably request;                 (f) from and after the Closing Date, (i) unless clause (ii) below applies, not later than 5:00 p.m.,         New York City time on or before the twentieth (20th) day of each fiscal month (or more frequently as the         Administrative  Borrower  may  elect,  so  long  as  the  frequency  of delivery  is  maintained  by  the         Administrative Borrower for the  immediately following sixty (60) day  period), (ii) during any period  in         which a Dominion Period is in effect and in respect of which the Administrative Agent has delivered notice         thereof  as  contemplated  by  the  definition  thereof,  not  later  than  5:00  p.m.,  New  York  City  time,  on  or         before  Wednesday  of  each  week,  (iii)  at  the  Administrative  Borrower’s  discretion,  at  the  time  of  the         consummation  of  a  Permitted  Acquisition  (including,  if  applicable,  a  calculation  of  the  Acquired  Asset         Borrowing Base) and (iv) at the time of the consummation of a sale or other Disposition with a value in         excess of $7,500,000 (other than any Disposition of cash or Inventory in the ordinary course of business),         in each case, a borrowing base certificate setting forth the Borrowing Base (in each case with supporting         calculations  in  reasonable  detail)  substantially  in  the  form  of  Exhibit N  (each,  a  “Borrowing Base         Certificate”), which shall be prepared as of the last Business Day of the preceding fiscal month in the case         of  each  subsequent  Borrowing  Base Certificate  (or,  if  any such Borrowing  Base Certificate is delivered         more frequently than monthly, as of the last Business Day of the week or other applicable period preceding         such delivery).  Each such Borrowing Base Certificate shall include such supporting information as may be         reasonably requested from time to time by the Administrative Agent, including the (x) aggregate amount of         Specified Beta Vendor Obligations owed to any vendor at such time and (y) the total value of all assets of         the Parent Borrower or the applicable Restricted Subsidiary subject to Liens securing the Specified Beta         Vendor Obligations at such time; and                 (g) (i) In the case of succeeding sub-clause (x), one (1) time during each fiscal year of the Parent         Borrower (or, at any time that Specified Availability is less than the greater of (i) 15.0% of the Line Cap         and (ii) $15,000,000 for five (5) consecutive business days, two (2) times in each fiscal year of the Parent         Borrower), (ii) in the case of succeeding sub-clause (y), one (1) time in each fiscal year (at any time that         Specified Availability is less than the greater of (i) 15.0% of the Line Cap and (ii) $15,000,000 for five (5)         consecutive business days, two (2) times in each fiscal year of the Parent Borrower) and (iii) in the case of         either  sub-clause  (x)  or  (y),  at  any  time  that  any  Specified  ABL  Default  exists,  as  often  as  the         Administrative Agent reasonably requests (x) an appraisal of the Inventory of the Loan Parties and (y) a         collateral examination of the Inventory, Accounts and related accounts of the Loan Parties, in each case, in         scope and form, and conducted  by  the Administrative Agent  or from a third-party appraiser and a third-         party consultant, respectively, reasonably satisfactory to the Administrative Agent and at the sole cost and         expense of the Borrowers.  The Administrative Agent shall deliver to each Lender, within five (5) days of         receipt thereof, each final report delivered to the Administrative Agent pursuant to this clause (g).          Documents required to be delivered pursuant to Section 6.01 and Section 6.02(b) and (c) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Administrative Borrower posts such documents,  or provides a link thereto  on the website on the Internet at the website address listed on Schedule 10.02; or (ii) on which such documents are posted on the Borrowers’ behalf on the Platform, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether  sponsored  by  the  Administrative  Agent); provided  that  (x)  upon  written  request  by  the  Administrative Agent, the Administrative Borrower shall deliver paper copies of such documents (which may be electronic copies delivered  via  electronic  mail)  to  the  Administrative  Agent  for further  distribution  to  each  Lender  until  a  written request to cease delivering paper copies is given by the Administrative Agent and (y) the Administrative Borrower shall  notify  (which  may  be  by  facsimile  or  electronic mail) the Administrative Agent  of  the posting of any  such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  Each Lender shall be solely responsible for timely accessing posted documents or requesting delivery of                                                 -119

 

 paper  copies  of  such  documents  from  the  Administrative  Agent  and  maintaining  its  copies  of  such  documents.  Notwithstanding  anything  to  the  contrary  in  this  Section 6.02, none  of  the  Borrowers  or  any  of  the  Restricted  Subsidiaries  will  be required to disclose,  permit the inspection, examination or making copies or abstracts of, or  discussion  of,  any  document,  information  or  other  matter  that  (a)  constitutes  non-financial  trade  secrets  or  non-  financial proprietary information, (b) in respect of which disclosure to the Administrative Agent or any Lender (or  their respective representatives or contractors) is prohibited by Law or any binding agreement or (c) is subject to  attorney-client or similar privilege or constitutes attorney work product.          Each  Borrower  hereby  acknowledges  that  (a)  the  Administrative  Agent  and/or  the  Arrangers  will  make  available  to  the  Lenders  materials  and/or  information  provided by  or  on  behalf  of  any  Borrower  hereunder  (collectively,  “Borrower  Materials”)  by  posting  the  Borrower  Materials  on  the  Platform  and  (b)  certain  of  the  Lenders  (each,  a  “Public  Lender”)  may  have  personnel  who  do  not  wish  to  receive  Material  Non-Public  Information, and who may be engaged in investment and other market-related activities with respect to such Persons’  securities.  Each Borrower hereby agrees that it will use commercially reasonable efforts to identify that portion of  the Borrower Materials that may be distributed to the Public Lenders and that (w) all such Borrower Materials shall  be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall  appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrowers shall be  deemed to have authorized the Administrative Agent, the Arranger, and the Lenders to treat such Borrower Materials  as not containing any Material Non-Public Information (although it may be sensitive and proprietary) with respect to  the Borrowers or their securities for purposes of United States federal and state securities laws (provided, however,  that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 10.08);  (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform  designated “Public Side Information”; and (z) the Administrative Agent and the Arrangers shall treat any Borrower  Materials  that  are  not  marked  “PUBLIC”  as  being  suitable  only  for  posting  on  a  portion  of  the  Platform  not  designated “Public Side Information.”  Notwithstanding the foregoing, the Borrowers shall be under no obligation to  mark the Borrower Materials “PUBLIC.”       Section 6.03                Notices.          Promptly  after  a  Responsible  Officer  of  the  Administrative  Borrower  has  obtained  actual  knowledge thereof, notify the Administrative Agent (which will promptly thereafter furnish such notice to each Lender):                 (a)     of the occurrence of any Event of Default;                 (b)     of the occurrence of an ERISA Event which would reasonably be expected to result in a         Material Adverse Effect;                 (c)     of the filing or commencement of, or any written overt threat or notice of intention of any         person to  file or commence, any action, suit,  litigation or proceeding, whether at law or in equity by or         before  any  Governmental  Authority  against  any  Borrower  or  any  Restricted  Subsidiary  that  would         reasonably be expected to be adversely determined and, if so determined, would reasonably be expected to         result in a Material Adverse Effect;                 (d)     of any violation by any Loan Party or any of their respective Restricted Subsidiaries of, or         liability of any Loan Party or any of their respective Restricted Subsidiaries under, any Environmental Law         which would reasonably be expected to have a Material Adverse Effect; or                 (e)     notice  of  the  commencement  of  a  Compliance  Period  or  a  circumstance  that,  with  the         giving of notice, would commence a Dominion Period.          Each  notice pursuant  to  this Section 6.03 shall be accompanied by a written statement  of a Responsible Officer of the Administrative Borrower (x) that such notice is being delivered pursuant to Section 6.03(a), (b), (c), (d) or (e) (as applicable) and (y) setting forth details of the occurrence referred to therein and stating what action the Borrowers have taken and propose to take with respect thereto.                                                  -120

 

     Section 6.04                Payment of Taxes.          Pay, discharge or otherwise satisfy, as the same shall become due and payable in the normal conduct of its  business, all its obligations and liabilities in respect of Taxes imposed upon it or upon its income or profits or in  respect of its property, except, in each case, to the extent (a) any such Tax is being contested in good faith and by  appropriate actions for which appropriate reserves have been established in accordance with GAAP or (b) the failure  to pay or discharge the same would not reasonably be expected to have, individually or in the aggregate, a Material  Adverse Effect.       Section 6.05                Preservation of Existence, Etc.          (a)    Preserve,  renew  and  maintain  in  full  force  and  effect  its  legal  existence  under  the  Laws  of  the  jurisdiction of its organization, and          (b)    take  all  reasonable  action  to  maintain  all  rights,  privileges  (including  its  good  standing  where applicable in the relevant jurisdiction), permits, approvals, licenses and franchises material to the ordinary conduct of its business,          except,  in  the  case  of  clause  (a)  or  (b),  to  the  extent  (i)  that  failure  to  do  so  would  not  reasonably  be expected to have, individually or in the aggregate, a Material Adverse Effect (except in the case of clause (a) with respect to the Parent Borrower) or (ii) pursuant to any transaction permitted by Sections 7.04 and 7.05.       Section 6.06                Maintenance of Properties.          Except if the failure to do so would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, maintain, preserve and protect all of its material properties and equipment necessary in the operation  of  its  business  in  good  working  order,  repair  and  condition, ordinary wear and tear excepted and fire, casualty or condemnation excepted.       Section 6.07                Maintenance of Insurance.          Maintain with insurance companies that the Borrowers believe (in the good faith judgment of management) are financially sound and reputable at the time the relevant coverage is placed or renewed, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts (after giving effect to any self-insurance reasonable and customary  for  similarly  situated  Persons  engaged  in  the  same  or  similar  businesses  as  the  Borrowers  and  the Restricted Subsidiaries) as are customarily carried under similar circumstances by such other Persons.  Each such policy of insurance (other than business interruption insurance (if any), director and officer insurance and worker’s compensation insurance) shall as appropriate (i) name the Administrative Agent, on behalf of the Secured Parties, as an  additional  insured  thereunder  as  its  interest  may  appear  or (ii)  in  the  case  of  each  casualty  insurance  policy, contain a loss payable clause or endorsement that names the Administrative Agent, on behalf of the Secured Parties, as loss payee thereunder.       Section 6.08                Compliance with Laws.          Comply  with  the  requirements  of  all  Laws  and  all  orders,  writs,  injunctions  and  decrees  of  any Governmental  Authority  applicable  to  it  or  to  its  business  or  property,  except  if  the  failure  to  comply  therewith would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.       Section 6.09                Books and Records.          Maintain proper books of record and account, in which entries that are full, true and correct in all material respects and are in conformity with GAAP and which reflect all material financial transactions and matters involving the assets and business of a Borrower or a Restricted Subsidiary, as the case may be (it being understood and agreed that  certain  Foreign  Subsidiaries  maintain  individual  books  and  records  in  conformity  with  generally  accepted                                                  -121

 

 accounting principles in their respective countries of organization and that such maintenance shall not constitute a  breach of the representations, warranties or covenants hereunder).       Section 6.10                Inspection Rights.          Permit representatives and independent contractors of the Administrative Agent to visit and inspect any of  its  properties,  to  examine  its  corporate,  financial  and  operating  records,  and  make  copies  thereof  or  abstracts  therefrom (other than the records of the Board of Directors of such Loan Party or such Restricted Subsidiary), and to  discuss its affairs, finances and accounts with its directors, officers, and independent public accountants (subject to  such accountants’ customary policies and procedures), all at the reasonable expense of the Borrowers and at such  reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance  notice to the Borrowers; provided that only the Administrative Agent on behalf of the Lenders may exercise rights of  the Administrative Agent and the Lenders under this Section 6.10 and the Administrative Agent shall not exercise  such rights more often than one time during any calendar year and such time shall be at the Borrowers’ expense;  provided, further,  that  during  the  continuance  of  an  Event  of  Default,  the  Administrative  Agent  (or  any  of  its  respective representatives or independent contractors), on behalf of the Lenders, may do any of the foregoing at the  expense  of  the  Borrowers  at  any  time  during  normal  business  hours  and  upon  reasonable  advance  notice.   The  Administrative Agent shall give the Borrowers the opportunity to participate in any discussions with the Borrowers’  independent  public  accountants.   Notwithstanding  anything  to  the  contrary  in  this  Section 6.10,  none  of  the  Borrowers or any of the Restricted Subsidiaries will be required to disclose, permit the inspection, examination or  making copies or abstracts of, or discussion of, any document, information or other matter that (a) constitutes non-  financial  trade  secrets  or  non-financial  proprietary  information,  (b)  in  respect  of  which  disclosure  to  the  Administrative  Agent  or  any  Lender  (or  their  respective  representatives  or  contractors)  is  prohibited  by  Law,  fiduciary duty or any binding agreement or (c) is subject to attorney-client or similar privilege or constitutes attorney  work  product.  For  the  avoidance  of  doubt,  this  Section  6.10  does  not  govern  field  examinations  or  inventory  appraisals, which are governed by Section 6.02(g).       Section 6.11                Additional Collateral; Additional Guarantors.          At the Borrowers’ expense, subject to the limitations and exceptions of this Agreement, including, without limitation,  the  provisions  of  the  Collateral  and  Guarantee  Requirement,  the  Intercreditor  Agreements  and  any applicable  limitation  in  any  Collateral  Document,  take  all  action  necessary  or  reasonably  requested  by  the Administrative Agent to ensure that the Collateral and Guarantee Requirement continues to be satisfied, including:                 (a)     upon (v) the formation or acquisition of any new direct or indirect wholly-owned Material         Domestic Subsidiary (in each case, other than an Excluded Subsidiary) by any Loan Party, (w) an election         by the Borrower to designate a Restricted Subsidiary as a Guarantor pursuant to the definition of Guarantor,         (x)  the  designation  in  accordance  with  Section 6.14  of  any  existing  direct  or  indirect  wholly-owned         Material Domestic Subsidiary as a Restricted Subsidiary (in each case, other than an Excluded Subsidiary),         (y) any Subsidiary becoming a wholly-owned Material Domestic Subsidiary (in each case, other than an         Excluded Subsidiary) or (z) any Restricted Subsidiary ceasing to be an Excluded Subsidiary:                          (i)   within  60  (or  such  greater  number  of  days  specified  below)  days  after  such                formation, acquisition or designation, or such longer period as the Administrative Agent may agree                in writing in its reasonable discretion:                                (A)     cause  each  such  Subsidiary  to  duly  execute  and  deliver  to  the                        Administrative  Agent,  other  than  with  respect  to  any  Excluded  Assets,  a  Guarantor                        Joinder  Agreement  to  this  Agreement  as  Guarantors,  completed  Security  Agreement                        Supplements,  Intellectual  Property  Security  Agreements,  a  counterpart  of  the                        Intercompany Note and other security agreements and documents as reasonably requested                        by  and  in  form  and  substance  reasonably  satisfactory  to  the  Administrative  Agent                        (consistent with the Security Agreement, Intellectual Property Security Agreements and                                                  -122

 

                      other  security  agreements  in  effect  on  the  Closing  Date),  in  each  case  granting  Liens                       required by the Collateral and Guarantee Requirement;                                (B)    cause each such Subsidiary (and the parent of each such Subsidiary that                       is  a  Guarantor)  to  deliver  any  and  all  certificates  representing  Equity  Interests  (to  the                       extent  certificated),  intercompany  notes  (to  the  extent  certificated)  and  instruments                       evidencing  Indebtedness  that,  in  each  case,  are  required to be pledged pursuant  to the                       Collateral and Guarantee Requirement, accompanied by undated stock powers or other                       appropriate instruments of transfer executed in blank; and                               (C)     take and cause such Subsidiary (and the parent of such Subsidiary that                       is a Guarantor) to take whatever action (including the filing of UCC financing statements                       and delivery of stock and membership interest certificates to the extent certificated) as                       may be required pursuant to the terms of the Loan Documents or as may be necessary in                       the reasonable opinion of the Administrative Agent to vest in the Administrative Agent                       (or in any representative of the Administrative Agent designated by it) valid and perfected                       first  priority  Liens  (to  the  extent  required  by  the  Collateral Documents)  to  the  extent                       required by the Collateral and Guarantee Requirement;                        (ii)   if reasonably requested by the Administrative Agent, within sixty (60) days after                such  request  (or  such  longer  period  as  the  Administrative  Agent  may  agree  in  writing  in  its                reasonable  discretion),  deliver  to  the  Administrative  Agent  customary  legal  opinions,  board                resolutions, good standing certificates and secretary’s or assistant secretary’s certificates consistent                with those delivered on the Closing Date under Section 4.01 (conformed as appropriate) other than                changes  to  such  legal  opinions  resulting  from  a  change  in  Law, change  in  fact  or  change  to                counsel’s form of opinion reasonably satisfactory to the Administrative Agent as to such matters                set forth in this Section 6.11(a) as the Administrative Agent may reasonably request;                        (iii)   [reserved]; and                        (iv)   if reasonably requested by the Administrative Agent, within sixty (60) days after                such  request  (or  such  longer  period  as  the  Administrative  Agent  may  agree  in  writing  in  its                reasonable discretion), deliver to the Administrative Agent any other items necessary from time to                time to satisfy the Collateral and Guarantee Requirement with respect to perfection and existence                of security interests with respect to property of any Guarantor acquired after the Closing Date and                subject to the Collateral and Guarantee Requirement, but not specifically covered by the preceding                clauses (i) or (ii).                 (b)    [Reserved].                 (c)    Requiring each Domestic Subsidiary required to be designated as a “Material Domestic        Subsidiary” pursuant to the proviso in the definition of “Material Domestic Subsidiary” to have taken all        actions to comply with the provisions of Section 6.11 within the time frame required by the definition of        “Material Domestic Subsidiary”.      Section 6.12                Compliance with Environmental Laws.         Except,  in  each  case,  to  the  extent  that  the  failure  to  do  so  would  not  reasonably  be  expected  to  have, individually or in the aggregate, a Material Adverse Effect: (a) comply, and use commercially reasonable efforts to take all reasonable actions to cause all lessees and other Persons operating or occupying its properties to comply, with all applicable Environmental Laws and Environmental Permits; (b) obtain and renew all Environmental Permits necessary  for  its  operations  and  properties;  and  (c)  in  each  case  to  the  extent  the  Loan  Parties  are  required  by applicable Environmental Laws, conduct any investigation, remedial, cleanup or other corrective action necessary to address Hazardous Materials at any property or facility in accordance with applicable Environmental Laws.                                                 -123

 

     Section 6.13                Further Assurances.          Promptly upon reasonable request by the Administrative Agent (i) correct any mutually identified material  defect or error  that may  be discovered in the execution, acknowledgment, filing or recordation of  any Collateral  Document or other document or instrument relating to any Collateral, and (ii) do, execute, acknowledge, deliver,  record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and  other instruments as the Administrative Agent may reasonably request from time to time in order to (x) carry out  more effectively the purposes of the Collateral Documents and/or (y) perfect and maintain the validity, effectiveness  and priority of any of the Collateral Documents and any of the Liens (subject to Liens permitted hereunder) intended  to be created thereunder, in each case, to the extent required pursuant to the Collateral and Guarantee Requirement.       Section 6.14                Designation of Subsidiaries.          The Borrowers may at any time after the Closing Date designate any Restricted Subsidiary of a Borrower  (other than any Borrower (unless the Administrative Borrower has delivered a notice terminating such Borrower’s  status as a Borrower hereunder in accordance with the definition of “Borrower”)) as an Unrestricted Subsidiary or  any  Unrestricted  Subsidiary  as  a  Restricted  Subsidiary; provided  that  (i)  immediately  before  and  after  such  designation, no Specified ABL Default shall have occurred and be continuing, (ii) in no event shall an Unrestricted  Subsidiary acquire (including pursuant to the designation of a Restricted Subsidiary as an Unrestricted Subsidiary)  Material  IP  from  the  Parent  Borrower  or  any  Restricted  Subsidiary and (iii) immediately before and after such  designation,  the  Payment  Conditions  shall  be  satisfied.   The  designation  of  any  Subsidiary  as  an  Unrestricted  Subsidiary after the Closing Date shall constitute an Investment by the applicable Borrower therein at the date of  designation  as  set  forth  in  the  definition  of  Investment.   The designation  of  any  Unrestricted  Subsidiary  as  a  Restricted Subsidiary shall constitute (a) the incurrence (at the time of designation) of any Investment, Indebtedness  or Liens of such Subsidiary existing at such time and (b) a Return on any Investment by the applicable Borrower in  Unrestricted Subsidiaries pursuant to the definition of Investment.       Section 6.15                [Reserved].       Section 6.16                Use of Proceeds.          Use  the  proceeds  of  any  Borrowing  on  the  Closing  Date,  whether directly  or  indirectly,  in  a  manner consistent with the definition of Permitted Initial Revolving Credit Borrowing Purposes, and after the Closing Date, use the proceeds of any Borrowing for any purpose not otherwise prohibited under this Agreement.       Section 6.17                Post-Closing Matters.          Cause to be delivered or performed the documents and other agreements set forth on Schedule 6.17 within the time frames specified in such Schedule 6.17.          All conditions precedent and representations contained in this Agreement and the other Loan Documents shall  be deemed modified to the extent necessary to effect the foregoing (and to permit the taking of the actions described above within the time periods required above, rather than as elsewhere provided in the Loan Documents); provided that (x) to the extent any representation and warranty would not be true because the foregoing actions were not taken on the Closing Date, the respective representation and warranty shall be required to be true and correct in all material respects at the time the respective action is taken (or was required to be taken) in accordance with the foregoing  provisions  of  this  Section  6.17  and  (y)  all  representations  and  warranties  relating  to  the  Collateral Documents shall be required to be true immediately after the actions required to be taken by this Section 6.17 have been taken (or were required to be taken) and the parties hereto acknowledge and agree that the failure to take any of the actions required above, within the relevant time periods required above, shall give rise to an immediate Event of Default pursuant to this Agreement.                                                  -124

 

     Section 6.18                Specified Beta Vendor Financing Statements.          On or prior to the date that is six  months  after the Closing  Date (or such later date as agreed to by the  Administrative Agent in its reasonable discretion), the Parent Borrower shall either (i) cause to be terminated those  financing  statements  set  forth  on  Schedule  6.18  (the  “Specified  Beta  Vendor  Financing  Statements”)  and  terminate (or amend to remove any lien grant) any prime vendor agreement or other similar agreement between any  one  or  more  of  the  Parent  Borrower  and  its  Restricted  Subsidiaries  on  the  one  hand  and  any  vendor  or  similar  contractual  counterparty  thereof  on  the  other  hand  the  obligations  under  which  are  secured  by  any  collateral  described  in  any  Specified  Beta  Vendor  Financing  Statement  (each  such  agreement,  a  “Specified  Beta  Vendor  Agreement” and such obligations, the “Specified Beta Vendor Obligations”) or (ii) cause the Liens securing the Specified  Beta  Vendor  Obligations  to  be  subordinated  to  the  Liens  securing  the  Obligations  and  the  First  Lien Obligations and the Second Lien Obligations pursuant to one or more intercreditor agreements in form and substance reasonably satisfactory to the Administrative Agent in its reasonable discretion (the undertaking in this Section 6.18, the  “Specified  Post-Closing  Undertaking”).   Notwithstanding  the  foregoing,  the  Specified  Post-Closing Undertaking shall be satisfied if (A) (x) the aggregate amount of the Specified Beta Vendor Obligations owed to any vendor  does  not  exceed  $2,500,000  at  any  time  outstanding  and  (y)  the  total  value  of  all  assets  of  the  Parent Borrower  or  the  applicable  Restricted  Subsidiary  subject  to  such  Liens  that  have  not  been  terminated  or subordinated in accordance with the foregoing sentence does not exceed $2,500,000 at any time outstanding and (B) the  Parent  Borrower  has  used  commercially  reasonable  efforts  to  cause  such  Liens  to  be  so  terminated  or subordinated  to  the Liens securing the Obligations pursuant to one or more intercreditor agreements in form and substance reasonably satisfactory to the Administrative Agent in its reasonable discretion.       Section 6.19                Fiscal Year.          From  and  after  the  Closing  Date,  maintain  its  fiscal  year  as  in  effect  on  the  Closing  Date; provided, however, that the Borrowers may (x) align the dates of such fiscal year of any Restricted Subsidiary whose fiscal year ends on a date other than that of the Parent Borrower or (y) upon written notice to the Administrative Agent, change its fiscal year to any other fiscal year, and, in the case of this clause (y), the Administrative Borrower and the  Administrative Agent will, and are hereby authorized by the Lenders to, make any adjustments to this Agreement  that are necessary to reflect such change in fiscal year.       Section 6.20                Inventory          With respect to the Inventory of each Loan Party, each Loan Party will maintain correct and accurate (in all  material respects) records of the kind, type and quantity of Inventory, the cost therefor and withdrawals therefrom  and additions thereto.                                            ARTICLE VII.                                      NEGATIVE COVENANTS          So long as any Lender shall have any Commitment, any Loan or other Obligation (other than contingent  indemnification obligations as to which no claim has been asserted) or any Letter of Credit shall remain outstanding  (unless the Outstanding Amount of the LC Obligations related thereto has been Cash Collateralized or backstopped  by a letter of credit reasonably satisfactory to the applicable Issuing Bank or such Letter of Credit has been deemed  reissued under another agreement reasonably acceptable to the applicable Issuing Bank hereunder), then from and  after the Closing Date, the Parent Borrower shall not and the Parent Borrower shall not permit any of its Restricted  Subsidiaries to, directly or indirectly:       Section 7.01                Liens.          Create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now  owned or hereafter acquired, other than the following:                  (a)    Liens created pursuant to any Loan Document securing the Secured Obligations;                                                  -125

 

        (b)    Liens (other than Specified Beta Vendor Financing Statements) existing on the Closing Date; provided  that  any  Lien  securing  Indebtedness  in  excess  of  (x) $2,000,000  individually  or (y) $10,000,000 in the aggregate (when taken together with all other Liens securing obligations outstanding in reliance on this clause (b) that are not listed in Schedule 7.01(b)) shall only be permitted to the extent such Lien is listed on in Schedule 7.01(b), and any modifications, replacements, renewals, refinancings or extensions thereof, which may provide that individual financings of equipment provided by one lender may be cross-collateralized to other financings of equipment provided by such lender; provided, further, 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  or  financed  by  Indebtedness  permitted  under Section 7.03  and  customary  security  deposits  in  connection  therewith  and  (B) proceeds  and  products thereof and (ii) the replacement, renewal, extension or refinancing of the obligations secured or benefited by such Liens, to the extent constituting Indebtedness, is permitted by Section 7.03;          (c)    Liens for taxes, assessments or governmental charges that are not overdue for a period of more  than  thirty  (30)  days  (or  any  applicable  grace  period  related  thereto,  if  longer)  or  that  are  being contested in good faith and by appropriate actions, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP or the equivalent accounting principles in the relevant local jurisdiction;          (d)    statutory  or  common  law  Liens  of  landlords,  sublandlords,  carriers,  warehousemen, mechanics, materialmen, repairmen, construction contractors or other like Liens or other customary Liens (other than in respect of Indebtedness) in favor of landlords, so long as, in each case, such Liens secure amounts not overdue for a period of more than sixty (60) days or if more than sixty (60) days overdue, are unfiled and no other action has been taken to enforce such Liens or are being contested in good faith and by appropriate actions;          (e)     (i)  pledges  or  deposits  in  the  ordinary  course  of  business in  connection  with,  and obligations in respect of letters of credit (other than Letters of Credit) or bank guarantees incurred in the ordinary course of business with respect to, workers’ compensation, health, disability or employee benefits, unemployment  insurance  and  other  social  security  laws  or  similar  legislation  or  regulation  or  other insurance-related obligations (including, but not limited to, in respect of deductibles, self-insured retention amounts  and  premiums and  adjustments thereto)  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 Parent Borrower or any of the Restricted Subsidiaries;          (f)    pledges or deposits to secure, and obligations in respect of letters of credit (other than Letters  of  Credit)  or  bank  guarantees  incurred  in  the  ordinary course  of  business  with  respect  to  the performance  of  bids,  trade  contracts,  warranties,  governmental contracts  and  leases  (other  than Indebtedness  for  borrowed  money),  statutory  obligations,  surety,  stay,  customs  and  appeal  bonds, performance  bonds  and  other  obligations  of  a  like  nature  (including  those  to  secure  health,  safety  and environmental obligations) incurred in the ordinary course of business or consistent with industry practice;          (g)    easements,  rights-of-way,  building  codes,  covenants,  conditions,  restrictions  (including zoning restrictions), encroachments, licenses, protrusions and other similar encumbrances and minor title defects  affecting  Real  Property  and  that  do  not  in  the  aggregate  materially  interfere  with  the  ordinary conduct of the business of the Parent Borrower or the Restricted Subsidiaries, taken as a whole;          (h)    Liens  (i)  securing  judgments  or  orders  for  the  payment  of  money  not  constituting  an Event of Default under Section 8.01(h), (ii) arising out of judgments or awards against any Borrower or any Restricted Subsidiary with respect to which an appeal or other proceeding for review is then being pursued and (iii) notices of lis pendens and associated rights related to litigation being contested in good faith by appropriate proceedings for which adequate reserves have been made;                                          -126

 

