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18RSU211YR

RESTRICTED STOCK UNIT AGREEMENT
THIS RESTRICTED STOCK UNIT AGREEMENT (the “Agreement”), dated as of __________(the “Grant Date”), is between Regis Corporation, a Minnesota corporation (the “Company”), and _____________________(the “Participant”).  
WHEREAS, the Participant is a valued and trusted employee of the Company and the Company desires to grant the Participant an award of Restricted Stock Units which afford the Participant an opportunity to receive shares of the Company’s Common Stock under the Regis Corporation 2018 Long Term Incentive Plan (as may be amended from time to time, the “Plan”); and
WHEREAS, the Committee has duly made all determinations necessary or appropriate for the grant of the Restricted Stock Units hereunder (the “Award”).
NOW, THEREFORE, in consideration of the premises and mutual covenants set forth and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto have agreed, and do hereby agree, as follows:
1.    Definitions.  
For purposes of this Agreement, the definitions of terms contained in the Plan hereby are incorporated by reference, except to the extent that any such term is specifically defined in this Agreement. 
(a)    “Good Reason” shall have the meaning ascribed to such term in Participant’s employment agreement with the Company; provided, however, that in order for the Termination of Employment to constitute a Termination of Employment for Good Reason, Participant must terminate employment no later than one hundred and twenty (120) days following the end of the applicable cure period, or (ii) if there is no such employment agreement with the Company, “Good Reason” shall mean the occurrence, without the express written consent of the Participant, of any of the following:
(A)    any material diminution in the nature of the Participant’s authority, duties or responsibilities;
(B)    any reduction by the Company in the Participant’s base salary then in effect or target bonus percentage (other than any reduction mutually agreed upon by the Company and the Participant), other than an across the board reduction of not more than 10% that applies to all other executives who report to the Chief Executive Officer of the Company; or
(C)    following a Change in Control, failure by the Company to continue in effect (without substitution of a substantially equivalent plan or a plan of substantially equivalent value) any compensation plan, bonus or incentive plan, stock purchase plan, stock option plan, life insurance plan, health plan, disability plan or other benefit plan or arrangement in which the Participant is then participating;
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provided that the Participant notifies the Company of such condition set forth in clause (A), (B) or (C) within ninety (90) days of its initial existence and the Company fails to remedy such condition within thirty (30) days of receiving such notice (the “Cure Period”) and the Participant delivers written notice of termination of employment to the Company’s General Counsel within thirty (30) days following the end of the Cure Period, designating an employment termination date no later than one hundred and twenty (120) days following the end of the Cure Period.
(b)    “Qualifying Termination” means a Termination of Employment (A) without Cause (other than a result of death or Disability) or for Good Reason within 12 months following a Change in Control or (B) due to death or Disability. 
2.    Grant of Restricted Stock Units, Term and Vesting.
(a)    Subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Participant___________ Restricted Stock Units (the “RSUs”), with no obligation to pay cash or other property for such RSUs.  The RSUs will be credited to an account in the Participant’s name maintained by the Company.  This account shall be unfunded and maintained for book-keeping purposes only, with each RSU representing an unfunded and unsecured promise by the Company to issue to the Participant one share of the Company’s Common Stock in settlement of a vested RSU.
(b)    100% of the RSUs will vest on the first anniversary of the Grant Date, subject to Participant’s continued employment with the Company through such anniversary and the other terms and conditions set forth in this Agreement.
(c)    Notwithstanding Section 2(b), if the Participant experiences a Qualifying Termination, then the Applicable Portion of the RSUs immediately shall vest as of the date of Participant’s Termination of Employment.  For purposes of the immediately preceding sentence, the “Applicable Portion of the RSUs” has the meaning set forth below:
Initial Grant
			
	Applicable Portion of the RSUs
	a number of RSUs equal to the product obtained by multiplying (i) the total number RSUs by (ii) a fraction, the numerator of which is the number of days elapsed from the Grant Date through the date of Participant’s Termination of Employment and the denominator of which is 365

(d)    For purposes of this Agreement, if Participant’s RSUs are considered non-qualified deferred compensation subject to Code Section 409A, a Termination of Employment shall be deemed to have occurred only if on such date the Participant has also experienced a “separation from service” as defined in the regulations promulgated under Code Section 409A.
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(e)    For purposes of this Agreement, if Participant’s RSUs are considered non-qualified deferred compensation subject to Code Section 409A, a Change in Control shall be deemed to have occurred for purposes of settling vested RSUs only if such event would also be deemed to constitute a change in ownership or effective control, or a change in the ownership of a substantial portion of the assets, of the Company under Code Section 409A.
(f)    In the event that Participant’s Termination of Employment would qualify Participant for accelerated vesting under more than one type of Qualifying Termination, the type of Qualifying Termination that provides for the vesting of the greatest number of RSUs shall apply.
3.    Forfeiture of Unvested RSUs.
Subject to any accelerated vesting under Sections 2(c), and any exercise of the Committee’s discretion under Section 8.3(4) of the Plan, if the Participant experiences a Termination of Employment, any unvested RSUs shall be forfeited and the Participant shall have no further interest in, or right to receive shares of Common Stock in settlement of, such RSUs.
4.    Settlement of RSUs.
Subject to Section 21, after any RSUs vest pursuant to Section 2, the Company shall, as soon as practicable (but no later than thirty (30) days following the date on which the RSUs vest), cause to be issued and delivered to the Participant one share of Common Stock in payment and settlement of each vested RSU.  Delivery of the shares shall be effected by the delivery of a stock certificate evidencing the shares, by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided to the Participant, or by the electronic delivery of the shares to a brokerage account designated by the Participant, and shall be subject to the tax withholding provisions of Section 8 and compliance with all applicable legal requirements, including compliance with the requirements of applicable federal and state securities laws, and shall be in complete satisfaction and settlement of such vested RSUs.  Upon settlement of the RSUs, the Participant will obtain, with respect to the shares of Common Stock received in such settlement, full voting and other rights as a shareholder of the Company.
5.    Shareholder Rights.
The RSUs subject to this Award do not entitle the Participant to any rights of a holder of the Company’s Common Stock.  The Participant will not have any of the rights of a shareholder of the Company in connection with the grant of the RSUs unless and until shares of Common Stock are issued to the Participant in settlement of the RSUs as provided in Section 4.
6.    Dividend Equivalents.
If a cash dividend is declared and paid by the Company with respect to its Common Stock, the Participant will be credited as of the applicable dividend payment date with an additional number of RSUs (the “Dividend RSUs”) equal to (i) the total cash dividend the Participant would have received if the number of RSUs credited to the Participant under this Agreement as of the related 
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dividend payment record date (including any previously credited Dividend RSUs) had been actual shares of Common Stock, divided by (ii) the Fair Market Value of a share of Common Stock as of the applicable dividend payment date (with the quotient rounded down to the nearest whole number).  Once credited to the Participant’s account, Dividend RSUs will be considered RSUs for all purposes of this Agreement.
7.    Restrictions on Transferability.
Neither the Award evidenced by this Agreement nor the RSUs may be sold, transferred, pledged, assigned, or otherwise alienated at any time, other than by will or the laws of descent and distribution.  Any attempt to do so contrary to the provisions hereof shall be null and void.
8.    Tax Consequences and Payment of Withholding Taxes.
Neither the Company nor any of its Affiliates shall be liable or responsible in any way for the tax consequences relating to the award of RSUs, their vesting and the settlement of vested RSUs in shares of Common Stock.  The Participant agrees to determine and be responsible for any and all tax consequences to the Participant relating to the award, vesting and settlement of RSUs hereunder.  If the Company is obligated to withhold an amount on account of any tax imposed as a result of the grant, vesting or settlement of the RSUs, the provisions of Section 13.4 of the Plan regarding the satisfaction of tax withholding obligations shall apply (including any required payments by the Participant).
9.    Administration.  
The Plan and this Award of RSUs are administered by the Committee, in accordance with the terms and conditions of the Plan.  Actions and decisions made by the Committee in accordance with this authority shall be effectuated by the Company.
10.    Plan and Agreement; Recoupment Policy.
The Participant hereby acknowledges receipt of a copy of the Plan.  The grant of RSUs is made pursuant to the Plan, as in effect on the date hereof, and is subject to all the terms and conditions of the Plan, as the same may be amended or restated from time to time, and of this Agreement.  If there is any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern.  The interpretation and construction by the Committee of the Plan, this Agreement, and such rules and regulations as may be adopted by the Committee for the purpose of administering the Plan, shall be final and binding upon the Participant.  The Company shall, upon written request therefore, send a copy of the Plan, in its then current form, to the Participant or any other person or entity then entitled to receive the shares of Common Stock to be issued in settlement of the RSUs.
The Company may recover any equity awarded to the Participant under this Agreement, or proceeds from the sale of such equity, to the extent required by any rule of the Securities and Exchange Commission or any listing standard of the New York Stock Exchange, including any rule or listing standard requiring recovery of incentive compensation in connection with an 
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accounting restatement due to the Company’s material noncompliance with any financial reporting requirement under the securities laws, which recovery shall be subject to the terms of any policy of the Company implementing such rule or listing standard.
11.    No Employment Rights.  
Neither this Agreement nor the Award evidenced hereby shall give the Participant any right to continue in the employ of the Company, any Affiliate or any other entity, or create any inference as to the length of employment of the Participant, or affect the right of the Company (or any Affiliate or any other entity) to terminate the employment of the Participant (with or without Cause), or give the Participant any right to participate in any employee welfare or benefit plan or other program of the Company, any Affiliate or any other entity.
12.    Requirements of Law and No Disclosure Rights.  
The Company shall not be required to issue any shares of Common Stock in settlement of RSUs granted under this Agreement if the issuance of such shares shall constitute a violation of any provision of any applicable law or regulation of any governmental authority.  The Company shall have no duty or obligation beyond those imposed by applicable securities laws generally to affirmatively disclose to the Participant or a Representative, and the Participant or Representative shall have no right to be advised of, any material non-public information regarding the Company or an Affiliate at any time prior to, upon or in connection with the issuance of the shares of Common Stock in settlement of the Participant’s RSU Award.
13.    Governing Law.
This Agreement, the awards of RSUs hereunder and the issuance of Common Stock in payment of RSUs shall be governed by, and construed and enforced in accordance with, the laws of the State of Minnesota (other than its laws respecting choice of law).
14.    Entire Agreement.
This Agreement and the Plan constitute the entire obligation of the parties hereto with respect to the subject matter hereof and shall supersede any prior expressions of intent or understanding with respect to this transaction.
15.    Amendment.  
Any amendment to this Agreement shall be in writing and signed on behalf of the Company, and shall comply with the terms and conditions of the Plan.
16.    Waiver; Cumulative Rights.  
The failure or delay of either party to require performance by the other party of any provision hereof shall not affect its right to require performance of such provision unless and until such performance has been waived in writing.  Each and every right hereunder is cumulative and may be exercised in part or in whole from time to time.
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17.    Counterparts.  
This Agreement may be signed in two (2) counterparts, each of which shall be an original, but both of which shall constitute but one and the same instrument.
18.    Headings.  
The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. 
19.    Severability.  
If for any reason any provision of this Agreement shall be determined to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid or unenforceable provision were omitted.
20.    Successors and Assigns.  
This Agreement shall inure to the benefit of and be binding upon each successor and assign of the Company, and upon the heirs, legal representatives and successors of the Participant.
21.    Code Section 409A.
Notwithstanding anything to the contrary in this Agreement, including Section 4, if any amount shall be payable with respect to this Award as a result of the Participant’s “separation from service” at such time as the Participant is a “specified employee” (as those terms are defined in regulations promulgated under Code Section 409A) and such amount is subject to the provisions of Code Section 409A, then no payment shall be made, except as permitted under Code Section 409A, prior to the first day of the seventh calendar month beginning after the Participant’s separation from service (or the date of Participant’s earlier death), or as soon as administratively practicable thereafter.  Participant shall not have the right to designate the timing of settlement of the RSUs.  If the thirty-day settlement period spans two different calendar years, settlement shall occur during the later calendar year.
[Signature Page Follows]
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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Participant has hereunto set his hand, all as of the day and year first above written.
REGIS CORPORATION
By:     
Name:    
 Title:    
PARTICIPANT:
     
Namedennyscreditagreementand

EXECUTION VERSION    Published CUSIP Number:  248693AU7  Revolving Credit CUSIP Number:  248693AV5    FOURTH AMENDED AND RESTATED CREDIT AGREEMENT  Dated as of August 26, 2021  among  DENNY’S, INC.,  as the Borrower,  DENNY’S CORPORATION,  as Parent,  and  Certain Subsidiaries of Parent,  as Guarantors,  WELLS FARGO BANK, NATIONAL ASSOCIATION,  as Administrative Agent and  L/C Issuer  TRUIST BANK,  BANK OF THE WEST,  and  REGIONS BANK,  as Co-Syndication Agents,  CADENCE BANK, N.A.,  and  FIFTH THIRD BANK, NATIONAL ASSOCIATION,  as Co-Documentation Agents  and  The Other Lenders Party Hereto  WELLS FARGO SECURITIES, LLC,  TRUIST SECURITIES, INC.,  BANK OF THE WEST,  and  REGIONS CAPITAL MARKETS,  A DIVISION OF REGIONS BANK,  as Joint Lead Arrangers and Joint Bookrunners    CID #:  000016249    

 

  i    TABLE OF CONTENTS  Page  Article I DEFINITIONS AND ACCOUNTING TERMS ............................................................................ 1  1.01  Defined Terms ................................................................................................................... 1  1.02  Other Interpretive Provisions ........................................................................................ 34  1.03  Accounting Terms ........................................................................................................... 35  1.04  Rounding.......................................................................................................................... 36  1.05  Times of Day .................................................................................................................... 36  1.06  Letter of Credit Amounts ............................................................................................... 36  1.07  Currency Equivalents Generally ................................................................................... 36  1.08  Divisions ........................................................................................................................... 36  1.09  Rates ................................................................................................................................. 36  Article II THE COMMITMENTS AND CREDIT EXTENSIONS ........................................................... 37  2.01  The Loans ........................................................................................................................ 37  2.02  Borrowings, Conversions and Continuations of Loans ............................................... 37  2.03  Letters of Credit .............................................................................................................. 39  2.04  Prepayments .................................................................................................................... 47  2.05  Termination or Reduction of Commitments ................................................................ 47  2.06  Repayment of Loans ....................................................................................................... 48  2.07  Interest ............................................................................................................................. 48  2.08  Fees ................................................................................................................................... 49  2.09  Computation of Interest and Fees ................................................................................. 49  2.10  Evidence of Debt ............................................................................................................. 50  2.11  Payments Generally; Administrative Agent’s Clawback ............................................ 50  2.12  Sharing of Payments by Lenders ................................................................................... 52  2.13  Increase in Revolving Credit Facility ............................................................................ 53  2.14  Cash Collateral ................................................................................................................ 54  2.15  Defaulting Lenders ......................................................................................................... 55  Article III TAXES, YIELD PROTECTION AND ILLEGALITY ............................................................. 57  3.01  Taxes ................................................................................................................................ 57  3.02  Illegality ........................................................................................................................... 62  3.03  Changed Circumstances ................................................................................................. 62  3.04  Increased Costs; Reserves on Eurodollar Rate Loans ................................................. 65  3.05  Compensation for Losses ................................................................................................ 66  3.06  Mitigation Obligations; Replacement of Lenders ........................................................ 66  3.07  Survival ............................................................................................................................ 67  Article IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS.................................................... 67  4.01  Conditions of Initial Credit Extension .......................................................................... 67  4.02  Conditions to all Credit Extensions ............................................................................... 70  Article V REPRESENTATIONS AND WARRANTIES ........................................................................... 71  5.01  Existence, Qualification and Power ............................................................................... 71  5.02  Authorization; No Contravention ................................................................................. 71  5.03  Governmental Authorization; Other Consents ............................................................ 71  5.04  Binding Effect .................................................................................................................. 71  5.05  Financial Statements; No Material Adverse Effect ..................................................... 72  

 

  ii    5.06  Litigation.......................................................................................................................... 72  5.07  No Default ........................................................................................................................ 72  5.08  Ownership of Property; Liens; Investments ................................................................ 72  5.09  Environmental Compliance ........................................................................................... 73  5.10  Insurance ......................................................................................................................... 74  5.11  Taxes ................................................................................................................................ 74  5.12  ERISA Compliance ......................................................................................................... 74  5.13  Subsidiaries; Equity Interests; Loan Parties ................................................................ 75  5.14  Margin Regulations; Investment Company Act .......................................................... 76  5.15  Disclosure ......................................................................................................................... 76  5.16  Compliance with Laws ................................................................................................... 76  5.17  Intellectual Property; Licenses, Etc .............................................................................. 76  5.18  Solvency ........................................................................................................................... 77  5.19  Casualty, Etc .................................................................................................................... 77  5.20  Labor Matters ................................................................................................................. 77  5.21  Collateral Documents ..................................................................................................... 77  5.22  Foreign Assets Control Regulations, Etc ...................................................................... 77  5.23  Affected Financial Institutions ....................................................................................... 78  Article VI AFFIRMATIVE COVENANTS ............................................................................................... 78  6.01  Financial Statements ....................................................................................................... 78  6.02  Certificates; Other Information .................................................................................... 79  6.03  Notices .............................................................................................................................. 80  6.04  Payment of Obligations .................................................................................................. 81  6.05  Preservation of Existence, Etc ....................................................................................... 81  6.06  Maintenance of Properties ............................................................................................. 81  6.07  Maintenance of Insurance .............................................................................................. 81  6.08  Compliance with Laws ................................................................................................... 82  6.09  Books and Records .......................................................................................................... 82  6.10  Inspection Rights ............................................................................................................. 82  6.11  Use of Proceeds ................................................................................................................ 82  6.12  Covenant to Guarantee Obligations and Give Security .............................................. 82  6.13  Compliance with Environmental Laws ......................................................................... 84  6.14  Further Assurances ......................................................................................................... 84  6.15  Material Contracts .......................................................................................................... 85  6.16  Cash Management Arrangements ................................................................................. 85  6.17  Compliance with Anti-Corruption Laws; Beneficial Ownership Regulation,  Anti-Money Laundering Laws and Sanctions .............................................................. 85  Article VII NEGATIVE COVENANTS ..................................................................................................... 85  7.01  Liens ................................................................................................................................. 85  7.02  Indebtedness .................................................................................................................... 86  7.03  Investments ...................................................................................................................... 87  7.04  Mergers, Consolidations and Sales of Assets ................................................................ 89  7.05  Dividends and Distributions, Restrictions on Ability of Subsidiaries to Pay  Dividends ......................................................................................................................... 90  7.06  Nature of Business .......................................................................................................... 92  7.07  Transactions with Affiliates ........................................................................................... 92  7.08  Sanctions, Etc .................................................................................................................. 92  7.09  Use of Proceeds ................................................................................................................ 92  7.10  Financial Covenants ....................................................................................................... 92  

 

  iii    7.11  Amendments of Organization Documents .................................................................... 92  7.12  Accounting Changes ....................................................................................................... 93  7.13  Other Indebtedness and Agreements ............................................................................ 93  7.14  Sale and Lease-Back Transactions ................................................................................ 93  7.15  Operating Leases ............................................................................................................. 93  7.16  Swap Contracts ............................................................................................................... 93  7.17  Designated Subsidiary .................................................................................................... 93  7.18  Purchasing Coop ............................................................................................................. 93  Article VIII EVENTS OF DEFAULT AND REMEDIES ......................................................................... 94  8.01  Events of Default ............................................................................................................. 94  8.02  Remedies upon Event of Default ................................................................................... 96  8.03  Application of Funds ...................................................................................................... 97  8.04  Credit Bidding ................................................................................................................. 98  Article IX ADMINISTRATIVE AGENT ................................................................................................... 98  9.01  Appointment and Authority .......................................................................................... 98  9.02  Rights as a Lender .......................................................................................................... 99  9.03  Exculpatory Provisions ................................................................................................... 99  9.04  Reliance by Administrative Agent ............................................................................... 100  9.05  Delegation of Duties ...................................................................................................... 100  9.06  Resignation of Administrative Agent .......................................................................... 101  9.07  Non-Reliance on Administrative Agent and Other Lenders ..................................... 102  9.08  No Other Duties, Etc ..................................................................................................... 102  9.09  Administrative Agent May File Proofs of Claim ........................................................ 102  9.10  Collateral and Guaranty Matters ................................................................................ 103  9.11  Secured Cash Management Agreements and Secured Hedge Agreements ............. 104  9.12  Erroneous Payments ..................................................................................................... 104  Article X MISCELLANEOUS ................................................................................................................. 106  10.01  Amendments, Etc .......................................................................................................... 106  10.02  Notices; Effectiveness; Electronic Communications .................................................. 108  10.03  No Waiver; Cumulative Remedies; Enforcement ...................................................... 110  10.04  Expenses; Indemnity; Damage Waiver ....................................................................... 111  10.05  Payments Set Aside ....................................................................................................... 113  10.06  Successors and Assigns ................................................................................................. 113  10.07  Treatment of Certain Information; Confidentiality .................................................. 117  10.08  Right of Setoff ................................................................................................................ 118  10.09  Interest Rate Limitation ............................................................................................... 119  10.10  Counterparts; Integration; Effectiveness ................................................................... 119  10.11  Survival of Representations and Warranties ............................................................. 119  10.12  Severability .................................................................................................................... 119  10.13  Replacement of Lenders ............................................................................................... 119  10.14  Governing Law; Jurisdiction; Etc ............................................................................... 120  10.15  Waiver of Jury Trial ..................................................................................................... 121  10.16  No Advisory or Fiduciary Responsibility ................................................................... 121  10.17  Electronic Execution ..................................................................................................... 122  10.18  USA PATRIOT Act ...................................................................................................... 123  10.19  Release of Collateral ..................................................................................................... 123  10.20  Amendment and Restatement ...................................................................................... 123  10.21  ERISA Lender Representation .................................................................................... 124  

 

  iv    10.22  Acknowledgement and Consent to Bail-In of Affected Financial Institutions ........ 125  10.23  Acknowledgement Regarding Any Supported QFCs ................................................ 125    

 

  v      EXHIBITS  Form of  A Committed Loan Notice  B Note  C Compliance Certificate  D Assignment and Assumption  

 

      FOURTH AMENDED AND RESTATED CREDIT AGREEMENT  This FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”) is  entered into as of August 26, 2021, among DENNY’S, INC., a Florida corporation (“Denny’s” or the  “Borrower”), DENNY’S CORPORATION, a Delaware corporation (“Parent”), each of those  Subsidiaries of Parent identified as a “Guarantor” on the signature pages hereto and such other  Subsidiaries of Parent as may from time to time become a party hereto (Parent and such Subsidiaries,  each a “Guarantor” and collectively, the “Guarantors”), each lender from time to time party hereto  (collectively, the “Lenders” and individually, a “Lender”), and WELLS FARGO BANK, NATIONAL  ASSOCIATION, as Administrative Agent and L/C Issuer.  PRELIMINARY STATEMENTS:  WHEREAS, the Borrower is party to that certain Third Amended and Restated Credit  Agreement, dated as of October 26, 2017, among the Borrower, the Parent, the Guarantors parties thereto,  the several banks and other financial institutions parties thereto (the “Existing Lenders”) and the  Administrative Agent (as amended, modified or supplemented prior to the date hereof, the “Existing  Credit Agreement”), pursuant to which the Existing Lenders have agreed to make loans and other  financial accommodations to the Borrower; and  WHEREAS, the Borrower has requested, and, subject to the terms and conditions hereof, the  Administrative Agent and the Lenders have agreed to amend and restate the Existing Credit Agreement  and provide certain credit facilities to the Borrower on the terms and conditions of this Agreement.  NOW THEREFORE, in consideration of the mutual covenants and agreements herein  contained, the parties hereto covenant and agree as follows:  ARTICLE I    DEFINITIONS AND ACCOUNTING TERMS  1.01 Defined Terms.  As used in this Agreement, the following terms shall have the meanings  set forth below:  “Administrative Agent” means Wells Fargo in its capacity as administrative agent and collateral  agent under any of the Loan Documents, or any successor administrative agent.  “Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate,  account as set forth on Schedule 10.02 of the Disclosure Schedules, or such other address or account as  the Administrative Agent may from time to time notify to the Borrower and the Lenders.  “Administrative Questionnaire” means an Administrative Questionnaire in a form approved by  the Administrative Agent.  “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial  Institution.   “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.  