        (i)    leases,  licenses,  subleases  or  sublicenses  (including  the  provision  of  software  or  the licensing of other intellectual property rights) and terminations thereof, in each case granted to others in the ordinary  course  of  business  (or  other  agreements  under  which  the  Parent  Borrower  or  any  Restricted Subsidiary  has  granted  rights  to  end  users  to  access  and  use  the  Parent  Borrower’s  or  any  Restricted Subsidiary’s  products,  technologies  or  services  in  the  ordinary  course  of  business)  which  (i)  do  not interfere in any material respect with the business of the Parent Borrower and the Restricted Subsidiaries, taken as a whole and (ii) do not secure any Indebtedness;         (j)     Liens (i) in favor of customs and revenue authorities arising as a matter of Law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business and (ii) 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 goods in the ordinary course of business;         (k)     Liens  (i)  of  a collection bank arising under Section 4-208  of the Uniform Commercial Code  on  items  in  the  course  of  collection,  (ii)  attaching  to  commodity  trading  accounts  or  other commodities brokerage accounts incurred in the ordinary course of business, (iii) in favor of a banking or other  financial  institution  arising  as  a  matter  of  Law  or  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  customary  in  the  banking  industry  or  arising  pursuant  to  such  banking  institution’s  general terms and conditions, (iv) in respect of Cash Management Services permitted under Section 7.03(l) and (v) in  respect  of  Swap  Contracts; provided,  that  the  aggregate  amount  of  secured  obligations  under  Swap Contracts  (other than Secured  Hedge Agreements and First  Lien Banking Services Agreements (each as defined in the ABL Intercreditor Agreement)) shall not at any time exceed $5,000,000;         (l)     Liens  (i)  on  cash  advances  in  favor  of  the  seller  of  any  property  to  be  acquired  in  an Permitted Acquisition or other similar Investment permitted pursuant to this Agreement, in each case to be applied against the purchase price for such Permitted Acquisition or other permitted Investment and (ii) consisting of an agreement to Dispose of any property in a Disposition permitted under Section 7.05, in each case, solely to the extent such Permitted Acquisition or other acquisition or Disposition, as the case may be, would have been permitted under this Agreement on the date of the creation of such Lien;         (m)     Liens (i) in favor of the Parent Borrower or a Restricted Subsidiary on assets of a Non- Loan Party or (ii) in favor of the Parent Borrower or any Guarantor on assets of a Restricted Subsidiary;         (n)     any  interest  or  title  (and  all  encumbrances  and  other  matters  affecting  such  interest  or title)  of  a  lessor,  sublessor,  licensor  or  sublicensor  or  secured  by  a  lessor’s,  sublessor’s,  licensor’s  or sublicensor’s interest under leases, subleases, licenses or sublicenses entered into by the Parent Borrower or any Restricted Subsidiary in the ordinary course of business;         (o)     Liens arising out of conditional sale, title retention, consignment or similar arrangements for sale of goods entered into by the Parent Borrower or any Restricted Subsidiary in the ordinary course of business;         (p)     Liens deemed to exist in connection with Investments in repurchase agreements permitted under Section 7.06 or the definition of “Permitted Investments”;         (q)     Liens encumbering reasonable customary initial deposits and margin deposits and similar Liens  attaching  to  commodity  trading  accounts  or  other  brokerage  accounts  maintained  in  the  ordinary course of business and not for speculative purposes;         (r)     Liens  that  are  contractual  rights  of  set-off  or  rights  of  pledge  (i)  relating  to  the establishment of depository relations with banks or other deposit-taking financial institutions and not given in connection with the issuance of Indebtedness, (ii) relating to pooled deposit or sweep accounts of the                                          -127

 

Parent  Borrower  or  any  Restricted  Subsidiary  to  permit  satisfaction  of  overdraft  or  similar  obligations incurred  in  the  ordinary  course  of  business  of  the  Parent  Borrower or any Restricted Subsidiary or (iii) relating  to  purchase  orders  and  other  agreements  entered  into  with customers  or suppliers of  the Parent Borrower or any Restricted Subsidiaries in the ordinary course of business;         (s)     Liens  solely  on  any  cash  earnest  money  deposits,  escrow  arrangements  or  similar arrangements made by the Parent Borrower or any Restricted Subsidiary in connection with any letter of intent or purchase agreement permitted hereunder;         (t)     ground  leases  in  respect  of  Real  Property  on  which  facilities  owned  or  leased  by  the Parent Borrower or any Restricted Subsidiary are located;         (u)     Liens  to  secure  Indebtedness  (other  than  Refinancing  Indebtedness)  permitted  under Section 7.03(e); provided  that  (i)  such  Liens  are  created  no  later  than  270  days  after  the  acquisition, construction, repair, lease or improvement of the property subject to such Liens, (ii) such Liens do not at any time encumber property (except for replacements, additions and accessions to such property) other than the property financed by such Indebtedness and the proceeds and products thereof and customary security deposits and (iii) with respect to Capitalized Leases, such Liens do not at any time extend to or cover any assets (except for additions and accessions to such assets, replacements and products thereof and customary security deposits) other than the assets subject to, or acquired, constructed, repaired, replaced or improved with the proceeds of such Indebtedness; provided that individual financings of equipment provided by one lender may be cross collateralized to other financings of equipment provided by such lender;         (v)     Liens on property of any Non-Loan Party, which Liens secure Indebtedness of any Non- Loan  Party  permitted  under  Section 7.03  or  other  obligations  of  any  Non-Loan  Party  not  constituting Indebtedness;         (w)     Liens existing on property at the time of its acquisition or existing on the property of any Person at the time such Person becomes a Restricted Subsidiary (other than by designation as a Restricted Subsidiary pursuant to Section 6.14) or otherwise assumed pursuant to Section 7.03(g), in each case after the Closing Date; provided that (i) such Lien was not entered into in anticipation of such acquisition or such Person becoming  a Restricted Subsidiary, (ii) such Lien does not extend to or cover any other assets or property (other than the proceeds or products thereof and other than after-acquired property and customary security deposits in connection therewith 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), provided that individual financings of equipment provided by one lender may  be  cross  collateralized  to  other  financings  of  equipment  provided  by  such  lender  and  (iii)  the Indebtedness secured thereby is permitted under Section 7.03(e), (g), (m)(ii) or (s) (and any Refinancing Indebtedness  in  respect  of  the  foregoing); provided, further  that  any  such  Lien  on  the  ABL  Priority Collateral (other than Liens securing assumed Indebtedness permitted under Section 7.03) shall be junior to the Liens securing the Obligations;         (x)      (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 Parent Borrower and the Restricted Subsidiaries, taken as a whole;         (y)     Liens  arising  from  precautionary  Uniform  Commercial  Code  financing  statement  or similar filings;                                          -128

 

        (z)    Liens  on  insurance  policies  and  the  proceeds  thereof  securing  the  financing  of  the premiums with respect thereto;          (aa)   the modification, replacement, renewal or extension of any Lien permitted by clauses (b), (u), (v), (w), (aa), (cc), (dd), (gg), (ii) and (jj) of this Section 7.01; provided that (i) subject, in the case of Liens permitted by Section 7.01 (dd), (gg) and (jj) (and any Liens permitted under this clause (aa) which were originally granted under Section 7.01(dd), (gg) or (jj) respectively), to the final proviso of this clause (aa), at the time of such modification, replacement, renewal or extension 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, in the case of Liens permitted by Section 7.01(w)  (and  any  Liens  permitted  under  this  clause  (aa)  which  were  originally  granted  under  Section 7.01(w)),  after-acquired  property  of  the  applicable  Restricted Subsidiary  to  the  extent  the  security agreements in place at the time of the acquisition of such Restricted Subsidiary required the grant of such Lien in after-acquired property and (ii) the renewal, extension or refinancing of the obligations secured or benefited by such Liens is permitted by Section 7.03 (to the extent constituting Indebtedness); provided that (w) if any Lien (prior to the modification, replacement, renewal or extension thereof) was subject to the ABL  Intercreditor  Agreement,  such  Lien  (subsequent  to  the  modification,  replacement,  renewal  or extension thereof) shall be subject to the ABL Intercreditor Agreement and accorded the same (or lesser) priority as was accorded to such Lien (prior to the modification, replacement, renewal or extension thereof), (x)  [reserved],  (y)  [reserved]  and  (z)  if  any  Lien  (prior  to  the  modification,  replacement,  renewal  or extension  thereof)  was  subject  to  a  lien  subordination  and  intercreditor  agreement  (other  than  an Intercreditor  Agreement),  such  Lien  (subsequent  to  the  modification,  replacement,  renewal  or  extension thereof) shall be subject to such lien subordination and intercreditor agreement and accorded the same (or lesser) priority with respect to the Collateral (without regard to control of remedies) as was accorded to such  Lien  (prior  to  the  modification,  replacement,  renewal  or  extension  thereof)  or  in  each  case  of subclauses (w), (x), (y) and (z) shall be subject to a substantially similar or more junior lien subordination and intercreditor agreement reasonably satisfactory to the Administrative Borrower and the Administrative Agent so long as such Lien (subsequent to the modification, replacemenent, renewal or extension thereof) is accorded the same (or lesser) priority with respect to the Collateral (without regard to control of remedies) as  was  accorded  to  such  Lien  (prior  to  the  modification,  replacement,  renewal  or  extension  thereof); provided, further, that modifications, replacements, renewals or extensions of Liens permitted by Section 7.01(dd), (gg) and (jj) (and any Liens permitted under this clause (aa) which were originally granted under Section 7.01(dd), (gg) or (jj), respectively), in each case may be secured by after-acquired Collateral of the applicable Loan Party to the extent the security agreements in place at the time of the initial grant of Liens under Section 7.01(dd), (gg) or (jj), as applicable, by such Loan Party required the grant of such Lien in after-acquired Collateral;          (bb)   Liens  with  respect  to  property  or  assets  of  the  Parent  Borrower  or  any  Restricted Subsidiary securing obligations in an aggregate principal amount outstanding at any time not to exceed the greater  of  $73,500,000  and  35.0%  of  Trailing  Four  Quarter  Consolidated  EBITDA,  in  each  case determined as of the date of incurrence, which Liens may be subject to the ABL Intercreditor Agreement or another junior lien subordination and intercreditor agreement reasonably satisfactory to the Administrative Borrower and the Administrative Agent, as applicable; provided that the aggregate outstanding principal amount of obligations that are secured by any Applicable Liens pursuant to this Section 7.01(bb) may not exceed $25,000,000 at any time and any such Lien on the ABL Priority Collateral shall be junior to the Liens on the ABL Priority Collateral securing the Obligations;         (cc)    Liens  securing  obligations  in  respect  of  Indebtedness  permitted  under  Section  7.03(z) (other than Incremental Equivalent Debt, Refinancing Equivalent Debt and Second Lien Notes Indenture Incremental  Equivalent  Debt  that  are  unsecured); provided,  that  (i)  any  such  Lien  on  the  Term  Loan Priority Collateral may be senior to the Liens on the Term Loan Priority Collateral securing the Obligations and any such Lien on the ABL Priority Collateral shall be junior to the Liens on the ABL Priority Collateral securing the Obligations and (ii) such Liens are subject to the ABL Intercreditor Agreement or other lien subordination and intercreditor arrangement reasonably satisfactory to the Administrative Borrower and the Administrative Agent, as applicable;                                          -129

 

                (dd)   Liens granted in accordance with Section 7.01(dd) of the First Lien Credit Agreement (as         in effect on the date hereof and whether or not in effect on the relevant date of determination);                  (ee)   Liens  on  specific  items  of  inventory  or  other  goods  and  the proceeds thereof securing         such  Person’s  obligations  in  respect  of  documentary  letters  of credit  or  banker’s  acceptances  issued  or         created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or         goods;                  (ff)   deposits of cash with the owner or lessor of premises leased and operated by the Parent         Borrower  or  any  Subsidiary  to  secure  the  performance  of  the  Parent  Borrower’s  or  such  Subsidiary’s         obligations under the terms of the lease for such premises;                  (gg)   Liens  securing  obligations  in  respect  of  Indebtedness  permitted  under  Section  7.03(k)         (other than Incremental Equivalent Debt that is unsecured and Refinancing Equivalent Debt); provided, that         (x) any such Lien on the ABL Priority Collateral shall be junior to the Liens on the ABL Priority Collateral         securing  the  Obligations  and  (y)  such  Liens  are  subject  to  the ABL  Intercreditor  Agreement  or  another         intercreditor agreement in form and substance reasonably acceptable to the Administrative Agent;                 (hh)    [reserved];                 (ii)    Liens  encumbering  the  Equity  Interests  of  an  Unrestricted  Subsidiary  of  the  Parent         Borrower or a Restricted Subsidiary;                 (jj)    Liens  securing  obligations  in  respect  of  Indebtedness; provided  that  such  Liens  and         related Indebtedness are in compliance with the provisions set forth in Section 7.01(jj) of the First Lien         Credit  Agreement  (as  in  effect  on  the  date  hereof  and  whether  or  not  in  effect  on  the  relevant  date  of         determination); provided, further that (x) any such Lien on the ABL Priority Collateral shall be junior to the         Liens on the ABL Priority Collateral securing the Obligations and (y) such Liens are subject to the ABL         Intercreditor Agreement or another intercreditor agreement in form and substance reasonably acceptable to         the Administrative Agent;                 (kk)    in the case of any non-wholly owned Restricted Subsidiary or any joint venture, any put         and  call  arrangements  or  restrictions  on  disposition  related  to  its  Equity  Interests  set  forth  in  its         organizational documents or any related joint venture or similar agreement;                 (ll)    [reserved];                 (mm)    subject to compliance with Section 6.18, Liens existing on the Closing Date and set forth         on Schedule 6.18;                 (nn)    other  Liens  or  imperfections  on  property  existing  on  the  Closing  Date  which  are  not         material in amount or do not materially detract from the value of or materially impair the existing use of the         property affected by such Lien or imperfection; and                 (oo)    Liens on property of any Foreign Subsidiary arising mandatorily under the Laws of the         jurisdiction of organization of such Foreign Subsidiary.          The  expansion of  Liens by  virtue of accrual  of  interest, the accretion of  accreted value,  the payment  of interest or dividends in the form of additional Indebtedness, amortization of OID and increases in the amount of Indebtedness outstanding solely as a result of fluctuations in the exchange rate of currencies will not be deemed to be an incurrence of Liens for purposes of this Section 7.01.          For purposes of determining compliance with this Section 7.01, (A) a Lien need not be incurred solely by reference to one categories of permitted Liens described in Section 7.01(a) through (oo) above, but is permitted to be incurred in part under any combination thereof and of any other available exemption and (B) in the event that a                                                  -130

 

Lien  (or any portion  thereof) meets  the criteria of one or more of the categories of permitted Liens described in Section 7.01(a) through (oo) above, the Parent Borrower will, in its sole discretion, be entitled to divide, classify or reclassify,  in  whole  or  in  part,  any  such  Lien  (or  any  portion thereof)  among  one or more of such  categories or clauses in any manner at any time.      Section 7.02                [Reserved].      Section 7.03                Indebtedness, Disqualified Equity Interests and Preferred Stock.         Create, incur, assume or suffer to exist any Indebtedness or issue any Disqualified Equity Interest, or issue any Preferred Stock of a Restricted Subsidiary, except:                 (a)    Indebtedness under the Loan Documents;                 (b)    Indebtedness outstanding on the Closing Date and listed in Schedule 7.03(b); provided        that  all  such  Indebtedness  of  any  Loan  Party  owed  to  any  Non-Loan  Party  shall  be  subject  to  the        Intercompany Note;                 (c)    Guarantees  by  the  Parent  Borrower  and  any  Restricted  Subsidiary  in  respect  of        Indebtedness of the Parent Borrower or any Restricted Subsidiary otherwise permitted hereunder; provided        that (A) no Guarantee by any Restricted Subsidiary of any Indebtedness constituting First Lien Obligations,        Second  Lien  Obligations,  a  Specified  Junior  Financing  Obligation,  Incremental  Equivalent  Debt  or        Refinancing Equivalent Debt shall be permitted unless such guaranteeing party shall have also provided a        Guarantee  of  the  Obligations  on  substantially  the  terms  set  forth  herein,  (B)  if  the  Indebtedness  being        guaranteed is subordinated to the Obligations, such Guarantee shall be subordinated to the Guarantee of the        Obligations on terms at least as favorable (as reasonably determined by the Administrative Borrower) to the        Lenders as those contained in the subordination of such Indebtedness, (C) any Guarantee by a Loan Party of        Indebtedness of a Non-Loan Party shall either constitute a Permitted Investment or a Restricted Investment        permitted by  Section 7.06 and (D) any Guarantee by  a Non-Loan  Party of  any Permitted Ratio Debt or        Indebtedness under Sections 7.03(g) (or any Refinancing Indebtedness in respect of any of the foregoing)        shall only be permitted if such Guarantee meets the requirements of the first proviso in the definition of        “Permitted Ratio Debt” in the First Lien Credit Agreement (as in effect on the date hereof and whether or        not in effect on the relevant date of determination) or the proviso in Section 7.03(g) of the First Lien Credit        Agreement  (as  in  effect  on  the  date  hereof  and  whether  or  not  in  effect  on  the  relevant  date  of        determination), as the case may be;                 (d)    Indebtedness  of  the  Parent  Borrower  or  any  Restricted  Subsidiary  owing  to  any  Loan        Party or any other Restricted Subsidiary (or issued or transferred to any direct or indirect parent of a Loan        Party which is substantially contemporaneously transferred to a Loan Party or any Restricted Subsidiary of        a  Loan  Party)  to  the extent  constituting  a Permitted  Investment  or  a Restricted Investment  permitted by        Section 7.06; provided that all such Indebtedness of any Loan Party owed to any Non-Loan Party shall be        subject to the Intercompany Note;                 (e)     (i)  Indebtedness  (including  Capitalized  Leases)  and  Disqualified  Equity  Interests        incurred or issued  by the  Parent  Borrower or any Restricted Subsidiary and Preferred Stock incurred or        issued by any Restricted Subsidiary, to finance the purchase, lease, replacement or improvement of property        (real or personal), equipment or fixed or capital assets, in an aggregate principal amount, together with all        other Indebtedness, Preferred Stock and/or Disqualified Equity Interests incurred or issued and outstanding        under this clause (e)(i) at such time, not to exceed the greater of (x) $42,00,000 and (y) 20.0% of Trailing        Four  Quarter  Consolidated  EBITDA,  in  each  case,  determined  at  the  time  of  incurrence  (and  any        Refinancing Indebtedness thereof); plus, in the event of any extension, replacement, refinancing, renewal or        defeasance of such Indebtedness with Refinancing Indebtedness pursuant to this clause (e)(i), Disqualified        Equity  Interests  or  Preferred  Stock,  the  amount  of  Refinancing Indebtedness  incurred  pursuant  to  this        clause (e)(i) to finance (I) any tender premium or penalty or premium required to be paid under the terms of        the instrument or documents governing such Indebtedness, Disqualified Equity Interests or Preferred Stock                                                 -131

 

        and  any  defeasance  costs  and (II)  any  fees  and  expenses  (including  OID,  upfront  fees  or  similar  fees)         incurred  in  connection  with  the  issuance  of  such  new  Indebtedness,  Disqualified  Equity  Interests  or         Preferred  Stock  or the extension, replacement,  refinancing,  renewal or defeasance of such Indebtedness,         Disqualified Equity Interests or Preferred Stock; so long as (other than in the case of any such Refinancing         Indebtedness) such Indebtedness, Disqualified Equity Interests or Preferred Stock is incurred or issued no         later  than  270  days  after  such  purchase,  lease,  replacement  or improvement  and  (ii)  Attributable         Indebtedness arising out of sale-leaseback transactions permitted by Section 7.05(f) and any Refinancing         Indebtedness of such Attributable Indebtedness;                 (f)     Indebtedness  in  respect  of  Swap  Contracts  designed  to  hedge against  the  Parent         Borrower’s or any Restricted Subsidiary’s exposure to interest rates, foreign exchange rates or commodities         pricing risks incurred in the ordinary course of business and not for speculative purposes and Guarantees         thereof;                 (g)     Indebtedness  or  Disqualified  Equity  Interests  of  the  Parent Borrower  or  Indebtedness,         Disqualified Equity Interests or Preferred  Stock of any Restricted Subsidiary (including any Person that         becomes a Restricted Subsidiary in connection with a Permitted Acquisition or other permitted Investment)         incurred, issued or assumed in connection with a Permitted Acquisition or other permitted Investment so         long as (i) the aggregate principal amount of such Indebtedness, Disqualified Equity Interests of Preferred         Stock  incurred,  issued,  guaranteed  or  assumed  does  not  exceed  the amount that such Person would be         permitted  to  incur,  issue,  guarantee  or  assume  pursuant  to  Section  7.03(g)  of  the  First  Lien  Credit         Agreement  (as  in  effect  on  the  date  hereof  and  whether  or  not  in  effect  on  the  relevant  date  of         determination);   provided that the aggregate principal amount of Indebtedness, Disqualified Equity Interests and Preferred Stock the  primary obligations under which are outstanding in reliance on this Section 7.03(g) or Section 7.03(w) (to the extent  initially  incurred,  issued  or  assumed  under  this  Section  7.03(g))  shall  not  exceed,  together  with  the  aggregate  principal amount of any Indebtedness, Disqualified Equity Interests and Preferred Stock of Non-Loan Parties the  primary obligations under which  are outstanding in reliance on Section 7.03(s)  or Section  7.03(w) (to the extent  initially incurred, issued or assumed under Section 7.03(s)), the greater of (x) $35,000,000 and (y) 15.0% of Trailing  Four Quarter Consolidated EBITDA, in each case determined at the time of assumption, guarantee, incurrence or  issuance; provided, further  that  any  Liens  securing  any  Indebtedness,  Disqualified  Equity Interests  or  Preferred  Stock  incurred,  guaranteed,  issued  or  assumed pursuant  to this Section  7.03(g) shall be permitted to be incurred  pursuant to Sections 7.01(v), 7.01(w), 7.01(bb) or 7.01(jj); provided, further, that any Indebtedness incurred (and not,  for the avoidance of  doubt,  assumed)  by  any  Loan  Party pursuant  to this Section 7.03(g), as of the relevant closing date, shall not have a final scheduled maturity date earlier than the Maturity Date of the Initial Revolving Credit  Commitments  (in  each  case  other  than  any  such  Indebtedness,  Disqualified  Equity  Interests  or  Preferred Stock consisting of a customary bridge facility so long as the long-term Indebtedness into which any such customary bridge facility is to be converted satisfies such criteria);                 (h)     Indebtedness representing deferred compensation or similar arrangements to employees         and independent contractors of the Parent Borrower or any Restricted Subsidiary, in each case, incurred in         the ordinary course of business;                 (i)     Indebtedness consisting of promissory notes issued or incurred by the Parent Borrower or         any  Restricted  Subsidiary  to  future,  present  or  former  employees,  directors,  officers,  members  of         management, independent contractors, advisors, service providers and consultants of the Parent Borrower         or  any  Restricted  Subsidiary,   or,  in  each  case,  to  their  respective  Controlled  Investment  Affiliates  or         Immediate Family Members, in each case to finance the purchase or redemption of Equity Interests or other         equity-based awards of the Parent Borrower permitted by Section 7.06(e);                 (j)     Indebtedness  (i)  incurred  by  the  Parent  Borrower  or  any  Restricted  Subsidiary  in  any         transaction or arrangement not prohibited hereunder constituting indemnification obligations or obligations         in respect of purchase price (including earnouts) or other similar adjustments and obligations in respect of         transaction  tax  benefits  and  (ii)  consisting  of  obligations  of any  Borrower  or  any  Restricted  Subsidiary                                                  -132

 

under deferred compensation or other similar arrangements incurred by such Person in connection with the Transactions, Permitted Acquisitions or any other Investment permitted hereunder;         (k)     Indebtedness (i) incurred under the First Lien Credit Agreement, (ii) with respect to any Refinancing Equivalent Debt and (iii) with respect to any Incremental Equivalent Debt, in each case (x) including  guarantee  obligations  in  respect  thereof  and  (y)  so  long  as  (A)  any  Liens  securing  such Indebtedness are subject to the ABL Intercreditor Agreement and (B) the aggregate principal amount of such Indebtedness does not exceed the aggregate principal amount permitted to be incurred under the First Lien Credit Agreement (as in effect on the date hereof and whether or not in effect on the relevant date of determination);         (l)     Secured  Cash  Management  Obligations  and  other  Indebtedness  in  respect  of  Cash Management Services in the ordinary course of business and any Guarantees thereof;         (m)      (i) unsecured Indebtedness or Disqualified Equity Interests of the Parent Borrower and unsecured Indebtedness, Disqualified Equity Interests or Preferred Stock of any Restricted Subsidiary in an aggregate principal amount up to 100% of the net cash proceeds received by the Parent Borrower since immediately after the Closing Date from the issue or sale of Equity Interests of the Parent Borrower or cash contributed to the capital of the Parent Borrower (in each case, other than proceeds of Disqualified Equity Interests,  sales  of Equity Interests to  the Parent  Borrower or any Subsidiary,  proceeds  which  have been designated as Excluded Contributions or proceeds which have been designated as a Cure Amount) to the extent  such  net cash proceeds  or cash have not been applied to make Permitted Investments (other than Permitted Investments specified in clauses (1), (2) or (3) of the definition thereof) and (ii) Indebtedness or Disqualified  Equity  Interests  of  the  Parent  Borrower  and  Indebtedness,  Disqualified  Equity  Interests  or Preferred Stock of any Restricted Subsidiary in an aggregate principal amount which, when aggregated with the  principal  amount  of  all  other  Indebtedness,  Disqualified  Equity  Interests  and  Preferred  Stock  then outstanding and incurred or issued, as applicable, pursuant to this Section 7.03(m)(ii), does not exceed the greater of (x) $105,000,000 and (y) 50.0% of Trailing Four Quarter Consolidated EBITDA (in each case, determined on the date of such incurrence) (and any Refinancing Indebtedness thereof); plus, in the event of  any  extension,  replacement,  refinancing,  renewal  or  defeasance  of  such  Indebtedness,  Disqualified Equity  Interests  or  Preferred  Stock  with  Refinancing  Indebtedness  pursuant  to  this  clause  (m)(ii),  the amount  of  Refinancing  Indebtedness  incurred  pursuant  to  this  clause  (m)(ii)  to  finance  (I)  any  tender premium  or  penalty  or  premium  required  to  be  paid  under  the  terms  of  the  instrument  or  documents governing such Indebtedness, Disqualified Equity Interests or Preferred Stock and (II) any defeasance costs and any fees  and  expenses (including OID, upfront fees or similar fees) incurred in connection with the issuance  of  such  new  Indebtedness,  Disqualified  Equity  Interests  or  Preferred  Stock  or  the  extension, replacement,  refinancing,  renewal  or  defeasance  of  such  Indebtedness,  Disqualified  Equity  Interests  or Preferred Stock;          (n)    Indebtedness  consisting  of  (i)  the  financing  of  insurance  premiums  or  (ii)  take-or-pay obligations contained in supply arrangements, in each case, incurred in the ordinary course of business or consistent with industry practice;         (o)     obligations  in  respect  of  self-insurance and obligations in respect  of performance,  bid, appeal and surety bonds and performance and completion guarantees and similar obligations provided by the  Parent  Borrower  or  any  Restricted  Subsidiary  or  obligations  in  respect  of  letters  of  credit,  bank guarantees  or  similar  instruments  related  thereto,  in  each  case  in  the  ordinary  course  of  business  or consistent with industry practice;         (p)     [reserved];         (q)     to the extent a joint venture constitutes a Restricted Subsidiary, Indebtedness incurred by or  Disqualified  Equity  Interests  or  Preferred  Stock  issued  by  such  Restricted  Subsidiary  which,  when aggregated with the principal amount of all other Indebtedness incurred pursuant to this Section 7.03(q) and                                          -133

 

then outstanding for all such Persons taken together, does not exceed the greater of $31,500,000 and 15.0% of Trailing Four Quarter Consolidated EBITDA determined at the time of incurrence;         (r)     (i) Indebtedness supported by a Letter of Credit, in a principal amount not in excess of the stated  amount  of such  Letter of Credit  and  (ii) letters of credit in an aggregate face amount at any time outstanding not to exceed $5,000,000 consisting of (A) letters of credit issued in currencies not available hereunder or (B) documentary or commercial letters of credit not issued hereunder;         (s)     Permitted Ratio Debt;         (t)     [reserved];         (u)     Indebtedness incurred by or Disqualified Equity Interests or Preferred Stock issued by a Non-Loan Party which, when aggregated with the principal amount of all other Indebtedness incurred or Disqualified  Equity  Interests  or  Preferred  Stock  issued  pursuant  to  this clause (u)  and then  outstanding, does not exceed the greater of $52,500,000 and 25.0% of Trailing Four Quarter Consolidated EBITDA (in each case determined at the date of incurrence or issuance);         (v)     if the Payment Conditions are satisfied immediately after giving effect to the incurrence of  such  Indebtedness  on  a  Pro  Forma  Basis,  unsecured,  non-amortizing  long  term  Indebtedness  with  a maturity date at least 91 days later than the Latest Maturity Date at the time such Indebtedness is incurred;         (w)     the incurrence or issuance by the Parent Borrower of Indebtedness or Disqualified Equity Interests  or  the  incurrence  or  issuance  by  a  Restricted  Subsidiary  of  Indebtedness,  Disqualified  Equity Interests  or  Preferred  Stock  which  serves  to  refund,  refinance,  extend,  replace,  renew  or  defease  any Indebtedness (including any Designated Revolving Commitments) incurred or Disqualified Equity Interests or Preferred Stock issued as permitted under Sections 7.03(b), (g), (m)(i), (q), (s), this clause (w) and (z); provided  that  any  such  Indebtedness,  Disqualified  Equity  Interests  or  Preferred  Stock  constitutes Refinancing Indebtedness;         (x)     Indebtedness incurred by the Parent Borrower or any Restricted Subsidiary in respect of letters of credit, bank guarantees, bankers’ acceptances, warehouse receipts or similar instruments issued or created  in the ordinary course  of business, including in respect  of workers compensation claims, health, disability  or  other  employee  benefits  or  property,  casualty  or liability  insurance  or  self-insurance, unemployment  insurance  or  other  social  security  legislation  or other  Indebtedness  with  respect  to reimbursement-type  obligations  regarding  workers  compensation  claims,  health,  disability  or  other employee benefits or property, casualty or liability insurance or self-insurance;         (y)     shares of Preferred Stock of a Restricted Subsidiary issued to the Parent Borrower or a Restricted  Subsidiary  (to  the  extent  constituting  a  Permitted  Investment  or  a  Restricted  Investment permitted by Section 7.06); provided that any subsequent issuance or transfer of any Equity Interests or any other event which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of any such shares of Preferred Stock (except to the Parent Borrower or another of  the  Restricted  Subsidiaries  or  any  pledge  of  such  Equity  Interests  constituting  a  Lien  permitted hereunder) shall be deemed, in each case, to be an issuance of such shares of Preferred Stock (to the extent such Preferred Stock is then outstanding) not permitted by this clause (y);         (z)     Indebtedness (i) incurred under the Second Lien Notes Indenture, (ii) with respect to any Second Lien Notes Indenture Incremental Equivalent Debt, (iii) with respect to any Refinancing Equivalent Debt  and  (iv)  with  respect  to  any  Incremental  Equivalent  Debt, in  each  case  (x)  including  guarantee obligations in respect thereof and (y) so long as (A) any Liens securing such Indebtedness are subject to the ABL Intercreditor Agreement and (B) the aggregate principal amount of such Indebtedness does not exceed the aggregate principal amount permitted to be incurred under the Second Lien Notes Indenture (as in effect on the date hereof and whether or not in effect on the relevant date of determination);                                          -134

 

                (aa)   to  the  extent  constituting  Indebtedness,  customer  deposits and  advance  payments         (including progress payments) received in the ordinary course of business from customers for goods and         services purchased in the ordinary course of business;                  (bb)   Indebtedness incurred by the Parent Borrower or a Restricted Subsidiary in connection         with  bankers’  acceptances  or  discounted  bills  of  exchange,  in  each  case  incurred  or  undertaken  in  the         ordinary course of business on arm’s length commercial terms;                 (cc)    Indebtedness  permitted  by  Section  7.03(cc)  of  the  First  Lien  Credit  Agreement  (as  in         effect on the date hereof and whether or not in effect on the relevant date of determination); and                 (dd)    all premiums (if any), interest (including post-petition interest), fees, expenses, charges         and additional or contingent interest on obligations described in clauses (a) through (bb) above.          For purposes of determining compliance with this Section 7.03, in the event that an item of Indebtedness, Disqualified  Equity  Interests  or  Preferred  Stock  (or  any  portion  thereof)  at  any  time,  whether  at  the  time  of incurrence or issuance or upon the application of all or a portion of the proceeds thereof or subsequently, meets the criteria  of  more  than  one  of  the  categories  of  permitted  Indebtedness,  Disqualified  Equity  Interests  or  Preferred Stock described in Section 7.03(a) through (dd) above, the Parent Borrower, in its sole discretion, will classify and may  subsequently  reclassify  such  item  of  Indebtedness,  Disqualified  Equity  Interests  or  Preferred  Stock  (or  any portion thereof) in any one or more of the types of Indebtedness, Disqualified Equity Interests or Preferred Stock described  in  Section  7.03(a)  through  (dd)  and  will  only  be  required  to  include  the  amount  and  type  of  such Indebtedness,  Disqualified Equity Interests or Preferred Stock in such of the above clauses as determined by the Parent Borrower at such time; provided that (x) all Indebtedness under the Loan Documents will be deemed to have been  incurred  in  reliance  on  the  exception  in  clause  (a)  above,  (y)  all  Indebtedness  under  the  First  Lien  Credit Agreement  shall  be  deemed  to  have  been  incurred  in  reliance  on the  exception  in  clause  (k)  above  and  (z)  all Indebtedness  under  the  Second  Lien  Notes  Indenture  shall  be  deemed  to  have  been  incurred  in  reliance  on  the exception in clause (z) above.  Subject to the preceding sentence, the Parent Borrower will be entitled to divide and classify an item of Indebtedness in more than one of the types of Indebtedness described in Section 7.03(a) through (dd).          For  purposes  of  determining  compliance  with  any  Dollar-denominated  restriction  on  the  incurrence  of Indebtedness or issuance of Disqualified Equity Interests or Preferred Stock, the Dollar-equivalent principal amount of  Indebtedness,  Disqualified  Equity  Interests  or  Preferred  Stock  denominated  in  a  foreign  currency  shall  be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred, in the case of term debt, or first committed or first incurred (whichever yields the lower Dollar equivalent), in the case of revolving credit debt; provided that if such Indebtedness is incurred, or Disqualified Equity Interests or Preferred Stock  is  issued,  to  extend,  replace,  refund,  refinance,  renew  or  defease  other  Indebtedness,  Disqualified  Equity Interests  or  Preferred  Stock,  as  applicable,  denominated  in  a  foreign  currency,  and  such  extension,  replacement, refunding,  refinancing,  renewal  or  defeasance  would  cause  the  applicable  Dollar-denominated  restriction  to  be exceeded if calculated at the relevant currency exchange rate in effect on the date of such extension, replacement, refunding, refinancing, renewal or defeasance, such Dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount or liquidation preference, as applicable, of such refinancing Indebtedness, Disqualified Equity Interests or Preferred Stock does not exceed the principal amount or liquidation preference, as applicable, of such Indebtedness, Disqualified Equity Interests or Preferred Stock, as applicable, being extended, replaced,  refunded,  refinanced,  renewed  or  defeased,  plus  the  aggregate  amount  of  fees,  underwriting  discounts, premiums (including tender premiums) and other costs and expenses (including OID, upfront fees or similar fees) incurred in connection with such refinancing.          The accrual of interest or dividends, the accretion of accreted value, the accretion or amortization of OID, and  the payment  of interest  or dividends  in  the form of additional  Indebtedness, Disqualified Equity  Interests or Preferred Stock, as the case may be, of the same class, accretion or amortization of OID or liquidation preference and increases in the amount of Indebtedness, Disqualified Equity Interests or Preferred Stock outstanding solely as a result of fluctuations in the exchange rate of currencies, will, in each case, not be deemed to be an incurrence of Indebtedness or an issuance of Disqualified Equity Interests or Preferred Stock for purposes of this Section 7.03. The  principal  amount  of  any  Indebtedness  incurred  or  Disqualified  Equity  Interests  issued  to  refinance  other                                                 -135

 

Indebtedness,  if  incurred  in  a  different  currency  from  the  Indebtedness  or  Disqualified  Equity  Interests,  as applicable, being refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in which such respective Indebtedness or Disqualified Equity Interests in denominated that is in effect on the date of such  refinancing.  The  principal  amount  of  any  non-interest  bearing  Indebtedness  or  other  discount  security constituting Indebtedness at any date shall be the principal amount thereof that would be shown on the consolidated balance sheet of the Parent Borrower dated such date prepared in accordance with GAAP.         Notwithstanding anything to the contrary in this Agreement, (x) no investments made by any Loan Party in any  Non-Loan  Party  in  the  form  of  intercompany  loans  shall  be  evidenced  by  a  promissory  note  unless  such promissory  note,  to  the  extent  required  to  be  pledged  thereunder,  is  pledged  to  the  Administrative  Agent  in accordance with the terms of the Security Agreement and (y) any investments in the form of intercompany loans constituting indebtedness of any Loan Party owed to any Non-Loan Party shall be unsecured and subordinated to the Obligations on terms consistent with the subordination provisions of the Intercompany Note in each case, other than indebtedness owed by, or to, a Broker-Dealer Regulated Subsidiary.      Section 7.04                Fundamental Changes.         Merge,  dissolve,  liquidate,  consolidate  with  or  into  another  Person,  or  Dispose  of  (whether  in  one transaction  or  in  a  series  of  transactions)  all  or  substantially  all  of  its  assets  (whether  now  owned  or  hereafter acquired) to or in favor of any Person (other than as part of the Transactions), except that:                (a)     any  Restricted  Subsidiary  may  merge,  amalgamate  or  consolidate  with  (i)  a  Borrower        (including a merger,  the purpose of which  is  to reorganize such Borrower into a new jurisdiction in the        United  States,  any  state  thereof  or  the  District  of  Columbia); provided  that  such  Borrower  shall  be  the        continuing or surviving Person or (ii) one or more other Restricted Subsidiaries; provided that when any        Restricted  Subsidiary  that  is  a  Loan  Party  is  merging,  amalgamating  or  consolidating  with  a  Restricted        Subsidiary,  a  Loan  Party  shall  be  the  continuing  or  surviving  Person  unless  the  Investment  made  in        connection with such Restricted Subsidiary that is a Loan Party merging, amalgamating or consolidating        with  a  Non-Loan  Party  shall  otherwise  be  a  Restricted  Payment  permitted  by  Section  7.06  (other  than        Section 7.06(s)) or a Permitted Investment;                (b)     any  Restricted  Subsidiary  may  liquidate  or  dissolve  or  change  its  legal  form  if  the        Administrative Borrower determines in good faith that such action is in the best interests of the Borrowers        and the Restricted Subsidiaries and is not materially disadvantageous to the Lenders (it being understood        that in the case of any change in legal form, a Subsidiary that is a Guarantor will remain a Guarantor unless        such Guarantor is otherwise permitted to cease being a Guarantor hereunder);                (c)     any  Restricted  Subsidiary  may  Dispose  of  all  or  substantially  all  of  its  assets  (upon        voluntary liquidation or otherwise) to a Borrower or to another Restricted Subsidiary; provided that if the        transferor in such a transaction is a Loan Party, then (i) the transferee must be a Loan Party or (ii) to the        extent constituting an Investment, such Investment must be a Restricted Payment permitted by Section 7.06        (other than Section 7.06(s)) or a Permitted Investment;                (d)     so long as no Event of Default has occurred and is continuing or would result therefrom,        the Parent Borrower may merge, dissolve, liquidate or consolidate with  any other Person; provided that (i)        the  Parent  Borrower  shall  be  the  continuing  or  surviving  corporation  or  (ii)  if  the  Person  formed  by or        surviving any such merger or consolidation is not the Parent Borrower or is a Person into which the Parent        Borrower has been liquidated or dissolved (any such Person, the “Successor Parent Borrower”), (A) the        Successor Parent Borrower shall be an entity organized or existing under the Laws of the United States, any        state thereof or the District of Columbia, (B) the Successor Parent Borrower shall expressly assume all the        obligations  of  the  Parent  Borrower  under  this  Agreement  and  the  other  Loan  Documents  to  which  the        Parent Borrower is a party pursuant to a supplement hereto or thereto in form reasonably satisfactory to the        Administrative  Agent,  (C)  each  Guarantor,  unless  it  is  the  other  party  to  such  merger,  dissolution,        liquidation or consolidation, shall have  confirmed that its Guarantee shall apply to the Successor Parent        Borrower’s obligations under the Loan Documents, (D) each Guarantor, unless it is the other party to such                                                 -136

 

        merger,  dissolution,  liquidation  or  consolidation,  shall  have  reaffirmed  that  its  obligations  under  the         Security  Agreement  and  other  applicable  Collateral  Documents  shall  apply  to  the  Successor  Parent         Borrower's  obligations  under  the  Loan  Documents,  (E) [reserved],  and  (F) the  Administrative Borrower         shall  have  delivered  to  the  Administrative  Agent  an  officer’s  certificate  stating  that  such  merger  or         consolidation  and  such  supplement  to  this  Agreement  or  any  Collateral  Document  comply  with  this         Agreement and customary legal opinions consistent with those delivered on the Closing Date (conformed as         appropriate) other than changes to such legal opinions resulting from a change in Law, change in fact or         change to counsel’s form of opinion reasonably satisfactory to the Administrative Agent; provided, further,         that if the foregoing are satisfied, the Successor Parent Borrower will succeed to, and be substituted for, the         Parent Borrower under this Agreement;                 (e)     [reserved];                 (f)     so long as no Event of Default has occurred and is continuing or would result therefrom         (solely  in  the  case  of  a  merger,  amalgamation  or  consolidation involving  a  Loan  Party),  any  Restricted         Subsidiary may merge, amalgamate or consolidate with any other Person in order to effect an Investment         permitted pursuant to Section 7.06 (other than Section 7.06(s)) or a Permitted Investment; provided that the         continuing or surviving Person shall be a Restricted Subsidiary, which together with each other Restricted         Subsidiary, shall have complied with the requirements of Section 6.11;                 (g)     the  Loan  Parties  and  their  Subsidiaries  may  consummate  the  Merger  and  the  related         transactions  contemplated  by  the  Merger  Agreement  (and  documents  related  thereto) and  any  Permitted         Reorganization; and                 (h)     so long as no Event of Default has occurred and is continuing or would result therefrom, a         merger, consolidation, amalgamation, dissolution, liquidation, consolidation or Disposition, the purpose of         which  is  to  effect  a  Disposition  permitted  pursuant  to  Section 7.05  (other  than  Section  7.05(e))  may  be         consummated.          Notwithstanding the above, in the case of any merger, amalgamation or consolidation where the continuing or  surviving  Person  is  a  Loan  Party  or  any  liquidation  into  a  Loan  Party,  in  each  case,  in  accordance  with  this Section 7.04, any security interests granted to the Administrative Agent for the benefit of the Secured Parties in the Collateral pursuant to the Collateral Documents shall remain in full force and effect and perfected (to at least the same extent as in effect immediately prior to such merger, consolidation, dissolution or liquidation) and all actions required to maintain said perfected status have been or will promptly be taken, in each case, as required by Sections 6.11 and 6.13.       Section 7.05                Dispositions.                 Make any Disposition, except:                 (a)     (x) Dispositions of obsolete, damaged, worn out, used or surplus property, whether now         owned or hereafter acquired, in the ordinary course of business, (y) Dispositions of property no longer used         or  useful  in  the  conduct  of  the  business  of  the  Parent  Borrower  or  any  Restricted  Subsidiary  and  (z)         Dispositions  to  landlords of improvements made to leased real property  pursuant  to  customary terms  of         leases entered into in the ordinary course of business;                 (b)     Dispositions of (i) inventory, goods held for sale in the ordinary course of business and         (ii)  immaterial  assets  (including  allowing  any  registrations  or  any  applications  for  registration  of  any         intellectual property to lapse or go abandoned) in the ordinary course of business, including but not limited         to Dispositions of medical devices or other medical products pursuant to a voluntary or mandatory recall         thereof or of assets in connection with the consolidation of billing centers;                                                  -137

 

        (c)    Dispositions  of  property  to  the  extent  that  (i)  such  property  is  exchanged  for  credit against  the  purchase  price  of  similar  replacement  property  or  (ii)  the  proceeds  of  such  Disposition  are promptly applied to the purchase price of such replacement property;          (d)    Dispositions of property to the Parent Borrower or any Restricted Subsidiary; provided that if the transferor of such property is a Loan Party (i) the transferee thereof must be a Loan Party, (ii) such Disposition is for cash and shall be for no less than the fair market value of such property at the time of  such  Disposition  (or  any  promissory  note or other non-cash consideration received in respect thereof must  be  a  Restricted  Payment  permitted  by  Section  7.06  (other  than  Section  7.06(s)))  or  a  Permitted Investment  or  (iii)  if  such  transaction  constitutes  an  Investment,  such  Investment  must  be  a  Restricted Payment permitted by Section 7.06 (other than Section 7.06(s)) or a Permitted Investment;          (e)    Dispositions that otherwise constitute a Permitted Investment, are permitted by Section 7.04 (other than Section 7.04(h)) or otherwise constitute a Restricted Payment permitted by Section 7.06 (other than Section 7.06(s)) and Liens permitted by Section 7.01 (other than Section 7.01(l)(ii));          (f)    Dispositions of property pursuant to sale-leaseback transactions;          (g)    Dispositions of cash and Cash Equivalents;          (h)    (i) leases, subleases, licenses or sublicenses (including agreements under which the Parent Borrower  or  any  Restricted  Subsidiary  has  granted  rights  to  end  users  to  access  and  use  the  Parent Borrower’s or any Restricted Subsidiary’s products, technologies or services), in each case in the ordinary course of business and which do not materially interfere with the business of the Parent Borrower and the Restricted Subsidiaries, taken as a whole, and (ii) the abandonment of intellectual property rights (A) in the ordinary  course  of  business  or  which  in  the  reasonable  good  faith  determination  of  the  Administrative Borrower  are  not  material  to  the  conduct  of  the  business  of  the  Parent  Borrower  and  the  Restricted Subsidiaries  taken  as  a  whole  or  (B)  that  are  no  longer  economically  practicable  or  commercially reasonable to maintain;         (i)     transfers of property subject to Casualty Events;         (j)     Dispositions of property; provided that (i) at the time of such Disposition (other than any such Disposition made pursuant to a legally binding commitment entered into at a time when no Default has occurred and is continuing),  no Event  of Default  shall have occurred  and be continuing or would result from  such  Disposition  and  (ii) with  respect to any Disposition pursuant to this clause (j) for a purchase price in excess of $8,500,000, the Parent Borrower or any Restricted Subsidiary shall receive not less than 75% of such consideration in the form of cash or Cash Equivalents (free and clear of all Liens at the time received  (other  than  nonconsensual  Liens  permitted  by  Section 7.01  and  Liens  permitted  by  Section 7.01(a),  clause  (iii)  of  Section  7.01(k),  Section  7.01(m),  clauses  (i)  and  (ii)  of  Section  7.01(r),  Section 7.01(v), Section 7.01(bb), Section 7.01(cc), Section 7.01(dd), Section 7.01(gg), Section 7.01(ii), Section 7.01(jj)  and  Section  7.01(ll)  and  in  each  case,  any  permitted  modifications,  replacements,  renewals  or extensions of such Liens pursuant to Section 7.01(aa))); provided, however, that for the purposes of this clause  (j)(ii),  the  following  shall  be  deemed  to  be  cash:  (A)  any  liabilities  (as  shown  on  the  Parent Borrower’ most recent balance sheet provided hereunder or in the footnotes thereto) of the Parent Borrower or such Restricted Subsidiary, other than liabilities that are by their terms subordinated to the payment in cash of the Obligations, that (i) are assumed by the transferee with respect to the applicable Disposition or (ii) are otherwise cancelled or terminated in connection with the transaction with such transferee (other than intercompany debt owed to the Parent Borrower or any of its Restricted Subsidiaries) and, in the case of clause (i), for which each Parent  Borrower and all of its Restricted Subsidiaries shall have been validly released  by  all  applicable  creditors  in  writing,  (B)  any  securities,  notes  or  other  obligations  or  assets received  by  the  Parent  Borrower  or  the  applicable  Restricted  Subsidiary  from  such  transferee  that  are converted by the Parent Borrower or such Restricted Subsidiary into cash or Cash Equivalents (to the extent of the cash or Cash Equivalents received) in connection with the applicable Disposition, (C) Indebtedness of any Restricted Subsidiary that ceases to be a Restricted Subsidiary as a result of such Disposition (other                                          -138

 

than intercompany debt owed to the Parent Borrower or any of its Restricted Subsidiaries), to the extent that the Parent Borrower and each of its Restricted Subsidiaries are released from any guarantee of payment of the principal amount of such Indebtedness in connection with such Disposition and (D) aggregate non- cash  consideration  received  by  the  Parent  Borrower  or  the  applicable  Restricted  Subsidiary  having  an aggregate fair market value, taken together with all other non-cash consideration received pursuant to this clause  (D)  (determined  as  of  the  closing  of  the  applicable  Disposition  for  which  such  non-cash consideration is received) not to exceed the greater of $73,500,000 and 35.0% of Trailing Four Quarter Consolidated EBITDA as determined at the time of such applicable Dispositions (net of any such non-cash consideration subsequently converted into cash and Cash Equivalents);          (k)    to  the  extent  allowable  under  Section  1031  of  the  Code  (or  comparable  or  successor provision), any exchange of like property (excluding any boot thereon permitted by such provision) for use in  any  business  conducted  by  the  Parent  Borrower  or  any  of  the Restricted  Subsidiaries  that  is  not  in contravention of Section 7.07;         (l)     Dispositions or discounts, without recourse of accounts receivable or notes receivable in connection with the collection or compromise thereof in the ordinary course of business or the conversion of accounts receivable to notes receivable in the ordinary course of business;          (m)    Dispositions  of  Term  Loan  Priority  Collateral  not  otherwise permitted  by  this  Section 7.05  to  the  extent  the  net  proceeds  thereof  are  applied  to  repay  or  cash  collateralize  the  First  Lien Obligations;          (n)    any  swap  of  assets  in  exchange  for  services  or  other  assets in  the  ordinary  course  of business  of  comparable  or  greater  value  or  usefulness  to  the  business  of  the  Parent  Borrower  and  the Subsidiaries as a whole, as determined in good faith by the Administrative Borrower;          (o)    any  sale  of  Equity  Interests  in,  or  Indebtedness  or  other  securities  of,  an  Unrestricted Subsidiary;          (p)    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;          (q)    the unwinding of any Swap Contract or any Cash Management Services permitted under Section 7.03(l);          (r)    the  lapse  or  abandonment  in  the  ordinary  course  of  business of  any  registrations  or applications for registration of any immaterial IP Rights;          (s)    [reserved];          (t)    Dispositions by any Loan Party of any wholly-owned Restricted Subsidiary of the type described  in  clauses  (d)  and  (e)  of  the  definition  of  Excluded Subsidiary  to  the  extent  consisting  of contributions or other Dispositions of Equity Interests in other wholly-owned Restricted Subsidiaries of the type  described  in  clauses  (d)  and  (e)  of  the  definition  of  Excluded  Subsidiary  to  such  wholly-owned Restricted Subsidiary;         (u)     Dispositions (i) of non-core assets acquired in connection with Permitted Acquisitions or any other acquisition or Investment permitted under this Agreement; provided that the aggregate amount of such sales shall not exceed 25% of the fair market value of the acquired entity or business, (ii) made to satisfy the Parent Borrower’s or any Restricted Subsidiary’s obligations under any non-compete agreement or (ii) made to obtain the approval of any anti-trust authority;                                          -139

 

                (v)    Dispositions set forth on Schedule 7.05;                  (w)    any  issuance  of  Equity  Interests  in  any  Restricted  Subsidiary  to  any  officer,  director,         consultant, advisor, service provider or employee of the Borrowers or any Restricted Subsidiary in respect         of  services  provided  to  the  Borrowers  or  a  Restricted  Subsidiary  in  the  ordinary  course  of  business         approved by the Board of Directors of the Borrower;                  (x)    cancellation of Indebtedness owing to the Parent Borrower or any Restricted Subsidiary         from  members  of  management  of  the  Parent  Borrower,  any  of  the  Parent  Borrower’s  direct  or  indirect         parent companies or any of the Parent Borrower’s Restricted Subsidiaries in connection with the repurchase         or redemption of Equity Interests of any of the Parent Borrower’s direct or indirect parent companies;                  (y)    Dispositions of assets not constituting Collateral;                  (z)    any Borrower and any Restricted Subsidiary may (i) terminate or otherwise collapse its         cost-sharing  agreements  with  any  Borrower  or  any  Subsidiary  and  settle  any  crossing  payments  in         connection therewith or (ii) surrender, terminate or waive contractual rights and settle or waive contractual         or litigation claims; and                 (aa)    Dispositions in an amount not to exceed the greater of $5,250,000 and 2.5% of Trailing         Four Quarter Consolidated EBITDA in the aggregate in any fiscal year;  provided that any Disposition of any property pursuant to this Section 7.05 (except pursuant to Sections 7.05(a), (d), (e), (h), (i), (l), (p), (q), (r), (s), (v), (w), (x), (z) and (aa) and except for (x) Dispositions from the Parent Borrower or a Guarantor to the Parent Borrower or a Guarantor or (y) Dispositions from any wholly-owned Non-Loan Party to any other wholly-owned Non-Loan Party) shall be for no less than the fair market value of such property at the time of such Disposition.  To the extent any Collateral is Disposed of as expressly permitted by this Section 7.05 to any Person other than the Parent Borrower or any of its Restricted Subsidiaries, such Collateral shall be sold free and clear  of  the  Liens  created  by  the  Loan  Documents,  and,  if  requested  by  the  Administrative  Agent,  upon  the certification  by  the  Administrative  Borrower  that  such  Disposition  is  not  prohibited  by  this  Agreement,  the Administrative Agent shall be authorized to take any actions deemed appropriate in order to effect the foregoing.          Section 7.06     Restricted Payments.                 Directly or indirectly, (w) declare or pay any dividend or make any payment or distribution on account of the Parent Borrower’s or any of its Restricted Subsidiaries’ Equity Interests (in each case, solely in such Person’s capacity  as  holder of such  Equity Interests), including any dividend, payment or distribution payable in connection with any merger, amalgamation or consolidation other than (A) dividends or distributions by the Parent Borrower payable solely in Equity Interests (other than Disqualified Equity Interests) of the Parent Borrower or (B) dividends or distributions by a Restricted Subsidiary so long as, in the case of any dividend, payment or distribution payable on or in respect of any class or series of securities issued by a Restricted Subsidiary other than a wholly- owned  Subsidiary,  the  Parent  Borrower  or  a  Restricted  Subsidiary  receives  at  least  its  pro  rata  share  of  such dividend,  payment  or distribution  in  accordance with its  Equity Interests in such  class  or series of securities, (x) purchase,  redeem,  defease  or  otherwise  acquire  or  retire  for  value  any  Equity  Interests  of  the  Parent  Borrower, including in connection with any merger, amalgamation or consolidation, in each case held by Persons other than the Parent Borrower or a Restricted Subsidiary, (y) make any principal payment on, or redeem, repurchase, defease or otherwise  acquire  or  retire  for  value,  in  each  case,  prior  to  any  scheduled  repayment,  sinking  fund  payment  or maturity, any Junior  Financing, other than such Indebtedness permitted under Sections 7.03(d) and (z) make any Restricted  Investment  (all  such  payments  and  other  actions  set forth  in  clauses  (w)  through  (z)  above  being collectively referred to as “Restricted Payments”), except:                   (a)     so long as the Payment Conditions are satisfied immediately after giving effect to such           Restricted Payment on a Pro Forma Basis, the Parent Borrower and its Subsidiaries may make unlimited           Restricted Payments;                                                  -140

 

       (b)     the  payment  of  any  dividend  or  other  distribution  or  the  consummation  of  any irrevocable redemption within 60 days after the date of declaration of the dividend or other distribution or giving of the redemption notice, as the case may be, if at the date of declaration or notice, the dividend or other distribution or redemption payment would have complied with this Agreement;         (c)     (i) the redemption, repurchase, retirement or other acquisition of any Equity Interests, including  any  accrued  and  unpaid  dividends  thereon  (“Treasury  Capital  Stock”),  or  any  Junior Financing of the Parent  Borrower or any of  its Restricted Subsidiaries, in exchange for, or out of the proceeds  of,  the  substantially  concurrent  sale  or  issuance  (other  than  to  a  Restricted  Subsidiary)  of, Equity Interests of the Parent Borrower to the extent contributed to the Parent Borrower (in each case, other  than  any  Disqualified  Equity  Interests)  (“Refunding  Capital  Stock”),  (ii)  the  declaration  and payment of dividends on Treasury Capital Stock out of the proceeds of the substantially concurrent sale or  issuance  (other  than  to  a  Restricted  Subsidiary  of  the  Parent  Borrower  or  to  an  employee  stock ownership plan or any trust established by the Parent Borrower or any of its Restricted Subsidiaries) of Refunding Capital Stock, and (iii) if, immediately prior to the retirement of Treasury Capital Stock, the declaration and payment of dividends thereon was permitted under Section 7.06(a), the declaration and payment of dividends on the Refunding Capital Stock in an aggregate amount per year no greater than the aggregate amount  of  dividends  per annum that were declarable and  payable on such Treasury Capital Stock immediately prior to such retirement under Section 7.06(a);         (d)     the  principal  payment  on,  defeasance,  redemption,  repurchase,  exchange  or  other acquisition or retirement of (i) Junior Financing of the Parent Borrower or a Guarantor made by exchange for,  or  out  of  the  proceeds  of  the  substantially  concurrent  sale  of,  new  Indebtedness  of  the  Parent Borrower  or  a  Guarantor  or  Disqualified  Equity  Interests  of  the  Parent  Borrower or a  Guarantor,  (ii) Disqualified Equity Interests of the Parent Borrower or a Guarantor made by exchange for, or out of the proceeds  of  the  substantially  concurrent  sale  of,  Disqualified Equity  Interests  or  Subordinated Indebtedness of the Parent Borrower or a Guarantor, (iii) Disqualified Equity Interests of a Restricted Subsidiary  that  is  not  a  Guarantor  made  by  exchange  for,  or  out  of  the  proceeds  of  the  substantially concurrent sale of, Disqualified Equity Interests of a Restricted Subsidiary that is not a Guarantor that, in each case of clauses (i) through (iii), is Refinancing Indebtedness incurred or issued, as applicable, in compliance  with  Section  7.03  and  (iv)  any  Junior  Financing  or  Disqualified  Equity  Interests  which constitutes  Acquired  Indebtedness  (to  the  extent  such  Acquired Indebtedness  was  not  incurred  in contemplation  of  such  principal  payment  on,  defeasance,  redemption,  repurchase,  exchange  or  other acquisition or retirement);         (e)     a  Restricted  Payment  to  pay  for  the  repurchase,  retirement  or  other  acquisition  or retirement for value of Equity Interests (other than Disqualified Equity Interests) of the Parent Borrower or any direct or indirect parent company of the Parent Borrower held by any future, present or former employee, director, officer, member of management, independent contractor, advisor, service provider or consultant  (or their respective Controlled Investment  Affiliates  or  Immediate Family  Members) of the Parent Borrower, any of its Subsidiaries or any of its direct or indirect parent companies upon the death, disability, retirement or termination of employment of any such Person or pursuant to any shareholder, employee, manager or director equity plan or stock option plan or any other management or employee benefit plan or agreement, or any equity subscription or co-investor or shareholder agreement (including, for the avoidance of doubt, to pay any principal and interest payable on any notes issued by the Parent Borrower or any direct or indirect parent company of the Parent Borrower in connection with any such repurchase, retirement or other acquisition) including any arrangement including Equity Interests rolled over  by  management  of  the  Parent  Borrower  in  connection  with  the  Transactions; provided,  that  the aggregate amount of Restricted Payments made under this Section 7.06(e) does not exceed $15,000,000 in any calendar year (with unused amounts in any calendar year being carried over to succeeding calendar years  subject  to  a  maximum  (without  giving  effect  to  the  following  proviso)  of  $30,000,000  in  any calendar year; provided, further, that such amount in any calendar year may be increased by an amount not to exceed:               (i)    the  cash  proceeds  from  the  sale  of  Equity  Interests  (other  than  Disqualified       Equity Interests) of the Parent Borrower and, to the extent contributed to the Parent Borrower, the                                       -141