 

  2    “Agent Parties” has the meaning specified in Section 10.02(c).  “Aggregate Commitments” means the Commitments of all the Lenders.  “Agreement” has the meaning specified in the introductory paragraph hereto.  “Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to  the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption,  including, without limitation, the United States Foreign Corrupt Practices Act of 1977 and the rules and  regulations thereunder and the U.K. Bribery Act 2010 and the rules and regulations thereunder.  “Anti-Money Laundering Laws” means any and all laws, statutes, regulations or obligatory  government orders, decrees, ordinances or rules applicable to a Loan Party, its Subsidiaries or Affiliates  related to terrorism financing or money laundering, including any applicable provision of the Patriot Act  and The Currency and Foreign Transactions Reporting Act (also known as the “Bank Secrecy Act,” 31  U.S.C. §§ 5311-5330 and 12U.S.C. §§ 1818(s), 1820(b) and 1951-1959).   “Applicable Law” means all applicable provisions of constitutions, laws, statutes, ordinances,  rules, treaties, regulations, permits, licenses, approvals, interpretations and orders of Governmental  Authorities and all orders and decrees of all courts and arbitrators.  “Applicable Percentage” means with respect to any Lender at any time, the percentage (carried  out to the ninth decimal place) of the Revolving Credit Facility represented by such Lender’s  Commitment at such time, subject to adjustment as provided in Section 2.15.  If the commitment of each  Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been  terminated pursuant to Section 8.02, or if the Commitments have expired, then the Applicable Percentage  of each Lender shall be determined based on the Applicable Percentage of such Lender most recently in  effect, giving effect to any subsequent assignments.  The initial Applicable Percentage of each Lender is  set forth opposite the name of such Lender on Schedule 2.01 of the Disclosure Schedules or in the  Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.  “Applicable Rate” with respect to Loans, Letters of Credit and the Commitment Fee, the  following percentages per annum, based upon the Consolidated Leverage Ratio as set forth in the most  recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a):  Pricing  Tier  Consolidated  Leverage Ratio  Commitment  Fee  Eurodollar  Rate +  Standby  Letter of  Credit  Fees  Commercial  Letter of  Credit Fees  Base  Rate +  I Greater than or equal to  3.00 to 1.00  0.35% 2.25% 2.25% 2.25% 1.25%  II Greater than or equal to  2.50 to 1.00, but less  than 3.00 to 1.00  0.30% 2.00% 2.00% 2.00% 1.00%  III Greater than or equal to  2.00 to 1.00, but less  than 2.50 to 1.00  0.25% 1.75% 1.75% 1.75% 0.75%  IV Less than 2.00 to 1.00 0.20% 1.50% 1.50% 1.50% 0.50%    

 

  3    Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage  Ratio shall become effective as of the first Business Day immediately following the date a Compliance  Certificate is delivered pursuant to Section 6.02(a) reporting such change; provided, however, that if a  Compliance Certificate is not delivered when due in accordance with such Section, then, upon the request  of the Required Lenders, Pricing Tier I shall apply as of the first Business Day after the date on which  such Compliance Certificate was required to have been delivered and shall continue to apply until the first  Business Day immediately following the date a Compliance Certificate is delivered in accordance with  Section 6.02(a), whereupon the Applicable Rate shall be adjusted based upon the calculation of the  Consolidated Leverage Ratio contained in such Compliance Certificate.  The Applicable Rate in effect  from the Closing Date to the first Business Day immediately following the date a Compliance Certificate  is delivered pursuant to Section 6.02(a) for the fiscal quarter ending September 29, 2021 shall be  determined based upon Pricing Tier I.  Notwithstanding anything to the contrary contained in this  definition, the determination of the Applicable Rate for any period shall be subject to the provisions of  Section 2.09(b).    “Appropriate Lender” means, at any time, (a) with respect to the Revolving Credit Facility, a  Lender that has a Commitment or a Loan at such time, and (b) with respect to the Letter of Credit  Sublimit, (i) the L/C Issuer and (ii) if any Letters of Credit have been issued pursuant to Section 2.03(a),  the Lenders.  “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an  Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.  “Arrangers” means, collectively, Wells Fargo Securities, Truist Securities, Inc., Bank of the West  and Regions Capital Markets, a division of Regions Bank, in their capacities as joint lead arrangers and  joint bookrunners.  “Asset Sale” means any sale, lease, transfer, license, assignment or other disposition (by merger  or otherwise) of any assets (including trademarks and other intangibles), business units, individual  business assets or other property of any Loan Party or any Subsidiary of any Loan Party (or the granting  of any option or other right with respect to any of the foregoing), including the sale, transfer or disposition  of any real property, to any person other than a Loan Party; provided, however, that none of the following  shall be deemed to be an Asset Sale: (a) the sale of inventory in the ordinary course of business, (b) leases  or subleases of real property in the ordinary course of business not interfering in any material respect with  the business of the Loan Parties taken as a whole or (c) the sale of damaged, worn-out or obsolete assets  made pursuant to Section 7.04(b).  The term Asset Sale shall include any Refranchising Asset Sale.  “Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or two  or more Approved Funds managed by the same investment advisor.  “Assignment and Assumption” means an assignment and assumption entered into by a Lender  and an assignee (with the consent of any party whose consent is required by Section 10.06(b)), and  accepted by the Administrative Agent, in substantially the form of Exhibit D or any other form approved  by the Administrative Agent.  “Attributable Indebtedness” means, on any date, (a) in respect of any Capitalized Lease  Obligation of any Person, the capitalized amount thereof that would appear on a balance sheet of such  Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease  Obligation, the capitalized amount of the remaining lease or similar payments under the relevant lease or  other applicable agreement or instrument that would appear on a balance sheet of such Person prepared as  

 

  4    of such date in accordance with GAAP if such lease or other agreement or instrument were accounted for  as a Capitalized Lease Obligation and (c) all Synthetic Debt of such Person.  “Audited Financial Statements” means the audited consolidated balance sheet of Parent and its  Subsidiaries for the fiscal year ended December 30, 2020, and the related consolidated statements of  income or operations, shareholders’ equity and cash flows for such fiscal year of Parent and its  Subsidiaries, including the notes thereto.  “Auto-Extension Letter of Credit” has the meaning specified in Section 2.03(b)(ii).  “Availability Period” means the period from and including the Closing Date to the earliest of (a)  the Maturity Date, (b) the date of termination of the Commitments pursuant to Section 2.05, and (c) the  date of termination of the commitment of each Lender to make Loans and of the obligation of the L/C  Issuer to make L/C Credit Extensions pursuant to Section 8.02.  “Available Tenor” means, as of any date of determination and with respect to the then-current  Benchmark, as applicable, (a) if the then-current Benchmark is a term rate, any tenor for such Benchmark  or (b) otherwise, any payment period for interest calculated with reference to such Benchmark, as  applicable, that is or may be used for determining the length of an Interest Period pursuant to this  Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark  that is then-removed from the definition of “Interest Period” pursuant to Section 3.03(b)(iv).  “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable Resolution Authority in respect of any liability of an Affected Financial Institution.  “Bail-In Legislation” means (a) 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, regulation rule or requirement for such EEA Member Country from time to time  which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom,  Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law,  regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks,  investment firms or other financial institutions or their affiliates (other than through liquidation,  administration or other insolvency proceedings).  “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%, (b) the rate of interest in effect for such day as publicly announced from time  to time by Wells Fargo as its “Prime Rate,” and (c) LIBOR for an Interest Period of one month plus  1.00% (provided that clause (c) shall not be applicable during any period in which LIBOR is unavailable  or unascertainable); and if the Base Rate shall be less than zero, such rate shall be deemed zero for  purposes of this Agreement.  The “Prime Rate” is a rate set by Wells Fargo based upon various factors  including Wells Fargo’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 Prime Rate announced by Wells Fargo 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.  “Benchmark” means, initially, USD LIBOR; provided that if a Benchmark Transition Event, a  Term SOFR Transition Event, an Early Opt-in Election or an Other Benchmark Rate Election, as  applicable, and its related Benchmark Replacement Date have occurred with respect to USD LIBOR or  the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the  

 

  5    extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section  3.03(b)(i).  “Benchmark Replacement” means, for any Available Tenor,  (a) with respect to any Benchmark Transition Event or Early Opt-in Election, the first  alternative set forth in the order below that can be determined by the Administrative Agent for the  applicable Benchmark Replacement Date:    (i) the sum of: (A) Term SOFR and (B) the related Benchmark Replacement  Adjustment; provided, that, if the Borrower has provided a notification to the Administrative  Agent in writing on or prior to such Benchmark Replacement Date that the Borrower has a  Secured Hedge Agreement in place with respect to any of the Loans as of the date of such notice  (which such notification the Administrative Agent shall be entitled to rely upon and shall have no  duty or obligation to ascertain the correctness or completeness of), then the Administrative Agent,  in its sole discretion, may decide not to determine the Benchmark Replacement pursuant to this  clause (a)(i) for such Benchmark Transition Event or Early Opt-in Election, as applicable;  (ii) the sum of: (A) Daily Simple SOFR and (B) the related Benchmark Replacement  Adjustment;   (iii) the sum of: (A) the alternate benchmark rate that has been selected by the  Administrative Agent and the Borrower as the replacement for the then-current Benchmark for  the applicable Corresponding Tenor giving due consideration to (x) any selection or  recommendation of a replacement benchmark rate or the mechanism for determining such a rate  by the Relevant Governmental Body or (y) any evolving or then-prevailing market convention for  determining a benchmark rate as a replacement for the then-current Benchmark for Dollar- denominated syndicated credit facilities at such time and (B) the related Benchmark Replacement  Adjustment; or  (b) with respect to any Term SOFR Transition Event, the sum of (i) Term SOFR and (ii) the  related Benchmark Replacement Adjustment; or  (c) with respect to any Other Benchmark Rate Election, the sum of: (i) the alternate  benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement  for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any  evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the  then-current Benchmark for Dollar-denominated syndicated credit facilities at such time and (ii) the  related Benchmark Replacement Adjustment;  provided that, (i) in the case of clause (a)(i), if the Administrative Agent decides that Term SOFR is not  administratively feasible for the Administrative Agent, then Term SOFR will be deemed unable to be  determined for purposes of this definition and (ii) in the case of clause (a)(i) or clause (b) of this  definition, the applicable Unadjusted Benchmark Replacement is displayed on a screen or other  information service that publishes such rate from time to time as selected by the Administrative Agent in  its reasonable discretion.  If the Benchmark Replacement as determined pursuant to clause (a)(i), (a)(ii) or  (a)(iii), clause (b) or clause (c) of this definition would be less than the Floor, the Benchmark  Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan  Documents.  

 

  6    “Benchmark Replacement Adjustment” means, with respect to any replacement of the then- current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period and  Available Tenor for any setting of such Unadjusted Benchmark Replacement:   (i) for purposes of clauses (a)(i) and (b) of the definition of “Benchmark Replacement,” an  amount equal to (A) 0.11448% (11.448 basis points) for an Available Tenor of one- month’s duration, (B) 0.26161% (26.161 basis points) for an Available Tenor of three- months’ duration and (C) 0.42826% (42.826 basis points) for an Available Tenor of six- months’ duration;  (ii) for purposes of clause (a)(ii) of the definition of “Benchmark Replacement,” an amount  equal to 0.26161% (26.161 basis points);  (iii) for purposes of clause (a)(iii) of the definition of “Benchmark Replacement,” the spread  adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or  negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due  consideration to (A) any selection or recommendation of a spread adjustment, or method for calculating  or determining such spread adjustment, for the replacement of such Available Tenor of such Benchmark  with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the  applicable Benchmark Replacement Date or (B) any evolving or then-prevailing market convention for  determining a spread adjustment, or method for calculating or determining such spread adjustment, for the  replacement of such Available Tenor of such Benchmark with the applicable Unadjusted Benchmark  Replacement for Dollar-denominated syndicated credit facilities; and  (iv) for purposes of clause (c) of the definition of “Benchmark Replacement,” the spread  adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or  negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due  consideration to any evolving or then-prevailing market convention for determining a spread adjustment,  or method for calculating or determining such spread adjustment, for the replacement of such Available  Tenor of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar- denominated syndicated credit facilities.  “Benchmark Replacement Conforming Changes” means, with respect to any Benchmark  Replacement, any technical, administrative or operational changes (including changes to the definition of  “Base Rate,” the definition of “Business Day,” the definition of “Interest Period,” timing and frequency of  determining rates and making payments of interest, timing of borrowing requests or prepayment,  conversion or continuation notices, length of lookback periods, the applicability of breakage provisions,  and other technical, administrative or operational matters) that the Administrative Agent decides may be  appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the  administration thereof by the Administrative Agent in a manner substantially consistent with market  practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is  not administratively feasible or if the Administrative Agent determines that no market practice for the  administration of such Benchmark Replacement exists, in such other manner of administration as the  Administrative Agent decides is reasonably necessary in connection with the administration of this  Agreement and the other Loan Documents).   “Benchmark Replacement Date” means the earliest to occur of the following events with respect  to the then-current Benchmark:  (a) in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the  later of (i) the date of the public statement or publication of information referenced therein and (ii) the  

 

  7    date on which the administrator of such Benchmark (or the published component used in the calculation  thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such  component thereof);  (b) in the case of clause (c) of the definition of “Benchmark Transition Event,” the date of  the public statement or publication of information referenced therein;  (c) in the case of a Term SOFR Transition Event, the date that is thirty (30) days after the  Administrative Agent has provided the Term SOFR Notice to the Lenders and the Borrower pursuant to  Section 3.03(b)(i)(B); or  (d) in the case of an Early Opt-in Election or an Other Benchmark Rate Election, the sixth  (6th) Business Day after the date notice of such Early Opt-in Election or Other Benchmark Rate Election,  as applicable, is provided to the Lenders, so long as the Administrative Agent has not received, by 5:00  p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in  Election or Other Benchmark Rate Election, as applicable, is provided to the Lenders, written notice of  objection to such Early Opt-in Election or Other Benchmark Rate Election, as applicable, from Lenders  comprising the Required Lenders.  For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the  same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark  Replacement Date will be deemed to have occurred prior to the Reference Time for such determination  and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (a) or  (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein  with respect to all then-current Available Tenors of such Benchmark (or the published component used in  the calculation thereof).  “Benchmark Transition Event” means the occurrence of one or more of the following events with  respect to the then-current Benchmark:  (a) a public statement or publication of information by or on behalf of the administrator of  such Benchmark (or the published component used in the calculation thereof) announcing that such  administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such  component thereof), permanently or indefinitely, provided that, at the time of such statement or  publication, there is no successor administrator that will continue to provide any Available Tenor of such  Benchmark (or such component thereof);  (b) a public statement or publication of information by the regulatory supervisor for the  administrator of such Benchmark (or the published component used in the calculation thereof), the FRB,  the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for  such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for  such Benchmark (or such component) or a court or an entity with similar insolvency or resolution  authority over the administrator for such Benchmark (or such component), which states that the  administrator of such Benchmark (or such component) has ceased or will cease to provide all Available  Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the  time of such statement or publication, there is no successor administrator that will continue to provide any  Available Tenor of such Benchmark (or such component thereof); or  (c) a public statement or publication of information by the regulatory supervisor for the  administrator of such Benchmark (or the published component used in the calculation thereof)  

 

  8    announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer  representative.  For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with  respect to any Benchmark if a public statement or publication of information set forth above has occurred  with respect to each then-current Available Tenor of such Benchmark (or the published component used  in the calculation thereof).  “Benchmark Unavailability Period” means the period (if any) (x) beginning at the time that a  Benchmark Replacement Date pursuant to clauses (a) or (b) of that definition has occurred if, at such  time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder  and under any Loan Document in accordance with Section 3.03(b) and (y) ending at the time that a  Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under  any Loan Document in accordance with Section 3.03(b).  “Beneficial Ownership Certification” means a certification regarding beneficial ownership as  required by the Beneficial Ownership Regulation.  “Beneficial Ownership Regulation” means 31 CFR § 1010.230.  “Borrower” has the meaning specified in the introductory paragraph hereto.  “Borrower Materials” has the meaning specified in Section 6.02.  “Borrowing” means a borrowing consisting of simultaneous Loans of the same Type and, in the  case of Eurodollar Rate Loans, having the same Interest Period made by each of the Lenders pursuant to  Section 2.01.  “Business Day” means any day other than a Saturday, Sunday or other day on which commercial  banks are authorized to close under the Applicable Laws of, or are in fact closed in, the state where the  Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate Loan or any Base  Rate Loan as to which the interest rate is determined by reference to the Eurodollar Rate, means any such  day on which dealings in Dollar deposits are conducted by and between banks in the London interbank  eurodollar market.  “Capital Lease Obligations” of any Person means, subject to Section 1.03(b), the obligations of  such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to  use) real or personal property, or a combination thereof, which obligations are required to be classified  and accounted for as finance leases on a balance sheet of such Person under GAAP, and the amount of  such obligations shall be the capitalized amount thereof determined in accordance with GAAP.  “Captive Insurance Company Subsidiary” means any direct or indirect Subsidiary of Parent that  may be organized following the Closing Date and is or is intended by Parent to be made subject to  regulation as an insurance company or the principal purpose of which is to procure insurance for the  benefit of Parent and/or its Subsidiaries.  “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for  the benefit of the Administrative Agent or the L/C Issuer (as applicable) and the Lenders, as collateral for  L/C Obligations or obligations of the Lenders to fund participations in respect of L/C Obligations, cash or  deposit account balances or, if the Administrative Agent and the L/C Issuer shall agree in their sole  discretion, other credit support, in each case pursuant to documentation in form and substance satisfactory  

 

  9    to (a) the Administrative Agent and (b) the L/C Issuer.  “Cash Collateral” shall have a meaning  correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.  “Cash Management Agreement” means any agreement to provide cash management services,  including treasury, depository, overdraft, credit or debit card, electronic funds transfer, purchasing card  programs and other cash management arrangements.  “Cash Management Bank” means (a) any Person that, at the time it enters into a Cash  Management Agreement, is a Lender or an Affiliate of a Lender, in its capacity as a party to such Cash  Management Agreement, and (b) any Lender on the Closing Date or Affiliate of such Lender that is a  party to a Cash Management Agreement with any Loan Party in existence on the Closing Date.  “CFC” means a Person that is a controlled foreign corporation under Section 957 of the Code.  “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, (b) any change in any law, rule,  regulation or treaty or in the administration, interpretation, implementation or application thereof by any  Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive  (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding  anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and  all requests, rules, guidelines or directives thereunder or issued in connection therewith 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 or foreign  regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in  Law”, regardless of the date enacted, adopted, implemented or issued.  “Change of Control” means an event or series of events by which:  (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of  the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or  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 13d-3 and  13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed  to have “beneficial ownership” of all securities that such person or group has the right to acquire,  whether such right is exercisable immediately or only after the passage of time (such right, an  “option right”)), directly or indirectly, of 35% or more of the equity securities of Parent entitled to  vote for members of the board of directors or equivalent governing body of Parent on a  fully-diluted basis (and taking into account all such securities that such “person” or “group” has  the right to acquire pursuant to any option right); or  (b) during any period of 12 consecutive months, a majority of the members of the  board of directors or other equivalent governing body of Parent cease to be composed of  individuals (i) who were members of that board or equivalent governing body on the first day of  such period, (ii) whose election or nomination to that board or equivalent governing body was  approved by individuals referred to in clause (i) above constituting at the time of such election or  nomination at least a majority of that board or equivalent governing body or (iii) whose election  or nomination to that board or other equivalent governing body was approved by individuals  referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at  least a majority of that board or equivalent governing body; or  