 

      cash proceeds  from the sale of Equity Interests of any direct or indirect parent company of the       Parent  Borrower,  in  each  case  to  any  future,  present  or  former employees,  directors,  officers,       members of management, independent contractors, advisors, service providers or consultants (or       their  respective  Controlled  Investment  Affiliates  or  Immediate Family  Members)  of  the  Parent       Borrower, any of its Subsidiaries or any of its direct or indirect parent companies that occurs after       the Closing Date, to the extent the cash proceeds from the sale of such Equity Interests have not       otherwise been designated an Excluded Contribution; plus               (ii)   the  cash  proceeds  of  key  man  life  insurance  policies  received  by  the  Parent       Borrower or any of its Restricted Subsidiaries (or by any direct or indirect parent company to the       extent contributed to the Parent Borrower) after the Closing Date; less               (iii)   the amount of any Restricted Payments previously made with the cash proceeds       described in clauses (i) and (ii) of this Section 7.06(e);         (f)     the  declaration  and  payment  of  scheduled  cash  dividends  or  scheduled  cash distributions to holders of any class or series of Disqualified Equity Interests of the Parent Borrower or any of its Restricted Subsidiaries or any class or series of Preferred Stock of any Restricted Subsidiary issued in accordance with Section 7.03(g) or (s), in each case to the extent such dividends are included in the definition of “Consolidated Fixed Charges”;         (g)     [reserved];         (h)     payments made or expected to be made by the Parent Borrower or any of its Restricted Subsidiaries in respect of withholding or similar taxes payable by or with respect to any future, present or former  employee,  director,  officer,  member  of  management,  independent  contractor,  advisor,  service provider  or  consultant  (or  their  respective  Controlled  Investment  Affiliates  or  Immediate  Family Members) of the Parent  Borrower or any of its Restricted Subsidiaries and any repurchases of Equity Interests  deemed  to  occur  upon,  in  each  case,  exercise,  vesting,  or  settlement,  as  applicable,  of  stock options, warrants or similar rights if such Equity Interests represent a portion of the exercise price of such options, warrants or similar rights or required withholding or similar taxes;         (i)     Restricted Payments in an aggregate amount per annum not to exceed an amount equal to 4.00% of Market Capitalization;         (j)     Restricted Payments that are made with Excluded Contributions;         (k)     Restricted  Payments  in  an  aggregate  amount  taken  together with all  other Restricted Payments made pursuant to this clause (k) (in the case of Restricted Investments, at the time outstanding) not  to  exceed  the  greater  of  (I)  $65,000,000  and  (II)  30.0%  of Trailing  Four  Quarter  Consolidated EBITDA  (in  the  case  of  Restricted  Investments  made  pursuant  to this  clause  (x),  the amount  of  such Restricted Investment being measured at the time such Restricted Investment is made and without giving effect  to  subsequent  changes  in  value,  but  subject  to  adjustment  as  set  forth  in  the  definition  of Investment);         (l)     [reserved];         (m)     any  cash  payments  made  after  the  Closing  Date  in  respect  of  performance-based  or time-vested restricted stock units (in each case that are existing and either vested or unvested) as of the Closing Date in an aggregate amount of up to $15,000,000;         (n)     solely to the extent funded with Declined Proceeds (as defined in the First Lien Credit Agreement as in effect on the date hereof), the repurchase, redemption or other acquisition or retirement for value of any Junior Financing;                                        -142

 

       (o)     [reserved];         (p)     Restricted  Payments  made  (i) on  the  Closing  Date  to  consummate the  Transactions, (ii) in  respect  of  working  capital  adjustments  or  purchase  price  adjustments  pursuant  to  the  Merger Agreement, any Permitted Acquisition or other permitted Investments, (iii) in order to satisfy indemnity and other similar obligations under the Merger Agreement, any Permitted Acquisition or other permitted Investments and (iv) to holders of Equity Interests of the Parent Borrower (immediately prior to giving effect to the Transactions) in connection with, or as a result of, their exercise of appraisal rights and the settlement of any claims or actions (whether actual, contingent or potential) with respect thereto, in each case, with respect to the Transactions, and Restricted Payments consisting of a Permitted Reorganization;         (q)     cash payments or loans, advances, dividends or distributions to any direct or indirect shareholder of the Parent Borrower to make payments in lieu of issuing fractional shares in connection with  the  exercise  of  warrants,  options  or  other  securities  convertible  into  or  exchangeable  for  Equity Interests  of  the  Parent  Borrower  or  any  of  its  Restricted  Subsidiaries  or  any  direct  or  indirect  parent company of the Parent Borrower;         (r)     [reserved];         (s)     to the extent constituting Restricted Payments, the Parent Borrower and the Restricted Subsidiaries may enter into and consummate transactions expressly permitted by any provision of Section 7.01, 7.03 (other than Section 7.03(d)), 7.04 (other than Section 7.04(a), 7.04(c)(ii) or (f)), 7.05 (other than Section 7.05(d)(ii) or (e)) or 7.08 (except transactions described in clauses (a), (b), (f), (g), (j), (n), (q), (s), (w), (y) and (z) of such Section);         (t)     payments  and  distributions  to  dissenting  stockholders  pursuant to  applicable  law, pursuant  to  or  in  connection  with  a consolidation, merger  or  transfer  of  all  or  substantially  all  of  the assets of the Parent Borrower and the Restricted Subsidiaries taken as a whole that complies with the terms of this Agreement or any other transaction that complies with the terms of this Agreement;         (u)     (i)  the  payment  of  dividends,  other  distributions  and  other  amounts  by  the  Parent Borrower to, or the making of loans to, any direct or indirect parent of the Parent Borrower in the amount required  for  such  parent  to,  if  applicable,  pay  amounts  equal  to  amounts  required  for  any  direct  or indirect parent of the Parent Borrower, if applicable, to pay interest and/or principal (including AHYDO “catch-up payments”) on Indebtedness the proceeds of which have been permanently contributed to the Parent Borrower or any of its Restricted Subsidiaries and that has been guaranteed by, or is otherwise considered  Indebtedness  of,  the  Parent  Borrower  or  any  of  its  Restricted  Subsidiaries  incurred  in accordance with Section 7.03 (other than if such guarantee or Indebtedness constitutes Junior Financing and  such  payment  would  be  in  violation  of  the  applicable  intercreditor  and/or  subordination agreement); provided that the proceeds contributed to the Parent Borrower or such Restricted Subsidiary shall not increase amounts available for Restricted Payments pursuant to Section 7.06(e) and shall not be designated an Excluded Contribution; provided further that (x) the aggregate amount of such dividends, distributions  or  other  amounts  shall  not  exceed  the  amount  of  cash  actually  contributed  to  the  Parent Borrower for the incurrence of such Indebtedness and (y) any Restricted Payment made pursuant to this clause (xx) the proceeds of which are used to make payments in respect of Indebtedness which payments would  constitute  an  interest  expense  determined  in  accordance  with  GAAP  if  such  Indebtedness  was Indebtedness of the Parent Borrower, shall be deemed to be an interest expense of the Parent Borrower for  all  purposes  of  this  Agreement;  and  (ii)  the  payment  of  dividends,  other  distributions  and  other amounts by the Parent Borrower to, or the making of loans to, any direct or indirect parent of the Parent Borrower  in  the  amount  required  for  such  parent  to,  if  applicable,  make  any  AHYDO  Payment  on intercompany  Indebtedness  among  parent  companies  of  the  Parent Borrower; provided that  such AHYDO  Payment  shall  not  be  made  prior  to the end  of the first accrual  period ending after the fifth anniversary of the issue date of such intercompany Indebtedness;                                        -143

 

                 (v)     repurchases of Equity Interests in the Parent Borrower or any Restricted Subsidiary of           the Parent Borrower deemed to occur upon exercise of stock options or warrants if such Equity Interests           represent a portion of the exercise price of such options or warrants;                   (w)     [reserved]; and                   (x)     Investments  in  joint  ventures,  other  similar  agreements,  partnerships,  minority           investments or Unrestricted Subsidiaries having an aggregate fair market value taken together with all           other Investments made pursuant to this clause (x) that are at the time outstanding, without giving effect           to the sale of an Unrestricted Subsidiary to the extent the proceeds of such sale do not consist of cash or           marketable securities (until such proceeds are converted to cash or Cash Equivalents), not to exceed the           greater of (a) $42,00,000 and (b) 20.0% of Trailing Four Quarter Consolidated EBITDA at the time of           such  Investment  (with  the  amount  of  each  Investment  being  measured  at  the  time  made  and  without           giving  effect  to  subsequent  changes  in  value); provided  that  if  any  Investment  made  pursuant  to  this           clause (xxiii) in Equity Interests of a Person that subsequently becomes a Loan Party, such Investment           shall  thereafter  be  deemed  permitted  under  clause  (1)  of  the  definition  of  “Permitted  Investment”           (without giving effect to the proviso thereto) and shall not be included as having been made pursuant to           this clause (x);  provided, that at the time of, and after giving effect to, any Restricted Payment permitted under clauses (f), (i), (k), and (u)(i), no Event of Default shall have occurred and be continuing or would occur as a consequence thereof.          For  purposes  of  designating  any  Restricted  Subsidiary  as  an  Unrestricted  Subsidiary,  all  outstanding  Investments by the Parent Borrower and its Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so  designated will be deemed to be Restricted Payments or Permitted Investments in an amount determined as set forth  in the penultimate sentence of the definition of “Investments.” Such designation will be permitted only if a Restricted  Payment in such amount would be permitted at such time, pursuant to this Section 7.06 or if an Investment in such  amount  would  be  permitted  at  such  time  pursuant  to  the  definition  of  “Permitted  Investments,”  and  if  such  Subsidiary otherwise is permitted to be so designated pursuant to Section 6.14.          For  the  avoidance  of  doubt,  this  Section  7.06  shall  not  restrict  the  making  of  any  “AHYDO  catch-up payment” with respect to, and required by the terms of, any Indebtedness of the Parent Borrower or any Restricted Subsidiary permitted to be incurred under Section 7.03 hereof          For the avoidance of doubt, the cancellation of Indebtedness owing to the Parent Borrower or any of its Restricted Subsidiaries from any future, present or former employees, directors, officers, independent contractors, members of management or consultants of the Parent Borrower (or their respective Controlled Investment Affiliates or Immediate Family Members), any direct or indirect parent company of the Parent Borrower or any of the Parent Borrower’s Restricted Subsidiaries in connection with a repurchase or redemption of Equity Interests of the Parent Borrower or any of its direct or indirect parent companies will not be deemed to constitute a Restricted Payment for purposes of this Section 7.06 or any other provision of this Agreement.          For  purposes  of  determining  compliance  with  this  Section  7.06, in  the  event  that  a  proposed  Restricted Payment or Investment (or any portion thereof) at any time, whether at the time of declaration or payment, purchase, redemption, defeasance or other acquisition or retirement, or at the time of the making thereof, or subsequently at a later time, meets the criteria of more than one of the categories described in Section 7.06(a) through (x) or is entitled to  be  made  pursuant  to  one  or  more  of  the  categories  described in  the  definition  of  Permitted  Investment,  the Administrative Borrower, in its sole discretion, will be entitled to classify and may subsequently reclassify such item of (or any portion thereof) (based on circumstances existing on the date of such reclassification) among such clauses in  Section  7.06(a)  through  (x)  and/or  one  or  more  of  the  categories  contained  in  the  definition  of  Permitted Investments, and will only be required to include the amount and type of such Restricted Payment or Investment in such of the above clauses as determined by the Administrative Borrower at such time.  The Administrative Borrower will be entitled to divide and classify a Restricted Payment or Investment in more than one of the types described in                                                  -144

 

Section  7.06(a)  through  (x)  and/or  one  or  more  of  the  categories  contained  in  the  definition  of  Permitted Investments.      Section 7.07                Change in Nature of Business.         Engage in any material line of business substantially different from those lines of business conducted by the Parent  Borrower  and  the  Restricted  Subsidiaries  on  the  Closing Date  or  any  business  or  any  other  activities reasonably  related,  complementary,  synergistic,  similar,  incidental  or  ancillary  thereto  (including  related, complementary, synergistic, similar, incidental or ancillary technologies) or reasonable extensions, developments or expansions thereof.      Section 7.08                Transactions with Affiliates.         Enter  into  any  transaction  of  any  kind  with  any  Affiliate  of  the  Parent  Borrower,  whether  or  not  in  the ordinary course of business, involving aggregate payments or consideration, in any transaction or series of related transactions, in excess of $8,500,000, other than:                 (a)    transactions among the Parent Borrower or the Restricted Subsidiaries or any entity that        becomes a Restricted Subsidiary as a result of such transaction;                 (b)    transactions on terms (taken as a whole) substantially as favorable to the Parent Borrower        or such Restricted Subsidiary as would be obtainable by the Parent Borrower or such Restricted Subsidiary        at the time in a comparable arm’s-length transaction with a Person other than an Affiliate;                 (c)    the  Transactions  and  the  payment  of  fees  and  expenses  (including  the  Transaction        Expenses) related to the Transactions and transactions constituting any Permitted Reorganization;                 (d)    the issuance of Equity Interests or equity-based awards to any officer, director, employee,        independent contractor, advisor, service provider or consultant of the Parent Borrower or any Subsidiary or        any direct or indirect parent of the Parent Borrower, including, without limitation, in connection with the        Transactions;                 (e)    the payment of management, monitoring, oversight, consulting, advisory and similar fees        pursuant to a Sponsor Management Agreement or other arrangement with Walgreens Co., the Sponsor or        management companies associated with the Sponsor or their advisors in a maximum amount for all such        agreements and arrangements not to exceed 2.00% of Trailing Four Quarter Consolidated EBITDA of the        Parent  Borrower  in  any  fiscal  year,  and  transaction  fees  to  the  foregoing  Persons  not  to  exceed  in  the        aggregate 1.00% of the applicable gross transaction value and indemnities and other expenses pursuant to a        Sponsor  Management  Agreement  or  other  arrangement  with  the  foregoing  Persons  (including  any        transaction  fee  payable  in  connection  with  the  Transactions),  plus  any  unpaid  management,  monitoring,        transaction fees, indemnities and expenses accrued in any prior year to the extent such fee or expense is        otherwise permitted to be paid pursuant to this clause (e) in such prior year;                (f)     Restricted Payments permitted under Section 7.06, Permitted Investments and Permitted        Acquisitions (other than by reference to this Section 7.08 or any clause in this Section 7.08);                (g)     transactions  by  the  Parent  Borrower  and  any  Restricted Subsidiary permitted under an        express  provision  (including  any  exceptions  thereto)  of  this  Article  VII  (other  than  by  reference  to  this        Section 7.08 or any clause in this Section 7.08);                (h)      (i)  employment,  consulting  and  severance  arrangements  between  the Parent Borrower        and the Restricted Subsidiaries (or any direct or indirect parent of the Parent Borrower) and their respective        future,  present  or  former  officers,  employees,  independent  contractors,  advisor,  service  provider  and/or        consultants (or their respective Controlled Investment Affiliates or Immediate Family Members), in each        case,  in  the  ordinary  course  of  business  and  (ii)  transactions pursuant  to  any  shareholder,  employee  or                                                 -145

 

director equity plan or stock option plan or any other management or employee benefit plan or agreement, or  any  equity  subscription,  co-invest  agreement  or  shareholder agreement,  including  any  arrangement including Equity Interests rolled over or otherwise re-invested by management of the Parent Borrower or Omega Parent in connection with the Transactions;         (i)     the  payment  of  customary  fees  and  reasonable  out-of-pocket  costs  to,  and  indemnities provided  on  behalf  of  or  for  the  benefit  of  any  future,  present  or  former  directors,  officers,  member  of management,  independent  contractors,  employees,  advisors,  service  providers  and  consultants  (or  their respective Controlled Investment Affiliates or Immediate Family Members) of the Parent Borrower and its Restricted  Subsidiaries  (or  any  direct  or  indirect  parent  of  the  Parent  Borrower),  in  each  case,  in  the ordinary course of business to the extent attributable to the ownership or operation of the Parent Borrower and its Restricted Subsidiaries;         (j)     transactions  pursuant  to  agreements,  instruments  or  arrangements  in  existence  on  the Closing Date and set forth on Schedule 7.08 or any amendment thereto or replacement thereof to the extent such an amendment or replacement is not adverse to the Lenders in any material respect as compared to the applicable agreement, instrument or arrangement in effect on the Closing Date;         (k)     payments by the Parent Borrower and any of its Restricted Subsidiaries to the Sponsor made  for  any  financial  advisory,  financing,  underwriting  or  placement  services  or  in  respect  of  other investment banking activities (including in connection with acquisitions or divestitures), which payments are approved by the majority of the members of the Board of Directors of the Parent Borrower or a majority of the disinterested members of such Board of Directors in good faith;         (l)     payments by the Parent Borrower or any of its Subsidiaries pursuant to any tax sharing agreements with the Parent Borrower to the extent attributable to the ownership or operation of the Parent Borrower and its Subsidiaries, but only to the extent permitted by Section 7.06;         (m)     the issuance or transfer of Equity Interests (other than Disqualified Equity Interests) of the Parent Borrower to any Permitted Holder or to any former, current or future director, manager, officer, employee,  independent  contractor,  advisor,  service  provider  or consultant  (or  any  Immediate  Family Members or Affiliates of any of the foregoing) of the Parent Borrower, any of its Subsidiaries or any direct or indirect parent thereof;         (n)     transactions  with  customers,  clients,  joint  venture  partners,  independent  contractors, suppliers or purchasers or sellers of goods or services, in each case in the ordinary course of business and otherwise  in  compliance  with  the  terms  of  this  Agreement  that  are  fair  to  the  Parent  Borrower  or  its Restricted Subsidiaries, in the reasonable determination of the Board of Directors or the senior management of the Administrative Borrower, or are on terms at least as favorable (as determined by the Administrative Borrower) as might reasonably have been obtained at such time from an unaffiliated party;         (o)     transactions pursuant to that certain Letter Agreement re: Administrative Services, dated as  of  March  11,  2019,  between  HC  Group  Holdings  I,  LLC  and  Option  Care  Enterprises,  Inc.,  or  any amendment thereto or replacement thereof to the extent such an amendment or replacement is not adverse to the Lenders in any material respect as compared to the letter agreement in effect on the Closing Date;         (p)     the payment of reasonable out-of-pocket costs and expenses relating to registration rights and indemnities provided to stockholders of the Parent Borrower or any direct or indirect parent thereof pursuant  to  the  stockholders  agreement  or  the  registration  rights  agreement  entered  into  on  or  after  the Closing  Date in  connection therewith or similar equity  holder’s agreements or limited  liability  company agreements;         (q)     transactions in which the Parent Borrower or any of the Restricted Subsidiaries, as the case may be, deliver to the Administrative Agent a letter from an Independent Financial Advisor stating that                                          -146

 

such transaction is fair to the Parent Borrower or such Restricted Subsidiary from a financial point of view or meets the requirements of clause (b) of this Section 7.08;         (r)     the  licensing  of  trademarks,  copyrights  or  other  IP  Rights  in  the  ordinary  course  of business and the non-exclusive licensing (or sublicensing) of trademarks, copyrights, or other IP Rights;         (s)     the issuance or transfer of Equity Interests (other than Disqualified Equity Interests) of the Parent Borrower or any of its Subsidiaries or any direct or indirect parent thereof or any contribution to the capital of the Parent Borrower or any of its Restricted Subsidiaries to the extent otherwise permitted by this Agreement and to the extent such issuance or transfer would not give rise to a Change of Control;         (t)     (i) investments by the Permitted Holders in securities of the Parent Borrower or any of the Restricted  Subsidiaries  (and  payment  of  reasonable  out-of-pocket  expenses  incurred  by  the  Permitted Holders  in  connection  therewith)  so  long  as  (A)  the  investment is  being  offered  generally  to  other  non- affiliated investors on the same or more favorable terms and (B) the investment constitutes less than 10% of the proposed or outstanding issue amount of such class of securities (provided that any investments in debt securities  by  any  Debt  Fund  Affiliates  shall  not  be  subject  to the  limitation  in  this  clause  (B)),  and  (ii) payments to the Permitted Holders in respect of securities or loans of the Parent Borrower or any of its Restricted  Subsidiaries  contemplated  in  the  foregoing  subclause  (i)  or  that  were  acquired  from  Persons other than the Parent Borrower and its Restricted Subsidiaries, in each case, in accordance with the terms of such securities or loans;         (u)     subleases of leased real property by and between the Parent Borrower or any Restricted Subsidiary and Walgreens Co. and any of its Subsidiaries;         (v)     transactions among the Parent Borrower and the Restricted Subsidiaries, undertaken in good faith (as certified by a responsible financial or accounting officer of the Administrative Borrower in an  officer’s  certificate)  for  the  purposes  of  improving  the  consolidated  tax  efficiency  of  the  Parent Borrower and its Subsidiaries and not for the purpose of circumventing any provision of this Agreement so long as (x) no Event of Default has occurred and is continuing or would result from such transactions and (y) the Administrative Borrower provides to the Administrative Agent evidence reasonably acceptable to the Administrative Agent that the granting, perfection, validity and priority of the security interest of the Secured  Parties  in  the  Collateral  (prior  to  giving  effect  to  the  transactions),  taken  as  a  whole,  is  not impaired in any material respect by such transactions and all actions required to maintain said perfected status have been or will promptly be taken;         (w)     payments to or from, and transactions with, joint ventures (to the extent any such joint venture  is  only  an  Affiliate  as  a  result  of  Investments  by  the Parent  Borrower  and  the  Restricted Subsidiaries  in  such  joint  venture) in  the ordinary course of business or consistent  with past  practice or industry  practice  (including,  without  limitation,  any  cash  management  activities  related  thereto)  to  the extent otherwise constituting a Permitted Investment or Restricted Payment permitted under Section 7.06;         (x)     [reserved];         (y)     transactions between the Parent Borrower or any of its Restricted Subsidiaries and any Person, a director of which is also a director of the Parent Borrower or any direct or indirect parent of the Parent  Borrower; provided, however,  that  such  director  abstains  from voting as a director of the Parent Borrower or such direct or indirect parent, as the case may be, on any matter involving such other Person;         (z)     payments or loans (or cancellations of loan repayment obligations) to future, present and former  independent  contractors,  employees,  advisors,  service  providers  or  consultants  of  the  Parent Borrower, any of its direct or indirect parent companies or any Restricted Subsidiary that are approved by the Board of Directors of senior management of the Parent Borrower in good faith and that are otherwise permitted by this Agreement; and                                          -147

 

               (aa)   Affiliate repurchases First Lien Obligations and Second Lien Obligations and obligations        in  respect  of  any  Junior  Financing,  in  each  case,  the  holding  of  such  loans  or  commitments  and  the        payments and other transactions contemplated herein in respect thereof.      Section 7.09                Burdensome Agreements.         Enter  into  or  permit  to  exist  any  Contractual  Obligation  (other  than  this  Agreement  or  any  other  Loan Document) that limits the ability of:                 (a)    any Non-Loan Party to make Restricted Payments to any Loan Party, or                 (b)    any  Loan  Party  to  create,  incur,  assume  or  suffer  to  exist  Liens  on  property  of  such        Person for the benefit of the Secured Parties with respect to the Obligations or under the Loan Documents;        provided that the foregoing clauses (a) and (b) shall not apply to Contractual Obligations which:                         (i)   (x) exist on the Closing Date and (to the extent not otherwise permitted by this                Section 7.09) are listed in Schedule 7.09 and (y) to the extent Contractual Obligations permitted                by clause (x) are set forth in an agreement evidencing Indebtedness, are set forth in any agreement                evidencing  any  permitted  modification,  replacement,  renewal,  extension  or  refinancing  of  such                Indebtedness so long as such modification, replacement, renewal, extension or refinancing does                not expand the scope of such Contractual Obligation;                        (ii)   are  binding  on  a  Restricted  Subsidiary  at  the  time  such  Restricted  Subsidiary                first becomes a Restricted Subsidiary, so long as such Contractual Obligations were not entered                into in anticipation of such Person becoming a Restricted Subsidiary;                        (iii)   comprise  restrictions  pursuant  to  Indebtedness  of  a  Non-Loan  Party  which  is                permitted by Section 7.03 and which does not apply to any Loan Party;                        (iv)    are customary restrictions that arise in connection with (x) any Lien permitted by                Sections 7.01(k), (l), (p), (q), (r)(i), (r)(ii), (s) and (ee) and relate to the property subject to such                Lien  or (y)  any Disposition permitted by  Section 7.04  or 7.05 and relate solely to the assets or                Person subject to such Disposition;                        (v)     are  customary  provisions  in  joint  venture  agreements  and  other  similar                agreements applicable to joint ventures constituting Permitted Investments or otherwise permitted                under Section 7.06 and applicable solely to such joint venture;                        (vi)    are  negative  pledges  and  restrictions  on  Liens  in  favor  of any  holder  of                Indebtedness permitted under Section 7.03 but solely to the extent any negative pledge relates to                the property financed by such Indebtedness and the proceeds and products thereof;                       (vii)    are customary restrictions on leases, subleases, licenses or asset sale agreements                otherwise permitted hereby so long as such restrictions relate to the property interest, rights or the                assets subject thereto;                       (viii)   comprise restrictions imposed by any agreement relating to secured Indebtedness                permitted  pursuant  to  Section 7.03(a),  (e)  (other  than  Disqualified Equity Interests or Preferred                Stock), (g) (other than Disqualified Equity Interests or Preferred Stock) and (n) to the extent that                such restrictions apply only to the property or assets securing such Indebtedness;                        (ix)    are  customary  provisions  restricting  subletting  or  assignment  of  any  lease                governing a leasehold interest of the Parent Borrower or any of its Restricted Subsidiaries;                                                 -148

 

                      (x)     are customary provisions restricting assignment of any agreement; provided  that                if such agreement is not entered into in the ordinary course of business, the granting, perfection,                validity and priority of the security interests of the Secured Parties is not impaired in any material                respect by such restriction;                        (xi)    are  restrictions  on  cash  or  other  deposits  or  net  worth  imposed  by  customers                under contracts entered into in the ordinary course of business;                       (xii)    arise in connection with cash or other deposits permitted under Section 7.01 or                the definition of Permitted Investments, and limited to such cash or deposits;                       (xiii)   comprise restrictions imposed by any agreement governing Indebtedness entered                into on or after the Closing Date and permitted under Section 7.03 that are, taken as a whole, in the                good faith judgment of the Administrative Borrower, no more restrictive with respect to the Parent                Borrower or any Restricted Subsidiary than customary market terms for Indebtedness of such type                (and, in any event, are no more restrictive than the restrictions contained in this Agreement), so                long as the Administrative Borrower shall have determined in good faith that such restrictions will                not affect its obligation or ability to make any payments required hereunder;                       (xiv)   [reserved];                       (xv)    are  restrictions  contained  in  (x)  the  Second  Lien  Financing  Documents  and                documents otherwise governing Indebtedness permitted pursuant to Section 7.03(cc), (y) the First                Lien Financing Documents and documents otherwise governing Indebtedness permitted pursuant                to Section 7.03(k) or (z) any ABL Financing Document;                        (xvi)  are restrictions regarding licensing or sublicensing by Parent Borrower and its                Restricted Subsidiaries of intellectual property in the ordinary course of business; and                        (xvii)  are restrictions on cash earnest money deposits in favor of sellers in connection                with acquisitions not prohibited hereunder.      Section 7.10                [Reserved].      Section 7.11                Financial Covenant.                 During each Compliance Period, the Parent Borrower shall not permit (i) the Consolidated Fixed Charge Coverage Ratio for the last Test Period ended prior to the beginning of such Compliance Period for which financial statements have been delivered or were required to be delivered to the Administrative Agent pursuant to Section  6.01(a)  or  Section  6.01(b)  to  be  less  than  1.00:1.00  as  of  the  last  day  of  such  Test  Period  or  (ii)  the Consolidated  Fixed  Charge  Coverage  Ratio  for  any  Test  Period  ending  thereafter  until  termination  of  such Compliance Period to be less than 1.00:1.00 as of the last day of such Test Period.      Section 7.12                [Reserved].      Section 7.13                Modifications of Terms of Junior Financing.         Amend, modify or change in any manner materially adverse to the interests of the Lenders, as determined in good faith by the Borrower, any term or condition of any Junior Financing Documentation in respect of any Junior Financing having an aggregate outstanding principal amount in excess of the Threshold Amount in violation of any applicable  Intercreditor  Agreement  or  subordination  agreement  without  the  consent  of  the  Administrative  Agent (which consent shall not be unreasonably withheld, delayed or conditioned).                                                 -149

 

    Section 7.14                Restrictions Prior to Satisfaction of Specified Post-Closing Undertaking         Prior to the satisfaction of the Specified Post-Closing Undertaking, (w) Omega and the Omega Subsidiaries shall not transfer any Accounts or Inventory (other than NLC Inventory) to any Beta Entity in an aggregate amount in  excess  of $2,500,000 in any  calendar month (or  in excess of $5,000,000 in  the aggregate) (provided, that the Administrative Agent may institute a Reserve in its Permitted Discretion as a result of any such transfer), (x) neither Omega nor any of the Omega Subsidiaries may merge with any Beta Entity, (y) any Inventory of any Beta Entity shall  be  physically  separate  from,  and  not  commingled  with,  any  Inventory  of  Omega  or  any  of  the  Omega Subsidiaries and (z) the Parent Borrower shall not permit the remittance of any collections of Accounts of any Beta Entity, or the deposit of any proceeds of any Inventory of any Beta Entity, into any deposit account that is used for the deposit or remittance of collections of Accounts that constitute Eligible Accounts and that are included in the Borrowing Base.                                           ARTICLE VIII.                              EVENTS OF DEFAULT AND REMEDIES      Section 8.01                Events of Default.         Any  of  the  following  events  referred  to  in  clauses  (a) through (l)  from and  after the Closing  Date shall constitute an event of default (an “Event of Default”):                 (a)    Non-Payment.  Any Loan Party fails to pay (i) when and as required to be paid herein,        any amount of principal of any Loan or unpaid reimbursement obligation of any drawn Letter of Credit or        (ii) within five (5) Business Days after the same becomes due, any interest on any Loan or any other amount        payable hereunder or with respect to any other Loan Document; or                (b)     Specific Covenants.   Any  Loan  Party  (i)  fails  to  timely  deliver  a  Borrowing  Base        Certificate pursuant to Section 6.02(f) and such failure shall continue unremedied for a period of five (5)        days  (or  two  (2)  Business  Days  if  the  Borrowing  Base  Certificate  is  required  to  be  delivered  weekly        pursuant to Section 6.02(f)), (ii) fails to perform or observe any term, covenant or agreement contained in        (A) Section 2.19, (B) any of Sections 6.03(a), 6.05(a) (solely with respect to the Parent Borrower) or 6.16;        provided that, with respect to any such Event of Default resulting from a failure to promptly provide notice        of an Event of Default to the Administrative Agent pursuant to Section 6.03(a), subject to the last proviso        of  this  Section  8.01,  the  subsequent  provision  of  such  notice  by  the  Parent  Borrower  or  any  Restricted        Subsidiary to the Administrative Agent shall cure the Event of Default resulting from such failure to timely        deliver such notice or (C) Article VII; provided, that the Financial Covenant is subject to cure pursuant to        Section 8.04; or                (c)     Other Defaults.   Any  Loan  Party  fails  to  perform  or  observe  any  other  covenant  or        agreement (not specified in Section 8.01(a) or (b) above) contained in any Loan Document on its part to be        performed  or  observed  and  such  failure continues for thirty  (30)  days after receipt by  the Borrowers  of        written notice thereof from the Administrative Agent; or                (d)     Representations and Warranties.  any representation, warranty or certification made or        deemed made by any Loan Party herein, in any other Loan Document, or in any document required to be        delivered  in  connection  herewith  or  therewith  shall  be  incorrect  in  any  material  respect  when  made  or        deemed made, and, other than with respect to any incorrect Specified Representation (which shall not be        subject to cure or a grace period), such incorrect representation or warranty (if curable as determined by the        Borrowers  in  good  faith)  shall  remain  incorrect  for  a  period  of  (i)  in  the  case  of  any  representation,        warranty or certification made on the Closing Date (other than any Specified Representation), 90 days and        (ii) in the case of any representation, warranty or certification made after the Closing Date, 30 days, in each        case after notice thereof from the Administrative Agent to the Borrowers; or                (e)     Cross-Default.   Except  with  respect  to  the  First  Lien  Loans  and  other  First Lien        Obligations, which shall be subject solely to clause (g) below, any Borrower or any Restricted Subsidiary                                                 -150