 

  10    (c) Parent shall cease, directly or indirectly, to own and control legally and  beneficially all of the Equity Interests in the Borrower.  “Closing Date” means the first date all the conditions precedent in Section 4.01 are satisfied or  waived in accordance with Section 10.01.  “Co-Documentation Agents” means Cadence Bank, N.A. and Fifth Third Bank, National  Association, each in its capacity as co-documentation agent.  “Co-Syndication Agents” means Truist Bank, Bank of the West and Regions Bank, in their  capacity as co-syndication agents.  “Code” means the Internal Revenue Code of 1986.  “Collateral” means all of the “Collateral” referred to in the Collateral Documents and all of the  other property that is or is intended under the terms of the Collateral Documents to be subject to Liens in  favor of the Administrative Agent for the benefit of the Secured Parties.  For the avoidance of doubt, all  real property assets owned by the Loan Parties shall be excluded from the Collateral.  “Collateral Documents” means, collectively, the Guarantee and Collateral Agreement, the IP  Security Agreement, collateral assignments, Guarantee and Collateral Agreement Supplements, IP  Security Agreement supplements, security agreements, pledge agreements or other similar agreements  delivered to the Administrative Agent pursuant to Section 6.12, 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.  “Commitment” means, as to each Lender, its obligation to (a) make Loans to the Borrower  pursuant to Section 2.01, and (b) purchase participations in L/C Obligations, in an aggregate principal  amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on  Schedule 2.01 of the Disclosure Schedules under the caption “Commitment” or opposite such caption in  the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as  such amount may be adjusted from time to time in accordance with this Agreement.  “Commitment Fee” has the meaning specified in Section 2.08(a).  “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 Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in  writing, shall be substantially in the form of Exhibit A.  “Compliance Certificate” means a certificate substantially in the form of Exhibit C.  “Consolidated Capital Expenditures” means, with respect to any period, without duplication, the  sum of the aggregate of all expenditures (whether paid in cash or other consideration or accrued as a  liability) by Parent and its Subsidiaries during such period that, in conformity with GAAP, would be  included in “additions to property, plant or equipment” or comparable items reflected in the consolidated  statement of cash flows of Parent and its Subsidiaries for such period, including (a) Capital Lease  Obligations and (b) expenditures for equipment that is purchased simultaneously with the trade-in of  existing equipment owned by Parent or any Subsidiary of Parent to the extent of the gross amount of the  purchase price less the book value of the equipment being traded in at such time, but excluding (i) interest  capitalized during construction and (ii) expenditures made in connection with the replacement or  restoration of assets, to the extent reimbursed or financed from insurance proceeds paid on account of the  

 

  11    loss of or the damage to the assets being replaced or restored, or from awards of compensation arising  from the taking by condemnation or eminent domain of such assets being replaced, and net of cash  amounts received by Parent and its Subsidiaries from other Persons during that period in reimbursement  of Consolidated Capital Expenditures made by Parent and its Subsidiaries.  “Consolidated Cash Interest Expense” means, for any Measurement Period, Consolidated Interest  Expense plus cash payments made with respect to any de-designated Swap Contracts minus the sum,  without duplication, of (a) interest not paid in cash (including amortization of (x) discount and deferred  debt expenses and (y) fees with respect to interest rate Swap Contracts) in connection with the incurrence  of Indebtedness to the extent included in interest expense in accordance with GAAP (including such fees  and expenses in connection with the Transactions), (b) interest expense related to discounted liabilities  that is treated as interest in accordance with GAAP, and (c) all cash receipts with respect to any de- designated Swap Contracts.  “Consolidated Cash Taxes” means, for any Measurement Period, for Parent and its Subsidiaries  on a consolidated basis, the aggregate of all Federal, state, local and foreign income taxes, as determined  in accordance with GAAP, to the extent the same are paid in cash during such Measurement Period.  “Consolidated EBITDA” means, at any date of determination, an amount equal to Consolidated  Net Income of Parent and its Subsidiaries on a consolidated basis for the most recently completed  Measurement Period plus (a) the following to the extent deducted in calculating such Consolidated Net  Income: (i) Consolidated Interest Expense, (ii) the provision for Federal, state, local and foreign income  taxes payable, (iii) depreciation and amortization expense, (iv) other non-cash charges (including, without  limitation, stock compensation expenses, deferred compensation adjustments, impairment charges,  restructuring and exit costs, and other non-operating expenses (income)), (v) the cumulative effect of any  change in accounting principles, (vi) any net loss attributable to an Asset Sale, (vii) any non-recurring  expenses related to, arising out of or incurred in connection with the Transactions (in each case of or by  Parent and its Subsidiaries for such Measurement Period) and (viii) lease buy-out payments in an amount  not to exceed $1,000,000 in any Measurement Period and minus, (b) the following to the extent included  in calculating such Consolidated Net Income: (i) the amount of cash expended in such Measurement  Period in respect of any amount that, under clause (a)(iv) above, was taken into account in determining  Consolidated EBITDA for such or any prior Measurement Period, (ii) any net gain attributable to an  Asset Sale, (iii) Federal, state, local and foreign income tax credits and (iv) other non-cash  items (including, without limitation, stock compensation benefits, deferred compensation adjustments,  restructuring and exit cost reversals, and other non-operating income) increasing Consolidated Net  Income, in each case of or by Parent and its Subsidiaries for such Measurement Period (excluding any  non-cash items increasing Consolidated Net Income pursuant to FASB ASC 606 relating to the  recognition of franchise fee revenue); provided, however, that after the occurrence of any acquisition of  any Person by Parent or any Subsidiary of Parent, Consolidated EBITDA for each Measurement Period  that includes the date of occurrence of such acquisition will, solely for purposes of determining  compliance with Section 7.10(a), be determined on a pro forma basis, based on the actual historical  results of operations of such Person, as if such acquisition had occurred on the first day of such  Measurement Period.  “Consolidated EBITDAR” means, at any date of determination, the sum of (a) Consolidated  EBITDA plus (b) Consolidated Lease Expense to the extent deducted in determining Consolidated Net  Income for the Measurement Period most recently ended.  “Consolidated Fixed Charge Coverage Ratio” means, at any date of determination, the ratio of  (a) the sum of (i) Consolidated EBITDAR, less (ii) Consolidated Maintenance Capital Expenditures less  (iii) Consolidated Cash Taxes to (b) the sum of (i) Consolidated Cash Interest Expense, plus  

 

  12    (ii) Consolidated Scheduled Funded Debt Payments plus (iii) Consolidated Lease Expense, in each case,  of or by Parent and its Subsidiaries for the most recently completed Measurement Period.  “Consolidated Funded Indebtedness” means, as of any date of determination, for Parent and its  Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal amount of all obligations,  whether current or long-term, for borrowed money (including Obligations hereunder) and all obligations  evidenced by bonds, debentures, notes, loan agreements or other similar instruments, (b) all purchase  money Indebtedness, (c) all direct obligations arising under letters of credit (including standby and  commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments, (d) all  obligations in respect of the deferred purchase price of property or services (other than trade accounts  payable in the ordinary course of business), (e) all Attributable Indebtedness, (f) all obligations of such  Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity  Interests in such Person or any other Person prior to the Maturity Date, valued, in the case of a  redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus  accrued and unpaid dividends, (g) without duplication, all Guarantees with respect to outstanding  Indebtedness of the types specified in clauses (a) through (f) above of Persons other than Parent or any  Subsidiary of Parent, (h) all Indebtedness of the types referred to in clauses (a) through (g) above of any  partnership or joint venture (other than a joint venture that is itself a corporation or limited liability  company) in which Parent or a Subsidiary of a Parent is a general partner or joint venturer, unless such  Indebtedness is expressly made non-recourse to Parent or such Subsidiary, and (i) all Guarantees of  Operating Lease obligations of franchisees; provided, however, that (x) obligations of Parent and its  Subsidiaries in respect of (A) Swap Contracts entered into for purposes of hedging against fluctuations in  foreign currency, (B) Swap Contracts entered into for purposes of hedging against fluctuations in interest  rates and (C) Swap Contracts entered into in connection with any accelerated stock repurchase program  and (y) contingent reimbursement obligations in respect of Letters of Credit shall be excluded for  purposes of determining Consolidated Funded Indebtedness.  “Consolidated Growth Capital Expenditures” means, for any Measurement Period, (a) any  Consolidated Capital Expenditures relating to the construction or opening after the Closing Date of new  restaurants owned or operated by Parent or any of its Subsidiaries less (b) any capitalized interest expense  with respect to expenditures described in the foregoing clause (a).  “Consolidated Interest Expense” means, for any Measurement Period, the sum of (a) all interest,  premium payments, debt discount, fees, charges and related expenses in connection with borrowed money  (including capitalized interest) or in connection with the deferred purchase price of assets, net of cash  interest income, in each case to the extent treated as interest in accordance with GAAP, (b) the portion of  rent expense under Capital Lease Obligations that is treated as interest in accordance with GAAP, and  (c) interest expense related to discounted liabilities that is treated as interest in accordance with GAAP, in  each case, of or by Parent and its Subsidiaries on a consolidated basis for the most recently completed  Measurement Period.  “Consolidated Lease Expense” means, for any Measurement Period, an amount equal to (a) all  payment obligations during such Measurement Period under any Operating Lease minus (b) net rental  income in respect of subleases of real or personal property to franchisees, determined in accordance with  GAAP, in each case, of or by Parent and its Subsidiaries on a consolidated basis for such Measurement  Period.  “Consolidated Leverage Ratio” means, as of any date of determination, the ratio of  (a) Consolidated Funded Indebtedness (other than Indebtedness consisting of Guarantees by any Loan  Party of Operating Lease obligations of franchisees and Capital Lease Obligations of franchisees, in each  case, permitted pursuant to Section 7.02(j)) as of such date to (b) Consolidated EBITDA.    

 

  13    “Consolidated Maintenance Capital Expenditures” means, for any Measurement Period, any  Consolidated Capital Expenditures that are not Consolidated Growth Capital Expenditures (which, for the  avoidance of doubt, shall not include any Consolidated Capital Expenditures made in connection with any  exchange of property permitted under Section 7.04(c)).  “Consolidated Net Income” means, at any date of determination, the net income (or loss) of  Parent and its Subsidiaries on a consolidated basis for the most recently completed Measurement Period;  provided that Consolidated Net Income shall exclude (a) extraordinary gains and extraordinary losses for  such Measurement Period, (b) the net income of any Subsidiary (other than a Loan Party) during such  Measurement Period to the extent that the declaration or payment of dividends or similar distributions by  such Subsidiary of such income to a Loan Party is not permitted by operation of the terms of its  Organization Documents or any agreement, instrument or Law applicable to such Subsidiary during such  Measurement Period, except that Parent’s equity in any net loss of any such Subsidiary for such  Measurement Period shall be included in determining Consolidated Net Income, and (c) any income (or  loss) for such Measurement Period of any Person if such Person is not a Subsidiary, except that Parent’s  equity in the net income of any such Person for such Measurement Period shall be included in  Consolidated Net Income up to the aggregate amount of cash actually distributed by such Person during  such Measurement Period to Parent or a Subsidiary as a dividend or other distribution (and in the case of  a dividend or other distribution to a Subsidiary, such Subsidiary is not precluded from further distributing  such amount to a Loan Party as described in clause (b) of this proviso).  “Consolidated Scheduled Funded Debt Payments” means for any Measurement Period for Parent  and its Subsidiaries on a consolidated basis, the sum of all scheduled payments of principal on  Consolidated Funded Indebtedness, as determined in accordance with GAAP.  For purposes of this  definition, “scheduled payments of principal” (a) shall be determined without giving effect to any  reduction of such scheduled payments resulting from the application of any voluntary or mandatory  prepayments made during such Measurement Period, (b) shall be deemed to include the Attributable  Indebtedness in respect of Capital Lease Obligations and Synthetic Lease Obligations and (c) shall not  include any voluntary prepayments or mandatory prepayments during such Measurement Period required  pursuant to Section 2.04.  “Consolidated Total Assets” means, as of any date of determination, the total amount of all assets  of Parent and its Subsidiaries, determined on a consolidated basis in accordance with GAAP.  “Contractual Obligation” means, as to any Person, any provision of any security issued by such  Person or of any agreement, instrument or other undertaking to which such Person is a party or by which  it or any of its property is bound.  “Control” means the possession, directly or indirectly, of the power to direct or cause the  direction of the management or policies of a Person, whether through the ability to exercise voting power,  by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.  “Corresponding Tenor” with respect to any Available Tenor means, as applicable, either a tenor  (including overnight) or an interest payment period having approximately the same length (disregarding  business day adjustment) as such Available Tenor.  “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit  Extension.  “Daily Simple SOFR” means, for any day, SOFR, with the conventions for this rate (which will  include a lookback) being established by the Administrative Agent in accordance with the conventions for  

 

  14    this rate selected or recommended by the Relevant Governmental Body for determining “Daily Simple  SOFR” for syndicated business loans; provided, that if the Administrative Agent decides that any such  convention is not administratively feasible for the Administrative Agent, then the Administrative Agent  may establish another convention in its reasonable discretion.  “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 or condition that constitutes an Event of Default or that, with the  giving of any notice, the passage of time, or both, would be an Event of Default.  “Default Rate” means (a) when used with respect to Obligations other than Letter of Credit Fees,  an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable to Base Rate  Loans plus (iii) 2% per annum; provided, however, that with respect to a Eurodollar 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% per annum and (b) when used with respect to Letter of Credit Fees, a rate  equal to the Applicable Rate plus 2% per annum.  “Defaulting Lender” means, subject to Section 2.15(b), any Lender that (a) has failed to (i) fund  all or any portion of its Loans within two (2) Business Days of the date such Loans were required to be  funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that  such failure is the result of such Lender’s determination that one or more conditions precedent to funding  set forth herein (each of which conditions precedent, together with any applicable default, shall be  specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, the  L/C Issuer or any other Lender any other amount required to be paid by it hereunder (including in respect  of its participation in Letters of Credit) within two (2) Business Days of the date when due, unless such  payment is subject to a good faith dispute, (b) has notified the Borrower, the Administrative Agent or the  L/C Issuer in writing that it does not intend to comply with its funding obligations hereunder, or has made  a public statement to that effect (unless such writing or public statement relates to such Lender’s  obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination  that a condition precedent to funding set forth herein (which condition precedent, together with any  applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied),  (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the  Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its  prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting  Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent  and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject  of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator,  trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization  or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other  state or federal regulatory authority acting in such a capacity or (iii) become the subject of a Bail-In  Action; provided, that, a Lender shall not be a Defaulting Lender solely by virtue of the ownership or  acquisition of any Equity Interests 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) to reject,  repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination  by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a)  through (d) above, and of the effective date of such status, shall be conclusive and binding absent  

 

  15    manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.15(b)) as  of the date established therefor by the Administrative Agent in a written notice of such determination,  which shall be delivered by the Administrative Agent to the Borrower, the L/C Issuer, such Defaulting  Lender and each other Lender promptly following such determination.  “Denny’s” has the meaning specified in the introductory paragraph hereto.  “Denny’s Realty” means Denny’s Realty, LLC, a Delaware limited liability company.  “Designated Subsidiary” means La Mirada Enterprises No. 1, LLC; provided, however, that such  Person shall, automatically and without any further action or consent of the Administrative Agent or any  Lender, cease to be the “Designated Subsidiary” upon becoming a Guarantor hereunder.  “DFO” means DFO, LLC, a Delaware limited liability company.  “Disclosure Schedules” means a document in form and substance reasonably satisfactory to the  Administrative Agent, dated as of the Closing Date, setting forth disclosure schedules of the Loan Parties  and their Subsidiaries in respect of matters referenced in this Agreement, and as amended from time to  time.  “Dollar” and “$” mean lawful money of the United States.  “Early Opt-in Election” means, if the then-current Benchmark is USD LIBOR, the occurrence of:  (a) a notification by the Administrative Agent to (or the request by the Borrower to the  Administrative Agent to notify) each of the other parties hereto that at least five currently outstanding  Dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as  originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon  SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are  publicly available for review), and  (b) the joint election by the Administrative Agent and the Borrower to trigger a fallback from  USD LIBOR and the provision by the Administrative Agent of written notice of such election to the  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 clauses (a) or (b) of this definition and is subject to consolidated supervision  with its parent.  “EEA Member Country” means any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.  “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.  “Electronic Record” has the meaning assigned to that term in, and shall be interpreted in  accordance with, 15 U.S.C. 7006.  

 

  16    “Electronic Signature” has the meaning assigned to that term in, and shall be interpreted in  accordance with, 15 U.S.C. 7006.  “Eligible Assignee” means any Person that meets the requirements to be an assignee under  Sections 10.06(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under  Section 10.06(b)(iii)).  “Employee Deferred Compensation Account” means the account or accounts established by  Denny’s for the Rabbi Trust in Support of Denny’s Inc. Deferred Compensation Plan by agreement dated  June 21, 2002 between Denny’s and Reliance Trust Company as trustee, as the same may be amended  from time to time.  “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws,  regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises,  licenses, agreements or governmental restrictions relating to pollution and the protection of the  environment or the release of any materials into the environment, including those related to hazardous  substances or wastes, air emissions and discharges to waste or public systems.  “Environmental Liability” means any liability, contingent or otherwise (including any liability for  damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, any other  Loan Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon  (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage,  treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the  release or threatened release of any Hazardous Materials into the environment or (e) any contract,  agreement or other consensual arrangement pursuant to which liability is assumed or imposed with  respect to any of the foregoing.  “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 of capital stock of (or other  ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase  or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in)  such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other  ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition  from such Person of such shares (or such other interests), and all of the other ownership or profit interests  in such Person (including partnership, member or trust interests therein), whether voting or nonvoting,  and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of  determination.  “ERISA” means the Employee Retirement Income Security Act of 1974.  “ERISA Affiliate” means any trade or business (whether or not incorporated) under common  control with Parent or the Borrower within the meaning of Section 414(b) or (c) of the Code (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) the withdrawal  of Parent or the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA  during a plan year in which such entity 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 Parent or the Borrower or any ERISA Affiliate from a  

 

  17    Multiemployer Plan; (d) the filing of a notice of intent to terminate, the treatment of a Pension Plan  amendment as a termination under Section 4041 or 4041A of ERISA; (e) the institution by the PBGC of  proceedings to terminate a Pension Plan; (f) any event or condition which constitutes grounds under  Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension  Plan; (g) the determination that any Pension Plan is considered an at-risk plan or a plan in endangered or  critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305  of ERISA; or (h) 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 Parent or the Borrower or any ERISA  Affiliate.  “Erroneous Payment” has the meaning assigned thereto in Section 9.12(a).  “Erroneous Payment Deficiency Assignment” has the meaning assigned thereto in Section  9.12(d).  “Erroneous Payment Return Deficiency” has the meaning assigned thereto in Section 9.12(d).  “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the  Loan Market Association (or any successor person), as in effect from time to time.  “Eurodollar Rate” means a rate per annum determined by the Administrative Agent pursuant to  the following formula:  Eurodollar Rate = LIBOR   1.00-Eurodollar Reserve Percentage   “Eurodollar Rate Loan” means a Loan that bears interest at a rate based on clause (a) of the  definition of “LIBOR”, or based on the Benchmark Replacement, if then applicable.  “Event of Default” has the meaning specified in Section 8.01.  “Excluded Subsidiaries” means, (a) any Immaterial Subsidiary, (b) any CFC or a Subsidiary that  is held directly or indirectly by a CFC and (c) any Designated Subsidiary.   “Excluded Swap Obligation” shall have the meaning assigned to such term in the Guarantee and  Collateral Agreement.  “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C Issuer or  any other recipient of any payment to be made by or on account of any obligation of the Borrower  hereunder, (a) taxes imposed on or measured by its overall net income (however denominated), and  franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision  thereof) under the Applicable Laws of which such recipient is organized or in which its principal office is  located or, in the case of any Lender, in which its applicable Lending Office is located, (b) any branch  profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which  the Borrower is located, (c) any backup withholding tax that is required by the Code to be withheld from  amounts payable to a Lender that has failed to comply with clause (A) of Section 3.01(e)(ii), (d) in the  case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under  Section 10.13), any United States withholding tax that (i) is required to be imposed on amounts payable to  such Foreign Lender pursuant to the Applicable Laws in force at the time such Foreign Lender becomes a  party hereto (or designates a new Lending Office) or (ii) is attributable to such Foreign Lender’s failure or  

 

  18    inability (other than as a result of a Change in Law) to comply with clause (B) of Section 3.01(e)(ii),  except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of  designation of a new Lending Office (or assignment), to receive additional amounts from the Borrower  with respect to such withholding tax pursuant to Section 3.01(a)(ii) and (e) any withholding Taxes  imposed under FATCA.  “Existing Credit Agreement” has the meaning specified in the introductory paragraph hereto.  “Existing Lenders” has the meaning specified in the introductory paragraph hereto.  “Existing Letters of Credit” means each letter of credit identified on Schedule 1.01(a) of the  Disclosure Schedules.  “Fair Market Value” means, with respect to any asset, the value of the consideration obtainable in  a sale of such asset in the open market at a specific date assuming a sale by a willing seller to a willing  purchaser dealing at arm’s length and arranged in an orderly manner over a reasonable period of time  having regard to the nature and characteristics of such asset, which value shall, for any asset with a Fair  Market Value in excess of $5,000,000, be either (a) the value of such asset as determined in good faith by  the Board of Directors of Parent or (b) if such asset shall have been the subject of an appraisal done  reasonably contemporaneously by any independent third-party appraiser engaged by Administrative  Agent, any Lender or Loan Party and the basic assumptions underlying such appraisal are reasonable, the  value of such asset as stated in such appraisal.  “FASB ASC” means the Accounting Standards Codification of the Financial Accounting  Standards Board.  “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or  any amended or successor version that is substantively comparable and not materially more onerous to  comply with) and any current or future regulations or official interpretations thereof and any agreements  entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or  practices adopted pursuant to any intergovernmental agreement, treaty or convention among  Governmental Authorities and implementing such Sections of the Code.  “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, as published  by the Federal Reserve Bank of New York 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%)  charged to Wells Fargo on such day on such transactions as determined by the Administrative Agent.   Notwithstanding the foregoing, if the Federal Funds Rate shall be less than zero, such rate shall be  deemed to be zero for the purposes of this Agreement.  “Fee Letter” means the letter agreement, dated August 24, 2021, among the Borrower, the  Administrative Agent and Wells Fargo Securities.  “Floor” means the benchmark rate floor, if any, provided in this Agreement initially (as of the  execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise)  with respect to USD LIBOR.  

 

  19    “Foreign Lender” means any Lender that is organized under the Applicable Laws of a jurisdiction  other than that in which the Borrower is a resident for tax purposes (including such a Lender when acting  in the capacity of the L/C Issuer).  For purposes of this definition, the United States, each State thereof  and the District of Columbia shall be deemed to constitute a single jurisdiction.  “FRB” means the Board of Governors of the Federal Reserve System of the United States.  “Fronting Exposure” means, at any time there is a Lender that is a Defaulting Lender, with  respect to the L/C Issuer, such Defaulting Lender’s Applicable Percentage of the outstanding L/C  Obligations other than L/C 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.  “Fund” means any Person (other than a natural person) that is (or will be) engaged in making,  purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in  the ordinary course of its activities.  “GAAP” means generally accepted accounting principles in the United States set forth in the  opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified  Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or  such other principles as may be approved by a significant segment of the accounting profession in the  United States, that are applicable to the circumstances as of the date of determination, consistently  applied.  “Governmental Authority” means the government of the United States or any other nation, or of  any political subdivision thereof, whether state or local, and any agency, authority, instrumentality,  regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing,  regulatory or administrative powers or functions of or pertaining to government.  “Guarantee” means, as to any Person, any (a) any obligation, contingent or otherwise, of such  Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation  payable or performable by another Person (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 or other obligation, (ii) to  purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such  Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation,  (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 other obligation, or (iv) entered into for the purpose of assuring in any other manner the  obligee in respect of such Indebtedness or other obligation 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 or other obligation of any other Person, whether or not such  Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any  holder of such Indebtedness to obtain any such Lien).  The amount of any 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.  “Guarantee and Collateral Agreement” means, collectively, (a) that certain Fourth Amended and  Restated Guarantee and Collateral Agreement, executed and delivered on the Closing Date, among the  Loan Parties and the Administrative Agent, and (b) any other guarantee and collateral agreement that may  

 

  20    be entered into after the Closing Date with respect to a Subsidiary of a Loan Party formed or acquired  after the Closing Date, in each case, in form and substance reasonably satisfactory to the Administrative  Agent and as amended and in effect from time to time.  “Guarantee and Collateral Agreement Supplement” means each supplement to the Guarantee and  Collateral Agreement executed and delivered to the Administrative Agent by any Loan Party or any other  Subsidiary of a Loan Party pursuant to Section 6.12, in form and substance reasonably satisfactory to the  Administrative Agent.  “Guarantors” means, collectively, (a) Parent, (b) Denny’s Realty, (c) DFO, (d) each Subsidiary of  Parent that shall be required to execute and deliver a guaranty or guaranty supplement pursuant to  Section 6.12 and (e) with respect to (x) all obligations under any Secured Hedge Agreement and any  Secured Cash Management Agreement and (y) Swap Obligations of a Specified Credit Party (in each  case, as defined in the Guarantee and Collateral Agreement) determined before giving effect to Section  2.07 of the Guarantee and Collateral Agreement, the Borrower, and in each case, their successors and  permitted assigns.  “Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous  or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or  asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all  other substances or wastes of any nature regulated pursuant to any Environmental Law.  “Hedge Bank” means (a) any Person that, at the time it enters into a Swap Contract is a Lender or  an Affiliate of a Lender, in its capacity as a party to such Swap Contract, and (b) any Lender on the  Closing Date or Affiliate of such Lender that is a party to a Swap Contract with any Loan Party in  existence on the Closing Date, in each case to the extent permitted under Article VII.  “Honor Date” has the meaning specified in Section 2.03(c)(i).  “Immaterial Subsidiary” means, on any date, any Subsidiary of the Parent (other than the  Borrower) that when aggregated with all Immaterial Subsidiaries as of such date, has in the aggregate  Consolidated Total Assets or annual consolidated revenues no greater than 5% of Consolidated Total  Assets or annual consolidated revenues, respectively, of the Parent and its Subsidiaries (as reflected on  the most recent financial statements delivered pursuant to Section 6.01(a) or (b) prior to such time).  As of  the Closing Date, the Immaterial Subsidiaries are set forth on Schedule 1.01(b).  “Increase Effective Date” has the meaning specified in Section 2.13(d).  “Increasing Lender” has the meaning specified in Section 2.13(c).  “Incurrence Ratio” means, as of any date of determination, the maximum Consolidated Leverage  Ratio permitted under Section 7.10(a) for such date, less 0.50.  “Indebtedness” means, as to any Person at a particular time, without duplication, all of the  following, whether or not included as indebtedness or liabilities in accordance with GAAP:  (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  (other than performance, surety and appeal bonds arising in the ordinary course of business);  

 

  21    (b) the maximum amount of all direct or contingent obligations of such Person  arising under letters of credit (including standby and commercial), bankers’ acceptances, bank  guaranties, surety bonds and similar instruments;  (c) net obligations of such Person under any Swap Contract;  (d) all obligations of such Person to pay the deferred purchase price of property or  services (including, without limitation, all obligations under earn-out or similar agreements),  other than property, including inventory, and services purchased, and expense accruals and  deferred compensation items arising, in the ordinary course of business;  (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property  owned or being purchased by such Person (including indebtedness arising under conditional sales  or other title retention agreements), whether or not such indebtedness shall have been assumed by  such Person or is limited in recourse;  (f) all Attributable Indebtedness in respect of Capital Lease Obligations and  Synthetic Lease Obligations of such Person and all Synthetic Debt of such Person;  (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise  make any payment in respect of any Equity Interest in such Person or any other Person or any  warrant, right or option to acquire such Equity Interest (excluding obligations due after the  Maturity Date), valued, in the case of a redeemable preferred interest, at the greater of its  voluntary or involuntary liquidation preference plus accrued and unpaid dividends, provided,  however, that the term “Indebtedness” shall not include any declared and unpaid dividend  permitted pursuant to Section 7.05;   (h) all Guarantees of such Person in respect of any of the foregoing; and  (i) all Guarantees of Operating Lease obligations of franchisees.  For all purposes hereof, the Indebtedness of any Person shall 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 or a joint venturer, unless such Indebtedness is  expressly made non-recourse to such Person.  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.  “Indemnified Taxes” means Taxes other than Excluded Taxes.  “Indemnitee” has the meaning specified in Section 10.04(b).  “Information” has the meaning specified in Section 10.07.  “Interest Payment Date” means, (a) as to any Eurodollar Rate Loan, the last day of each Interest  Period applicable to such Loan and the Maturity Date; provided, however, that if any Interest Period for a  Eurodollar 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,  the last Business Day of each March, June, September and December and the Maturity Date.  “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the date  such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and  

 

  22    ending on the date one, three or six months thereafter, as selected by the Borrower in its Committed Loan  Notice; provided that:  (a) 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 next preceding Business Day;  (b) any Interest Period that begins on the last Business Day of a calendar month (or  on a day for which there is no numerically corresponding day in the calendar month at the end of  such Interest Period) shall end on the last Business Day of the calendar month at the end of such  Interest Period; and  (c) no Interest Period shall extend beyond the Maturity Date.  “Internal Control Event” means a material weakness in, or fraud that involves management or  other employees who have a significant role in, Parent’s or any of its Subsidiaries’ internal controls over  financial reporting, in each case as described in the Securities Laws.  “Investment” means, as to any Person, any direct or indirect acquisition or investment by such  Person, whether by means of (a) the purchase or other acquisition of Equity Interests of another Person,  (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other  acquisition of any other debt or interest in, another Person, or (c) the purchase or other acquisition (in one  transaction or a series of transactions) of assets of another Person that constitute a business unit or all or a  substantial part of the business or assets of, such Person.  For purposes of covenant compliance, the  amount of any Investment shall be the amount actually invested, without adjustment for subsequent  increases or decreases in the value of such Investment.  “IP Rights” has the meaning specified in Section 5.17.  “IP Security Agreement” means each intellectual property security agreement pursuant to which  any Loan Party grants to the Administrative Agent, for the benefit of the Secured Parties, a Lien on such  Loan Party’s IP Rights in any trademarks, service marks, trade names, copyrights, patents and patent  rights as security for the Obligations, in each case, in form an substance reasonably satisfactory to the  Administrative Agent.  “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).  “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit Application,  and any other document, agreement and instrument entered into by the L/C Issuer and the Borrower (or  any Subsidiary) or in favor of the L/C Issuer and relating to such Letter of Credit.  “L/C Advance” means, with respect to each Lender, such Lender’s funding of its participation in  any L/C Borrowing in accordance with its Applicable Percentage.  “L/C 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 refinanced as a Borrowing.  “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or  extension of the expiry date thereof, or the increase of the amount thereof.  

 

  23    “L/C Issuer” means Wells Fargo in its capacity as issuer of Letters of Credit hereunder, or any  successor issuer of Letters of Credit hereunder.  “L/C Obligations” means, as at any date of determination, the aggregate amount available to be  drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including  all L/C Borrowings.  For purposes of computing the amount available to be drawn under any Letter of  Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  For all  purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but  any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter  of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.  “Lender” has the meaning specified in the introductory paragraph hereto.  “Lending Office” means, as to any Lender, the office or offices of such Lender described as such  in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time  to time notify the Borrower and the Administrative Agent.  “Letter of Credit” means any letter of credit issued hereunder and shall include the Existing  Letters of Credit.  A Letter of Credit may be a commercial letter of credit or a standby letter of credit.  “Letter of Credit 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 L/C Issuer.  “Letter of Credit Expiration Date” means the day that is seven days prior to the Maturity Date  then in effect for the Revolving Credit Facility (or, if such day is not a Business Day, the next preceding  Business Day).  “Letter of Credit Fee” has the meaning specified in Section 2.03(h).  “Letter of Credit Sublimit” means an amount equal to $25,000,000.  The Letter of Credit Sublimit  is part of, and not in addition to, the Revolving Credit Facility.  “LIBOR” means, subject to the implementation of a Benchmark Replacement in accordance with  Section 3.03(b),  (a) for any interest rate calculation with respect to a Eurodollar Rate Loan, the rate  of interest per annum determined on the basis of the rate for deposits in Dollars for a period equal  to the applicable Interest Period as published by the ICE Benchmark Administration Limited, a  United Kingdom company, or a comparable or successor quoting service approved by the  Administrative Agent, at approximately 11:00 a.m. (London time) two (2) London Banking Days  prior to the first day of the applicable Interest Period.  If, for any reason, such rate is not so  published then “LIBOR” shall be determined by the Administrative Agent to be the arithmetic  average of the rate per annum at which deposits in Dollars would be offered by first class banks  in the London interbank market to the Administrative Agent at approximately 11:00 a.m.  (London time) two (2) London Banking Days prior to the first day of the applicable Interest  Period for a period equal to such Interest Period, and  (b) for any interest rate calculation with respect to a Base Rate Loan, the rate of  interest per annum determined on the basis of the rate for deposits in Dollars for an Interest  Period equal to one month (commencing on the date of determination of such interest rate) as  published by ICE Benchmark Administration Limited, a United Kingdom company, or a  

 

  24    comparable or successor quoting service approved by the Administrative Agent, at approximately  11:00 a.m. (London time) on such date of determination, or, if such date is not a Business Day,  then the immediately preceding Business Day.  If, for any reason, such rate is not so published  then “LIBOR” for such Base Rate Loan shall be determined by the Administrative Agent to be  the arithmetic average of the rate per annum at which deposits in Dollars would be offered by  first class banks in the London interbank market to the Administrative Agent at approximately  11:00 a.m. (London time) on such date of determination for a period equal to one month  commencing on such date of determination.  Each calculation by the Administrative Agent of LIBOR shall be conclusive and binding for all  purposes, absent manifest error.  Notwithstanding the foregoing, (x) in no event shall LIBOR (including  any Benchmark Replacement with respect thereto) be less than 0% and (y) unless otherwise specified in  any amendment to this Agreement entered into in accordance with Section 3.03(b), in the event that a  Benchmark Replacement with respect to LIBOR is implemented then all references herein to LIBOR  shall be deemed references to such Benchmark Replacement.    “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,  encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or  preferential arrangement in the nature of a security interest 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 financing lease having substantially the same economic effect as any of  the foregoing).  “Loan” has the meaning specified in Section 2.01.  “Loan Documents” means, collectively, (a) this Agreement, (b) the Disclosure Schedules, (c) the  Notes, (d) the Collateral Documents, (e) the Perfection Certificate, (f) the Fee Letter, (g) each Issuer  Document, and (h) any agreement creating or perfecting rights in Cash Collateral pursuant to the  provisions of Section 2.14.  “Loan Parties” means, collectively, the Borrower and each Guarantor.  “London Banking Day” means any day on which dealings in Dollar deposits are conducted by  and between banks in the London interbank eurodollar market.  “Material Adverse Effect” means (a) a materially adverse effect on or change in the business,  assets, operations, properties, condition (financial or otherwise), liabilities (including potential  environmental and employee health and safety liabilities and other contingent liabilities) or material  agreements of Parent and its Subsidiaries, taken as a whole, (b) material impairment of the ability of the  Borrower or any other Loan Party to perform any of its obligations under any Loan Document to which it  is or will be a party, (c) material impairment of the rights of or benefits available to the Lenders or the  Administrative Agent under any Loan Document, or (d) a material adverse effect upon the legality,  validity, binding effect or enforceability against any Loan Party of any Loan Document to which it is a  party.  “Material Contract” means, with respect to any Loan Party or any Subsidiary of a Loan Party,  each contract to which such Person is a party involving aggregate consideration payable to or by such  Person of $4,000,000 or more in any year or otherwise material to the business, condition (financial or  otherwise), operations, performance, properties or prospects of such Person.  

 

  25    “Maturity Date” means August 26, 2026; provided, however, that if such date is not a Business  Day, the Maturity Date shall be the next preceding Business Day.  “Measurement Period” means, at any date of determination, the most recently completed four  fiscal quarters of Parent.  “Minimum Collateral Amount” means, at any time, (a) with respect to Cash Collateral consisting  of cash or deposit account balances provided to reduce or eliminate Fronting Exposure during the  existence of a Defaulting Lender, an amount equal to 102% of the Fronting Exposure of the L/C Issuer  with respect to Letters of Credit issued and outstanding at such time, (b) with respect to Cash Collateral  consisting of cash or deposit account balances provided in accordance with the provisions of Section  2.14(a)(i), (a)(ii) or (a)(iii), an amount equal to 102% of the Outstanding Amount of all L/C Obligations,  and (c) otherwise, an amount determined by the Administrative Agent and the L/C Issuer in their sole  discretion.  “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, to which Parent, the Borrower or any ERISA Affiliate makes or is  obligated to make contributions, or during the preceding five plan years, has made or been obligated to  make contributions.  “Multiple Employer Plan” means a Plan which has two or more contributing sponsors (including  Parent, the Borrower or any ERISA Affiliate) at least two of whom are not under common control, as  such a plan is described in Section 4064 of ERISA.   “Non-Consenting Lender” means any Lender that does not approve any consent, change, waiver,  discharge, termination or amendment that (a) requires the approval of all Lenders or all affected Lenders  in accordance with the terms of Section 10.01 and (b) has been approved by the Required Lenders.  “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such  time.  “Note” means a promissory note made by the Borrower in favor of a Lender evidencing Loans  made by such Lender, substantially in the form of Exhibit B.  “Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of,  any Loan Party arising under any Loan Document or otherwise with respect to any Loan, Letter of Credit,  Secured Cash Management Agreement or Secured Hedge Agreement, in each case 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 and fees that accrue after the commencement by or  against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming  such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed  claims in such proceeding; provided, that with respect to a Subsidiary Loan Party, “Obligations” shall  exclude any Excluded Swap Obligation with respect to such Subsidiary Loan Party.  “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.  “Operating Leases” means, as applied to any Person, any lease (including leases that may be  terminated by the lessee at any time) of any property (whether real, personal or mixed) that does not  consist of a Capital Lease Obligation, other than any such lease under which such person is the lessor.  

 

  26    “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.  “Other Benchmark Rate Election” means, if the then-current Benchmark is USD LIBOR, the  occurrence of:  (a) a notification by the Administrative Agent to (or the request by the Borrower to the  Administrative Agent to notify) each of the other parties hereto that at least five currently outstanding  Dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as  originally executed), in lieu of a USD LIBOR-based rate, a term benchmark rate that is not a SOFR-based  rate as a benchmark rate (and such syndicated credit facilities are identified in such notice and are  publicly available for review), and  (b) the joint election by the Administrative Agent and the Borrower to trigger a fallback from  USD LIBOR and the provision by the Administrative Agent of written notice of such election to the  Lenders.  “Other Taxes” means all present or future stamp or documentary taxes or any other excise or  property taxes, charges or similar levies arising from any payment made hereunder or under any other  Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this  Agreement or any other Loan Document.  “Outstanding Amount” means (a) with respect to Loans on any date, the aggregate outstanding  principal amount thereof after giving effect to any borrowings and prepayments or repayments of Loans,  as the case may be, occurring on such date; and (b) with respect to any L/C Obligations on any date, the  amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on  such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including  as a result of any reimbursements by the Borrower of Unreimbursed Amounts.  “Parent” has the meaning specified in the introductory paragraph hereto.  “Participant” has the meaning specified in Section 10.06(d).  “Participant Register” has the meaning specified in Section 10.06(d).  “PATRIOT Act” has the meaning specified in Section 10.18.  “Payment Recipient” has the meaning assigned thereto in Section 9.12(a).  “PBGC” means the Pension Benefit Guaranty Corporation.  “PCAOB” means the Public Company Accounting Oversight Board.  