 

(A) fails to make any principal or interest payment beyond the applicable grace period, if any, whether by scheduled  maturity,  required  prepayment,  acceleration,  demand, or  otherwise,  in  respect  of  any Indebtedness (other than Indebtedness hereunder) having an aggregate outstanding principal amount of not less  than  the  Threshold  Amount,  or  (B)  fails  to  observe  or  perform  any  other  agreement  or  condition relating  to  any  such  Indebtedness,  or  any  other  event  occurs  (other  than,  with  respect  to  Indebtedness consisting of Swap Contracts, termination events or equivalent events pursuant to the terms of such Swap Contracts  and  not  as  a  result  of  any  other  default  thereunder  by  the  Borrowers  or  any  of  its  Restricted Subsidiaries), the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to  cause,  with  the  giving  of  notice  if  required  and  beyond  the applicable  grace  period,  if  any,  such Indebtedness  to  become  due  or  to  be  repurchased,  prepaid,  defeased  or  redeemed  (automatically  or otherwise), or an offer to repurchase, prepay, defease or redeem all of such Indebtedness to be made, prior to  its  stated  maturity; provided  that  this  clause  (e)(B)  shall  not  apply  to  (i) secured  Indebtedness  that becomes  due  as  a  result  of  the  voluntary  sale  or  transfer  of  the  property  or  assets  securing  such Indebtedness, if such sale or transfer is permitted hereunder, (ii) any Indebtedness if (x) the sole remedy of the  holder  thereof  in  the  event  of  the  non-payment  of  such  Indebtedness  or  the  non-payment  or  non- performance of obligations related thereto or (y) the sole option is to elect, in each case, to convert such Indebtedness  into  Qualified  Equity  Interests  and  cash in  lieu of  fractional shares  and (iii) in the case of Indebtedness  which  the  holder  thereof  may  elect  to  convert  into  Qualified  Equity  Interests,  such Indebtedness from and after the date, if any, on which such conversion has been effected; provided, further, that any such failure described under clause (A) or (B) is unremedied and is not waived by the holders of such Indebtedness prior to any termination of the Commitments or acceleration of the Loans pursuant to Section 8.02; or          (f)    Insolvency Proceedings, Etc.   Other  than  with  respect  to  dissolutions  or  liquidations permitted hereunder, the Parent Borrower, any Restricted Subsidiary that is a Material Subsidiary institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator, administrator, administrative receiver or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator, administrator, administrative receiver or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for sixty (60) consecutive days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or substantially all of its property is instituted without the consent of such Person and continues undismissed or unstayed for sixty (60) consecutive days, or an order for relief is entered in any such proceeding; or         (g)     First Lien Loans and other First Lien Obligations.  With respect to the First Lien Loans and  other  First  Lien  Obligations,  (x)  an  Event  of  Default  under  and  as  defined  in  the  First  Lien  Credit Agreement has occurred and is continuing under clauses (a) or (f) of Section 8.01 of the First Lien Credit Agreement or (y) an Event of Default (other than the type described in the foregoing clause (x)) under and as defined in the First Lien Credit Agreement has occurred and remains unremedied or unwaived for 60 consecutive  days  after  the  occurrence  thereof  or  with  respect  to  which  any  First  Lien  Secured  Party  is exercising remedies (including acceleration of obligations or termination of commitments);          (h)    Judgments.  There is entered against any Borrower or any Restricted Subsidiary that is a Material Subsidiary a final judgment or order for the payment of money in an aggregate amount exceeding the Threshold Amount (to the extent not paid or covered by independent third-party insurance or indemnity as  to  which  the  insurer  or  indemnitor  has  been  notified  of  such  judgment  or  order  and  has  not  denied coverage thereof) and such judgment or order shall not have been satisfied, vacated, discharged or stayed or bonded pending an appeal for a period of sixty (60) consecutive days; or          (i)    Invalidity of Loan Documents.  Any material provision of any Loan Document, at any time  after  its  execution  and  delivery  and  for  any  reason  other than  as  expressly  permitted  hereunder  or thereunder (including as a result of a transaction permitted under Section 7.04 or 7.05) or as a result of acts or  omissions by  the Administrative Agent or any Lender which does not arise from a breach by a Loan Party of its obligations under the Loan Documents or the satisfaction in full of all the Obligations, ceases to                                         -151

 

       be  in  full  force  and  effect;  or  any  Loan  Party  contests  in  writing  the  validity  or  enforceability  of  any        provision  of  any  Loan  Document  or  the  validity  or  priority  of  a  Lien  as  required  by  the  Collateral        Documents on a material portion of the Collateral; or any Loan Party denies in writing that it has any or        further liability or obligation under any Loan Document (other than as a result of repayment in full of the        Obligations and termination of the Total Revolving Credit Commitments), or purports in writing to revoke        or rescind any Loan Document; provided that none of the foregoing shall apply to any Guarantor which is        not a Material Subsidiary; or                (j)     Change of Control.  There occurs any Change of Control; or                (k)     Collateral Documents.   Any  Collateral  Document  after  delivery  thereof  pursuant  to        Section 4.01, 6.11 or 6.13 shall for any reason (other than pursuant to the terms hereof or thereof including        as a result of a transaction not prohibited under this Agreement) cease to create a valid and perfected Lien,        with the priority required by the Collateral Documents on and security interest in any material portion of the        Collateral purported to be covered thereby, subject to Liens permitted under Section 7.01, (x) except to the        extent  that  any  such  perfection  or  priority  is  not  required  pursuant  to  the  Collateral  and  Guarantee        Requirement or results from the failure of the Administrative Agent to maintain possession of certificates        actually delivered to it representing securities pledged under the Collateral Documents (or other pledged        collateral  actually  delivered  to  it  under  the  Collateral  Documents)  or  to file Uniform Commercial Code        continuation statements and (y) except as to Collateral consisting of Real Property to the extent that such        losses are covered by a lender’s title insurance policy and such insurer has not denied coverage; or                 (l)    ERISA.  (i) An ERISA Event occurs which has resulted or could reasonably be expected        to result in liability of a Loan Party or an ERISA Affiliate in an aggregate amount which would reasonably        be expected to result in a Material Adverse Effect, or (ii) a Loan Party or any ERISA Affiliate fails to pay        when due, after the expiration of any applicable grace period, any installment payment with respect to its        withdrawal  liability  under  Section 4201  of  ERISA  under  any  Multiemployer  Plan  which  has  resulted  or        could reasonably be expected to result in liability of a Loan Party or an ERISA Affiliate in an aggregate        amount which would reasonably be expected to result in a Material Adverse Effect;         provided, that any Event of Default under the Loan Documents, other than any (i) Specified ABL Default (subject  to  Section  8.04  in  the  case  of  clause  (d)  of  the  definition  of  “Specified  ABL  Default”)  or  (ii)  Event  of Default which cannot be waived without the written consent of each Lender directly and adversely affected thereby, shall be deemed not to be “continuing” (and shall be deemed to be “cured”) if the events, acts or conditions that gave rise to such event of default have been have remedied or cured (including by payment, notice, taking any action or omitting to take any action) or have ceased to exist and the Borrowers are otherwise in compliance with the Loan Documents; provided, that the foregoing shall not be applicable with respect to any default or Event of Default if the Borrowers knowingly and willfully fails to give timely notice to the Administrative Agent and the Lenders of such default or Event of Default required to be given under the Loan Documents.      Section 8.02                Remedies Upon Event of Default.         If any Event of Default occurs and is continuing, the Administrative Agent may, with the consent of, and shall, at the request of, the Required Lenders, take any or all of the following actions:                 (i)    declare the Commitment of each Lender to make Loans and any obligation of the Issuing        Banks to make LC Credit Extensions to be terminated, whereupon such Commitments and obligation shall        be terminated;                 (ii)   declare  the  unpaid  principal  amount  of  all  outstanding  Loans,  all  interest  accrued  and        unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be        immediately  due  and  payable,  without  presentment,  demand,  protest  or  other  notice  of  any  kind,  all  of        which are hereby expressly waived by the Borrowers;                                                 -152

 

                (iii)  require that the Borrowers Cash Collateralize the LC Obligations (in an amount equal to         the then Outstanding Amount thereof); and                 (iv)    exercise on behalf of itself and the Lenders all rights and remedies available to it and the         Lenders  under  the  Loan  Documents,  any  document  evidencing  Indebtedness  in  respect  of  which  the         Facilities have been designated as “designated senior debt” (or any comparable term) or applicable Law;  provided that upon the occurrence of an Event of Default as a result of an actual or deemed entry of an order for relief  with  respect  to  the  Borrowers  under  any  Debtor  Relief  Laws,  the  Revolving  Credit  Commitments,  the obligation of each Lender to make Loans and any obligation of the Issuing Banks to make LC Credit Extensions shall  automatically  terminate,  the  unpaid  principal  amount  of  all  outstanding  Loans  and  all  interest  and  other amounts  as  aforesaid  shall  automatically  become  due  and  payable  and  the  obligation  of  the  Borrowers  to  Cash Collateralize the LC Obligations as aforesaid shall automatically become effective, in each case without further act of the Administrative Agent or any Lender.       Section 8.03                Application of Funds.          After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable and the LC Obligations have automatically been required to be Cash Collateralized as set  forth  in  the  proviso  to  Section 8.02),  any  amounts  received  on  account  of  the  Secured  Obligations  shall  be applied by the Administrative Agent in the following order (to the fullest extent permitted by mandatory provisions of applicable Law):                 First,  to  payment  of  that  portion  of  the  Secured  Obligations  constituting  fees,  indemnities,         expenses and other amounts (other than principal and interest) payable to the Administrative Agent in its         capacity as such (including Attorney Costs payable under Section 10.04 and amounts payable under Article         III);                 Second, to payment of that portion of the Secured Obligations constituting fees, indemnities and         other amounts (other than principal and interest) payable to the Lenders (including Attorney Costs payable         under  Section 10.04  and  amounts  payable  under  Article  III),  ratably  among  them  in  proportion  to  the         amounts  described  in  this  clause Second  payable  to  them  (other  than  in  connection  with  Secured  Cash         Management Obligations and Secured Hedge Obligations);                 Third,  to  payment  of  that  portion  of  the  Secured  Obligations  constituting  accrued  and  unpaid         interest on the Agent Advances payable to the Administrative Agent in its capacity as such;                 Fourth, to payment of that portion of the Secured Obligations constituting unpaid principal of the         Agent Advances payable to the Administrative Agent in its capacity as such;                 Fifth,  to  payment  of  that  portion  of  the  Secured  Obligations  constituting  accrued  and  unpaid         interest on the Loans and LC Borrowings and any fees, premiums and scheduled periodic payments due         under  Secured  Hedge  Agreements  that  are  Noticed  Hedges,  ratably  among  the  Secured  Parties  in         proportion to the respective amounts described in this clause Fifth payable to them;                 Sixth, to payment of that portion of the Secured Obligations constituting unpaid principal of the         Loans and LC Borrowings (including to Cash Collateralize that portion of LC Obligations comprised of the         aggregate undrawn amount of Letters of Credit) and, to the extent of the Bank Product Reserve in respect         thereof, to payment of any breakage, termination or other payments in respect of Noticed Hedges, ratably         among the Secured Parties in proportion to the respective amounts described in this clause Sixth held by         them;                  Seventh, to payment of any Secured Obligations under any Secured Hedge Obligations (other than         Noticed  Hedges  to  the  extent  paid in  accordance with clause Sixth above) and under any  Secured  Cash                                                  -153

 

        Management  Obligations,  ratably  among  the  Secured  Parties  in  proportion  to  the  respective  amounts         described in this clause Seventh held by them;                  Eighth,  to  the  payment  of  all  other  Secured  Obligations  that  are  due and  payable  to  the         Administrative  Agent  and  the  other  Secured  Parties  on  such  date,  ratably  based  upon  the  respective         aggregate  amounts  of  all  such  Secured  Obligations  owing  to  the Administrative  Agent  and  the  other         Secured Parties on such date; and                  Last,  the  balance,  if  any,  after  all  of  the  Secured  Obligations  have  been  paid  in  full,  to  the         Borrowers or as otherwise required by Law.          Notwithstanding the foregoing, no amount received from any Guarantor shall be applied to any Excluded  Swap Obligation of such Guarantor.          Amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause  Sixth above shall be applied to satisfy drawings under such Letters of Credit as they occur.  If any amount remains  on  deposit as  Cash Collateral  after all Letters of  Credit have either been  fully drawn or expired, such remaining  amount  shall  be applied  to the other Secured Obligations, if any, in the order set forth above and, if no Secured  Obligations remain outstanding, will be paid to the Borrowers.       Section 8.04                Right to Cure.          Notwithstanding anything to the contrary contained in Section 8.01:          (a)    For the purpose of determining whether a Financial Covenant Event of Default has occurred, the Administrative Borrower may on one or more occasions designate any portion of the net cash proceeds from a sale or issuance of Qualified Equity Interests of the Parent Borrower or any cash contribution to the common capital of the Parent Borrower (the “Cure Amount”) as an increase to Consolidated EBITDA for the applicable fiscal quarter; provided that (A) the Cure Amount (i) is actually received by the Parent Borrower on or before the later of (x) the fifteenth  (15th)  calendar  day  after  the  date  on  which  the  Compliance  Certificate  pursuant  to  Section  6.02(a) is  required  to  be  delivered  with  respect  to  such  applicable  fiscal  quarter  or  fiscal  year,  as  applicable,  and  (y)  the  fifteenth  (15th)  calendar  day  after  the  beginning  of  the  Compliance  Period  that  required  the  Parent  Borrower  to  comply with the covenant set forth in Section 7.11 (such later date, the “Cure Expiration Date”) and (ii) does not  exceed the aggregate amount necessary to cure any Financial Covenant Event of Default as of such date and (B) the  Administrative Borrower shall have provided advance notice (the “Notice of Intent to Cure”) to the Administrative  Agent that such amounts are designated as a “Cure Amount” (it being understood that to the extent such notice is  provided in advance of delivery of a Compliance Certificate for the applicable period, the Cure Amount actually  received by the Parent Borrower may be lower than specified in such notice to the extent that the amount necessary  to cure any Financial Covenant Event of Default is less than the full amount of such originally designated amount).  The Cure Amount used to calculate Consolidated EBITDA for one fiscal quarter shall be used and included when  calculating Consolidated EBITDA for each Test Period that includes such fiscal quarter.          (b)     The  parties  hereby  acknowledge  that  this  Section 8.04  may  not  be  relied  on  for  purposes  of  calculating any financial ratios or any other purpose other than for determining actual compliance with Section 7.11  (and not Pro Forma Compliance with Section 7.11 that is required by any other provision of this Agreement) and  shall not result in any adjustment to any amounts (including any pro forma reduction of the amount of Indebtedness with respect to the quarter with respect to which such Cure Amount is made and shall not be included for purposes of determining pricing, mandatory prepayments and the availability or amount permitted pursuant to any covenant under Article 7) other than the increase to Consolidated EBITDA referred to in Section 8.04(a). The Cure Amount  shall not constitute an Excluded Contribution.          (c)     In furtherance of Section 8.04(a) above, (i) upon actual receipt by the Administrative Agent of the  Notice of Intent to Cure, the covenant under Section 7.11 shall be deemed retroactively cured with the same effect as  though there had been no failure to comply with the covenant under such Section 7.11 and any Default or Event of  Default under Section 7.11 shall be deemed not to have occurred for purposes of the Loan Documents (provided that                                                  -154

 

if the Cure Expiration Date has occurred without the Cure Amount having been received by the Parent Borrower and designated, such Default or Event of Default shall be deemed reinstated) and (ii) none of the Administrative Agent, any Lender or any other Secured Party may exercise any rights or remedies under Section 8.01 (or under any other Loan Document) solely on the basis of any actual or purported Default or Event of Default under Section 7.11 until and unless (A) the Cure Expiration Date has occurred without the Cure Amount having been received by the Parent Borrower  and  designated  by  the  Administrative  Borrower  or  (B)  the  Administrative  Borrower  has  confirmed  in writing that it does not intend to provide such Cure Amount.  Notwithstanding the foregoing, no Borrower shall be permitted to request a Borrowing or any Credit Extension unless and until the Parent Borrower shall have received the Cure Amount.         (d)     (i)  In  each  period  of  four  (4)  consecutive  fiscal  quarters,  there  shall  be  at  least  two  (2)  fiscal quarters in which no cure right set forth in Section 8.04 is exercised and (ii) there shall be no pro forma reduction in Indebtedness with the Cure Amount for determining compliance with Section 7.11 for the fiscal quarter with respect to which such Cure Amount was made.         (e)     There can be no more than five (5) fiscal quarters in which the cure rights set forth in Section 7.11 are exercised during the term of any Facility.                                            ARTICLE IX.                         ADMINISTRATIVE AGENT AND OTHER AGENTS      Section 9.01                Appointment and Authority.         (a)    Each of the Lenders and Issuing Banks hereby irrevocably appoints Bank of America, N.A to act on  its  behalf  as  the  Administrative  Agent  hereunder  and  under  the  other  Loan  Documents  and  authorizes  the Administrative  Agent  to  take  such  actions  on  its  behalf  and  to exercise  such  powers  as  are  delegated  to  the Administrative  Agent  by  the  terms  hereof  or  thereof,  together  with  such  actions  and  powers  as  are  reasonably incidental thereto.  The provisions of this Article IX (other than this Section 9.01, Section 9.06 (solely with respect to the removal and consent rights of the Borrowers set forth therein), Section 9.09, Section 9.10 and Section 9.11) are solely for the benefit of the Administrative Agent, the Lenders and each Issuing Bank, and no Loan Party shall have rights as a third party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent”  herein  or  in  any  other  Loan  Documents (or any  other similar term) with  reference to the Administrative Agent  is  not  intended  to  connote  any  fiduciary  or  other  implied  (or  express)  obligations  arising  under  agency doctrine of any applicable Law.  Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.         (b)     The Administrative Agent shall also act as the “collateral agent” under the Loan Documents, and each of the Lenders (including in its capacities as a potential Qualified Counterparty) and the Issuing Bank hereby irrevocably appoints  and  authorizes  the Administrative Agent  to act as  the agent of such Lender and the Issuing Bank for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties  to  secure  any  of  the  Obligations,  together  with  such  powers  and  discretion  as  are  reasonably  incidental thereto.   In  this  connection,  the  Administrative  Agent,  as  “collateral  agent”  and  any  co-agents,  sub-agents  and attorneys-in-fact  appointed  by  the  Administrative  Agent  pursuant  to  Section 9.05  for  purposes  of  holding  or enforcing  any  Lien  on  the  Collateral  (or  any  portion  thereof)  granted  under  the  Collateral  Documents,  or  for exercising any rights and remedies thereunder at the direction of the Administrative Agent, shall be entitled to the benefits  of  all  provisions  of  this Article  IX and  Article X (including  the second paragraph of  Section 10.05), as though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the Loan Documents as if set forth in full herein with respect thereto.  Without limiting the generality of the foregoing, the Lenders hereby expressly authorize the Administrative Agent to (i) execute any and all documents (including releases) with respect to the Collateral (including any Intercreditor Agreement and any amendment, supplement, modification or joinder with respect thereto) and the rights of the Secured Parties with respect thereto, as contemplated by and in accordance with the provisions of this Agreement and the Collateral Documents and acknowledge and agree that any such action by any Agent shall bind the Lenders and (ii) negotiate, enforce or settle any claim, action or proceeding affecting the                                                 -155

 

Lenders  in  their  capacity  as  such,  at  the  direction  of  the  Required  Lenders,  which  negotiation,  enforcement  or settlement will be binding upon each Lender.      Section 9.02                Rights as a Lender.         The  Person  serving  as  the  Administrative  Agent  hereunder shall have the same rights  and powers  in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and  the  term  “Lender”  or  “Lenders”  shall,  unless  otherwise  expressly  indicated  or  unless  the  context  otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and  its  Affiliates  may  accept  deposits from,  lend  money  to,  act  as the  financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrowers or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.      Section 9.03                Exculpatory Provisions.         The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the foregoing, the Administrative Agent:                (a)     shall  not  be  subject  to  any  fiduciary  or  other  implied  duties,  regardless  of  whether  a        Default has occurred and is continuing;                (b)     shall  not  have  any  duty  to  take  any  discretionary  action  or exercise  any  discretionary        powers,  except  discretionary  rights  and  powers  expressly  contemplated  hereby  or  by  the  other  Loan        Documents  that  the  Administrative  Agent  is  required  to  exercise  as  directed  in  writing by  the Required        Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in        the other Loan Documents); provided that the Administrative Agent shall not be required to take any action        that, in its opinion or the opinion of its counsel, may (i) expose the Administrative Agent to liability or that        is contrary to any Loan Document or applicable law or (ii) be in violation of the automatic stay under any        Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting        Lender in violation of any Debtor Relief Law;                (c)     shall not, except as expressly set forth herein and in the other Loan Documents, have any        duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrowers        or any of their Affiliates that is communicated to or obtained by the Person serving as the Administrative        Agent or any of its Affiliates in any capacity;                (d)     shall not be liable for any action taken or not taken by it (i) with the consent or at the        request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary,        or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as        provided  in  Sections  10.01  and  8.02)  or  (ii)  in  the  absence  of its  own  gross  negligence  or  willful        misconduct as determined by a court of competent jurisdiction in a final and nonappealable judgment.  The        Administrative  Agent  shall  be  deemed  not  to  have  knowledge  of  any  Default  unless  and  until  notice        describing such Default  is given  to  the Administrative Agent  by the Borrowers, a Lender or the Issuing        Bank; and                (e)     shall not be responsible for or have any duty to ascertain or inquire into (i) any statement,        warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii)        the contents of any certificate, report or other document delivered hereunder or thereunder or in connection        herewith  or therewith,  (iii) the  performance or observance of  any of  the covenants,  agreements or other        terms  or  conditions  set  forth  herein  or  therein  or  the  occurrence  of  any  Default,  (iv)  the  validity,        enforceability,  effectiveness  or  genuineness  of  this  Agreement,  any  other  Loan  Document  or  any  other        agreement,  instrument  or  document,  or  the  creation,  perfection or  priority  of  any  Lien  purported  to  be        created  by  the  Collateral  Documents,  (v)  the  value  or  the  sufficiency  of  any  Collateral,  or  (vi)  the                                                 -156

 

        satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of         items expressly required to be delivered to the Administrative Agent.          It is understood and agreed by each Secured Party that the Administrative Agent shall have no liability for  any  determinations  made  by  it  under  Section  8.03,  in  each  case except  to  the  extent  resulting  from  the  gross  negligence or willful misconduct of the Administrative Agent (as determined by a court of competent jurisdiction in  a final and non-appealable decision).  Each Secured Party also agrees that the Administrative Agent may (but shall  not be required to), at any time and in its sole discretion, and with no liability resulting therefrom, petition a court of  competent jurisdiction regarding any application of Collateral in accordance with the requirements hereof, and the  Administrative Agent shall be entitled to wait for, and may conclusively rely on, any such determination.       Section 9.04                Reliance by Administrative Agent.          The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon,  any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic  message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been  signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any  statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not  incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a  Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the  satisfaction  of  a  Lender  or  the  Issuing  Bank,  the  Administrative  Agent  may  presume  that  such  condition  is  satisfactory to such Lender or the Issuing Bank unless the Administrative Agent shall have received notice to the  contrary from such Lender or the Issuing Bank prior to the making of such Loan or the issuance, extension, renewal  or increase of such Letter of Credit.  The Administrative Agent may consult with legal counsel (who may be counsel  for the Borrowers), independent accountants and other experts selected by it, and shall not be liable for any action  taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.       Section 9.05                Delegation of Duties.          The  Administrative  Agent  may  perform  any  and  all  of  its  duties and  exercise  its  rights  and  powers hereunder  or  under  any  other  Loan  Document  by  or  through  any  one  or  more  sub-agents  appointed  by  the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers  by or  through  their respective Related Parties.  The exculpatory provisions of this Article IX shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent,  and  shall  apply  to  their  respective  activities  in  connection  with  the  syndication  of  the  credit  facilities provided for herein as well as activities as Administrative Agent.  The Administrative Agent shall not be responsible for  the  negligence  or  misconduct  of  any  sub-agents  except  to  the  extent  that  a  court  of  competent  jurisdiction determines  in  a  final  and  nonappealable  judgment  that  the  Administrative  Agent  acted  with  gross  negligence  or willful misconduct in the selection of such sub-agents.       Section 9.06                Resignation of Administrative Agent.          The Administrative Agent may at any time give notice of its resignation to the Lenders, the Issuing Banks and the Borrowers upon thirty (30) days’ written notice to the Borrowers and the Lenders.  If the Administrative Agent  or  a  Controlling  Affiliate  of  the  Administrative  Agent  is  subject  to  an  Agent-Related  Distress  Event,  the Parent  Borrower may remove the Administrative Agent  from such role upon ten  (10) days’ written  notice to the Lenders.  Upon receipt of any such notice of resignation or removal by the Parent Borrower, the Required Lenders shall have the right, with the consent of the Administrative Borrower at all times other than upon the occurrence and during the continuation of an Event of Default under Sections 8.01(a) or, solely with respect to the Parent Borrower, 8.01(f), to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation or removal, then the retiring Administrative Agent may on behalf of the Lenders and the Issuing Banks, appoint  a  successor  Administrative  Agent  meeting  the  qualifications  set  forth  above  (including  consent  of  the Administrative Borrower); provided that if the Administrative Agent shall notify the Administrative Borrower and                                                  -157

 

the  Lenders  that  no  qualifying  Person  has  accepted  such  appointment,  then  such  resignation  or  removal  shall nonetheless become effective in accordance with such notice. The resigning or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the Issuing Bank under any of the Loan Documents, the resigning or removed Administrative Agent shall continue to hold such collateral security (including any collateral security subsequently delivered to the Administrative Agent) until such time as a successor Administrative Agent is appointed) and (b) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the Issuing Bank directly, until  such  time  as  the  Required  Lenders  appoint  a successor Administrative Agent  as  provided for above in this Section 9.06.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder and delivery of collateral  security  in  the  possession  of  the  resigning  or  removed  Administrative  Agent  to  such  successor Administrative  Agent  (to  the  extent  that  possession  thereof  perfects  a  Lien  thereon  under  the  UCC  of  any jurisdiction), such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the resigning (or resigned) or removed Administrative Agent, and the resigning or removed Administrative Agent shall  be  discharged  from  all  of  its  duties  and  obligations  hereunder  or  under  the  other  Loan  Documents  (if  not already  discharged  therefrom  as  provided  above  in  this  Section 9.06).   The  fees  payable  by  the  Borrowers  to  a successor  Administrative  Agent  shall  be  the  same  as  those  payable  to  its  predecessor  unless  otherwise  agreed between the Borrowers and such successor.  After the resigning Administrative Agent’s resignation or the removed Administrative Agent’s removal, hereunder and under the other Loan Documents, the provisions of this Article and Sections 10.04 and 10.05 shall continue in effect for the benefit of such resigning or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the resigning or removed Administrative Agent was acting as Administrative Agent.         Any resignation by, or removal of, Bank of America, N.A. as Administrative Agent pursuant to this Section 9.06  shall also  constitute its resignation or removal as  Issuing Bank and Swing Line Lender, in which case such resigning or removed Issuing Bank and Swing Line Lender (x) shall not be required to issue any further Letters of Credit or extend any further Swing Line Loans hereunder and (y) shall maintain all of its rights as Issuing Bank or Swing  Line  Lender  with  respect  to  any  Letters  of  Credit  issued by  it  or  Swing  Line  Loans  extended  by  it,  as applicable,  prior to  the date  of such  resignation or removal so long as such Letters of Credit, LC Obligations or Swing Line Loans remain outstanding and not otherwise Cash Collateralized in accordance with the terms herein. Upon  the  acceptance  of  a  successor’s  appointment  as  Administrative  Agent  hereunder,  (i)  such  successor  shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Issuing Bank and Swing Line Lender, (ii) the resigning or removed Issuing Bank and Swing Line Lender shall be discharged from all of  their  respective  duties  and  obligations  hereunder  or  under  the  other  Loan  Documents,  and  (iii)  the  successor Issuing Bank shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such  succession  or make other arrangements satisfactory  to the resigning or removed Issuing Bank to effectively assume the obligations of the resigning or removed Issuing Bank with respect to such Letters of Credit.      Section 9.07                Non-Reliance on Administrative Agent and Other Lenders.         Each Lender and the Issuing Bank acknowledges that it has, independently and without reliance upon the Administrative  Agent  or  any  other  Lender  or  any  of  their  Related  Parties  and  based  on  such  documents  and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each  Lender  and  the  Issuing  Bank  also  acknowledges  that  it  will,  independently  and  without  reliance  upon  the Administrative  Agent  or  any  other  Lender  or  any  of  their  Related  Parties  and  based  on  such  documents  and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.      Section 9.08                No Other Duties, Etc.         Anything  herein  to  the  contrary  notwithstanding,  none  of  the  Administrative  Agent,  Bookrunners  or Arrangers listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the Issuing Bank hereunder.                                                 -158