 

  27    “Pension Funding Rules” means the rules of the Code and ERISA regarding minimum required  contributions (including any installment payment thereof) to Pension Plans and set forth in Section 412,  430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.  “Pension Plan” means any employee pension benefit plan (including a Multiple Employer Plan or  a Multiemployer Plan) that is maintained or is contributed to by Parent, the Borrower or any ERISA  Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under  Section 412 of the Code.  “Perfection Certificate” has the meaning assigned to such term in the Guarantee and Collateral  Agreement.  “Permitted Investments” means:  (a) direct obligations of, or obligations the principal of and interest on which are  unconditionally guaranteed by, the United States of America (or by any agency thereof), in each  case maturing within one year from the date of acquisition thereof;  (b) without limiting the provisions of clause (d) below, Investments in commercial  paper maturing within 180 days from the date of acquisition thereof and having, at such date of  acquisition, a rating of at least “A-1” or the equivalent thereof from S&P or of at least “P-1” or  the equivalent thereof from Moody’s or Investments in other corporate debt securities maturing  within one year from the date of the acquisition thereof and having, at such date of acquisition, a  rating of at least “A” or the equivalent thereof from S&P or of at least “A2” or the equivalent  thereof from Moody’s;  (c) Investments in certificates of deposit, bankers’ acceptances and time deposits  (including eurodollar time deposits) maturing within 180 days from the date of acquisition thereof  issued or guaranteed by or placed with (i) any domestic office of the Administrative Agent or the  bank with whom the Loan Parties and their Subsidiaries maintain their cash management system,  provided, that if such bank is not a Lender hereunder, such bank shall have entered into an  agreement with the Administrative Agent pursuant to which such bank shall have waived all  rights of setoff and confirmed that such bank does not have, nor shall it claim, a security interest  therein or (ii) any domestic office of any other commercial bank of recognized standing organized  under the Applicable Laws of the United States of America or any State thereof that has a  combined capital and surplus and undivided profits of not less than $250,000,000 and is the  principal banking subsidiary of a bank holding company having a long-term unsecured debt  rating of at least “A” or the equivalent thereof from S&P or at least “A2” or the equivalent thereof  from Moody’s;  (d) Investments in commercial paper maturing within 180 days from the date of  acquisition thereof and issued by (i) the holding company of the Administrative Agent or (ii) the  holding company of any other commercial bank of recognized standing organized under the laws  of the United States of America or any State thereof that has (A) a combined capital and surplus  in excess of $250,000,000 and (B) commercial paper rated at least “A-1” or the equivalent thereof  from S&P or of at least “P-1” or the equivalent thereof from Moody’s;  (e) Investments in repurchase obligations with a term of not more than seven days  for underlying securities of the types described in clause (a) above entered into with any office of  a bank or trust company meeting the qualifications specified in clause (c) above;  

 

  28    (f) taxable or tax-exempt securities which at the time of purchase have been rated  and the ratings for which are not less than Aa2 if rated by Moody’s, and not less than AA if rated  by S&P;  (g) Investments in money market funds substantially all the assets of which are  comprised of securities of the types described in clauses (a) through (e) above; and  (h) solely with respect to accruals to, and proceeds of, the Employee Deferred  Compensation Account, (i) Investments set forth in clauses (a) through (g) above and  (ii) Investments in any mutual fund, combination of mutual funds, or other investment options  allowed under the Company’s Non-Qualified Deferred Compensation Plan as allocated by the  contributing employee.  “Permitted Liens” means (a) Liens imposed by law (other than any Lien imposed under ERISA)  for taxes, assessments or charges of any Governmental Authority for claims not yet due or which are  being contested in good faith by appropriate proceedings and with respect to which adequate reserves or  other appropriate provisions are being maintained in accordance with GAAP; (b) statutory and other  Liens of landlords, Liens of tenants arising from occupancy rights and statutory Liens of carriers,  warehousemen, mechanics, materialmen and other Liens (other than any Lien imposed under ERISA)  imposed by law created in the ordinary course of business for amounts not yet due or which are being  contested in good faith by appropriate proceedings and with respect to which adequate reserves or other  appropriate provisions are being maintained in accordance with GAAP; (c) Liens (other than any Lien  imposed under ERISA) incurred or deposits made in the ordinary course of business (including surety  bonds and appeal bonds) in connection with workers’ compensation, unemployment insurance and other  types of social security benefits or to secure the performance of tenders, bids, leases, contracts (other than  for the repayment of Indebtedness), statutory obligations and other similar obligations or arising as a  result of progress payments under government contracts; (d) easements (including reciprocal easement  agreements and utility agreements), rights-of-way, covenants, consents, reservations, encroachments,  variations and zoning and other restrictions, charges or encumbrances (whether or not recorded), which  do not interfere materially with the ordinary conduct of the business of any Loan Party, as the case may  be, and which do not materially detract from the value of the property to which they attach or materially  impair the use thereof by any Loan Party, as the case may be; (e) Liens in connection with attachments or  judgments (including judgment or appeal bonds) that do not constitute an Event of Default under  Section 8.01(h), provided that the judgments secured shall, within 30 days after the entry thereof, have  been discharged or execution thereof stayed pending appeal, or shall have been discharged within 30 days  after the expiration of such stay; (f) leases or subleases granted to others in the ordinary course of  business not interfering in any material respect with the business of any Loan Party; (g) any interest or  title of a lessor under, and Liens arising from UCC financing statements relating to, leases permitted by  this Agreement; (h) normal and customary rights of setoff upon deposits of cash in favor of banks or other  depository institutions; and (i) extensions, renewals or replacements of any Lien referred to in  paragraphs (a) through (h) above in connection with an extension, renewal, refinancing or replacement of  the obligations which they secure or otherwise, provided that the principal amount of the obligation  secured thereby is not increased and that any such extension, renewal or replacement is limited to the  property originally encumbered thereby.  “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 within the meaning of Section 3(3) of ERISA (including  a Pension Plan), maintained for employees of the Borrower or any ERISA Affiliate or any such Plan to  which the Borrower or any ERISA Affiliate is required to contribute on behalf of any of its employees.  

 

  29    “Platform” has the meaning specified in Section 6.02.  “Pledged Debt Securities” has the meaning specified in Section 3.01 of the Guarantee and  Collateral Agreement.  “Pledged Stock” has the meaning specified in Section 3.01 of the Guarantee and Collateral  Agreement.  “Prime Rate” has the meaning specified in the definition of “Base Rate”.  “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.  “Purchasing Coop” means an entity formed following the Closing Date by one or more of the  Loan Parties and franchisees or licensees of the Loan Parties for the limited purpose of (a) procuring or  arranging the procurement of equipment by, and on behalf of, the Loan Parties and such franchisees and  licensees for use by the Loan Parties and such franchisees and licensees at their respective restaurant  locations and (b) activities incident thereto (it being understood and agreed that such entity shall not be a  Subsidiary of Parent or any Loan Party for the purposes of this Agreement, notwithstanding that, for tax  or financial reporting purposes from time to time, such entity may be consolidated with Parent and its  Subsidiaries).  “Reference Time” with respect to any setting of the then-current Benchmark means (a) if such  Benchmark is USD LIBOR, 11:00 a.m. (London time) on the day that is two (2) London Banking Days  preceding the date of such setting, and (b) if such Benchmark is not USD LIBOR, the time determined by  the Administrative Agent in its reasonable discretion.  “Refranchising Asset Sale” means the sale, pursuant to an arm’s length transaction for Fair  Market Value, of a Restaurant Business and related assets by any Loan Party where, contemporaneously  with such sale, DFO enters into a franchise agreement with the transferee of such Restaurant Business.  “Register” has the meaning specified in Section 10.06(c).  “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners,  directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s  Affiliates.  “Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve  Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or  the Federal Reserve Bank of New York or any successor thereto.   “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than  events for which the 30 day notice period has been waived.  “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or  continuation of Loans, a Committed Loan Notice, and (b) with respect to an L/C Credit Extension, a  Letter of Credit Application.  

 

  30    “Required Lenders” means, as of any date of determination, Lenders holding more than 50% of  the sum of the (a) Total Revolving Credit Outstandings (with the aggregate amount of each Lender’s risk  participation and funded participation in L/C Obligations being deemed “held” by such Lender for  purposes of this definition), and (b) aggregate unused Commitments; provided that the unused  Commitment of the portion of the Total Revolving Credit Outstandings held or deemed held by any  Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.  “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial  Institution, a UK Resolution Authority.  “Responsible Officer” means the chief executive officer, president, senior vice president, vice  president, chief financial officer, treasurer, assistant treasurer or controller of a Loan Party, solely for  purposes of the delivery of incumbency certificates pursuant to Section 4.01, the secretary or any assistant  secretary 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.  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.  “Restaurant Businesses” shall have the meaning assigned to such term in Section 7.04(e).  “Restricted Payment” means any dividend or other distribution (whether in cash, securities or  other property) with respect to any capital stock or other Equity Interest of any Person or any of its  Subsidiaries, or any payment (whether in cash, securities or other property), including any sinking fund or  similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation  or termination of any capital stock or other Equity Interest of such Person or any of its Subsidiaries or of  any other Person of which such Person is a Subsidiary, or on account of any return of capital to any  Person’s stockholders, partners or members (or the equivalent of any thereof), or any option, warrant or  other right to acquire any such dividend or other distribution or payment.  “Revolving Credit Facility” means, at any time, the aggregate amount of the Lenders’  Commitments at such time.  As of the Closing Date, the Revolving Credit Facility is $400,000,000.  “S&P” means Standard & Poor’s Rating Service, a division of S&P Global Inc. and any  successor thereto.  “Sanctioned Country” means at any time, a country or territory which is itself the subject or target  of any Sanctions (including, as of the Closing Date, Cuba, Iran, North Korea, Syria and Crimea).  “Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of  designated Persons maintained by OFAC (including, without limitation, OFAC’s Specially Designated  Nationals and Blocked Persons List and OFAC’s Consolidated Non-SDN List), the U.S. Department of  State, the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other  relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country or  (c) any Person owned or controlled by any such Person or Persons described in clauses (a) and (b),  including a Person that is deemed by OFAC to be a Sanctions target based on the ownership of such legal  entity by Sanctioned Peron(s).  “Sanctions” has the meaning specified in Section 5.22(a).  

 

  31    “SEC” means the Securities and Exchange Commission, or any Governmental Authority  succeeding to any of its principal functions.  “Secured Cash Management Agreement” means any Cash Management Agreement that is  entered into by and between any Loan Party and any Cash Management Bank.  “Secured Hedge Agreement” means any Swap Contract permitted under Article VII that is  entered into by and between any Loan Party and any Hedge Bank.  “Secured Parties” means, collectively, the Administrative Agent, the Lenders, the L/C Issuer, the  Hedge Banks, the Cash Management Banks, each co-agent or sub-agent appointed by the Administrative  Agent from time to time pursuant to Section 9.05, and the other Persons the Obligations owing to which  are or are purported to be secured by the Collateral under the terms of the Collateral Documents.  “Securities Laws” means the Securities Act of 1933, the Securities Exchange Act of 1934,  Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards and practices  promulgated, approved or incorporated by the SEC or the PCAOB.  “SOFR” means, with respect to any Business Day, a rate per annum equal to the secured  overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR  Administrator’s Website on the immediately succeeding Business Day.  “SOFR Administrator” means the Federal Reserve Bank of New York (or a successor  administrator of the secured overnight financing rate).  “SOFR Administrator’s Website” means the website of the Federal Reserve Bank of New York,  currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate  identified as such by the SOFR Administrator from time to time.   “Solvent” and “Solvency” mean, with respect to any Person on any date of determination, that on  such date (a) the fair value of the property of such Person is greater than the total amount of liabilities,  including contingent liabilities, of such Person, (b) the present fair salable value of the assets of such  Person is not less than the amount that will be required to pay the probable liability of such Person on its  debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that  it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they  mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business  or a transaction, for which such Person’s property would constitute an unreasonably small capital, and (e)  such Person is able to pay its debts and liabilities, contingent obligations and other commitments as they  mature in the ordinary course of business.  The amount of contingent liabilities at any time shall be  computed as the amount that, in the light of all the facts and circumstances existing at such time,  represents the amount that can reasonably be expected to become an actual or matured liability.  The  determination of Solvency with respect to the Loan Parties shall take into account all rights and  obligations of indemnity, contribution and reimbursement of the Loan Parties and limitations, if any, on  the obligations under the Guarantee and Collateral Agreement.  “Spot Rate” has the meaning specified in Section 1.07.  “Stockholder Dividend Amount” means an amount equal to $0.05 times the sum of (a) the  aggregate issued and outstanding shares of common stock of Parent on August 16, 2021 (64,199,998  shares), plus (b) each additional share of common stock of Parent that is issued after such date, solely to  the extent such common stock of Parent is issued in a transaction that directly benefits the Borrower and  

 

  32    the other Loan Parties, in each of clause (a) and (b), without giving effect to any stock splits, reverse stock  splits or similar transactions occurring after such date.  “Subordination Provisions” has the meaning specified in Section 8.01(l).  “Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability  company or other business entity of which 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 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 Parent.  “Subsidiary Loan Party” shall have the meaning assigned to such term in the Guarantee and  Collateral Agreement.  “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 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 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).  “Synthetic Debt” means, with respect to any Person as of any date of determination thereof, all  obligations of such Person in respect of transactions entered into by such Person that are intended to  function primarily as a borrowing of funds (including any minority interest transactions that function  primarily as a borrowing) but are not otherwise included in the definition of “Indebtedness” or as a  liability on the consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP.  “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so-called  synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of  property (including sale and leaseback transactions), in each case, creating obligations that do not appear  on the balance sheet of such Person but which, upon the application of any Debtor Relief Laws to such  Person, would be characterized as the indebtedness of such Person (without regard to accounting  treatment).  

 

  33    “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings  (including backup withholding), assessments, fees or other charges imposed by any Governmental  Authority, including any interest, additions to tax or penalties applicable thereto.  “Term SOFR” means, for the applicable Corresponding Tenor as of the applicable Reference  Time, the forward-looking term rate based on SOFR that has been selected or recommended by the  Relevant Governmental Body.  “Term SOFR Notice” means a notification by the Administrative Agent to the Lenders and the  Borrower of the occurrence of a Term SOFR Transition Event.  “Term SOFR Transition Event” means the determination by the Administrative Agent that (a)  Term SOFR has been recommended for use by the Relevant Governmental Body, (b) the administration  of Term SOFR is administratively feasible for the Administrative Agent and (c) a Benchmark Transition  Event, an Early Opt-in Election or an Other Benchmark Rate Election, as applicable, has previously  occurred resulting in the replacement of the then-current Benchmark for all purposes hereunder and under  any Loan Document in accordance with Section 3.03(b) with a Benchmark Replacement the Unadjusted  Benchmark Replacement component of which is not Term SOFR.  “Threshold Amount” means $10,000,000.  “Total Revolving Credit Outstandings” means the aggregate Outstanding Amount of all Loans  and L/C Obligations.  “Transactions” means, collectively, (a) the entering into by the Loan Parties and their applicable  Subsidiaries of the Loan Documents to which they are or are intended to be a party, (b) the refinancing of  the Indebtedness of the Loan Parties under the Existing Credit Agreement and the termination of all  commitments with respect thereto and (c) the payment of the fees and expenses incurred in connection  with the consummation of the foregoing.  “Type” means, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate  Loan.  “UCC” means the Uniform Commercial Code as in effect in the State of New York; provided  that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any  Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State  of New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such other  jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or  non-perfection or priority.  “UK Financial Institution” means any BRRD Undertaking (as such term is defined under the  PRA Rulebook (as amended form time to time) promulgated by the United Kingdom Prudential  Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from  time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain  credit institutions and investment firms, and certain affiliates of such credit institutions or investment  firms.  “UK Resolution Authority” means the Bank of England or any other public administrative  authority having responsibility for the resolution of any UK Financial Institution.  

 

  34    “Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding  the related Benchmark Replacement Adjustment.  “United States” and “U.S.” mean the United States of America.  “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).  “Upstream Payment” has the meaning specified in Section 7.05(b).  “USD LIBOR” means the London interbank offered rate for Dollars.  “Wells Fargo” means Wells Fargo Bank, National Association and its successors.  “Wells Fargo Securities” means Wells Fargo Securities, LLC and its successors.  “Write-Down and Conversion Powers” means, (a) 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, and (b) with respect to the United Kingdom, any  powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or  change the form of a liability of any UK Financial Institution or any contract or instrument under which  that liability arises, to convert all or part of that liability into shares, securities or obligations of that  person or any other person, to provide that any such contract or instrument is to have effect as if a right  had been exercised under it or to suspend any obligation in respect of that liability or any of the powers  under that Bail-In Legislation that are related to or ancillary to any of those powers.  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 definitions of terms herein shall apply equally to the singular and plural  forms of the terms defined.  Whenever the context may require, any pronoun shall include the  corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and  “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will”  shall be construed to have the same meaning and effect as the word “shall.”  Unless the context  requires otherwise, (i) any definition of or reference to any agreement, instrument or other  document (including any Organization Document) shall be construed as referring to such  agreement, instrument or other document as from time to time amended, supplemented or  otherwise modified (subject to any restrictions on such amendments, supplements or  modifications set forth herein or in any other Loan Document), (ii) any reference herein to any  Person shall be construed to include such Person’s successors and assigns, (iii) the words  “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan  Document, shall be construed to refer to such Loan Document in its entirety and not to any  particular provision thereof, (iv) all references in a Loan Document to Articles, Sections,  Preliminary Statements, Exhibits and Schedules shall be construed to refer to Articles and  Sections of, and Preliminary Statements, Exhibits and Schedules (and in the case of this  Agreement, the Disclosure Schedules) to, the Loan Document in which such references appear,  (v) any reference to any law shall include all statutory and regulatory rules, regulations, orders  and other provisions consolidating, amending, replacing or interpreting such law and any  reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation  as amended, modified or supplemented from time to time, and (vi) the words “asset” and  “property” shall be construed to have the same meaning and effect and to refer to any and all  

 

  35    tangible and intangible assets and properties, including cash, securities, accounts and contract  rights.  (b) 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.”  (c) 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.  1.03 Accounting Terms.    (a) Generally.  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 applied on a consistent basis, as in effect from time to time, applied in a  manner consistent with that used in preparing the Audited Financial Statements, except as  otherwise specifically prescribed herein.  Notwithstanding the foregoing, for purposes of  determining compliance with any covenant (including the computation of any financial covenant)  contained herein, Indebtedness of Parent and its Subsidiaries shall be deemed to be carried at  100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB  ASC 470-20 on financial liabilities shall be disregarded.  (b) Changes in GAAP.  If at any time any change in GAAP would affect the  computation of any financial ratio or requirement set forth in any Loan Document, and either the  Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the  Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original  intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders);  provided that, until so amended, (i) such ratio or requirement shall continue to be computed in  accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to the  Administrative Agent and the Lenders financial statements and other documents required under  this Agreement or as reasonably requested hereunder setting forth a reconciliation between  calculations of such ratio or requirement made before and after giving effect to such change in  GAAP; provided further that (A) All obligations of any Person that are or would have been  treated as operating leases for purposes of GAAP prior to the effectiveness of FASB ASC 842  shall continue to be accounted for as operating leases for purposes of all financial definitions and  calculations for purpose of this Agreement (whether or not such operating lease obligations were  in effect on such date) notwithstanding the fact that such obligations are required in accordance  with FASB ASC 842 (on a prospective or retroactive basis or otherwise) to be treated as Capital  Lease Obligations in the financial statements and (B) all financial statements delivered to the  Administrative Agent hereunder shall contain a schedule showing the modifications necessary to  reconcile the adjustments made pursuant to clause (A) above with such financial statements.   Notwithstanding the foregoing, it is acknowledged and agreed that the financial statements and  other documents required under this Agreement shall be prepared and the financial ratios and  other requirements under the Loan Documents shall be calculated after giving effect to FASB  ASC 606 relating to the recognition of franchise fee revenue.  (c) Consolidation of Variable Interest Entities.  All references herein to consolidated  financial statements of Parent and its Subsidiaries or to the determination of any amount for  Parent and its Subsidiaries on a consolidated basis or any similar reference shall, in each case, be  

 

  36    deemed to include each variable interest entity that Parent is required to consolidate pursuant to  FASB ASC 810 as if such variable interest entity were a Subsidiary as defined herein.  1.04 Rounding.  Any financial ratios required to be maintained by the Borrower pursuant to  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).  1.05 Times of Day.  Unless otherwise specified, all references herein to times of day shall be  references to Eastern time (daylight or standard, as applicable).  1.06 Letter of Credit Amounts.  Unless otherwise specified herein, the amount of a Letter of  Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time  (after giving effect to any previous permanent reduction in the original stated amount thereof); 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 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.  1.07 Currency Equivalents Generally.  Any amount specified in this Agreement (other than  in Articles II and IX) or any of the other Loan Documents to be in Dollars shall also include the  equivalent of such amount in any currency other than Dollars, such equivalent amount thereof in the  applicable currency to be determined by the Administrative Agent at such time on the basis of the Spot  Rate (as defined below) for the purchase of such currency with Dollars.  For purposes of this  Section 1.07, the “Spot Rate” for a currency means the rate determined by the Administrative Agent to be  the rate quoted by the Person acting in such capacity as the spot rate for the purchase by such Person 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 of such determination; provided  that the Administrative Agent may obtain such spot rate from another financial institution designated by  the Administrative Agent if the Person acting in such capacity does not have as of the date of  determination a spot buying rate for any such currency.  1.08 Divisions.  For all purposes under the Loan Documents, in connection with any division  or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws):  (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability  of a different Person, then it shall be deemed to have been transferred from the original Person to the  subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to  have been organized on the first date of its existence by the holders of its Equity Interests at such time.  1.09 Rates.  The interest rate on Eurodollar Rate Loans and Base Rate Loans (when  determined by reference to clause (c) of the definition of Base Rate) may be determined by reference to  LIBOR, which is derived from the London interbank offered rate.  The London interbank offered rate is  intended to represent the rate at which contributing banks may obtain short-term borrowings from each  other in the London interbank market.  On March 5, 2021, ICE Benchmark Administration (“IBA”), the  administrator of the London interbank offered rate, and the Financial Conduct Authority (the “FCA”), the  regulatory supervisor of IBA, announced in public statements (the “Announcements”) that the final  publication or representativeness date for the London interbank offered rate for Dollars for: (a) 1-week  and 2-month tenor settings will be December 31, 2021 and (b) overnight, 1-month, 3-month, 6-month and  12-month tenor settings will be June 30, 2023. No successor administrator for IBA was identified in such  Announcements.  As a result, it is possible that commencing immediately after such dates, the London  

 

  37    interbank offered rate for such tenors may no longer be available or may no longer be deemed a  representative reference rate upon which to determine the interest rate on Eurodollar Rate Loans or Base  Rate Loans (when determined by reference to clause (c) of the definition of Base Rate).  There is no  assurance that the dates set forth in the Announcements will not change or that IBA or the FCA will not  take further action that could impact the availability, composition or characteristics of any London  interbank offered rate.  Public and private sector industry initiatives have been and continue, as of the date  hereof, to be underway to implement new or alternative reference rates to be used in place of the London  interbank offered rate.  In the event that the London interbank offered rate or any other then-current  Benchmark is no longer available or in certain other circumstances set forth in Section 3.03(b), such  Section 3.03(b) provides a mechanism for determining an alternative rate of interest.  The Administrative  Agent will notify the Borrower, pursuant to Section 3.03(b), of any change to the reference rate upon  which the interest rate on Eurodollar Rate Loans and Base Rate Loans (when determined by reference to  clause (c) of the definition of Base Rate) is based.  However, the Administrative Agent does not warrant  or accept any responsibility for, and shall not have any liability with respect to, (i) the continuation of,  administration of, submission of, calculation of or any other matter related to the London interbank  offered rate or other rates in the definition of “LIBOR” or with respect to any alternative, successor or  replacement rate thereto (including any then-current Benchmark or any Benchmark Replacement),  including whether the composition or characteristics of any such alternative, successor or replacement  rate (including any Benchmark Replacement), as it may or may not be adjusted pursuant to Section  3.03(b), will be similar to, or produce the same value or economic equivalence of, LIBOR or any other  Benchmark, or have the same volume or liquidity as did the London interbank offered rate or any other  Benchmark prior to its discontinuance or unavailability, or (ii) the effect, implementation or composition  of any Benchmark Replacement Conforming Changes.  The Administrative Agent and its Affiliates or  other related entities may engage in transactions that affect the calculation of a Benchmark, any  alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant  adjustments thereto and such transactions may be adverse to the Borrower.  The Administrative Agent  may select information sources or services in its reasonable discretion to ascertain any Benchmark, any  component definition thereof or rates referenced in the definition thereof, in each case pursuant to the  terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or  entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential  damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity),  for any error or calculation of any such rate (or component thereof) provided by any such information  source or service.    ARTICLE II    THE COMMITMENTS AND CREDIT EXTENSIONS  2.01 The Loans.  Subject to the terms and conditions set forth herein, each Lender severally  agrees to make loans (each such loan, a “Loan”) to the Borrower from time to time, on any Business Day  during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount  of such Lender’s Commitment; provided, however, that after giving effect to any Borrowing, (a) the Total  Revolving Credit Outstandings shall not exceed the Revolving Credit Facility, and (b) the aggregate  Outstanding Amount of the Loans of any Lender, plus such Lender’s Applicable Percentage of the  Outstanding Amount of all L/C Obligations shall not exceed such Lender’s Commitment.  Within the  limits of each Lender’s Commitment, and subject to the other terms and conditions hereof, the Borrower  may borrow under this Section 2.01, prepay under Section 2.04, and reborrow under this Section 2.01.   Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.  2.02 Borrowings, Conversions and Continuations of Loans.    