 

     Section 9.09                Administrative Agent May File Proofs of Claim; Credit Bidding.          In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative  to  any  Loan  Party,  the  Administrative  Agent  (irrespective  of  whether  the  principal  of  any  Loan  or  LC Obligation  shall  then  be  due  and  payable  as  herein  expressed  or  by  declaration  or  otherwise  and  irrespective  of whether  the  Administrative  Agent  shall  have  made  any  demand  on the  Parent  Borrower)  shall  be  entitled  and empowered, by intervention in such proceeding or otherwise                 (a)     to file and prove a claim for the whole amount of the principal and interest owing and         unpaid in respect of the Loans, LC Obligations 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 for  the  reasonable  compensation,         expenses, disbursements and advances of the Lenders, the Issuing Bank and the Administrative Agent and         their  respective  agents  and  counsel  and  all  other  amounts  due  the  Lenders,  the  Issuing  Bank  and  the         Administrative  Agent  under  Sections  2.03(h)  and  (i),  2.09,  10.04  and  10.05)  allowed  in  such  judicial         proceeding; and                 (b)     to collect and receive any monies or other property payable or deliverable on any such         claims and to distribute the same;   and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial  proceeding is hereby authorized by each Lender and the Issuing Bank to make such payments to the Administrative  Agent and, if the Administrative Agent shall consent to the making of such payments directly to the Lenders and the  Issuing  Bank,  to  pay  to  the  Administrative  Agent  any  amount  due  for  the  reasonable  compensation,  expenses,  disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the  Administrative Agent under Sections 2.09, 10.04 and 10.05.          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 the Issuing Bank any plan of reorganization, arrangement, adjustment  or  composition  affecting  the  Obligations  or  the  rights  of  any  Lender  or  the  Issuing  Bank  to  authorize  the  Administrative Agent to vote in respect of the claim of any Lender or the Issuing Bank or in any such proceeding.                  The Secured Parties hereby irrevocably authorize the Administrative Agent, at the direction of the         Required Lenders, to credit bid all or any portion of the Obligations (including accepting some or all of the         Collateral in satisfaction of some or all of the Secured 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  of  the  United  States,  including  under  Sections  363,  1123  or  1129  of  the  Bankruptcy  Code of  the         United States, or any similar Laws in any other jurisdictions to which a Loan Party is subject, (b) at any         other sale or foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at         the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any         applicable Laws.  In connection with any such credit bid and purchase, the Obligations owed to the Secured         Parties shall be entitled to be, and shall be, credit bid on a ratable basis (with Obligations with respect to         contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that         would vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the         contingent claim amount used in allocating the contingent interests) in the asset or assets so purchased (or         in  the  Equity  Interests  or  debt  instruments  of  the  acquisition vehicle  or  vehicles  that  are  used  to         consummate  such  purchase).   In  connection  with  any  such  bid  (i)  the  Administrative  Agent  shall  be         authorized to form one or more acquisition vehicles to make a bid, (ii) to adopt documents providing for the         governance of the acquisition vehicle or vehicles (provided that any actions by the Administrative Agent         with  respect  to  such  acquisition  vehicle  or  vehicles,  including  any  disposition  of  the  assets  or  Equity         Interests thereof shall be governed, directly or indirectly, by the vote of the Required Lenders, irrespective         of the termination of this Agreement and without giving effect to the limitations on actions by the Required         Lenders contained in clauses (a) through (j) of Section 11.01 of this Agreement, (iii) the Administrative         Agent shall be authorized to assign the relevant Obligations to any such acquisition vehicle pro rata by the         Lenders, as a result of which each of the Lenders shall be deemed to have received a pro rata portion of any                                                 -159

 

       Equity Interests and/or debt instruments issued by such an acquisition vehicle on account of the assignment        of the Obligations to be credit bid, all without the need for any Secured Party or acquisition vehicle to take        any further action, and (iv) to the extent that Obligations that are assigned to an acquisition vehicle are not        used  to  acquire  Collateral  for  any  reason  (as  a result  of  another bid being higher or better, because the        amount  of  Obligations  assigned  to  the  acquisition  vehicle  exceeds  the  amount  of  debt  credit  bid by  the        acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Lenders pro rata        and  the  Equity  Interests  and/or  debt  instruments  issued  by  any acquisition  vehicle  on  account  of  the        Obligations that had been assigned to the acquisition vehicle shall automatically be cancelled, without the        need for any Secured Party or any acquisition vehicle to take any further action.      Section 9.10                Collateral and Guaranty Matters.         Each Lender hereby agrees, and each holder of any Note by its acceptance thereof will be deemed to agree, that,  except  as  otherwise  set  forth  herein,  any  action  taken  by  the  Required  Lenders  in  accordance  with  the provisions of this Agreement or the Collateral Documents, and the exercise by the Required Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Lenders.  The Administrative Agent is hereby authorized on behalf of all of the Lenders, without the necessity of any notice to or further consent from any Lender, from time to time prior to the occurrence and continuance of an Event of Default, to take any action with respect to any Collateral or Collateral Documents which may be necessary to create, perfect and maintain perfected security interests in and liens upon the Collateral granted pursuant to the Collateral Documents.  Without limiting the provisions of Section 9.09, each of the Lenders (including in its capacities as a potential Qualified Counterparty) and each Issuing Bank irrevocably authorize the Administrative Agent, at its option, and in its sole discretion (other than releases described in clauses (b) and (d) below which shall not be optional or discretionary):                 (a)    to enter into and sign for and on behalf of the Lenders, as Secured Parties, the Collateral        Documents (including any subordination or intercreditor agreements with respect to Indebtedness and Liens        permitted under this Agreement to the extent the Administrative Agent is otherwise contemplated herein as        being a party to such intercreditor or subordination agreement) for the benefit of the Lenders and the other        Secured Parties;                 (b)    to  automatically  release  any  Lien  on  any  property  granted  to  or  held  by  the        Administrative  Agent  under  any  Loan  Document  (i)  upon  termination  of  the  Total  Revolving  Credit        Commitments and payment in full of all Obligations (other than contingent indemnification obligations) and        the  expiration  or  termination  of  all  Letters  of  Credit  (other  than  Letters  of  Credit  that  are  Cash        Collateralized  or  back-stopped by a  letter of credit  in form and  substance reasonably satisfactory  to  the        Administrative Agent and the applicable Issuing Bank or a deemed reissuance under another facility as to        which other arrangements satisfactory to the Administrative Agent and the applicable Issuing Bank shall        have been  made), (ii) at the time the property subject to such Lien  is  Disposed or to be Disposed (to a        Person that is not a Loan Party) as part of or in connection with any Disposition  permitted hereunder or        under  any  other  Loan  Document,  (iii)  subject  to  Section 10.01, if  the  release  of  such  Lien  is  approved,        authorized or ratified in writing by the Required Lenders, (iv) if the property subject to such Lien is owned        by a Guarantor, upon release of such Guarantor from its obligations under its Guaranty pursuant to clause        (d) below or Section 11.09 or (v) if the property subject to such Lien constitutes Excluded Assets;                 (c)    to  release  or  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  7.01(u)  to  the  extent  required  by  the  holder  of,  or  pursuant  to  the  terms  of  any        agreement governing, the obligations secured by such Liens; and                 (d)    to  release  any  Guarantor  from  its  obligations  under  this  Agreement  (including  the        Guaranty) if such Guarantor becomes a Released Guarantor in accordance with Section 11.09.         Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to                                                 -160

 

 release  any  Guarantor  from  its  obligations  under  the  Guaranty  pursuant  to  this  Section 9.10.   In  each  case  as  specified  in  this  Section 9.10,  the  Administrative  Agent  will  (and  each  Lender  irrevocably  authorizes  the  Administrative  Agent  to),  at  the  Borrowers’  expense,  execute  and  deliver  to  the  applicable  Loan  Party  such  documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the  assignment and security interest granted under the Collateral Documents or to subordinate its interest in such item,  or to evidence the release of such Guarantor from its obligations under the Guaranty, in each case in accordance with  the terms of the Loan Documents and this Section 9.10.          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 the Borrowers or any of its  Restricted Subsidiaries in connection therewith, nor shall the Administrative Agent be responsible or liable to the  Lenders for any failure to monitor or maintain any portion of the Collateral.       Section 9.11                Secured Cash Management Agreements and Secured Hedge Agreements.          Except as otherwise expressly set forth herein or in any Guaranty or any Collateral Document, no Qualified Counterparty that obtains the benefits of Section 8.03, any Guaranty or any Collateral by virtue of the provisions hereof or of any Guaranty or any Collateral Document shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise in respect of the Collateral (including the release or impairment of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents.  Notwithstanding any other provision of this Article IX to the  contrary,  the  Administrative  Agent  shall  not  be  required  to  verify  the  payment  of,  or  that  other  satisfactory arrangements  have  been  made  with  respect  to,  Secured  Obligations  arising  under  Secured  Cash  Management Agreements and Secured Hedge Agreements unless the Administrative Agent has received written notice of such Secured Obligations, together with such supporting documentation as the Administrative Agent may request, from the applicable Qualified Counterparty.          The Lenders and the Qualified Counterparties hereby authorize the Administrative Agent to enter into any Intercreditor Agreement or other intercreditor agreement or arrangement (including any subordination agreement or arrangement) permitted under this Agreement, and any amendment, modification, supplement or joinder with respect thereto,  and  the  Lenders  and  the  Qualified  Counterparties  acknowledge  that  any  such  intercreditor  agreement  is binding upon the Lenders and Qualified Counterparties.       Section 9.12                Withholding Tax Indemnity.          To the extent required by any applicable Laws, the Administrative Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding Tax.  If the Internal Revenue Service or any other authority of the United States or other jurisdiction asserts a claim that the Administrative Agent did not properly withhold Tax from amounts paid to or for the account of any Lender for any reason (including, without limitation, because the appropriate form was not delivered or not properly executed, or because such Lender failed to notify the Administrative Agent of a change in circumstance that rendered the exemption from, or reduction of withholding Tax ineffective), such Lender shall, within 10 days after written demand therefor, indemnify and hold harmless the Administrative  Agent  (to  the  extent  that  the  Administrative  Agent  has  not  already  been  reimbursed  by  the  Loan Parties pursuant to Section 3.01 and without limiting or expanding the obligation of the Loan Parties to do so) for all amounts paid, directly or indirectly, by the Administrative Agent as Taxes or otherwise, together with all expenses incurred, including legal expenses and any other out-of-pocket expenses, whether or not such Tax was 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 this Agreement or any other Loan Document against any amount due the Administrative Agent under this Section 9.12.  The agreements in this Section 9.12 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender and the repayment, satisfaction                                                  -161

 

 or  discharge  of  all  other  Obligations.  For  the  avoidance  of  doubt,  the  term  “Lender”  shall,  for  purposes  of  this  Section 9.12, include any Issuing Bank and any Swing Line Lender.       Section 9.13                Indemnification by the Lenders.          The Lenders agree to indemnify each Agent (or any Affiliate thereof) (to the extent not reimbursed by the Borrowers or any other Loan Party and without limiting the obligation of the Borrowers to do so), ratably according to their respective Pro Rata Shares in effect on the date on which indemnification is sought under this Section 9.13 from  and  against  any  and  all  liabilities,  obligations,  losses, damages,  penalties,  actions,  judgments,  suits,  costs, expenses  or  disbursements  of  any  kind  whatsoever  which  may  at  any  time  (including  at  any  time  following  the payment of the Revolving Credit Loans) be imposed on, incurred by or asserted against any Agent (or any Affiliate thereof) in any way relating to or arising out of this Agreement, any of the other Loan Documents or the transactions contemplated hereby or thereby or any action taken or omitted by any Agent (or any Affiliate thereof) under or in connection  with  any  of  the  foregoing;  IN  ALL  CASES,  WHETHER  OR NOT CAUSED BY OR ARISING,  IN WHOLE  OR  IN  PART,  OUT  OF  COMPARATIVE,  CONTRIBUTORY  OR  SOLE  NEGLIGENCE  OF  THE INDEMNITEE,  provided  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  to  the  extent arising  from  (a)  such  Agent’s  gross  negligence  or  willful  misconduct  or  (b)  claims  made  or  legal  proceedings commenced  against  such  Agent  by  any  security  holder  or  creditor  thereof  arising  out  of  and  based  upon  rights afforded any such security holder or creditor solely in its capacity as such. The agreements in this Section 9.13 shall survive the payment of the Loans and all other amounts payable hereunder.       Section 9.14                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, that at least one of the following is and will be true:                 (i)  such  Lender  is  not  using  “plan  assets”  (within  the  meaning of  29  CFR  §  2510.3-101,  as                modified by Section 3(42) of ERISA) 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                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.                                                  -162

 

        (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 and/or the Arrangers and their respective Affiliates, and not, for the avoidance of         doubt, to or for the benefit of the Borrowers or any other Loan Party, that:                 (i) none of the Administrative Agent and/or the Arrangers or any of their respective Affiliates is a                fiduciary with respect to 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 hereto or thereto),                 (ii)  the  Person  making  the  investment  decision  on  behalf  of  such  Lender  with  respect  to  the                entrance  into,  participation  in,  administration  of  and  performance  of  the  Loans,  the  Letters  of                Credit,  the  Commitments  and  this  Agreement  is  independent  (within the meaning  of 29  CFR  §                2510.3-21)  and  is  a  bank,  an  insurance  carrier,  an  investment  adviser,  a  broker-dealer or other                person that holds, or has under management or control, total assets of at least $50 million, in each                case as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E),                 (iii)  the  Person  making  the  investment  decision  on  behalf  of  such  Lender  with  respect  to  the                entrance  into,  participation  in,  administration  of  and  performance  of  the  Loans,  the  Letters  of                Credit,  the  Commitments  and  this  Agreement  is  capable  of  evaluating  investment  risks                independently, both in general and with regard to particular transactions and investment strategies                (including in respect of the Obligations),                 (iv)  the  Person  making  the  investment  decision  on  behalf  of  such  Lender  with  respect  to  the                entrance  into,  participation  in,  administration  of  and  performance  of  the  Loans,  the  Letters  of                Credit, the Commitments and this Agreement is a fiduciary under ERISA or the Code, or both,                with  respect  to  the  Loans,  the  Letters  of  Credit,  the  Commitments  and  this  Agreement  and  is                responsible for exercising independent judgment in evaluating the transactions hereunder, and                 (v)  no  fee  or  other  compensation  is  being  paid  directly  to  the Administrative  Agent  and/or the                Arrangers or any of their respective Affiliates for investment advice (as opposed to other services)                in connection with the Loans, the Letters of Credit, the Commitments or this Agreement.  (c)     The Administrative Agent and/or the Arrangers hereby informs the Lenders that each such Person is not undertaking to provide impartial 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  and  this  Agreement,  (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.                                                  -163

 

                                          ARTICLE X.                                        MISCELLANEOUS      Section 10.01               Amendments, Etc.         Except  as  otherwise  set  forth  in  this  Agreement,  no  amendment  or  waiver  of  any  provision  of  this Agreement or any other Loan Document, and no consent to any departure by any Loan Party therefrom, shall be effective unless in writing signed  by the Required  Lenders (other than  with respect to any amendment or waiver contemplated in clauses (a) through (j) which shall only require the consent of the Lenders expressly set forth therein and  not  Required  Lenders  (unless  specified  therein))  (or  by  the  Administrative  Agent  with  the  consent  of  the Required  Lenders)  and  the  Borrowers,  the  applicable  Loan  Party,  as  the  case  may  be,  and  each  such  waiver  or consent shall be effective only in the specific instance and for the specific purpose for which given; provided that no such amendment, waiver or consent shall:                 (a)    extend  or increase the Commitment  of any  Lender without the written consent of such        Lender (it being understood that a waiver of (or amendment to the terms of) any condition precedent set        forth in Section 4.02, the waiver of any obligation of the Borrowers to pay interest at the Default Rate or the        waiver of any Default, Event of Default, mandatory prepayment of the Loans or mandatory reduction of any        Commitments shall not constitute such an extension or increase of any Commitment of any Lender);                (b)     except  as  otherwise  expressly  provided  for  hereunder,  including  without  limitation        pursuant to an Extension Amendment, postpone any date scheduled for any payment of principal (including        at final maturity), interest or fees under Section 2.07, 2.08 (other than pursuant to Section 2.08(b)) or 2.09,        without the written consent of each Lender directly and adversely affected thereby, it being understood that        the waiver of (or amendment to the terms of) any obligation of the Borrowers to pay interest at the Default        Rate,  any  Default  or  Event  of Default, any  condition precedent, mandatory  prepayment  of the Loans or        mandatory reduction of Commitments shall not constitute such a postponement of any date scheduled for        the payment of principal or interest;                (c)     reduce or forgive the principal of, or the rate of interest specified herein on, any Loan, or        (subject to clause (i) of the second proviso to this Section 10.01) any fees payable hereunder or under any        other Loan Document (or extend the timing of payments of such fees) without the written consent of each        Lender  directly  and  adversely  affected  thereby,  it  being  understood that  any change to the definition of        Historical Excess Availability, Historical Average Utilization or any other definition used to calculate the        amount of any principal or interest payment or fee or other amount or in the component definitions thereof        shall not constitute a reduction in any rate of interest; provided that, for the avoidance of doubt, only the        consent of (A) the Required Lenders shall be necessary to amend the definition of “Default Rate” or waive        any obligation of the Borrowers to pay interest at the Default Rate and (B) the Swing Line Lender shall be        necessary to waive any obligation of the Borrowers to pay interest at the Default Rate payable in respect of        the Swing Line Loans;                (d)     change  any  provision  of  this  Section 10.01  or  the  definition  of  “Required  Lenders,”        “Required Class Lenders,” or any other provision specifying the number of Lenders or portion of the Loans        or Commitments required to take any action under the Loan Documents to reduce the percentage set forth        therein,  without  the  written  consent  of  each  Lender  directly  and  adversely  affected  thereby  (it  being        understood  that  with  the  consent  of the Required Lenders  (if such  consent is otherwise  required) or the        Administrative  Agent  (if  the  consent  of  the  Required  Lenders  is  not  otherwise  required),  additional        extension  of  credit  pursuant  to  this  Agreement  may  be  included in  the  determination  of  the  Required        Lenders on substantially the same basis as the Revolving Credit Commitments;                (e)     other than in connection with a transaction permitted under Section 7.04 or Section 7.05,        release all or substantially all of the Collateral in any transaction or series of related transactions, without        the written consent of each Lender;                                                 -164

 

                (f)    other than in connection with a transaction permitted under Section 7.04 or Section 7.05,         release all or substantially all of the aggregate value of the Guarantees, without the written consent of each         Lender;                  (g)    [reserved];                  (h)    amend, waive or otherwise modify any term or provision (including the availability and         conditions to funding under Section 2.14 with respect to Incremental Revolving Credit Commitments which         directly affects Lenders of one or more Incremental Revolving Credit Commitments (solely to the extent         prior to the effectiveness of any Incremental Revolving Credit Commitments) and does not directly affect         Lenders under any other Class,  in each  case, without the written consent of the Required Class Lenders         under  such  applicable  Incremental  Revolving  Credit  Commitments (and  in  the  case  of  multiple  Classes         which are affected, such Required Class Lenders shall consent together as one Class);                 (i)     without  the  written  consent  of  the  Supermajority  Required  Lenders,  increase  advance         rates or make other modifications to the Borrowing Base (or any constituent definitions to the extent used         therein)  that  have  the  effect  of  increasing  the  amount  available  to  be  borrowed  hereunder  (including         changes in eligibility criteria) without the written consent of the Supermajority Required Lenders, it being         understood  that  increases  or  decreases  in  Reserves  implemented by  the  Administrative  Agent  in  its         Permitted Discretion shall require only the consent of the Administrative Agent; or                 (j)     amend, waive or otherwise modify the definition of “Pro Rata Share” or any provision         requiring  pro  rata  sharing  amongst  Lenders  without  the  consent of  each  Lender  directly  and  adversely         affected thereby; provided that modifications to Section 8.03 or the definition of “Pro Rata Share” to the         extent necessary in connection with (y) any Incremental Amendment or (z) any Extension Amendment, in         each  case,  shall  only  require  approval  (to  the  extent  any  such approval  is  otherwise  required)  of  the         Required Lenders;  provided, further, that (i) no amendment, waiver or consent shall, unless in writing and signed by each Issuing Bank  in addition to the Lenders required above, directly and adversely affect the rights or duties of an Issuing Bank under  this  Agreement  or  any  LC  Application  relating  to  any  Letter  of Credit  issued  or  to  be  issued  by  it; provided,  however, that this Agreement may be amended to adjust the mechanics related to the issuance of Letters of Credit, including mechanical changes relating to the existence of multiple Issuing Banks and increase the LC Sublimit, with only the written consent of the Administrative Agent, the applicable Issuing Bank and the Borrowers so long as the Revolving  Credit  Lenders,  if  any,  who  have  not  executed  such  amendment,  and  if  applicable,  the  other  Issuing Banks,  if  any,  who  have  not  executed  such  amendment,  are  not  directly  and  adversely  affected  thereby;  (ii) no  amendment,  waiver  or  consent  shall,  unless  in  writing  and  signed  by  the  Swing  Line  Lender  in  addition  to  the  Lenders  required  above,  directly  and  adversely  affect  the  rights  or  duties  of  the  Swing  Line  Lender  under  this  Agreement; provided, however, that this Agreement may be amended to adjust the borrowing mechanics related to  Swing Line Loans with only the written consent of the Administrative Agent, the Swing Line Lender (including to  add  another  Lender,  who upon execution  of such  amendment, will be an  additional Swing Line Lender) and the  Borrowers so long as the Revolving Credit Lenders and, if applicable, the other Swing Line Lenders, if any, who  have not executed such amendment are not directly and adversely affected thereby, (iii) no amendment, waiver or  consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above,  directly  and  adversely  affect  the  rights  or duties  of, or  any  fees  or other amounts  payable  to,  the Administrative  Agent  under  this  Agreement  or  any  other  Loan  Document;  (iv)  (x) no  Lender  consent  is  required  to  effect  an  Incremental Amendment or Extension Amendment (except as expressly provided in Sections 2.14 or 2.16 or in the  following clause (y)) or to effect any amendment expressly contemplated by Section 6.19 and (y) in connection with  an Extension Amendment, only the consent of the Lenders that will continue as a Lender in respect of the Extended  Revolving  Credit  Commitments,  as  applicable,  subject  to  such  Extension  Amendment  shall  be  required  for  such  Extension Amendment; and (v) the LC Sublimit may be increased with only the consent of the Required Lenders, each Issuing Bank and the Administrative Agent.          Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires  the  consent  of  all  Lenders  or  each  affected  Lender  may  be  effected  with  the  consent  of  the  applicable                                                 -165

 

 Lenders other than Defaulting Lenders (it being understood that any Commitments or Loans held or deemed held by  any Defaulting Lender shall be excluded for a vote of the Lenders hereunder requiring any consent of the Required  Lenders or Required Class Lenders)), except that (x) the Commitment of any such Defaulting Lender may not be  increased  or  extended,  the  rate  of  interest  on  any  Loans  of  any  Defaulting  Lender  may  not  be  reduced  and  the  principal amount of any of such Loans may not be forgiven, in each case without the consent of such Lender and (y)  any waiver, amendment or modification requiring the consent of all Lenders or each directly and adversely affected  Lender  that  by  its  terms  materially  and  adversely  affects  any  Defaulting  Lender  to  a  greater  extent  than  other  affected Lenders (or, if there are no such affected Lenders (other than such affected Lenders which are Defaulting  Lenders), Lenders of the same Class) shall require the consent of such Defaulting Lender.          Notwithstanding  anything  to  the  contrary  herein,  no  Lender  consent  is  required  for  the  Administrative  Agent to enter into or to effect any amendment, modification or supplement to the ABL Intercreditor Agreement, any  subordination agreement or other intercreditor agreement or arrangement permitted under this Agreement or in any  document pertaining to any Indebtedness permitted hereby that is permitted to be secured by the Collateral (i) that is  for the purpose of adding the holders of such secured or subordinated Indebtedness permitted to be incurred under  this  Agreement  (or,  in  each  case,  a  Senior  Representative  with respect  thereto),  as  parties  thereto,  as  expressly  contemplated  by  the  terms  of  the  ABL  Intercreditor  Agreement,  such  subordination  agreement  or  such  other  intercreditor agreement or arrangement permitted under this Agreement, as applicable (it being understood that any  such amendment or supplement may make such other changes to the applicable intercreditor agreement as, in the  good faith determination of the Administrative Agent, are required to effectuate the foregoing and provided that such  other changes are not adverse, in any material respect (taken as a whole), to the interests of the Lenders) or (ii) that  is expressly contemplated by the ABL Intercreditor Agreement, any subordination agreement or other intercreditor  agreement  or  arrangement  permitted  under  this  Agreement  or  in  any  document  pertaining  to  any  Indebtedness  permitted hereby that is permitted to be secured by the Collateral; provided, further, that no such agreement shall directly and adversely amend, modify or otherwise affect the rights or duties of the Administrative Agent hereunder or under any other Loan Document without the prior written consent of the Administrative Agent.          Notwithstanding  anything  to  the  contrary  contained  in  this  Section  10.01,  the  Guaranty,  the  Collateral Documents and related documents executed by the Loan Parties or the Restricted Subsidiaries in connection with this Agreement may be in a form reasonably determined by the Administrative Agent and may be, together with this Agreement, amended and waived with the consent of the Administrative Agent at the request of the Administrative Borrower without the need to obtain the consent of any other Lender if such amendment or waiver is delivered in order (i) to comply with local Law or advice of local counsel, (ii) to cure any ambiguities or defects or (iii) to cause such  Guaranty, Collateral  Document  or other document to be consistent with this Agreement and the other Loan Documents.          Notwithstanding anything to the contrary contained in Section 10.01, if the Administrative Agent and the Administrative  Borrower  shall  have  jointly  identified  an  ambiguity,  mistake,  obvious  error  (including,  but  not limited to, an incorrect cross-reference) or any error or omission of a technical or immaterial nature, in each case, in any provision of this Agreement or any other Loan Document (including, for the avoidance of doubt, any exhibit, schedule or other attachment to any Loan Document), then the Administrative Agent (acting in its sole discretion) and the Administrative Borrower or any other relevant Loan Party shall be permitted to amend such provision and such  amendment  shall  become  effective  without  any  further  action  or  consent  of  any  other  party  to  any  Loan Document.  Notification of such amendment shall be made by the Administrative Agent to the Lenders promptly upon such amendment becoming effective.       Section 10.02               Notices and Other Communications; Facsimile Copies.          (a)    Notices; Effectiveness; Electronic Communications.         (i)    Notices Generally.  Except in the case of notices and other communications expressly permitted to  be  given  by  telephone  (and  except  as  provided  in  subsection (C)  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                                                  -166

 

certified  or  registered  mail  or  sent  by  facsimile  as  follows,  and  all  notices  and  other  communications  expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:                     (A)     if  to  the  Parent  Borrower,  the  Administrative  Agent,  the  Issuing  Bank(s)  or  the             Swing Line Lender, to the address, facsimile number, electronic mail address or telephone number             specified for such Person on Schedule 10.02 or to such other address, facsimile number, electronic             mail address or telephone number as shall be designated by such party in a written notice to the other             parties; and                     (B)     if to any other Lender, to the address, facsimile number, electronic mail address or             telephone  number  specified  in  its Administrative Questionnaire or to such  other address,  facsimile             number, electronic mail address or telephone number as shall be designated by such party in a written             notice to the Borrowers, the Administrative Agent, the Issuing Bank(s) and the Swing Line Lender.  Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient).  Notices and  other  communications  delivered  through  electronic  communications  to  the  extent  provided  in  subsection (C) below shall be effective as provided in such subsection (C).                     (C)     Electronic Communications.  Notices and other communications to the Lenders and             the Issuing Banks hereunder may be delivered or furnished by electronic communication (including e-             mail,  FpML  messaging  and  Internet  or  intranet  websites)  pursuant  to  procedures  approved  by  the             Administrative  Agent, provided  that  the  foregoing  shall  not  apply  to  notices  to  any  Lender  or  the             Issuing Banks pursuant to Article II if such Lender or any Issuing Bank, as applicable, has notified the             Administrative  Agent  that  it  is  incapable  of  receiving  notices under  such  Article  by  electronic             communication.   The Administrative Agent  or a Loan  Party may,  in  its discretion, agree to accept             notices  and  other  communications  to  it  hereunder  by  electronic communications  pursuant  to             procedures approved by it; provided that approval of such procedures may be limited to particular             notices or communications.         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) 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),  if  such  notice  or  other  communication  is not  sent  during  the  normal  business  hours  of  the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.         (b)    The  Platform.   THE  PLATFORM  IS  PROVIDED  “AS  IS”  AND  “AS  AVAILABLE.”   THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY   KIND,    EXPRESS,    IMPLIED  OR     STATUTORY,     INCLUDING  ANY  WARRANTY OF MERCHANTABILITY,  FITNESS  FOR  A  PARTICULAR  PURPOSE,  NON-INFRINGEMENT  OF  THIRD- PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE PLATFORM.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Loan Parties, any Lender, the Issuing Bank or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise)  arising  out  of  the  Borrowers’,  any  Loan  Party’s  or  the  Administrative  Agent’s  transmission  of communications or notices through the Platform, any other electronic platform or electronic messaging services, or through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and non-appealable judgment to have resulted from the gross negligence,                                                -167

 

 material breach of the Loan Documents, bad faith or willful misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to the Loan Parties, any Lender, the Issuing Bank or any other  Person  for  indirect,  special,  incidental,  consequential  or  punitive  damages  (as  opposed  to  direct  or  actual damages).          (c)    Change of Address,  Etc.  Any Loan  Party, the Administrative Agent,  the Issuing  Bank and  the Swing Line Lender, may change its address, electronic mail address, facsimile or telephone number for notices and other communications hereunder by notice to the other parties hereto.  Each other Lender may change its address, electronic mail address, facsimile or telephone number for notices and other communications hereunder by notice to the Borrowers, the Administrative Agent, the Issuing Bank and the Swing Line Lender.  In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, facsimile number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law, including United States federal and state securities Laws, to make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Platform and that may contain Material Non- Public Information.          (d)    Reliance by  Administrative  Agent,  Issuing Bank and  Lenders.   The  Administrative  Agent,  the  Issuing Bank and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed  Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of the Borrowers even if (i) such  notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other  form  of  notice  specified  herein,  or  (ii)  the  terms  thereof,  as understood  by  the  recipient,  varied  from  any  confirmation thereof.  The Borrowers shall indemnify the Administrative Agent, the Issuing Bank, each Lender and  the Related Parties of each of them (other than any Excluded Affiliate) from all losses, costs, expenses and liabilities  resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrowers in  accordance  with  Section  10.05  hereof.   All  telephonic  notices  to  and  other  telephonic  communications  with  the  Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents  to such recording.       Section 10.03               No Waiver; Cumulative Remedies.          No failure by any Lender, Issuing Bank or the Administrative Agent to exercise, and no delay by any such Person  in  exercising,  any  right,  remedy,  power  or  privilege  hereunder  or  under  any  other  Loan  Document  shall operate  as  a  waiver  thereof;  nor  shall  any  single  or  partial  exercise  of  any  right,  remedy,  power  or  privilege hereunder  preclude  any  other  or  further  exercise  thereof  or  the  exercise  of  any  other  right,  remedy,  power  or privilege.   The  rights,  remedies,  powers  and  privileges  herein provided,  and  provided  under  each  other  Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by Law.          Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents  against the Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 8.02 for the benefit of all the Lenders and the Issuing Bank; provided, however, that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative  Agent)  hereunder  and  under  the  other  Loan  Documents,  (b)  the  Issuing  Bank  or  the  Swing  Line Lender from exercising the rights and remedies that inure to its benefit (solely in its capacity as Issuing Bank or Swing  Line  Lender,  as  the  case  may  be)  hereunder  and  under  the other  Loan  Documents,  (c)  any  Lender  from exercising setoff rights in accordance with Section 10.09 (subject to the terms of Section 2.13), or (d) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 8.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 2.13, any Lender may,                                                 -168

 

 with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the  Required Lenders.       Section 10.04               Attorney Costs and Expenses.          The Borrowers agree (a) if the Closing Date occurs, to pay or reimburse (x) the Commitment Parties for such  out-of-pocket  costs  and  expenses  as  shall  have  been  separately  agreed  upon  in  writing  and  (y)  the Administrative  Agent,  the  Swing  Line  Lender,  the  Issuing  Banks and  the  other  Agents  for  all  reasonable  and documented out-of-pocket costs and expenses incurred in connection with the preparation, negotiation, syndication, execution, delivery and administration of this Agreement and the other Loan Documents, the reasonable fees and expenses of consultants and appraisal firms in connection with inventory appraisals and field examinations required hereunder and the Administrative Agent’s standard charges for examination activities and appraisal reviews and any  amendment,  waiver,  consent  or  other  modification  of  the  provisions  hereof  and  thereof  (whether  or  not  the  transactions contemplated thereby are consummated), and the consummation and administration of the transactions  contemplated  hereby  and  thereby,  including,  in  each  case,  all  Attorney  Costs,  which  shall  be  limited  to  (i)  one  primary counsel to the Administrative Agent and its Affiliates (other than Excluded Affiliates), taken as a whole, or  the Administrative Agent (and its Affiliates (other than Excluded Affiliates), as applicable) and one local counsel, if  necessary,  in  any  relevant  jurisdiction  material  to  the  interests  of  the  Lenders  taken  as  a  whole),  in  each  case  excluding allocated costs of  in-house counsel and  (ii) in the case of other consultants and  advisors, the fees and  expenses of such persons approved by the Borrowers and (b) after  the  Closing  Date,  to  pay  or  reimburse  the  Administrative  Agent,  the  Swing  Line  Lenders,  the  Issuing  Banks  and  the  Lenders  for  all  reasonable  and  documented  out-of-pocket  costs  and  expenses  incurred  in  connection  with  the  enforcement  or  protection  of  any  rights  or  remedies  under  this  Agreement  or  the  other  Loan  Documents  (including  all  such  costs  and  expenses  incurred during any legal proceeding, including any proceeding under any Debtor Relief Law, and including (i) all  respective Attorney Costs, which shall be limited to Attorney Costs of one primary counsel to the Administrative  Agent and the Lenders taken as a whole, and one local counsel, if necessary, in any relevant jurisdiction material to  the interests of the Lenders taken as a whole and, solely in the case of an actual conflict of interest, one additional  counsel in each relevant material jurisdiction to the similarly situated Persons taken as a whole and (ii) in the case of  other consultants or advisors, the fees and expenses of such persons approved by the Borrowers).  The agreements in  this Section 10.04 shall survive the termination of the Total Revolving Credit Commitments and repayment of all  other  Obligations.   All  amounts  due  under  this  Section 10.04  shall  be  paid  within  thirty  (30)  days  after  written  demand therefor (together with backup documentation supporting such reimbursement request); provided that, with  respect to the Closing Date, all amounts due under this Section 10.04 shall be paid on the Closing Date solely to the  extent invoiced to the Borrowers at least three (3) Business Days prior to the Closing Date (or such later date as the  Borrowers may agree in its sole discretion).  If any Loan Party fails to pay when due any costs, expenses or other  amounts payable by it hereunder or under any Loan Document, such amount may be paid on behalf of such Loan  Party by the Administrative Agent in its discretion following five Business Days’ prior written notice to the Parent  Borrower.  For the avoidance of doubt, this Section 10.04 shall not apply to Taxes, except any Taxes that represent  costs and expenses arising from any non-Tax claim.       Section 10.05               Indemnification by the Borrowers.          The Borrowers shall indemnify and hold harmless each Agent, each Swing Line Lender, each Issuing Bank, each Lender, each Arranger and their respective Affiliates (other than Excluded Affiliates) and controlling Persons, and  their  respective  directors,  officers,  employees,  advisors, agents  and  other  representatives  of  each  of  the foregoing and their respective successors and permitted assigns (but excluding any Excluded Affiliates) (collectively the “Indemnitees”) from and against any and all actual losses, claims, damages, liabilities and expenses (including Attorney Costs but limited in the case of legal fees and expenses to the reasonable and documented out-of-pocket fees,  disbursements  and  other  charges  of  one  counsel  to  all  Indemnitees  taken  as  a  whole  and,  if  reasonably necessary, one local counsel for all Indemnitees taken as a whole in each relevant jurisdiction that is material to the interests  of  the  Lenders,  and  solely  in  the  case  of  an  actual  conflict  of  interest,  one  additional  counsel  in  each relevant material jurisdiction to the affected Indemnitees similarly situated), in each case except allocated costs of in-house counsel, of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against any such Indemnitee in any way relating to or arising out of or in connection with (a) the execution, delivery, enforcement,  performance  or  administration  of  any  Loan  Document  or  any  other  agreement,  letter  or  instrument delivered  in  connection  with  the  transactions  contemplated  thereby  or  the  consummation  of  the  transactions                                                 -169

 

 contemplated  thereby,  (b) any  Commitment, Loan or Letter of Credit or the use or proposed use of the proceeds  therefrom including any refusal by an 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,  (c) any actual or alleged presence or Release of Hazardous Materials at, on, under or from any property or facility  currently  or  formerly  owned,  leased  or  operated  by  the  Loan  Parties  or  any  Subsidiary,  or  any  Environmental  Liability  of  or  relating  to  the  Loan  Parties  or  any  Subsidiary,  or  (d)  any  actual  or  prospective  claim,  litigation,  investigation  or  proceeding  relating  to  any  of  the  foregoing,  whether  based  on  contract,  tort  or  any other theory  (including  any  investigation  of,  preparation  for,  or  defense  of  any  pending  or  threatened  claim,  investigation,  litigation or proceeding) (a “Proceeding”) and regardless of whether any Indemnitee is a party thereto or whether or  not such Proceeding is brought by the Borrowers or any other person and, in each case, whether or not caused by or arising, in whole or in part, out of the negligence of the Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities and expenses resulted from (w) the gross negligence, bad faith, fraud or willful misconduct of such Indemnitee or of any of its Related Indemnified Persons, as determined by a final non-appealable judgment of a court of competent jurisdiction, (x) a material breach of any obligations under any Loan Document by such Indemnitee or of any of its Related Indemnified Persons, as determined by a final non-appealable judgment of a court of competent jurisdiction, (y) any dispute solely among Indemnitees other than any claims against an Indemnitee in its capacity or in fulfilling its role as an administrative agent or arranger or any similar role under any Facility and other than any claims arising out of any act or omission of the Borrowers or any of their Affiliates or (z) settlements effected without the Borrowers’ prior written consent (which consent shall not be unreasonably withheld, delayed or conditioned), but if settled with Borrowers’ written consent, or if there is a final judgment against an Indemnitee, the Borrowers shall indemnify and hold harmless such Indemnitee  to  the  extent  and  the  manner  set  forth  above.   In  case  any  Proceeding  is  instituted  involving  any Indemnitee  for  which  indemnification  is  to  be  sought  hereunder by  such  Indemnitee,  then  such  Indemnitee  will promptly notify the Parent  Borrower of the commencement of any such  Proceeding; provided, however,  that the failure so to notify the Parent Borrower will not relieve the Borrowers from any liability to such Indemnitee pursuant to this Section 10.05. Each applicable Indemnitee (by accepting the benefits hereof) agrees to refund and return any  and all amounts paid by or on behalf of the Borrowers (or any other Loan Party) to such Indemnitee, in each case,  pursuant to the terms of this paragraph to the extent such Indemnitee is not entitled to the payment thereof pursuant  to  the  terms  of  this  paragraph,  as  determined  by  a  final  non-appealable  judgment  of  a  court  of  competent  jurisdiction.  No Indemnitee shall be liable for any damages arising from the use by others of any information or  other materials obtained through IntraLinks or other similar information transmission systems in connection with this  Agreement (except for direct (as opposed to indirect, special, punitive or consequential) damages resulting from the  gross negligence, bad faith, fraud or willful misconduct of, or material breach of this Agreement or the other Loan  Documents, as determined by a court of competent jurisdiction in a final and non-appealable judgment, of any such  Indemnitee), nor shall any Indemnitee, Related Indemnified Person, Loan Party or any Subsidiary have any liability  for any special, punitive, indirect or consequential damages relating to this Agreement or any other Loan Document  or arising out of its activities in connection herewith or therewith (whether before or after the Closing Date) (other  than,  in  the  case  of  any  Loan  Party,  in  respect  of  any  such  obligations,  liabilities,  losses,  damages,  penalties,  demands, actions, judgments, suits, costs, disbursements, claims or expenses incurred or paid or required to be paid  by an Indemnitee to a third party (including another Indemnitee)).  In the case of an investigation, litigation or other  proceeding to which the indemnity in this Section 10.05 applies, such indemnity shall be effective whether or not  such  investigation,  litigation  or  proceeding  is  brought  by  any Loan  Party,  any  Subsidiary  of  any  Loan  Party,  its  directors, stockholders or creditors or an Indemnitee or any other Person, whether or not any Indemnitee is otherwise  a party thereto and whether or not any of the transactions contemplated hereunder or under any of the other Loan  Documents are consummated.  All amounts due under this Section 10.05 shall be paid within thirty (30) days after  written  demand  therefor  (together  with  backup  documentation  supporting  such  reimbursement  request).   The  agreements  in  this  Section 10.05  shall  survive  the  resignation or  removal  of  the  Administrative  Agent,  the  resignation of an Issuing Bank or Swing Line Lender, the replacement of any Lender, the termination of the Total  Revolving Credit Commitments and the repayment, satisfaction or discharge of all the other Obligations.  For the  avoidance  of  doubt,  this  Section 10.05  shall  not  apply  to  Taxes,  except  any  Taxes  that  represent  liabilities,  obligations,  losses,  damages,  penalties,  claims,  demands,  actions,  prepayments,  suits,  costs,  expenses  and  disbursements arising from any non-Tax claims.          To the extent that the Borrowers for any reason fails to pay any amount required under this Section 10.05 or  Section 10.04 to be paid by it to the Administrative Agent (or any sub-agent thereof), the Issuing Bank, the Swing  Line Lender or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative                                                 -170

 

 Agent (or any such sub-agent), the Issuing Bank, the Swing Line Lender or such Related Party, as the case may be,  such  Lender’s Pro Rata Share (determined as  of the time that the applicable unreimbursed expense or indemnity  payment  is  sought)  of  such  unpaid  amount; provided  that  the  unreimbursed  expense  or  indemnified  loss,  claim,  damage,  liability  or  related  expense,  as  the  case  may  be,  was  incurred  by  or  asserted  against the Administrative  Agent (or any such sub-agent), the Swing Line Lender or the Issuing Bank in its capacity as such, or against any  Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent), the Swing Line  Lender or Issuing Bank in connection with such capacity.  The obligations of the Lenders under this paragraph are  subject to the provisions of Section 2.12(d).       Section 10.06               Payments Set Aside.          To the extent that any payment by or on behalf of the Borrowers is made to the Administrative Agent, the  Issuing  Bank  or  any  Lender,  or  the  Administrative  Agent,  the  Issuing  Bank  or  any  Lender  exercises  its  right  of  setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to  be  fraudulent  or  preferential,  set  aside  or  required  (including  pursuant  to  any  settlement  entered  into  by  the  Administrative Agent, the Issuing Bank or such Lender in its discretion) to be repaid to a trustee, receiver or any  other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of  such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full  force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender and the  Issuing  Bank  severally  agrees  to  pay  to  the  Administrative  Agent  upon  demand  its  applicable  share  (without  duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the  date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time  to time in effect.  The obligations of the Lenders and the Issuing Bank under clause (b) of the preceding sentence  shall survive the payment in full of the Obligations and the termination of this Agreement.       Section 10.07               Successors and Assigns.          (a)    The  provisions  of  this  Agreement  shall  be  binding  upon  and  inure  to  the  benefit  of the parties hereto and their respective successors and assigns permitted hereby, except that the Parent Borrower may not (except as permitted by Section 7.04) assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder (including to existing Lenders and their Affiliates) except (i) to an Assignee in accordance  with  the  provisions  of  Section 10.07(b)  (such  an  assignee,  an  “Eligible  Assignee”),  (ii) by  way  of participation  in  accordance  with  the  provisions  of  Section 10.07(e); provided, however,  that  notwithstanding  the foregoing, no Lender may assign or, other than in the case of clause (iii) below, transfer by participation any of its rights  or  obligations  hereunder  to  (i)  any  Person  that  is  a  Defaulting  Lender,  (ii)  a  natural  Person  (or  a  holding company, investment vehicle or trust for, or owned and operated for the primary benefit of a natural Person) or (iii) a Disqualified  Institution  (unless  otherwise  agreed  by  the  Administrative  Borrower  in  its  sole  discretion  and, notwithstanding anything herein to the contrary, without giving effect to any provision providing for deemed consent by the Administrative Borrower).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate or branch of any Issuing Bank that issues any Letter of Credit), Participants to the extent provided in Section 10.07(e)  and,  to  the  extent  expressly  contemplated  hereby, the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Agreement.          (b)    (i)  Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees (“Assignees”) all or a portion of its rights and obligations under this Agreement (including all or a portion  of  its  Commitment  and  the  Loans  (including  for  purposes  of  this  Section 10.07(b),  participations  in  LC Obligations and in Swing Line Loans) at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld or delayed, except in connection with a proposed assignment to any Disqualified Institution, which consent by the Administrative Borrower may be withheld in its sole discretion) of:                      (A)     the  Administrative  Borrower; provided  that  no  consent  of  the  Administrative              Borrower shall be required for (i) an assignment of all or a portion of the Loans or Commitments to a              Lender, an Affiliate of a Lender or an Approved Fund or (ii) other than with respect to any proposed              assignment  to  a  Disqualified  Institution,  if  a  Specified  Event of  Default  has  occurred  and  is                                                 -171

 

             continuing, to any Assignee; provided that, other than with respect to any proposed assignment to a              Disqualified Institution, the Administrative Borrower shall be deemed to have consented to any such              assignment of the Loans unless it shall have objected thereto by written notice to the Administrative              Agent within ten (10) Business Days after having acknowledged receipt of a written notice thereof;              and                      (B)     the Administrative Agent;                      (C)     each Issuing Bank; and                      (D)     the Swing Line Lender;                 provided,  with  respect  to  foregoing  clauses  (B),  (C)  and  (D),  no  consent  of the Administrative Agent, any Issuing Bank or the Swing Line Lender shall be required with respect to an assignment to any Person that is a Lender, any Affiliate or branch of a Lender or any Approved Fund.          This paragraph (b) shall not prohibit any Lender from assigning all or a portion of its rights and obligations among separate Facilities on a non-pro rata basis among such Facilities.          In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to  the  assignment  shall  make  such  additional  payments  to  the  Administrative  Agent  in  an  aggregate  amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations  or  subparticipations,  or  other  compensating  actions,  including  funding,  with  the  consent  of  the Administrative Borrower and the Administrative Agent, the applicable Pro Rata Share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent),  to  (x)  pay  and  satisfy  in  full  all  payment  liabilities  then  owed  by  such  Defaulting  Lender  to  the Administrative  Agent  or  any  Lender  hereunder  (and  interest  accrued  thereon)  and  (y)  acquire  (and  fund  as appropriate) its full Pro Rata Share of all Loans and participations in Letters of Credit and Swing Line Loans in accordance with its Pro Rata Share.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.        (ii)    Assignments shall be subject to the following additional conditions:                      (A)     except in the case of 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 an amount of $5,000,000, unless each of the Administrative Borrower and the Administrative              Agent  otherwise  consent; provided  that  such  assignments  shall  be  aggregated  in  respect  of  each              Lender and its Affiliates or Approved Funds, if any;                      (B)     each assignment shall be made as an assignment of a proportionate part of all the              assigning Lender’s rights and obligations under this Agreement, and no Lender shall be permitted to              assign a single Class of Loans or Revolving Credit Commitments without assigning a proportionate              part of such Lender’s other Classes of Loans or Revolving Credit Commitments;                      (C)     the parties to each assignment shall execute and deliver to the Administrative Agent              an Assignment and Assumption either manually or via an electronic settlement system acceptable to              the Administrative Agent, together with a processing and recordation fee of $3,500 (unless waived or              reduced by the Administrative Agent in its sole discretion);                                                  -172

 

                    (D)     the Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an              Administrative Questionnaire;                      (E)     the  Assignee  shall  execute  and  deliver  to  the  Administrative  Agent  and  the              Administrative Borrower the forms described in Sections 3.01(d) and 3.01(e) applicable to it; and                      (F)     no assignment shall be made to the Sponsor, Walgreens Co., the Parent Borrower or              any of its Subsidiaries, or any affiliate of any of the foregoing.          The Administrative Agent 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 Institutions.  Without limiting the generality of the foregoing, the Administrative Agent shall not (x)  be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is a Disqualified Institution or (y) have any liability with respect to or arising out of any assignment or participation of Loans or Commitments, or disclosure of confidential information, to any Disqualified  Institution. The identity of Disqualified Institutions will not be posted or distributed to any Person by the Administrative Agent or Arranger, but may be communicated by the Administrative Agent to a Lender upon request therefor.          (c)    Subject  to  acceptance  and  recording  thereof  by  the  Administrative  Agent  pursuant  to Section 10.07(d),  from  and  after  the  effective  date  specified  in  each  Assignment  and  Assumption,  the  Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and  Assumption,  have  the  rights  and  obligations  of  a  Lender  under  this  Agreement,  and  the  assigning  Lender thereunder  shall, to the extent  of the  interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits and subject to the obligations of Sections 3.01, 3.04, 3.05, 10.04 and 10.05 with respect to facts and circumstances occurring prior to the effective date of such assignment). Upon request, and the surrender by the assigning Lender of its Note, the Borrowers (at their expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this clause (c) shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section 10.07(e).          (d)    The  Administrative  Agent,  acting  solely  for  this  purpose  as  an agent  of  the  Borrowers,  shall maintain  at the Administrative Agent’s  Office a copy  of  each  Assignment and Assumption delivered to it,  and a register  for  the  recordation  of  the  names  and  addresses  of  the Lenders,  and  the  Commitments  of,  and  principal amounts (and related interest amounts) 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, absent manifest error, and the Borrowers, the Agents and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrowers, any Agent and any Lender (solely with respect to the information as it relates to such Lender), at any reasonable time and from time to time upon reasonable prior notice.  This Section 10.07(d) and Section 2.11 shall be construed so that all Loans are at all times maintained in  “registered form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any related Treasury regulations (or any other relevant or successor provisions of the Code or of such Treasury regulations).          (e)    Any Lender may at any time sell participations to any Person (other than the Sponsor, any of its Affiliates  (other  than  Debt  Fund  Affiliates),  Walgreens Co.,  a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of a natural Person), a Defaulting Lender or a Disqualified Institution) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this  Agreement  (including  all  or  a  portion  of  its  Commitment  and/or  the  Loans  (including  such  Lender’s  participations in LC Obligations and/or Swing Line Loans) owing to it); provided that (i) such Lender’s obligations  under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties  hereto for  the performance of such obligations and (iii) the Borrowers, the Agents, the Swing Line Lender, each  Issuing Bank 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                                                  -173

 

 Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement  and  the  other  Loan  Documents  and  to  approve  any  amendment,  modification  or  waiver  of  any  provision  of  this  Agreement or the other Loan Documents; provided that such agreement or instrument may provide that such Lender  will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in  clauses (a), (b), (c), (e), (f) and (j) of the first proviso to Section 10.01 that requires the affirmative vote of such  Lender.  Subject to Section 10.07(f), the Borrowers agree that each Participant shall be entitled to the benefits and  subject to the obligations of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender (subject, for the  avoidance of doubt, to the limitations and requirements of those Sections applying to each Participant as if it were a  Lender and provided that any documentation required to be provided under Section 3.01(d) shall be provided solely to the participating Lender) and had acquired its interest by assignment pursuant to Section 10.07(c).  To the extent permitted by applicable Law, each Participant also shall be entitled to the benefits of Section 10.09 as though it were a  Lender; provided that such Participant  also  shall  be subject to Section 2.13  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 related interest amounts) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”).  The entries in the Participant Register shall be conclusive absent manifest error, and such  Lender  shall  treat  each  Person  whose  name  is  recorded  in  the  Participant  Register  as  the  owner  of  such participation  for  all  purposes  of  this  Agreement  notwithstanding  any  notice  to  the  contrary.   The  portion  of  any Participant Register relating to any Participant or SPC requesting payment from the Borrowers or seeking to exercise its  rights under Section 10.09 shall be available for  inspection by  the Borrowers  or any other Person only to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations and Section 1.163-5(b) of the proposed United States Treasury Regulations.  For the avoidance of doubt, the Administrative Agent (in its capacity as  Administrative  Agent)  shall  have  no  responsibility  for  maintaining  a  Participant  Register.  The  portion of  the  Participant Register relating to any Participant requesting payment from any Borrower under the Loan Documents  shall be made available to such Borrower upon reasonable request.          (f)     A Participant shall not be entitled to receive any greater payment under Sections 3.01, 3.04 or 3.05  than  the  applicable  Lender  would  have  been  entitled  to  receive with  respect  to  the  participation  sold  to  such  Participant,  unless  (i)  such  entitlement  to  a  greater  payment  results  from  a  Change  in  Law  after  the  sale  of  the  participation to such Participant takes place or (ii) the sale of the participation to such Participant is made with the  Administrative Borrower’s prior written consent.  A Participant shall not be entitled to the benefits of Section 3.01  unless  such  Participant  complies  with  Sections  3.01(a),  (d),  (e),  (f)  and  (h) as though it were a Lender (it being  understood  that  the  documentation  required  under  Section  3.01(d)  shall  be  delivered  solely  to  the  participating  Lender and, at the time such participant has made a claim under Section 3.01, as necessary to substantiate a claim for  additional amounts pursuant to Section 3.01).          (g)     Any Lender may, without the consent of the Borrowers or the Administrative Agent, at any time  pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note,  if any) to secure obligations of such Lender to a Federal Reserve Bank or to any central bank having jurisdiction  over such Lender; provided that no such pledge or assignment shall release such Lender from any of its obligations  hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.       Section 10.08               Confidentiality.          Each  of  the  Agents,  the  Swing  Line  Lender,  the  Issuing  Banks  and  the  Lenders  agrees  to  maintain  the  confidentiality  of  the  Information,  except  that  Information  may  be  disclosed  (a)  to  its  Affiliates  and  its  and  its  Affiliates’  limited  partners,  lenders,  investors,  managed  accounts,  officers,  directors,  employees,  legal  counsel,  independent auditors, professionals, service providers and other experts or agents, in each case other than Excluded  Affiliates  (collectively,  “Representatives”)  who  need  to  know  such  Information  (it  being  understood  that the  Persons to whom such disclosure is made will be informed of the confidential nature of such Information and agree  to keep such Information confidential and the Agents and the Lenders shall be principally liable to the extent any  confidentiality  restrictions  set  forth  herein  are  violated  by  one  or  more  of  its  Representatives);  (b)  to  the  extent  required or requested by any Governmental Authority or self-regulatory authority having or asserting jurisdiction  over such Person (including any Governmental Authority regulating any Lender or its Affiliates), provided that the  applicable Agent or such Lender, as applicable, agrees that it will promptly notify the Administrative Borrower prior                                                 -174

 

 to any  such  disclosure by  such  Person (other than  at the request of a regulatory authority as part of a regulatory  examination) unless such notification is prohibited by law, rule or regulation; (c) to the extent required by applicable  Laws or regulations or by any subpoena or order of any court or administrative agency or in any pending legal or  administrative proceeding or similar legal process, provided that the applicable Agent or such Lender, as applicable,  agrees that it will notify the Administrative Borrower in advance of any such disclosure by such Person (except with  respect to any routine audit or examination conducted by bank accountants or regulatory authority exercising routine  examination or regulatory authority) unless such notification is prohibited by law, rule or regulation; (d) to any other  party  to  this  Agreement;  (e)  subject  to  an  agreement  containing  provisions  at  least  as restrictive as  those of this  Section 10.08 (or as may otherwise be reasonably acceptable to the Administrative Borrower), to any assignee of or  Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement  or any Eligible Assignee or potential Lender invited to be an Additional Lender (except, in each case, to the extent  the  Administrative  Borrower  has  declined  to  consent  to  such  assignment),  or  any  actual  or  prospective direct  or  indirect  counterparty  (or  its  advisors)  to  any  swap  or  derivative  transaction  relating  to  the  Borrowers  and  their  obligations; (f) with the written consent of the Administrative Borrower; (g) to the extent such Information becomes  publicly available other than as a result of a breach of this Section 10.08 or other obligation of confidentiality owed  to the Borrowers or the Sponsor or any of their respective Affiliates; (h) to any rating agency when required by it on  a customary basis and after consultation with the Administrative Borrower (it being understood that, prior to any  such  disclosure,  such  rating  agency  shall  undertake  to preserve the confidentiality of any Information relating  to  Loan Parties and their Subsidiaries received by it from such Lender) or to the CUSIP Service Bureau or any similar  organization; (i) in connection with the exercise of any remedies hereunder, under any other Loan Document or the  enforcement of its rights hereunder or thereunder; (j) to the extent that such information is independently developed  by the applicable Agent or its Affiliates (other than any Excluded Affiliates) or the applicable Lender or its Affiliates  in  each  case so long as not based on information obtained in a manner that would otherwise violate this Section  10.08, (k) for purposes of establishing a “due diligence” defense; or (l) to market data collectors, similar services  providers to the lending industry,  and  service providers  to  the Arrangers  and  the Lenders in connection with the  administration and management of this Agreement; provided that, in each case, no disclosure shall be made to any  Disqualified Institution. In addition, the Agents and the Lenders may disclose the existence of this Agreement and  information about this Agreement to market data collectors, similar service providers to the lending industry, and  service  providers  to  the  Agents  and  the  Lenders  in  connection  with  the  administration  and  management  of  this  Agreement, the other Loan Documents, the Commitments, and the Credit Extensions; provided that such Person is  advised and agrees to be bound by the provisions of this Section 10.08.          For purposes of this Section, “Information” means all information received from any Loan Party or any  Subsidiary  thereof  relating  to  any  Loan  Party  or  any  Subsidiary  thereof,  their  respective  businesses  and  their  respective  Affiliates  and  their  Affiliates’  directors,  officers,  employees,  trustees,  investments  advisors  or  agents,  other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential  basis prior to disclosure by any Loan Party or any Subsidiary thereof other than as a result of a breach of this Section  10.08.          Each  of  the  Agents  and  the  Lenders  acknowledges  that  (a)  the  Information  may  include  Material  Non-  Public  Information,  (b)  it  has  developed  compliance  procedures regarding  the  use  of  Material  Non-Public  Information  and  (c)  it  will  handle  such  Material  Non-Public  Information  in  accordance  with  applicable  Law,  including  United  States  federal  and  state  securities  Laws.   The  provisions  of  this  paragraph  shall  not  affect  any  Borrowers’ obligations under the last paragraph of Section 6.02.       Section 10.09               Setoff.  In  addition  to  any  rights  and  remedies  of  the  Lenders  provided by  Law,  upon  the  occurrence  and  during  the continuance of any Event of Default, each Lender and its Affiliates (and the Administrative Agent, in respect of any unpaid fees, costs and expenses payable hereunder) is authorized at any time and from time to time, without prior notice to the Borrowers, any such notice being waived by the Borrowers (on its own behalf and on behalf of each Loan Party and each of its Subsidiaries) to the fullest extent permitted by applicable Law, after obtaining the written  consent of the Administrative Agent, to set off and apply any and all deposits (general or special, time or demand,  provisional or final but excluding escrow, payroll, petty cash, trust and tax accounts) at any time held by, and other  Indebtedness at any time owing by, such Lender and its Affiliates or the Administrative Agent to or for the credit or  the account of the respective Loan Parties against any and all Obligations owing to such Lender and its Affiliates or                                                 -175