 

  38    (a) Each Borrowing, each conversion of Loans from one Type to the other, and each  continuation of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable notice to  the Administrative Agent, which may be given by telephone.  Each such notice must be received  by the Administrative Agent not later than 11:00 a.m. (i) three Business Days prior to the  requested date of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of  any conversion of Eurodollar Rate Loans to Base Rate Loans (other than any conversion of  Eurodollar Rate Loans to Base Rate Loans as of the last day of the Interest Period then in effect  with respect to the applicable Eurodollar Rate Loans, which notice may be provided on the same  day), and (ii) on the requested date of any Borrowing of Base Rate Loans.  Each telephonic notice  by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the  Administrative Agent of a written Committed Loan Notice, appropriately completed and signed  by a Responsible Officer of the Borrower.  Each Borrowing of, conversion to or continuation of  Eurodollar Rate Loans shall be in a principal amount of $2,000,000 or a whole multiple of  $500,000 in excess thereof.  Except as provided in Section 2.03(c), each Borrowing of or  conversion to Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of  $100,000 in excess thereof.  Each Committed Loan Notice (whether telephonic or written) shall  specify (i) whether the Borrower is requesting a Borrowing, a conversion of Loans from one Type  to the other, or a continuation of Eurodollar Rate Loans, (ii) the requested date of the Borrowing,  conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal  amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed  or to which existing Loans are to be converted, and (v) if applicable, the duration of the Interest  Period with respect thereto.  If the Borrower fails to specify a Type of Loan in a Committed Loan  Notice or if the Borrower fails to give a timely notice requesting a conversion or continuation,  then the applicable Loans shall be made as, or converted to, Base Rate Loans.  Any such  automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest  Period then in effect with respect to the applicable Eurodollar Rate Loans.  If the Borrower  request a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such  Committed Loan Notice, but fails to specify an Interest Period, the Borrower will be deemed to  have specified an Interest Period of one month.  (b) Following receipt of a Committed Loan Notice, the Administrative Agent shall  promptly notify each Lender of the amount of its Applicable Percentage for the applicable Loans,  and if no timely notice of a conversion or continuation is provided by the Borrower, the  Administrative Agent shall notify each Lender of the details of any automatic conversion to Base  Rate Loans described in Section 2.02(a).  In the case of a Borrowing, each Appropriate Lender  shall make the amount of its Loan available to the Administrative Agent in immediately available  funds at the Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified  in the applicable Committed Loan Notice.  Upon satisfaction of the applicable conditions set forth  in Section 4.02 (and, if such Borrowing is the initial Credit Extension, Section 4.01), the  Administrative Agent shall make all funds so received available to the Borrower in like funds as  received by the Administrative Agent either by (i) crediting an account of the Borrower on the  books of Wells Fargo with the amount of such funds or (ii) wire transfer of such funds, in each  case in accordance with instructions provided to (and reasonably acceptable to) the  Administrative Agent by the Borrower; provided, however, that if, on the date a Committed Loan  Notice with respect to a Borrowing is given by the Borrower, there are L/C Borrowings  outstanding, then the proceeds of such Borrowing, first, shall be applied to the payment in full of  any such L/C Borrowings, and second, shall be made available to the Borrower as provided  above.  (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued  or converted only on the last day of an Interest Period for such Eurodollar Rate Loan.  During the  

 

  39    existence of a Default, no Loans may be requested as, converted to or continued as Eurodollar  Rate Loans without the consent of the Required Lenders.  (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of  the interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of  such interest rate.  At any time that Base Rate Loans are outstanding, the Administrative Agent  shall notify the Borrower and the Lenders of any change in Wells Fargo’s Prime Rate used in  determining the Base Rate promptly following the public announcement of such change.  (e) After giving effect to all Borrowings, all conversions of Loans from one Type to  the other, and all continuations of Loans of the same Type, there shall not be more than 8 Interest  Periods in effect in respect of the Revolving Credit Facility.  2.03 Letters of Credit.    (a) The Letter of Credit Commitment.  (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer  agrees, in reliance upon the agreements of the Lenders set forth in this Section 2.03, (1)  from time to time on any Business Day during the period from the Closing Date until the  Letter of Credit Expiration Date, to issue Letters of Credit for the account of the  Borrower or any other Loan Party, and to amend or extend Letters of Credit previously  issued by it, in accordance with Section 2.03(b), and (2) to honor drawings under the  Letters of Credit; and (B) the Lenders severally agree to participate in Letters of Credit  issued for the account of the Borrower or any other Loan Party and any drawings  thereunder; provided that after giving effect to any L/C Credit Extension with respect to  any Letter of Credit, (x) the Total Revolving Credit Outstandings shall not exceed the  Revolving Credit Facility, (y) the aggregate Outstanding Amount of the Loans of any  Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C  Obligations, shall not exceed such Lender’s Commitment and (z) the Outstanding  Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit.  Each  request by the Borrower for the issuance or amendment of a Letter of Credit shall be  deemed to be a representation by the Borrower that the L/C Credit Extension so requested  complies with the conditions set forth in the proviso to the preceding sentence.  Within  the foregoing limits, and subject to the terms and conditions hereof, the Borrower’s  ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrower  may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that  have expired or that have been drawn upon and reimbursed.  All Existing Letters of  Credit shall be deemed to have been issued pursuant hereto, and from and after the  Closing Date shall be subject to and governed by the terms and conditions hereof.  (ii) The L/C Issuer shall not issue any Letter of Credit if:  (A) the expiry date of such requested Letter of Credit would occur  more than twelve months after the date of issuance or last extension, unless the  Required Lenders have approved such expiry date; or  (B) the expiry date of such requested Letter of Credit would occur  after the Letter of Credit Expiration Date, unless all the Lenders have approved  such expiry date.  

 

  40    (iii) The L/C Issuer shall not be under any obligation to issue any Letter of  Credit if:  (A) any order, judgment or decree of any Governmental Authority or  arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from  issuing such Letter of Credit, or any Law applicable to the L/C Issuer or any  request or directive (whether or not having the force of law) from any  Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or  request that the L/C Issuer refrain from, the issuance of letters of credit generally  or such Letter of Credit in particular or shall impose upon the L/C Issuer with  respect to such Letter of Credit any restriction, reserve or capital requirement (for  which the L/C Issuer is not otherwise compensated hereunder) not in effect on  the Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss,  cost or expense which was not applicable on the Closing Date and which the L/C  Issuer in good faith deems material to it;  (B) the issuance of such Letter of Credit would violate one or more  policies of the L/C Issuer applicable to letters of credit generally;  (C) except as otherwise agreed by the Administrative Agent and the  L/C Issuer, such Letter of Credit is in an initial stated amount less than $100,000;  (D) such Letter of Credit is to be denominated in a currency other  than Dollars;  (E) such Letter of Credit contains any provisions for automatic  reinstatement of the stated amount after any drawing thereunder;   (F) the proceeds of which would be made available to any Person (x)  to fund any activity or business of or with any Sanctioned Person, or in any  Sanctioned Country or (y) in any manner that would result in a violation of any  Sanctions by any party to this Agreement; or  (G) any Lender is at that time a Defaulting Lender, unless the L/C  Issuer has entered into arrangements, including the delivery of Cash Collateral,  satisfactory to the L/C Issuer (in its sole discretion) with the Borrower or such  Lender to eliminate the L/C Issuer’s actual or potential Fronting Exposure (after  giving effect to Section 2.15(a)(iv)) with respect to the Defaulting Lender arising  from either the Letter of Credit then proposed to be issued or that Letter of Credit  and all other L/C Obligations as to which the L/C Issuer has actual or potential  Fronting Exposure, as it may elect in its sole discretion.  (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer  would not be permitted at such time to issue such Letter of Credit in its amended form  under the terms hereof.  (v) The L/C Issuer shall be under no obligation to amend any Letter of  Credit if (A) the L/C Issuer would have no obligation at such time to issue such Letter of  Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter  of Credit does not accept the proposed amendment to such Letter of Credit.  

 

  41    (vi) The L/C Issuer shall act on behalf of the Lenders with respect to any  Letters of Credit issued by it and the documents associated therewith, and the L/C Issuer  shall have all of the benefits and immunities (A) provided to the Administrative Agent in  Article IX with respect to any acts taken or omissions suffered by the L/C Issuer in  connection with Letters of Credit issued by it or proposed to be issued by it and Issuer  Documents pertaining to such Letters of Credit as fully as if the term “Administrative  Agent” as used in Article IX included the L/C Issuer with respect to such acts or  omissions, and (B) as additionally provided herein with respect to the L/C Issuer.  (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension  Letters of Credit.  Each Letter of Credit shall be issued or amended, as the case may be, upon the  request of the Borrower delivered to the L/C Issuer (with a copy to the Administrative Agent) in  the form of a Letter of Credit Application, appropriately completed and signed by a Responsible  Officer of the Borrower.  Such Letter of Credit Application must be received by the L/C Issuer  and the Administrative Agent not later than 11:00 a.m. at least two Business Days (or such later  date and time as the Administrative Agent and the L/C Issuer may agree in a particular instance in  their sole discretion) prior to the proposed issuance date or date of amendment, as the case may  be.  In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit  Application shall specify in form and detail satisfactory to the L/C Issuer: (A) the proposed  issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount  thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the  documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text  of any certificate to be presented by such beneficiary in case of any drawing thereunder; (G) the  purpose and nature of the requested Letter of Credit; and (H) such other matters as the L/C Issuer  may require.  In the case of a request for an amendment of any outstanding Letter of Credit, such  Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer (1) the  Letter of Credit to be amended; (2) the proposed date of amendment thereof (which shall be a  Business Day); (3) the nature of the proposed amendment; and (4) such other matters as the L/C  Issuer may require.  Additionally, the Borrower shall furnish to the L/C Issuer and the  Administrative Agent such other documents and information pertaining to such requested Letter  of Credit issuance or amendment, including any Issuer Documents, as the L/C Issuer or the  Administrative Agent may require.  (i) Promptly after receipt of any Letter of Credit Application, the L/C Issuer  will confirm with the Administrative Agent (by telephone or in writing) that the  Administrative Agent has received a copy of such Letter of Credit Application from the  Borrower and, if not, the L/C Issuer will provide the Administrative Agent with a copy  thereof.  Unless the L/C Issuer has received written notice from any Lender, the  Administrative Agent or any Loan Party, at least one Business Day prior to the requested  date of issuance or amendment of the applicable Letter of Credit, that one or more  applicable conditions contained in Article IV shall not then be satisfied, then, subject to  the terms and conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter  of Credit for the account of the applicable Borrower (or the applicable Loan Party) or  enter into the applicable amendment, as the case may be, in each case in accordance with  the L/C Issuer’s usual and customary business practices.  Immediately upon the issuance  of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and  unconditionally agrees to, purchase from the L/C Issuer a risk participation in such Letter  of Credit in an amount equal to the product of such Lender’s Applicable Percentage times  the amount of such Letter of Credit.  

 

  42    (ii) If the Borrower so requests in any applicable Letter of Credit  Application, the L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter  of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of  Credit”); provided that any such Auto-Extension Letter of Credit must permit the L/C  Issuer to prevent any such extension at least once in each twelve-month period  (commencing with the date of issuance of such Letter of Credit) by giving prior notice to  the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each  such twelve-month period to be agreed upon at the time such Letter of Credit is issued.   Unless otherwise directed by the L/C Issuer, the Borrower shall not be required to make a  specific request to the L/C Issuer for any such extension.  Once an Auto-Extension Letter  of Credit has been issued, the Lenders shall be deemed to have authorized (but may not  require) the L/C Issuer to permit the extension of such Letter of Credit at any time to an  expiry date not later than the Letter of Credit Expiration Date; provided, however, that  the L/C Issuer shall not permit any such extension if (A) the L/C Issuer has determined  that it would not be permitted, or would have no obligation at such time to issue such  Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the  provisions of clause (ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has received  notice (which may be by telephone or in writing) on or before the day that is seven  Business Days before the Non-Extension Notice Date (1) from the Administrative Agent  that the Required Lenders have elected not to permit such extension or (2) from the  Administrative Agent, any Lender or the Borrower that one or more of the applicable  conditions specified in Section 4.02 is not then satisfied, and in each such case directing  the L/C Issuer not to permit such extension.  (iii) Promptly after its delivery of any Letter of Credit or any amendment to a  Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the  L/C Issuer will also deliver to the Borrower and the Administrative Agent a true and  complete copy of such Letter of Credit or amendment.  (c) Drawings and Reimbursements; Funding of Participations.  (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of  a drawing under such Letter of Credit, the L/C Issuer shall notify the Borrower and the  Administrative Agent thereof.  Not later than 11:00 a.m. on the date of any payment by  the L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the Borrower  shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to  the amount of such drawing.  If the Borrower fails to so reimburse the L/C Issuer by such  time, the Administrative Agent shall promptly notify each Lender of the Honor Date, the  amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of  such Lender’s Applicable Percentage thereof.  In such event, the Borrower shall be  deemed to have requested a Borrowing of Base Rate Loans to be disbursed on the Honor  Date in an amount equal to the Unreimbursed Amount, without regard to the minimum  and multiples specified in Section 2.02 for the principal amount of Base Rate Loans, but  subject to the amount of the unutilized portion of the Commitments and the conditions set  forth in Section 4.02 (other than the delivery of a Committed Loan Notice).  Any notice  given by the L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i)  may be given by telephone if immediately confirmed in writing; provided that the lack of  such an immediate confirmation shall not affect the conclusiveness or binding effect of  such notice.  

 

  43    (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make  funds available (and the Administrative Agent may apply Cash Collateral provided for  this purpose) for the account of the L/C Issuer at the Administrative Agent’s Office in an  amount equal to its Applicable Percentage of the Unreimbursed Amount not later than  1:00 p.m. on the Business Day specified in such notice by the Administrative Agent,  whereupon, subject to the provisions of Section 2.03(c)(iii), each Lender that so makes  funds available shall be deemed to have made a Base Rate Loan to the Borrower in such  amount.  The Administrative Agent shall remit the funds so received to the L/C Issuer.  (iii) With respect to any Unreimbursed Amount that is not fully refinanced by  a Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot  be satisfied or for any other reason, the Borrower shall be deemed to have incurred from  the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not  so refinanced, which L/C Borrowing shall be due and payable on demand (together with  interest) and shall bear interest at the Default Rate.  In such event, each Lender’s payment  to the Administrative Agent for the account of the L/C Issuer pursuant to  Section 2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C  Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its  participation obligation under this Section 2.03.  (iv) Until each Lender funds its Loan or L/C Advance pursuant to this  Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of  Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall  be solely for the account of the L/C Issuer.  (v) Each Lender’s obligation to make Loans or L/C Advances to reimburse  the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this  Section 2.03(c), shall be absolute and unconditional and shall not be affected by any  circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right  which such Lender may have against the L/C Issuer, the Borrower or any other Person for  any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other  occurrence, event or condition, whether or not similar to any of the foregoing; provided,  however, that each Lender’s obligation to make Loans pursuant to this Section 2.03(c) is  subject to the conditions set forth in Section 4.02 (other than delivery by the Borrower of  a Committed Loan Notice ).  No such making of an L/C Advance shall relieve or  otherwise impair the obligation of the Borrower to reimburse the L/C Issuer for the  amount of any payment made by the L/C Issuer under any Letter of Credit, together with  interest as provided herein.  (vi) If any Lender fails to make available to the Administrative Agent for the  account of the L/C Issuer any amount required to be paid by such Lender pursuant to the  foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii),  then, without limiting the other provisions of this Agreement, the L/C Issuer shall be  entitled to recover from such Lender (acting through the Administrative Agent), on  demand, such amount with interest thereon for the period from the date such payment is  required to the date on which such payment is immediately available to the L/C Issuer at  a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by  the L/C Issuer in accordance with banking industry rules on interbank compensation, plus  any administrative, processing or similar fees customarily charged by the L/C Issuer in  connection with the foregoing.  If such Lender pays such amount (with interest and fees  as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan Notice  

 

  44    included in the relevant Borrowing or L/C Advance in respect of the relevant L/C  Borrowing, as the case may be.  A certificate of the L/C Issuer submitted to any Lender  (through the Administrative Agent) with respect to any amounts owing under this  Section 2.03(c)(vi) shall be conclusive absent manifest error.  (d) Repayment of Participations.  (i) At any time after the L/C Issuer has made a payment under any Letter of  Credit and has received from any Lender such Lender’s L/C Advance in respect of such  payment in accordance with Section 2.03(c), if the Administrative Agent receives for the  account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or  interest thereon (whether directly from the Borrower or otherwise, including proceeds of  Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent  will distribute to such Lender its Applicable Percentage thereof in the same funds as  those received by the Administrative Agent.  (ii) If any payment received by the Administrative Agent for the account of  the L/C Issuer pursuant to Section 2.03(c)(i) is required to be returned under any of the  circumstances described in Section 10.05 (including pursuant to any settlement entered  into by the L/C Issuer in its discretion), each Lender shall pay to the Administrative  Agent for the account of the L/C Issuer its Applicable Percentage thereof on demand of  the Administrative Agent, plus interest thereon from the date of such demand to the date  such amount is returned by such Lender, at a rate per annum equal to the Federal Funds  Rate from time to time in effect.  The obligations of the Lenders under this clause shall  survive the payment in full of the Obligations and the termination of this Agreement.  (e) Obligations Absolute.  The obligation of the Borrower to reimburse the L/C  Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be  absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of  this Agreement under all circumstances, including the following:  (i) any lack of validity or enforceability of such Letter of Credit, this  Agreement, or any other Loan Document;  (ii) the existence of any claim, counterclaim, setoff, defense or other right  that the Borrower or any other Loan Party may have at any time against any beneficiary  or any transferee of such Letter of Credit (or any Person for whom any such beneficiary  or any such transferee may be acting), the L/C Issuer or any other Person, whether in  connection with this Agreement, the transactions contemplated hereby or by such Letter  of Credit or any agreement or instrument relating thereto, or any unrelated transaction;  (iii) any draft, demand, certificate or other document presented under such  Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or  any statement therein being untrue or inaccurate in any respect; or any loss or delay in the  transmission or otherwise of any document required in order to make a drawing under  such Letter of Credit;  (iv) any payment by the L/C Issuer under such Letter of Credit against  presentation of a draft or certificate that does not strictly comply with the terms of such  Letter of Credit; or any payment made by the L/C Issuer under such Letter of Credit to  any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for  

 

  45    the benefit of creditors, liquidator, receiver or other representative of or successor to any  beneficiary or any transferee of such Letter of Credit, including any arising in connection  with any proceeding under any Debtor Relief Law; or  (v) any other circumstance or happening whatsoever, whether or not similar  to any of the foregoing, including any other circumstance that might otherwise constitute  a defense available to, or a discharge of, the Borrower or any other Loan Party.  The Borrower shall promptly examine a copy of each Letter of Credit and each amendment  thereto that is delivered to it and, in the event of any claim of noncompliance with the Borrower’s  instructions or other irregularity, the Borrower will immediately notify the L/C Issuer.  The Borrower  shall be conclusively deemed to have waived any such claim against the L/C Issuer and its correspondents  unless such notice is given as aforesaid.  (f) Role of L/C Issuer.  Each Lender and the Borrower agree that, in paying any  drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any  document (other than any sight draft, certificates and documents expressly required by the Letter  of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the  authority of the Person executing or delivering any such document.  None of the L/C Issuer, the  Administrative Agent, any of their respective Related Parties nor any correspondent, participant  or assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in  connection herewith at the request or with the approval of the Lenders or the Required Lenders,  as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful  misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or  instrument related to any Letter of Credit or Issuer Document.  The Borrower hereby assumes all  risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter  of Credit; provided, however, that this assumption is not intended to, and shall not, preclude the  Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee  at law or under any other agreement.  None of the L/C Issuer, the Administrative Agent, any of  their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer  shall be liable or responsible for any of the matters described in clauses (i) through (v) of  Section 2.03(e); provided, however, that anything in such clauses to the contrary notwithstanding,  the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be liable to the  Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or  exemplary, damages suffered by the Borrower which the Borrower prove were caused by the L/C  Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under  any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s)  strictly complying with the terms and conditions of a Letter of Credit.  In furtherance and not in  limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in  order, without responsibility for further investigation, regardless of any notice or information to  the contrary, and the L/C Issuer shall not be responsible for the validity or sufficiency of any  instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the  rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be  invalid or ineffective for any reason.  (g) Applicability of ISP and UCP.  Unless otherwise expressly agreed by the L/C  Issuer and the Borrower when a Letter of Credit is issued (including any such agreement  applicable to an Existing Letter of Credit), (i) the rules of the ISP shall apply to each standby  Letter of Credit, and (ii) the rules of the Uniform Customs and Practice for Documentary Credits,  as most recently published by the International Chamber of Commerce at the time of issuance  shall apply to each commercial Letter of Credit.  