 

   the Administrative Agent hereunder or under any other Loan Document, now or hereafter existing, irrespective of    whether or not such Agent or such Lender or Affiliate shall have made demand under this Agreement or any other    Loan  Document  and  although  such  Obligations  may  be  contingent  or  unmatured  or  denominated  in  a  currency    different from that of the applicable deposit or 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 2.17 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(s) and the Lenders, and (y) the Defaulting Lender shall provide promptly to   the  Administrative  Agent  a  statement  describing  in  reasonable  detail  the  Obligations  owing  to  such  Defaulting   Lender  as  to  which  it  exercised  such  right  of  setoff.   Each  Lender  agrees  promptly  to  notify  the  Administrative   Borrower and the Administrative Agent after any such set off and application made by such Lender; provided that   the  failure  to  give  such  notice  shall  not  affect  the  validity  of  such  setoff  and  application.   The  rights  of  the   Administrative  Agent  and  each  Lender  under  this  Section 10.09  are  in  addition  to  other  rights  and  remedies   (including other rights of setoff) that the Administrative Agent and such Lender may have at Law.  Notwithstanding   anything to the contrary in the foregoing, no Lender shall exercise any right of set off in respect of any Controlled   Account  other  than  the  Administrative  Agent  acting  in  their  capacity  as  such.   Notwithstanding  anything  to  the   contrary contained herein or in any other Loan Document, each Secured Party expressly waives its right of setoff   (and  any  similar  right  including  bankers’  liens)  with  respect  to  all  lockboxes,  deposit  accounts  and  other  cash   management  accounts  maintained  by  any  Loan  Party  and  into  which  any  collections  of  Governmental  Entity   Accounts are deposited.         Section 10.10               Interest Rate Limitation.            Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be   paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable   Law  (the  “Maximum  Rate”).   If  any  Agent  or  any  Lender  shall  receive  interest  in  an  amount  that  exceeds  the   Maximum  Rate,  the  excess  interest  shall  be  applied  to  the  principal  of  the  Loans  or,  if  it  exceeds  such  unpaid   principal, refunded to the Borrowers.  In determining whether the interest contracted for, charged, or received by an   Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a)   characterize  any  payment  that  is  not  principal  as  an  expense,  fee,  or  premium  rather  than  interest,  (b)  exclude   voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal   parts the total amount of interest throughout the contemplated term of the Obligations hereunder.         Section 10.11               Counterparts;  Electronic  Execution  of  Assignments  and  Certain  Other Documents.            This  Agreement  and  each  other  Loan  Document  may  be  executed  in one  or  more counterparts, each of    which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery    by facsimile, .pdf or other electronic means of an executed counterpart of a signature page to this Agreement and    each other Loan Document shall be effective as delivery of an original executed counterpart of this Agreement and    such  other  Loan  Document.   The  Agents  may  also  require  that  any  such  documents  and  signatures  delivered  by    facsimile,  .pdf  or  other  electronic  means  be  confirmed  by  a  manually  signed  original  thereof; provided  that  the   failure to request  or  deliver the same shall not  limit  the effectiveness of any document or signature delivered by   facsimile, .pdf or other electronic means.            The  words  “execute,”  “execution,”  “signed,”  “signature,”  and  words  of  like  import  in  or  related  to  any   document  to  be  signed  in  connection  with  this  Agreement  and  the  transactions  contemplated  hereby  (including,   without  limitation,   Assignment  and  Assumptions,  amendments or other modifications, Committed Loan Notices,   Swing Line Loan  Notices, waivers  and  consents) shall be deemed to  include electronic signatures, the electronic   matching  of  assignment  terms  and  contract  formations  on  electronic  platforms  approved  by  the  Administrative   Agent,  or  the  keeping  of  records  in  electronic  form,  each  of  which  shall  be  of  the  same  legal  effect,  validity or   enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may   be, to the extent and as provided for in any applicable 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 notwithstanding anything contained herein to the                                                    -176

 

 contrary the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in  any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it.       Section 10.12               Integration.          This  Agreement,  together  with  the  other  Loan  Documents,  comprises  the  complete  and  integrated  agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral,  on  such  subject  matter.   Subject  to  Section  10.20  in  the  event of  any  conflict  between  the  provisions  of  this  Agreement and those of any other Loan Document, the provisions of this Agreement shall control; provided that the  inclusion of supplemental rights or remedies in favor of the Agents or the Lenders in any other Loan Document shall  not be deemed a conflict with this Agreement.  Each Loan Document was drafted with the joint participation of the  respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance  with the fair meaning thereof.       Section 10.13               Survival of Representations and Warranties.          All  representations  and  warranties  made hereunder and  in any other Loan  Document  or  other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof.   Such  representations  and warranties have been  or will  be relied upon  by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied (other than contingent indemnification obligations as to  which  no  claim  has  been  asserted)  or  any  Letter  of  Credit  shall  remain  outstanding  (unless  the  Outstanding Amount of  the LC Obligations  related  thereto  has been Cash Collateralized or back-stopped by a letter of credit reasonably  satisfactory  to  the  applicable  Issuing  Bank  or  such Letter  of  Credit  has  been  deemed  reissued  under another agreement acceptable to the applicable Issuing Bank).       Section 10.14               Severability.          If  any  provision  of  this  Agreement  or  the  other  Loan  Documents is  held  to  be  illegal,  invalid  or unenforceable  (a) the  legality,  validity  and  enforceability  of the  remaining  provisions  of  this  Agreement  and  the other Loan  Documents shall  not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions; provided that the Lenders shall charge no fee in connection with any such amendment.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  Without limiting the foregoing provisions  of  this  Section  10.14,  if  and  to  the  extent  that  the  enforceability  of  any  provisions  in  this  Agreement relating  to  Defaulting  Lenders  shall  be  limited  by  Debtor  Relief  Laws,  as  determined  in  good  faith  by  the Administrative  Agent,  the  Issuing  Bank  or  the  Swing  Line  Lender,  as  applicable,  then  such  provisions  shall  be deemed to be in effect only to the extent not so limited.       Section 10.15               GOVERNING LAW.          (a)    THIS  AGREEMENT  AND  EACH  OTHER  LOAN  DOCUMENT  AND  ANY  CLAIM  OR CONTROVERSY  RELATING  TO  THE  SUBJECT  MATTER  HEREOF  AND  THEREOF,                 WHETHER SOUNDING  IN  CONTRACT  LAW,  TORT  LAW  OR  OTHERWISE,  SHALL  BE  GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.          (b)    ANY LEGAL ACTION OR PROCEEDING ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO  OR  ANY  OF  THEM  WITH  RESPECT  TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, SHALL BE BROUGHT  IN  THE  COURTS  OF  THE  STATE  OF  NEW  YORK  SITTING  IN  NEW  YORK  COUNTY (BOROUGH OF MANHATTAN) (OR ANY APPELLATE COURT THEREOF) OR OF THE UNITED STATES                                                  -177

 

FOR THE SOUTHERN DISTRICT OF SUCH STATE (OR ANY APPELLATE COURT THEREOF), AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH LOAN PARTY, EACH AGENT AND EACH LENDER  CONSENTS,  FOR  ITSELF  AND  IN  RESPECT  OF  ITS  PROPERTY,  TO       THE  EXCLUSIVE JURISDICTION OF THOSE COURTS AND AGREES THAT IT WILL NOT COMMENCE OR SUPPORT ANY SUCH  ACTION  OR  PROCEEDING  IN  ANOTHER  JURISDICTION.   EACH  OF  THE  PARTIES  HERETO AGREES  THAT  A  FINAL  JUDGMENT  IN  ANY  SUCH  ACTION  OR  PROCEEDING  SHALL  BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN  ANY  OTHER  MANNER  PROVIDED  BY  LAW.   EACH  LOAN  PARTY,  EACH  AGENT  AND  EACH LENDER  IRREVOCABLY  WAIVES  (TO  THE  EXTENT  PERMITTED  BY  APPLICABLE  LAW)  ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER  DOCUMENT  RELATED  THERETO.   EACH  PARTY  HERETO  IRREVOCABLY             CONSENTS  TO SERVICE OF PROCESS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN  DOCUMENTS  IN  THE  MANNER  PROVIDED  FOR  NOTICES  (OTHER  THAN  FACSIMILE  OR ELECTRONIC  MAIL)  IN  SECTION 10.02.   NOTHING  IN  THIS  AGREEMENT  OR  ANY  OTHER  LOAN DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED  BY  APPLICABLE  LAW.  FURTHERMORE,  NOTWITHSTANDING  THE FOREGOING  OR  ANYTHING  TO  THE  CONTRARY  IN  THIS  AGREEMENT  OR  ANY           OTHER  LOAN DOCUMENT,  NOTHING  IN  THIS  AGREEMENT OR  ANY OTHER LOAN DOCUMENT              OR  OTHERWISE SHALL AFFECT ANY RIGHT THAT ANY SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION  OR  PROCEEDING  TO  ENFORCE  ANY  AWARD  OR  JUDGMENT  OR  EXERCISE  ANY  RIGHT UNDER  THE  COLLATERAL  DOCUMENTS  OR  AGAINST  ANY  COLLATERAL  OR  ANY  OTHER PROPERTY OF ANY LOAN PARTY IN THE COURTS OF OTHER FORUM IN WHICH JURISDICTION CAN BE ESTABLISHED.      Section 10.16               WAIVER OF RIGHT TO TRIAL BY JURY.         EACH  PARTY  HERETO  HEREBY  IRREVOCABLY  WAIVES,  TO  THE  FULLEST  EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER  BASED  ON  CONTRACT,  TORT  OR  ANY  OTHER  THEORY).   EACH  PARTY  HERETO  (A) CERTIFIES  THAT  NO  REPRESENTATIVE,  AGENT  OR  ATTORNEY  OF  ANY  OTHER  PERSON  HAS REPRESENTED,  EXPRESSLY  OR  OTHERWISE,  THAT  SUCH  OTHER  PERSON  WOULD  NOT,  IN  THE EVENT  OF  LITIGATION, SEEK TO ENFORCE  THE  FOREGOING WAIVER  AND  (B) ACKNOWLEDGES THAT  IT  AND  THE  OTHER  PARTIES  HERETO  HAVE  BEEN  INDUCED  TO  ENTER  INTO  THIS AGREEMENT  AND  THE  OTHER  LOAN  DOCUMENTS  BY,  AMONG  OTHER  THINGS,           THE  MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.      Section 10.17               Binding Effect.         This  Agreement  shall  become  effective  when  (i)  it  shall  have been  executed and delivered by the Loan Parties and each other party hereto and (ii) the Administrative Agent shall have been notified by each Lender, Swing Line  Lender  and  Issuing  Bank  that  each  such  Lender,  Swing  Line Lender  and  Issuing Bank has  executed  it and thereafter shall be binding upon and inure to the benefit of the Loan Parties, each Agent and each Lender and their respective successors and assigns, in each case in accordance with Section 10.07 (if applicable) and except that no Loan Party shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders except as permitted by Section 7.04.      Section 10.18               USA Patriot Act.         Each  Lender  that  is  subject  to  the  USA  Patriot Act  and the Administrative Agent  (for itself  and  not  on behalf of any Lender) hereby notifies the Borrowers that pursuant to the requirements of the USA Patriot Act and the Beneficial Ownership Regulation, it is required to obtain, verify and record information that identifies each Loan Party, which  information includes  the name, address and tax identification number of such Loan Party and other                                                -178

 

 information regarding such Loan Party that will allow such Lender or the Administrative Agent, as applicable, to  identify such Loan Party in accordance with the USA Patriot Act and the Beneficial Ownership Regulation.  This  notice is given in accordance with the requirements of the USA Patriot Act and the Beneficial Ownership Regulation  and is effective as to the Lenders and the Administrative Agent.  Each Loan Party shall, promptly following a request  by the Administrative Agent, provide all documentation and other information that the Administrative Agent or any  Lender  reasonably  requests  which  is  required  in  order  to  comply  with  its  ongoing  obligations  under  applicable  “know  your  customer”  and  anti-money  laundering  rules  and  regulations,  including  the  USA  Patriot  Act  and  the  Beneficial Ownership Regulation.       Section 10.19               No Advisory or Fiduciary Responsibility.          In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), each Loan Party acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this  Agreement  provided  by  the  Administrative  Agent  and  the  other  Arranger  are  arm’s-length  commercial transactions between the Loan Parties and their respective Affiliates, on the one hand, and the Administrative Agent, the other Arranger and the Lenders, on the other hand, (B) each Loan Party has consulted its own legal, accounting, regulatory  and  tax  advisors  to  the  extent  it  has  deemed  appropriate,  and  (C)  each  Loan  Party  is  capable  of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative Agent, each other Arranger and each Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is  not,  and  will  not  be  acting  as  an  advisor,  agent  or  fiduciary  for  each  Loan  Party  or  any  of  their  respective Affiliates, or any other Person and (B) neither the Administrative Agent, any other Arranger nor any Lender has any obligation  to  the  Loan  Parties  or  any  of  their  respective  Affiliates  with  respect  to  the  transactions  contemplated hereby  except  those  obligations  expressly  set  forth  herein  and in  the  other  Loan  Documents;  and  (iii)  the Administrative Agent, the  other  Arranger, the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Loan Parties and their respective Affiliates, and neither the Administrative Agent nor any other Arranger nor any Lender has any obligation to disclose any of such interests to the Loan Parties or any of their respective Affiliates.  To the fullest extent permitted by law, each Loan  Party  hereby  waives  and  releases  any  claims  that  it  may  have  against  the  Administrative  Agent,  the  other Arranger and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.       Section 10.20               Intercreditor Agreements.          Each  Lender  hereunder  (a) acknowledges  that  it  has  received  a  copy  of  the  Intercreditor  Agreements, (b) agrees that it will be bound by and will take no actions contrary to the provisions of the Intercreditor Agreements and  (c) authorizes  and  instructs  the  Administrative  Agent  to  enter  into  the  Intercreditor  Agreements  as Administrative Agent and on behalf of such Lender. The foregoing provisions are intended as an inducement to the lenders  under  the  First  Lien  Financing  Documents,  Second  Lien  Financing  Documents  and  any  documentation governing other parity lien or junior lien Indebtedness permitted to be incurred hereunder to extend credit to the Loan Parties and such lenders are intended third party beneficiaries of such provisions. In the event of any conflict or inconsistency between the provisions of any Intercreditor Agreement and this Agreement, the provisions of such Intercreditor Agreement shall control. Notwithstanding anything to the contrary set forth herein or in any other Loan Document, prior to the payment in full of the First Lien Obligations to the extent that any Loan Party is required to give physical possession over any Collateral (other than ABL Priority Collateral) to the Administrative Agent under this  Agreement  or  the  other  Loan  Documents,  such  requirement  to  give  possession  shall  be  satisfied  if  such Collateral is delivered to and held by the First Lien Agent pursuant to the ABL Intercreditor Agreement or any other applicable Intercreditor Agreement entered into after the Closing Date.       Section 10.21               Acknowledgment 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, to the extent such liability is unsecured, may be subject to the write-                                                  -179

 

 down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and  agrees to be bound by:                  (1)     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                  (2)    the effects of any Bail-In Action on any such liability, including, if applicable:                         (a)     a reduction in full or in part or cancellation of any such liability;                         (b)    a conversion of all, or a portion of, such liability into shares or other instruments                of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that                may  be  issued  to  it  or  otherwise  conferred  on  it,  and  that  such  shares  or  other  instruments  of                ownership will be accepted by it in lieu of any rights with respect to any such liability under this                Agreement or any other Loan Document; or                         (c)     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 10.22               Acknowledgement Regarding Any Supported QFCs.          To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Swap Contract 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):                 (a)     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.                 (b)     As used in this Section 10.22, the following terms have the following meanings:          “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.          “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                                                  -180

 

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).         “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.         “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).                                            ARTICLE XI.                                           GUARANTEE      Section 11.01               The Guarantee.         Each Guarantor hereby jointly and severally with the other Guarantors guarantees, as a primary obligor and not as a surety, to each Secured Party and their respective successors and permitted assigns, the prompt payment in full  when  due  (whether  at  stated  maturity,  by  required  prepayment,  declaration,  demand,  by  acceleration  or otherwise) of (a) the principal of and interest (including any interest, fees, costs or charges that would accrue but for the provisions of (i) Title 11 of the United States Code after any bankruptcy or insolvency petition under Title 11 of the United States Code and (ii) any other Debtor Relief Laws) on the Loans made by the Lenders to, and the Notes held by each Lender of, the Borrowers (or, in the case of such guarantee by a Guarantor that is also a Borrower, on the Loans made by the Lenders to, and the Notes held by each Lender of, each other Borrower), and (b) all other Secured Obligations from time to time owing to the Secured Parties by the Loan Parties under any Loan Document or Secured Hedge Agreement (all such obligations described in clauses (a) and (b), including any future increases in the  amounts  thereof,  being  herein  collectively  called  the  “Guaranteed  Obligations”); provided, however,  that Guaranteed Obligations shall exclude all Excluded Swap Obligations.  The Guarantors hereby jointly and severally agree that if the Borrowers or other Guarantor(s) shall fail to pay in full when due (whether at stated maturity, by acceleration or otherwise) any of the Guaranteed Obligations, the Guarantors will promptly pay the same in cash, 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, by acceleration or otherwise) in accordance with the terms of such extension or renewal.      Section 11.02               Obligations Unconditional.         The obligations of the Guarantors under Section 11.01 shall constitute a guaranty of payment and to the fullest  extent  permitted  by  applicable  Law,  are  absolute,  irrevocable  and  unconditional,  joint  and  several, irrespective  of  the  value,  genuineness,  validity,  regularity  or  enforceability  of  the  Guaranteed  Obligations  of  the Borrowers  under  this  Agreement,  the  Notes,  if  any,  or  any  other  agreement  or  instrument  referred  to  herein  or therein,  or  any  substitution,  release  or  exchange of  any other guarantee of  or security  for any of  the Guaranteed Obligations, and, to the extent permitted by applicable Law irrespective of any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a surety or Guarantor (except for payment in full).  Without limiting the generality of the foregoing, to the extent permitted by applicable Law, it is agreed that the occurrence of any one or more of the following shall not alter or impair the liability of the Guarantors hereunder which shall remain absolute, irrevocable and unconditional under any and all circumstances as described above:                (i)     at any time or from time to time, without notice to the Guarantors, to the extent permitted        by Law, the time for any performance of or compliance with any of the Guaranteed Obligations shall be        extended, or such performance or compliance shall be waived;                (ii)    any of the acts mentioned in any of the provisions of this Agreement or the Notes, if any,        or  any  other  agreement  or  instrument  referred  to  herein  or  therein  shall  be  done  or  omitted  (including        incurring  any  increase  or  decrease  in  the  principal  amount  of  the  Guaranteed  Obligations  or the rate of        interest or the fees thereon);                                                 -181

 

                (iii)  the  maturity  of  any  of  the  Guaranteed  Obligations  shall  be  accelerated,  or  any  of  the         Guaranteed Obligations shall be amended in any respect, or any right under the Loan Documents or any         other agreement or instrument referred to herein or therein shall be amended or waived in any respect or         any other guarantee of any of the Guaranteed Obligations or except as permitted pursuant to Section 11.09,         any security therefor shall be released or exchanged in whole or in part or otherwise dealt with;                 (iv)    any Lien or security interest granted to, or in favor of, any Lender, an Issuing Bank or         Agent as security for any of the Guaranteed Obligations shall fail to be perfected; or                 (v)     the release of any other Guarantor pursuant to Section 11.09.          The  Guarantors  hereby  expressly  waive  (to  the  fullest  extent  permitted  by  Law)  diligence, presentment, demand of payment, protest and, to the extent permitted by Law, all notices whatsoever, and any requirement that any Secured Party exhaust any right, power or remedy or proceed against the Borrowers under this Agreement or the Notes, if any, or any other agreement or instrument referred to herein or therein, or against any other Person under any  other guarantee of, or security  for,  any of  the Guaranteed Obligations.  The Guarantors  waive,  to the extent permitted by Law, any and all notice of the creation, renewal, extension, waiver, termination or accrual of any of the Guaranteed Obligations and notice of or proof of reliance by any Secured Party upon this Guarantee or acceptance of  this Guarantee, and the Guaranteed  Obligations, and any of  them,  shall conclusively  be deemed  to  have been created,  contracted  or  incurred  in  reliance  upon  this  Guarantee,  and  all  dealings  between  the  Borrowers  and  the Secured  Parties  shall likewise be conclusively  presumed  to have been had or consummated in reliance upon this Guarantee.  This Guarantee shall be construed as a continuing, absolute, irrevocable and unconditional guarantee of payment without regard to any right of offset with respect to the Guaranteed Obligations at any time or from time to time held by Secured Parties, and the obligations and liabilities of the Guarantors hereunder shall not be conditioned or contingent upon the pursuit by the Secured Parties or any other Person at any time of any right or remedy against the  Borrowers  or  against  any  other  Person  which  may  be  or  become  liable  in  respect  of  all  or  any  part  of  the Guaranteed Obligations or against any collateral security or guarantee therefor or right of offset with respect thereto. This Guarantee shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon the Guarantors and the successors and permitted assigns thereof, and shall inure to the benefit of the Lenders, and their respective successors and permitted assigns, notwithstanding that from time to time during the term of this Agreement there may be no Guaranteed Obligations outstanding.       Section 11.03               Reinstatement.          The obligations of the Guarantors under this Article XI shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of the Borrowers or other Loan Party in respect of the Guaranteed Obligations is rescinded or must be otherwise restored by any holder of any of the Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise.       Section 11.04               Subrogation; Subordination.          Each  Guarantor  hereby  agrees  that  until  the  payment  and  satisfaction  in  full  in  cash  of  all  Guaranteed Obligations  (other  than  contingent  indemnification  obligations as  to  which  no  claim  has  been  asserted)  and  the expiration and termination of the Commitments of the Lenders under this Agreement it shall subordinate any claim and  shall  not  exercise  any  right  or  remedy,  direct  or  indirect,  arising  by  reason  of  any  performance  by  it  of  its guarantee in Section 11.01, whether by subrogation or otherwise, against the Borrowers or any other Guarantor of any of the Guaranteed Obligations or any security for any of the Guaranteed Obligations.  Any Indebtedness of any Loan Party to any Non-Loan Party permitted pursuant to 7.03(b) or (d) shall be subordinated to such Loan Party’s Secured Obligations in the manner set forth in the Intercompany Note evidencing such Indebtedness.       Section 11.05               Remedies.          The Guarantors jointly and severally agree that, as between the Guarantors and the Lenders, the obligations of the Borrowers under this Agreement and the Notes, if any, may be declared to be forthwith due and payable as provided in Section 8.02 (and shall be deemed to have become automatically due and payable in the circumstances                                                  -182

 

 provided in Section 8.02) for purposes of Section 11.01, notwithstanding any stay, injunction or other prohibition  preventing  such  declaration  (or  such  obligations  from  becoming automatically  due  and  payable)  as  against  the  Borrowers  and  that,  in  the  event  of  such  declaration  (or  such  obligations  being  deemed  to  have  become  automatically due and payable), such obligations (whether or not due and payable by the Borrowers) shall forthwith  become due and payable by the Guarantors for purposes of Section 11.01.       Section 11.06               Instrument for the Payment of Money.          Each Guarantor hereby acknowledges that the guarantee in this Article XI constitutes an instrument for the  payment of money, and consents and agrees that any Lender or Agent, at its sole option, in the event of a dispute by  such Guarantor in the payment of any moneys due hereunder, shall have the right to bring a motion-action under  New York CPLR Section 3213.       Section 11.07               Continuing Guarantee.          The guarantee in this Article XI is a continuing guarantee of payment, and shall apply to all Guaranteed  Obligations whenever arising.       Section 11.08               General Limitation on Guarantee Obligations.          In any action or proceeding involving any state corporate limited partnership or limited liability company law, or any applicable state,  federal or foreign bankruptcy, insolvency, reorganization or other Law affecting the rights  of  creditors  generally,  if  the  obligations  of  any  Guarantor  (other  than  the  Borrowers)  under  Section 11.01 would otherwise be held or determined to be void, voidable, invalid or unenforceable, or subordinated to the claims of any other creditors, on account of the amount of its liability under Section 11.01, then, notwithstanding any other provision to the contrary, the amount of such liability shall, without any further action by such Guarantor, any Loan Party or any other Person, be automatically limited and reduced to the highest amount (after giving effect to the liability under this Guaranty and the right of contribution established in Section 11.10) that is valid and enforceable and not subordinated to the claims of other creditors as determined in such action or proceeding.       Section 11.09               Release of Guarantors.          If,  in  compliance  with  the  terms  and  provisions  of  the  Loan  Documents,  (i) any  Guarantor  that  is  a Restricted Subsidiary of a Loan Party ceases to be a Restricted Subsidiary of a Loan Party in a transaction permitted hereunder, (ii) any Guarantor becomes an Excluded Subsidiary or (iii) subject to Section 10.01, if the release of such Guarantor is approved, authorized or ratified in writing by the Required Lenders (any such Guarantor referred to in clause (i),  (ii)  or  (iii)  a  “Released  Guarantor”),  such  Released  Guarantor  shall  upon  the  consummation  of  the related transaction, change in status, request, approval, authorization or ratification be (in the case of clauses (i) and (iii))  automatically  released  and  (in  the  case  of  clause  (ii)) released  by  the  Administrative  Agent  pursuant  to appropriate  documentation  following  a  written  request  from  the Administrative  Borrower  to  the  Administrative Agent  requesting  such  release,  in  each  case,  from  its  obligations  under  this  Agreement  (including  under Section 10.05 hereof) and the other Loan Documents, including its obligations to pledge and grant any Collateral owned by it  pursuant  to  any Collateral Document  and,  in the case of a sale of any of the Equity Interests of the Released Guarantor to a Person that is not a Loan Party, the pledge of such Equity Interests to the Administrative Agent pursuant to the Collateral Documents shall be automatically released, and, so long as the Borrowers shall have provided  the  Administrative  Agent  such  certifications  or  documents  as  any  Agent  shall  reasonably  request,  the Administrative Agent shall take such actions as are necessary to effect each release described in this Section 11.09 in accordance with  the relevant  provisions  of this Agreement  and the Collateral Documents; provided, that no such release shall occur, and no such Guarantor shall constitute a Released Guarantor, if (x) such Guarantor continues to be a guarantor in respect of any other Obligations, any First Lien Obligation or any Second Lien Obligations or any Junior Financing or (y) such Guarantor continues to constitute a Subsidiary of the Parent Borrower and becomes an Excluded Subsidiary under clause (a) of the definition thereof unless (i) no Event of Default shall have occurred and be continuing at the time such Guarantor becomes an Excluded Subsidiary under clause (a) of the definition thereof and  (ii)  after  giving  Pro  Forma  Effect  to  such  release  and  the consummation  of  the  transaction that  causes such Person to become an Excluded Subsidiary under clause (a) of the definition thereof, the Borrowers and Restricted                                                  -183

 

Subsidiaries shall be deemed to have made an Investment in, or a Restricted Payment in respect of, as applicable, such Person (as if such Person were then newly acquired or formed) and such Investment or Restricted Payment is permitted hereunder at such time.         When  all Commitments hereunder have terminated, and all Loans or other Obligations hereunder (other than contingent indemnification obligations as to which no claim has been asserted) have been paid or satisfied in full, and no Letter of Credit remains outstanding (except any Letter of Credit the Outstanding Amount of which the Obligations  related  thereto  has  been  Cash  Collateralized  or  for  which  a  backstop  letter  of  credit  reasonably satisfactory to the applicable Issuing Bank has been put in place or such Letter of Credit has been deemed reissued under another agreement reasonably acceptable to the applicable Issuing Bank), this Agreement and the Guarantees made herein shall terminate with respect to all Obligations, except with respect to Obligations that expressly survive such repayment pursuant to the terms of this Agreement.      Section 11.10               Right of Contribution.         Each Guarantor hereby agrees that to the extent that a Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution from and against  any  other  Guarantor  hereunder  which  has  not  paid  its  proportionate  share  of  such  payment.   Each Guarantor’s right of contribution shall be subject to the terms and conditions of Section 11.04.  The provisions of this  Section 11.10  shall  in  no  respect  limit  the  obligations  and  liabilities  of  any  Guarantor  to  the  Administrative Agent, the Issuing Bank(s), the Swing Line Lender and the Lenders, and each Guarantor shall remain liable to the Administrative Agent, the Issuing Bank(s), the Swing Line Lender and the Lenders for the full amount guaranteed by such Guarantor hereunder.      Section 11.11               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 Guaranty in respect of any Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 11.11 for the maximum amount of such liability that can  be  hereby  incurred  without  rendering  its  obligations  under this  Section  11.11,  or  otherwise  under  this Agreement, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor under this Section 11.11 shall remain in full force and effect  until the payment in full and discharge of the Guaranteed Obligations. Each Qualified ECP Guarantor intends that this Section 11.11 constitute, and this Section 11.11 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.      Section 11.12               Independent Obligation.         The obligations of each Guarantor hereunder are independent of the obligations of any other Guarantor, any other party or the Borrowers, and a separate action or actions may be brought and prosecuted against such Guarantor whether or not action is brought against any other Guarantor, any other party or the Borrowers and whether or not any other Guarantor, any other party or the Borrowers be joined in any such action or actions.                                    >6,*1$785(3$*(6)2//2:@                                                 -184

 

                                      EXHIBIT B                                     SCHEDULE 1.01A                                       Commitments   Revolving Credit       Initial Revolving    2020 Incremental      Total Initial Revolving  Lender                 Credit Commitment    Revolving Credit      Credit Commitment                                              Commitment            (as of the First                                                                    Amendment Effective                                                                    Date) Bank of America, N.A.  $75,000,000.00        $25,000,000.00       $100,000,000.00   ACF Finco I LP         $75,000,000.00        $0.00                $75,000,000.00    Total                  $150,000,000.00       $25,000,000.00       $175,000,000.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00314-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00314-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00314-of-00352.parquet"}]]