 

  46    (h) Letter of Credit Fees.  The Borrower shall pay to the Administrative Agent for  the account of each Lender in accordance with its Applicable Percentage a Letter of Credit fee  (the “Letter of Credit Fee”) (i) for each commercial Letter of Credit equal to the Applicable Rate  times the daily amount available to be drawn under such Letter of Credit and (ii) for each standby  Letter of Credit equal to the Applicable Rate times the daily amount available to be drawn under  such Letter of Credit; provided, however, any Letter of Credit Fees otherwise payable for the  account of a Defaulting Lender with respect to any Letter of Credit as to which such Defaulting  Lender has not provided Cash Collateral satisfactory to the L/C Issuer pursuant to this  Section 2.03 shall be payable, to the maximum extent permitted by Applicable Law, to the other  Lenders in accordance with the upward adjustments in their respective Applicable Percentages  allocable to such Letter of Credit pursuant to Section 2.15(a)(iv), with the balance of such fee, if  any, payable to the L/C Issuer for its own account.  For purposes of computing the daily amount  available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be  determined in accordance with Section 1.06.  Letter of Credit Fees shall be (i) due and payable on  the first Business Day after the end of each March, June, September and December, commencing  with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit  Expiration Date and thereafter on demand and (ii) computed on a quarterly basis in arrears.   Notwithstanding anything to the contrary contained herein, upon the request of the Required  Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the Default  Rate.  (i) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer.   The Borrower shall pay directly to the L/C Issuer for its own account a fronting fee (i) with  respect to each commercial Letter of Credit, at the rate specified in the Fee Letter, computed on  the amount of such Letter of Credit, and payable upon the issuance thereof, (ii) with respect to  any amendment of a commercial Letter of Credit increasing the amount of such Letter of Credit,  at a rate separately agreed among the Borrower and the L/C Issuer, computed on the amount of  such increase, and payable upon the effectiveness of such amendment, and (iii) with respect to  each standby Letter of Credit, at the rate per annum specified in the Fee Letter, computed on the  daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears.   Such fronting fee shall be due and payable on the tenth Business Day after the end of each March,  June, September and December in respect of the most recently-ended quarterly period (or portion  thereof, in the case of the first payment), commencing with the first such date to occur after the  issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on  demand.  For purposes of computing the daily amount available to be drawn under any Letter of  Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.   In addition, the Borrower shall pay directly to the L/C Issuer for its own account the customary  issuance, presentation, amendment and other processing fees, and other standard costs and  charges, of the L/C Issuer relating to letters of credit as from time to time in effect.  Such  customary fees and standard costs and charges are due and payable on demand and are  nonrefundable.  (j) Conflict with Issuer Documents.  In the event of any conflict between the terms  hereof and the terms of any Issuer Document, the terms hereof shall control.  (k) Letters of Credit Issued for Other Loan Parties.  Notwithstanding that a Letter of  Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of,  a Loan Party (other than the Borrower), or states that such Loan Party (other than the Borrower)  is the “account party,” “applicant,” “customer,” “instructing party,” or the like of or for such  Letter of Credit, and without derogating from any rights of the L/C Issuer (whether arising by  contract, at law, in equity or otherwise) against such Loan Party in respect of such Letter of  

 

  47    Credit, the Borrower (a) shall be obligated to reimburse the L/C Issuer hereunder for any and all  drawings under such Letter of Credit as if such Letter of Credit had been issued solely for the  account of the Borrower and (b) irrevocably waives any and all defenses that might otherwise be  available to it as a guarantor or surety of any or all of the obligations of such Loan Party in  respect of such Letter of Credit.  The Borrower hereby acknowledges that the issuance of Letters  of Credit for the account of any such Loan Party inures to the benefit of the Borrower, and that  the Borrower’s business derives substantial benefits from the businesses of such Loan Parties.  2.04 Prepayments.    (a) Optional.  The Borrower may, upon notice to the Administrative Agent, at any  time or from time to time voluntarily prepay Loans in whole or in part without premium or  penalty (and without termination or reduction of Commitments except as expressly provided in  Section 2.05); provided that (A) such notice must be received by the Administrative Agent not  later than 11:00 a.m. (1) three Business Days prior to any date of prepayment of Eurodollar Rate  Loans and (2) on the date of prepayment of Base Rate Loans; (B) any prepayment of Eurodollar  Rate Loans shall be in a principal amount of $2,000,000 or a whole multiple of $250,000 in  excess thereof; and (C) any prepayment of Base Rate Loans shall be in a principal amount of  $250,000 or a whole 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 Type(s) of Loans to be prepaid and, if Eurodollar Rate Loans are to be  prepaid, the Interest Period(s) of such Loans.  The Administrative Agent will promptly notify  each Lender of its receipt of each such notice, and of the amount of such Lender’s ratable portion  of such prepayment (based on such Lender’s Applicable Percentage).  If such notice is given by  the Borrower, the Borrower 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  Eurodollar Rate Loan shall be accompanied by all accrued interest on the amount prepaid,  together with any additional amounts required pursuant to Section 3.05.  (b) Mandatory.  If for any reason the Total Revolving Credit Outstandings at any  time exceed the Revolving Credit Facility at such time, the Borrower shall immediately prepay  Loans and L/C Borrowings and/or Cash Collateralize the L/C Obligations (other than the L/C  Borrowings) in an aggregate amount equal to such excess.  Such prepayments of the Revolving  Credit Facility made pursuant to this Section 2.04(b), first, shall be applied ratably to the L/C  Borrowings, second, shall be applied ratably to the outstanding Loans, and, third, shall be used to  Cash Collateralize the remaining L/C Obligations.  2.05 Termination or Reduction of Commitments.    (a) Optional.  The Borrower may, upon notice to the Administrative Agent,  terminate the Revolving Credit Facility or the Letter of Credit Sublimit, or from time to time  permanently reduce the Revolving Credit Facility or the Letter of Credit Sublimit; provided that  (i) any such notice shall be received by the Administrative Agent not later than 11:00 a.m. five  Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be  in an aggregate amount of $5,000,000 or any whole multiple of $1,000,000 in excess thereof and  (iii) the Borrower shall not terminate or reduce (A) the Revolving Credit Facility if, after giving  effect thereto and to any concurrent prepayments hereunder, the Total Revolving Credit  Outstandings would exceed the Revolving Credit Facility, or (B) the Letter of Credit Sublimit if,  after giving effect thereto, the Outstanding Amount of L/C Obligations not fully Cash  Collateralized hereunder would exceed the Letter of Credit Sublimit.  Upon the election of the  Borrower to terminate the Revolving Credit Facility, the Borrower shall, concurrently with the  

 

  48    provision of any notification to the Administrative Agent pursuant to this Section 2.05(a), provide  notice of such election to terminate the Revolving Credit Facility to each other Secured Party;  provided that the Administrative Agent shall have no obligation to any Secured Party or any other  Person to verify that any such notification has been provided by the Borrower to any other  Secured Party as required by this Section 2.05(a).  (b) Mandatory.  If after giving effect to any reduction or termination of  Commitments under this Section 2.05, the Letter of Credit Sublimit exceeds the Revolving Credit  Facility at such time, the Letter of Credit Sublimit, shall be automatically reduced by the amount  of such excess.  (c) Application of Commitment Reductions; Payment of Fees.  The Administrative  Agent will promptly notify the Lenders of any termination or reduction of the Letter of Credit  Sublimit or the Commitments under this Section 2.05.  Upon any reduction of the Commitments,  the Commitment of each Lender shall be reduced by such Lender’s Applicable Percentage of  such reduction amount.  All fees in respect of the Revolving Credit Facility accrued until the  effective date of any termination of the Revolving Credit Facility shall be paid on the effective  date of such termination.  2.06 Repayment of Loans.  The Borrower shall repay to the Lenders on the Maturity Date the  aggregate principal amount of all Loans outstanding on such date.  2.07 Interest.    (a) Subject to the provisions of Section 2.07(b), (i) each Eurodollar Rate Loan shall  bear interest on the outstanding principal amount thereof for each Interest Period at a rate per  annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate; and (ii)  each Base Rate Loan shall bear interest on the outstanding principal amount thereof at a rate per  annum equal to the Base Rate plus the Applicable Rate.  (b) (i) If any amount of principal of any Loan is not paid when due (without  regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise,  such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal  to the Default Rate to the fullest extent permitted by Applicable Laws.  (ii) If any amount (other than principal of any Loan) payable by the  Borrower under any Loan Document is not paid when due (without regard to any  applicable grace periods), whether at stated maturity, by acceleration or otherwise, then  upon the request of the Required Lenders such amount shall thereafter bear interest at a  fluctuating interest rate per annum at all times equal to the Default Rate to the fullest  extent permitted by Applicable Laws.  (iii) Upon the request of the Required Lenders, while any Event of Default  exists, the Borrower shall pay interest on the principal amount of all outstanding  Obligations hereunder at a fluctuating interest rate per annum at all times equal to the  Default Rate to the fullest extent permitted by Applicable Laws.  (iv) Accrued and unpaid interest on past due amounts (including interest on  past due interest) shall be due and payable upon demand.  

 

  49    (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.  2.08 Fees.  In addition to certain fees described in Sections 2.03(h) and (i):  (a) Commitment Fee.  The Borrower shall pay to the Administrative Agent for the  account of each Lender in accordance with its Applicable Percentage, a commitment fee (the  “Commitment Fee”) equal to the Applicable Rate for commitment fees times the actual daily  amount by which the Revolving Credit Facility exceeds the sum of (i) the Outstanding Amount of  Loans and (ii) the Outstanding Amount of L/C Obligations, subject to adjustment as provided in  Section 2.15.  The commitment fee shall accrue at all times during the Availability Period,  including at any time during which one or more of the conditions in Article IV is not met, and  shall be due and payable quarterly in arrears on the last Business Day of each March, June,  September and December, commencing with the first such date to occur after the Closing Date,  and on the last day of the Availability Period.  (b) Other Fees.  (i) The Borrower shall pay to the Administrative Agent for its own account  fees in the amounts and at the times specified in the Fee Letter.  Such fees shall be fully  earned when paid and shall not be refundable for any reason whatsoever.  (ii) The Borrower shall pay to the Lenders 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.  2.09 Computation of Interest and Fees.    (a) All computations of interest for Base Rate Loans when the Base Rate is  determined by the Prime Rate shall be made on the basis of a year of 365 or 366 days, as the case  may be, and actual days elapsed.  All other computations of fees and interest provided hereunder  shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees  or interest, as applicable, being paid than if computed on the basis of a 365/366-day year).   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 2.11(a),  bear interest for one day.  Each determination by the Administrative Agent of an interest rate or  fee hereunder shall be conclusive and binding for all purposes, absent manifest error.  (b) If, as a result of any restatement of or other adjustment to the financial statements  of the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the  Consolidated Leverage Ratio as calculated by the Borrower as of any applicable date was  inaccurate and (ii) a proper calculation of the Consolidated Leverage Ratio would have resulted in  higher pricing for such period, the Borrower shall immediately and retroactively be obligated to  pay to the Administrative Agent for the account of the applicable Lenders or the L/C Issuer, as  the case may be, promptly on demand by the Administrative Agent (or, after the occurrence of an  actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy  Code of the United States, automatically and without further action by the Administrative Agent,  

 

  50    any Lender or the L/C Issuer), an amount equal to the excess of the amount of interest and fees  that should have been paid for such period over the amount of interest and fees actually paid for  such period.  This paragraph shall not limit the rights of the Administrative Agent, any Lender or  the L/C Issuer, as the case may be, under Section 2.03(c)(iii), 2.03(h) or 2.07(b) or under  Article IX.  The Borrower’s obligations under this paragraph shall survive the termination of the  Commitments of all of the Lenders and the repayment of all other Obligations hereunder for a  period of one year following the termination of such Commitments and repayment of such  Obligations hereunder.  2.10 Evidence of Debt.    (a) The Credit Extensions made by each Lender shall be evidenced by one or more  accounts or records maintained by such Lender and by the Administrative Agent in the ordinary  course of business.  The accounts or records maintained by the Administrative Agent and each  Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by  the Lenders to the Borrower 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 Borrower  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 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 Borrower shall execute and deliver to such Lender  (through the Administrative Agent) a Note, 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 2.10(a), each  Lender and the Administrative Agent shall maintain in accordance with its usual practice  accounts or records evidencing the purchases and sales by such Lender of participations in Letters  of Credit.  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.  2.11 Payments Generally; Administrative Agent’s Clawback.    (a) General.  All payments to be made by the Borrower shall be made without  condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise  expressly provided herein, all payments by the Borrower hereunder shall be made to the  Administrative Agent, for the account of the respective Lenders to which such payment is owed,  at the Administrative Agent’s Office in Dollars and in immediately available funds not later than  2:00 p.m. on the date specified herein.  The Administrative Agent will promptly distribute to each  Lender its Applicable Percentage (or other applicable share as provided herein) of such payment  in like funds as received by wire transfer to such Lender’s Lending Office.  All payments  received by the Administrative Agent after 2:00 p.m. shall 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 Borrower 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 on computing interest or fees, as the case may be.  

 

  51    (b) (i) Funding by Lenders; Presumption by Administrative Agent.  Unless the  Administrative Agent shall have received notice from a Lender prior to the proposed date of any  Borrowing of Eurodollar Rate Loans (or, in the case of any Borrowing of Base Rate Loans, prior  to 12:00 noon on the date of such Borrowing) that such Lender will not make available to the  Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may  assume that such Lender has made such share available on such date in accordance with  Section 2.02 (or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such  share available in accordance with and at the time required by Section 2.02) and may, in reliance  upon such assumption, make available to the Borrower a corresponding amount.  In such event, if  a Lender has not in fact made its share of the applicable Borrowing available to the  Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the  Administrative Agent forthwith on demand such corresponding amount in immediately available  funds with interest thereon, for each day from and including the date such amount is made  available to the Borrower to but excluding the date of payment to the Administrative Agent, at  (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate  and a rate determined by the Administrative Agent in accordance with banking industry rules on  interbank compensation, plus any administrative, processing or similar fees customarily charged  by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to  be made by the Borrower, the interest rate applicable to Base Rate Loans.  If the Borrower and  such Lender shall pay such interest to the Administrative Agent for the same or an overlapping  period, the Administrative Agent shall promptly remit to the Borrower the amount of such  interest paid by the Borrower for such period.  If such Lender pays its share of the applicable  Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s  Loan included in such Borrowing.  Any payment by the Borrower shall be without prejudice to  any claim the Borrower may have against a Lender that shall have failed to make such payment to  the Administrative Agent.  (ii) Payments by Borrower; Presumptions by Administrative Agent.  Unless  the Administrative Agent shall have received notice from the Borrower prior to the time  at which any payment is due to the Administrative Agent for the account of the Lenders  or the L/C Issuer hereunder that the Borrower will not make such payment, the  Administrative Agent may assume that the Borrower has made such payment on such  date in accordance herewith and may, in reliance upon such assumption, distribute to the  Appropriate Lenders or the L/C Issuer, as the case may be, the amount due.  In such  event, if the Borrower has not in fact made such payment, then each of the Appropriate  Lenders or the L/C Issuer, as the case may be, severally agrees to repay to the  Administrative Agent forthwith on demand the amount so distributed to such Lender or  the L/C Issuer, in immediately available funds with interest thereon, for each day from  and including the date such amount is distributed to it to but excluding the date of  payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate  determined by the Administrative Agent in accordance with banking industry rules on  interbank compensation.  A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount  owing under this subsection (b) shall be conclusive, absent manifest error.  (c) Failure to Satisfy Conditions Precedent.  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 Borrower 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  

 

  52    Agent shall promptly return such funds (in like funds as received from such Lender) to such  Lender, without interest.  (d) Obligations of Lenders Several.  The obligations of the Lenders hereunder to  make Loans, to fund participations in Letters of Credit and to make payments pursuant to  Section 10.04(c) are several and not joint.  The failure of any Lender to make any Loan, to fund  any such participation or to make any payment under Section 10.04(c) 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, to  purchase its participation or to make its payment under Section 10.04(c).  (e) Funding Source.  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) Insufficient Funds.  If at any time insufficient funds are received by and available  to the Administrative Agent to pay fully all amounts of principal, L/C Borrowings, interest and  fees then due hereunder, such funds shall be applied (i) first, toward payment of interest and fees  then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of  interest and fees then due to such parties, and (ii) second, toward payment of principal and L/C  Borrowings then due hereunder, ratably among the parties entitled thereto in accordance with the  amounts of principal and L/C Borrowings then due to such parties.  2.12 Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff  or counterclaim or otherwise, obtain payment in respect of (a) Obligations due and payable to such  Lender hereunder and under the other Loan Documents at such time in excess of its ratable share  (according to the proportion of (i) the amount of such Obligations due and payable to such Lender at such  time to (ii) the aggregate amount of the Obligations due and payable to all Lenders hereunder and under  the other Loan Documents at such time) of payments on account of the Obligations due and payable to all  Lenders hereunder and under the other Loan Documents at such time obtained by all the Lenders at such  time or (b) Obligations owing (but not due and payable) to such Lender hereunder and under the other  Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount  of such Obligations owing (but not due and payable) to such Lender at such time to (ii) the aggregate  amount of the Obligations owing (but not due and payable) to all Lenders hereunder and under the other  Loan Documents at such time) of payment on account of the Obligations owing (but not due and payable)  to all Lenders hereunder and under the other Loan Documents at such time obtained by all of the Lenders  at such time then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of  such fact, and (b) purchase (for cash at face value) participations in the Loans and subparticipations in  L/C Obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the  benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate  amount of Obligations then due and payable to the Lenders or owing (but not due and payable) to the  Lenders, as the case may be, provided that:  (i) if any such participations or subparticipations are purchased and all or  any portion of the payment giving rise thereto is recovered, such participations or  subparticipations shall be rescinded and the purchase price restored to the extent of such  recovery, without interest; and  (ii) the provisions of this Section shall not be construed to apply to (x) any  payment made by or on behalf of the Borrower pursuant to and in accordance with the  

 

  53    express terms of this Agreement (including the application of funds arising from the  existence of a Defaulting Lender), (y) the application of Cash Collateral provided for in  Section 2.14, or (z) any payment obtained by a Lender as consideration for the  assignment of or sale of a participation in any of its Loans or subparticipations in L/C  Obligations to any assignee or participant, other than an assignment to the Borrower or  any Affiliate thereof (as to which the provisions of this Section shall apply).  Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under  Applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may  exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as  fully as if such Lender were a direct creditor of such Loan Party in the amount of such participation.  2.13 Increase in Revolving Credit Facility.    (a) Request for Increase.  Provided there exists no Default, upon notice to the  Administrative Agent (which shall promptly notify the Lenders), the Borrower may, not more  than three (3) times from the Closing Date over the term of this Agreement, request an increase in  the Revolving Credit Facility by an aggregate amount (for all such requests) not to exceed  $50,000,000; provided that (i) any such request for an increase shall be in a minimum amount of  $5,000,000 and (ii) in no event shall the Revolving Credit Facility (after giving effect to all  requested increases therein) exceed $450,000,000.  At the time of sending such notice, the  Borrower (in consultation with the Administrative Agent) shall specify the time period within  which each Lender is requested to respond (which shall in no event be less than ten Business  Days from the date of delivery of such notice to the Lenders).  (b) Lender Elections to Increase.  Each Lender shall notify the Administrative Agent  within such time period whether or not it agrees to increase its Commitment and, if so, whether  by an amount equal to, greater than, or less than its Applicable Percentage of such requested  increase.  Any Lender not responding within such time period shall be deemed to have declined  to increase its Commitment.  (c) Notification by Administrative Agent; Additional Lenders.  The Administrative  Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made  hereunder.  To achieve the full amount of a requested increase, and subject to the approval of the  Administrative Agent, and the L/C Issuer (which approvals shall not be unreasonably withheld),  the Borrower may also invite additional Eligible Assignees (together with any existing Lender  participating in any such increase, each, an “Increasing Lender”) to become Lenders pursuant to a  joinder agreement in form and substance reasonably satisfactory to the Administrative Agent and  its counsel.  (d) Effective Date and Allocations.  If the Revolving Credit Facility is increased in  accordance with this Section, the Administrative Agent and the Borrower shall determine (i) the  final allocation of such increase among Increasing Lenders and Schedule 2.01 of the Disclosure  Schedules shall be automatically updated to reflect the same and (ii) the effective date (the  “Increase Effective Date”) of any such increase.  The Administrative Agent shall promptly notify  the Borrower and the Lenders of the final allocation of such increase and the Increase Effective  Date.  (e) Conditions to Effectiveness of Increase.  As a condition precedent to such  increase, the Borrower shall deliver to the Administrative Agent a certificate of each Loan Party  dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a  

 

  54    Responsible Officer of such Loan Party (i) certifying and attaching the resolutions adopted by  such Loan Party approving or consenting to such increase, and (ii) in the case of the Borrower,  certifying that, before and after giving effect to such increase, (A) the representations and  warranties contained in Article V and the other Loan Documents are true and correct in all  material respects, except for any representation and warranty that is qualified by materiality or  reference to Material Adverse Effect which such representation and warranty is true and correct  in all respects, on and as of the Increase Effective Date, except to the extent that such  representations and warranties specifically refer to an earlier date, in which case they are true and  correct in all material respects, except for any representation and warranty that is qualified by  materiality or reference to Material Adverse Effect which such representation and warranty is true  and correct in all respects, as of such earlier date, and except that for purposes of this  Section 2.13, the representations and warranties contained in subsections (a) and (b) of  Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to  clauses (a) and (b), respectively, of Section 6.01, (B) the Parent and its Subsidiaries are in  compliance with the Consolidated Leverage Ratio as set forth in Section 7.10(a), on a pro forma  basis after giving effect to such increase, recomputed as of the last day of the most recently ended  fiscal quarter of Parent for which financial statements are available and (C) no Default exists.   The Borrower shall prepay any Loans outstanding on the Increase Effective Date (and pay any  additional amounts required pursuant to Section 3.05) to the extent necessary to keep the  outstanding Loans ratable with any revised Applicable Percentages arising from any nonratable  increase in the Commitments under this Section.  (f) Term of Increase.  Any incremental Loans made pursuant to any increase in the  Revolving Credit Facility shall be made on the same terms (including, without limitation, interest  terms, payment terms and maturity terms), and shall be subject to the same conditions as existing  Loans (it being understood that customary arrangement or commitment fees payable to one or  more arrangers (or their affiliates) or one or more Increasing Lenders, as the case may be, may be  different than those paid with respect to the Lenders under the Revolving Credit Facility on or  prior to the Closing Date or with respect to any other Increasing Lender in connection with any  other increase in the Revolving Credit Facility pursuant to this Section 2.13).  (g) Conflicting Provisions.  This Section shall supersede any provisions in  Section 2.12 or 10.01 to the contrary.  2.14 Cash Collateral.    (a) Certain Credit Support Events.  Upon the request of the Administrative Agent or  the L/C Issuer (i) if the L/C Issuer has honored any full or partial drawing request under any  Letter of Credit and such drawing has resulted in an L/C Borrowing, (ii) if, as of the Letter of  Credit Expiration Date, any L/C Obligation for any reason remains outstanding or (iii) the  Borrower shall be required to provide Cash Collateral pursuant to Section 8.02(c), the Borrower  shall, in each case, immediately Cash Collateralize the then Outstanding Amount of all L/C  Obligations.  At any time that there shall exist a Lender that is a Defaulting Lender, immediately  upon the request of the Administrative Agent or the L/C Issuer, the Borrower shall deliver to the  Administrative Agent Cash Collateral in an amount sufficient to cover all Fronting Exposure  (after giving effect to Section 2.15(a)(iv) and any Cash Collateral provided by the Defaulting  Lender).  (b) Grant of Security Interest.  All Cash Collateral (other than credit support not  constituting funds subject to deposit) shall be maintained in blocked, non-interest bearing deposit  accounts at Wells Fargo.  The Borrower, and to the extent provided by any Defaulting Lender,  

 

  55    such Defaulting Lender, hereby grants to (and subjects to the control of) the Administrative  Agent, for the benefit of the Administrative Agent, the L/C Issuer and the Lenders, and agrees to  maintain, a first priority security interest in all such cash, deposit accounts and all balances  therein, and all other property so provided as collateral pursuant hereto, and in all proceeds of the  foregoing, all as security for the obligations to which such Cash Collateral may be applied  pursuant to Section 2.14(c).  If at any time the Administrative Agent determines that Cash  Collateral is subject to any right or claim of any Person other than the Administrative Agent or  the L/C Issuer as herein provided, or that the total amount of such Cash Collateral is less than the  Minimum Collateral Amount, the Borrower will, promptly upon demand by the Administrative  Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount  sufficient to eliminate such deficiency.  (c) Application.  Notwithstanding anything to the contrary contained in this  Agreement, Cash Collateral provided under any of this Section 2.14 or Section 2.03, 2.04, 2.15 or  8.02 in respect of Letters of Credit shall be held and applied to the satisfaction of the specific L/C  Obligations, obligations to fund participations therein (including, as to Cash Collateral provided  by a Defaulting Lender, any interest accrued on such obligation) and other obligations for which  the Cash Collateral was so provided, prior to any other application of such property as may  otherwise be provided for herein.  (d) Release.  Cash Collateral (or the appropriate portion thereof) provided to reduce  Fronting Exposure or other obligations shall be released promptly following (i) the elimination of  the applicable Fronting Exposure or other obligations giving rise thereto (including by the  termination of Defaulting Lender status of the applicable Lender (or, as appropriate, its assignee  following compliance with Section 10.06(b)(vi))) or (ii) the good faith determination by the  Administrative Agent and the L/C Issuer that there exists excess Cash Collateral; provided,  however, (x) that Cash Collateral furnished by or on behalf of a Loan Party shall not be released  during the continuance of a Default or Event of Default (and following application as provided in  this Section 2.14 may be otherwise applied in accordance with Section 8.03), and (y) the Person  providing Cash Collateral and the L/C Issuer may agree that Cash Collateral shall not be released  but instead held to support future anticipated Fronting Exposure or other obligations.  2.15 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.  Such 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 the definition of “Required Lenders” and Section 10.01.  (ii) Defaulting Lender Waterfall.  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) or received by the Administrative Agent from a Defaulting Lender pursuant to  Section 10.08, shall be applied at such time or times as may be determined by the  Administrative Agent as follows: first, to the payment of any amounts owing by such  Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a  pro rata basis of any amounts owing by such Defaulting Lender to the L/C Issuer  hereunder; third, to Cash Collateralize the L/C Issuer’s Fronting Exposure with respect to  

 

  56    such Defaulting Lender in accordance with Section 2.14; fourth, as the Borrower may  request (so long as no Default or Event of Default exists), to the funding of any Loan in  respect of which such Defaulting Lender has failed to fund its portion thereof as required  by this Agreement, as determined by the Administrative Agent; fifth, if so determined by  the Administrative Agent and the Borrower, to be held in a deposit account and released  pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding  obligations with respect to Loans under this Agreement and (y) Cash Collateralize the  L/C Issuer’s future Fronting Exposure with respect to such Defaulting Lender with  respect to future Letters of Credit issued under this Agreement, in accordance with  Section 2.14; sixth, to the payment of any amounts owing to the Lenders or the L/C Issuer  as a result of any judgment of a court of competent jurisdiction obtained by any Lender or  the L/C Issuer against such Defaulting Lender as a result of such Defaulting Lender’s  breach of its obligations under this Agreement; seventh, so long as no Default or Event of  Default exists, to the payment of any amounts owing to the Borrower as a result of any  judgment of a court of competent jurisdiction obtained by the Borrower against that  Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under  this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court  of competent jurisdiction; provided that if (x) such payment is a payment of the principal  amount of any Loans or L/C Borrowings in respect of which that Defaulting Lender has  not fully funded its appropriate share and (y) such Loans were made or the related Letters  of Credit were issued at a time when the conditions set forth in Section 4.02 were  satisfied or waived, such payment shall be applied solely to pay the Loans of, and L/C  Obligations owed to, all Non-Defaulting Lenders on a pro rata basis prior to being  applied to the payment of any Loans of, or L/C Obligations owed to, such Defaulting  Lender until such time as all Loans and funded and unfunded participations in L/C  Obligations are held by the Lenders pro rata in accordance with the Commitments  hereunder without giving effect to Section 2.15(a)(iv).  Any payments, prepayments or  other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay  amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section  2.15(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each  Lender irrevocably consents hereto.  (iii) Certain Fees.  (A) No Defaulting Lender shall be entitled to receive any fee payable  under Section 2.08(a) for any period during which that Lender is a Defaulting  Lender (and the Borrower shall not be required to pay any such fee that otherwise  would have been required to have been paid to that Defaulting Lender).  (B) Each Defaulting Lender shall be entitled to receive Letter of  Credit Fees under Section 2.03(h) for any period during which that Lender is a  Defaulting Lender only to the extent allocable to its Applicable Percentage of the  stated amount of Letters of Credit for which it has provided Cash Collateral  pursuant to Section 2.14.  (C) With respect to any fee payable under Section 2.08(a) or any  Letter of Credit Fee under Section 2.03(h) not required to be paid to any  Defaulting Lender pursuant to clause (A) or (B) above, the Borrower shall (x)  pay to each Non-Defaulting Lender that portion of any such fee otherwise  payable to such Defaulting Lender with respect to such Defaulting Lender’s  participation in L/C Obligations that has been reallocated to such Non-Defaulting  

 

  57    Lender pursuant to clause (iv) below, (y) pay to the L/C Issuer the amount of any  such fee otherwise payable to such Defaulting Lender to the extent allocable to  such L/C Issuer’s Fronting Exposure to such Defaulting Lender, and (z) not be  required to pay the remaining amount of any such fee.  (iv) Reallocation of Applicable Percentages to Reduce Fronting Exposure.   All or any part of such Defaulting Lender’s participation in L/C Obligations shall be  reallocated among the Non-Defaulting Lenders in accordance with their respective  Applicable Percentages (calculated without regard to such Defaulting Lender’s  Commitment) but only to the extent that (x) the conditions set forth in Section 4.02 are  satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise  notified the Administrative Agent at such time, the Borrower shall be deemed to have  represented and warranted that such conditions are satisfied at such time), and (y) such  reallocation does not cause the aggregate Outstanding Amount of the Loans of any Non- Defaulting Lender, plus such Non-Defaulting Lender’s Applicable Percentage of the  Outstanding Amount of all L/C Obligations to exceed such Non-Defaulting Lender’s  Commitment.  Subject to Section 10.22, no reallocation hereunder shall constitute a  waiver or release of any claim of any party hereunder against a Defaulting Lender arising  from that Lender having become a Defaulting Lender, including any claim of a Non- Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure  following such reallocation.  (b) Defaulting Lender Cure.  If the Borrower, the Administrative Agent and the L/C  Issuer agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent  will so notify the parties hereto, whereupon as of the effective date specified in such notice and  subject to any conditions set forth therein (which may include arrangements with respect to any  Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of  outstanding Loans of the other Lenders or take such other actions as the Administrative Agent  may determine to be necessary to cause the Loans and funded and unfunded participations in  Letters of Credit to be held on a pro rata basis by the Lenders in accordance with their Applicable  Percentages (without giving effect to Section 2.15(a)(iv)), whereupon such Lender will cease to  be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to  fees accrued or payments made by or on behalf of the Borrower while that Lender was a  Defaulting Lender; 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.  ARTICLE III    TAXES, YIELD PROTECTION AND ILLEGALITY  3.01 Taxes.    (a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of  Taxes.  (i) Any and all payments by or on account of any obligation of the Borrower  or any other Loan Party hereunder or under any other Loan Document shall to the extent  permitted by Applicable Laws be made free and clear of and without reduction or  withholding for any Taxes.  If, however, Applicable Laws require the Borrower, any  

 

  58    other Loan Party or the Administrative Agent to withhold or deduct any Tax, such Tax  shall be withheld or deducted in accordance with such Applicable Laws as determined by  the Borrower, such other Loan Party or the Administrative Agent, as the case may be,  upon the basis of the information and documentation to be delivered pursuant to  subsection (e) below.  (ii) If the Borrower, any other Loan Party or the Administrative Agent shall  be required by the Code to withhold or deduct any Taxes, including both United States  Federal backup withholding and withholding taxes, from any payment, then (A) the  Administrative Agent shall withhold or make such deductions as are determined by the  Administrative Agent to be required based upon the information and documentation it has  received pursuant to subsection (e) below, (B) the Administrative Agent shall timely pay  the full amount withheld or deducted to the relevant Governmental Authority in  accordance with the Code, and (C) to the extent that the withholding or deduction is made  on account of Indemnified Taxes or Other Taxes, the sum payable by the Borrower or  such other Loan Party, as the case may be, shall be increased as necessary so that after  any required withholding or the making of all required deductions (including deductions  applicable to additional sums payable under this Section) the Administrative Agent,  Lender or L/C Issuer, as the case may be, receives an amount equal to the sum it would  have received had no such withholding or deduction been made.  (iii) If the Borrower, any other Loan Party or the Administrative Agent shall  be required by Applicable Laws other than the Code to withhold or deduct any Taxes  from any payment, then (A) the Borrower, such other Loan Party, or the Administrative  Agent shall withhold or make such deductions as are determined by the Borrower, such  other Loan Party, or the Administrative Agent to be required based upon the information  and documentation it has received pursued to subsection (e) below, (B) the Borrower,  such other Loan Party, or the Administrative Agent shall timely pay the full amount  deducted to the relevant Governmental Authority in accordance with Applicable Law,  and (C) to the extent that the withholding or deduction is made on account of Indemnified  Taxes or Other Taxes, the sum payable by the Borrower or such other Loan Party, as the  case may be, shall be increased as necessary so that after any required withholding or the  making of all required deductions (including deductions applicable to additional sums  payable under this Section) the Administrative Agent, Lender or L/C Issuer, as the case  may be, receives an amount equal to the sum it would have received had no such  withholding or deduction been made.  (b) Payment of Other Taxes by the Borrower and Other Loan Parties.  Without  limiting the provisions of subsection (a) above, the Borrower and the other Loan Parties shall  timely pay any Other Taxes to the relevant Governmental Authority in accordance with  Applicable Law.  (c) Tax Indemnifications.  (i) Without limiting the provisions of subsection (a) or (b) above, the  Borrower and the other Loan Parties shall, and do hereby, jointly and severally,  indemnify the Administrative Agent, each Lender and the L/C Issuer, and shall make  payment in respect thereof within 10 days after demand therefor, for the full amount of  any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes  imposed or asserted on or attributable to amounts payable under this Section) withheld or  deducted by the Borrower, and the other Loan Parties or the Administrative Agent or paid  

 

  59    by the Administrative Agent, such Lender or the L/C Issuer, as the case may be, and any  penalties, interest and reasonable expenses arising therefrom or with respect thereto,  whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed  or asserted by the relevant Governmental Authority.  The Borrower and the other Loan  Parties shall also, and do hereby, jointly and severally, indemnify the Administrative  Agent, and shall make payment in respect thereof within 10 days after demand therefor,  for any amount which a Lender or the L/C Issuer for any reason fails to pay indefeasibly  to the Administrative Agent as required by clause (ii) of this subsection.  A certificate as  to the amount of any such payment or liability delivered to the Borrower and the other  Loan Parties by a Lender or the L/C Issuer (with a copy to the Administrative Agent), or  by the Administrative Agent on its own behalf or on behalf of a Lender or the L/C Issuer,  shall be conclusive absent manifest error.  (ii) Without limiting the provisions of subsection (a) or (b) above, each  Lender and the L/C Issuer shall, and does hereby, indemnify the Borrower, the other  Loan Parties and the Administrative Agent, and shall make payment in respect thereof  within 10 days after demand therefor, against any and all Taxes and any and all related  losses, claims, liabilities, penalties, interest and expenses (including the fees, charges and  disbursements of any counsel for the Borrower, the other Loan Parties or the  Administrative Agent) incurred by or asserted against the Borrower, the other Loan  Parties or the Administrative Agent by any Governmental Authority as a result of the  failure by such Lender or the L/C Issuer, as the case may be, to deliver, or as a result of  the inaccuracy, inadequacy or deficiency of, any documentation required to be delivered  by such Lender or the L/C Issuer, as the case may be, to the Borrower, the other Loan  Parties or the Administrative Agent pursuant to subsection (e).  Each Lender and the L/C  Issuer hereby authorizes the Administrative Agent to set off and apply any and all  amounts at any time owing to such Lender or the L/C Issuer, as the case may be, under  this Agreement or any other Loan Document against any amount due to the  Administrative Agent under this clause (ii).  The agreements in this clause (ii) shall  survive the resignation and/or replacement of the Administrative Agent, any assignment  of rights by, or the replacement of, a Lender or the L/C Issuer, the termination of the  Commitments and the repayment, satisfaction or discharge of all other Obligations.  (d) Evidence of Payments.  Upon request by the Borrower, the other Loan Parties or  the Administrative Agent, as the case may be, after any payment of Taxes by the Borrower, and  the Loan Parties or the Administrative Agent to a Governmental Authority as provided in this  Section 3.01, the Borrower and the other Loan Parties shall each deliver to the Administrative  Agent or the Administrative Agent shall deliver to the Borrower and the other Loan Parties, as the  case may be, the original or a certified copy of a receipt issued by such Governmental Authority  evidencing such payment, a copy of any return required by Applicable Laws to report such  payment or other evidence of such payment reasonably satisfactory to the Borrower, and the other  Loan Parties or the Administrative Agent, as the case may be.  (e) Status of Lenders; Tax Documentation.  (i) Each Lender that is entitled to an exemption from or reduction of  withholding tax shall deliver to the Borrower and the Administrative Agent, at the time or  times reasonably requested by the Borrower or the Administrative Agent, such properly  completed and executed documentation reasonably requested by the Borrower or the  Administrative Agent as will permit such payments to be made without withholding or at  a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the  

 

  60    Borrower or the Administrative Agent, shall deliver such other documentation prescribed  by Applicable Law or reasonably requested by the Borrower or the Administrative Agent  as will enable the Borrower or the Administrative Agent to determine whether or not such  Lender is subject to backup withholding or information reporting requirements.   Notwithstanding anything to the contrary in the preceding two sentences, the completion,  execution and submission of such documentation (other than such documentation set  forth in Sections 3.01(e)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the  Lender’s reasonable judgment such completion, execution or submission would subject  such Lender to any material unreimbursed cost or expense or would materially prejudice  the legal or commercial position of such Lender.  (ii) Without limiting the generality of the foregoing, if the Borrower or any  other Loan Party, as the case may be is resident for tax purposes in the United States,  (A) any Lender that is a “United States person” within the meaning  of Section 7701(a)(30) of the Code shall deliver to the Borrower and the  Administrative Agent executed copies of Internal Revenue Service Form W-9 or  such other documentation or information prescribed by Applicable Laws or  reasonably requested by the Borrower or the Administrative Agent as will enable  the Borrower or the Administrative Agent, as the case may be, to determine  whether or not such Lender is subject to backup withholding or information  reporting requirements;  (B) each Foreign Lender that is entitled under the Code or any  applicable treaty to an exemption from or reduction of withholding tax with  respect to payments hereunder or under any other Loan Document shall deliver to  the Borrower and the Administrative Agent (in such number of copies as shall be  requested by the recipient) on or prior to the date on which such Foreign Lender  becomes a Lender under this Agreement (and from time to time thereafter upon  the request of the Borrower or the Administrative Agent, but only if such Foreign  Lender is legally entitled to do so), whichever of the following is applicable:  (I) executed copies of Internal Revenue Service  Form W-8BEN or W-8BEN-E, as applicable, claiming eligibility for  benefits of an income tax treaty to which the United States is a party,  (II) executed copies of Internal Revenue Service  Form W-8ECI,  (III) executed copies of Internal Revenue Service  Form W-8IMY and all required supporting documentation, or  (IV) in the case of a Foreign Lender claiming the benefits of  the exemption for portfolio interest under section 881(c) of the Code,  (x) a certificate to the effect that such Foreign Lender is not (A) a “bank”  within the meaning of section 881(c)(3)(A) of the Code, (B) a “10  percent shareholder” of the Borrower or other Loan Party within the  meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign  corporation” described in section 881(c)(3)(C) of the Code and  (y) executed copies of Internal Revenue Service Form W-8BEN or W- 8BEN-E, as applicable;  

 

  61    (C) any Foreign Lender shall, to the extent it is legally entitled to do  so, deliver to the Borrower and the Administrative Agent (in such number of  copies as shall be requested by the recipient) on or prior to the date on which  such Foreign Lender becomes a Lender under this Agreement (and from time to  time thereafter upon the reasonable request of the Borrower or the Administrative  Agent) executed copies of any other form prescribed by Applicable Laws as a  basis for claiming exemption from or a reduction in United States Federal  withholding tax together with such supplementary documentation as may be  prescribed by Applicable Laws to permit the Borrower or the Administrative  Agent to determine the withholding or deduction required to be made; and  (D) If a payment made to a Lender under any Loan Document would  be subject to U.S. federal withholding tax imposed by FATCA if such Lender  were to fail to comply with the applicable reporting requirements of FATCA  (including those contained in Section 1471(b) or 1472(b) of the Code, as  applicable), such Lender shall deliver to the Borrower and the Administrative  Agent at the time or times prescribed by law and at such time or times reasonably  requested by the Borrower or the Administrative Agent such documentation  prescribed by Applicable Law (including as prescribed by Section  1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably  requested by the Borrower or the Administrative Agent as may be necessary for  the Borrower and the Administrative Agent to comply with their obligations  under FATCA and to determine that such Lender has complied with such  Lender’s obligations under FATCA or to determine the amount to deduct and  withhold from such payment.  Solely for purposes of this paragraph (iv),  “FATCA” shall include any amendments made to FATCA after the date of this  Agreement.  Each Lender agrees that if any form or certification it previously  delivered expires or becomes obsolete or inaccurate in any respect, it shall update  such form or certification or promptly notify the Borrower and the  Administrative Agent in writing of its legal inability to do so.  (f) If any party determines, in its sole discretion exercised in good faith, that it has  received a refund of any Taxes as to which it has been indemnified pursuant to this Section 3.01  (including by the payment of additional amounts pursuant to this Section 3.01), it shall pay to the  indemnifying party an amount equal to such refund (but only to the extent of indemnity payments  made under this Section with respect to the Taxes giving rise to such refund), net of all out-of- pocket expenses (including Taxes) of such indemnified party and without interest (other than any  interest paid by the relevant Governmental Authority with respect to such refund).  Such  indemnifying party, upon the request of such indemnified party, shall repay to such indemnified  party the amount paid over pursuant to this paragraph (f) (plus any penalties, interest or other  charges imposed by the relevant Governmental Authority) in the event that such indemnified  party is required to repay such refund to such Governmental Authority.  Notwithstanding  anything to the contrary in this paragraph (f), in no event will the indemnified party be required to  pay any amount to an indemnifying party pursuant to this paragraph (f) the payment of which  would place the indemnified party in a less favorable net after-Tax position than the indemnified  party would have been in if the Tax subject to indemnification and giving rise to such refund had  not been deducted, withheld or otherwise imposed and the indemnification payments or  additional amounts with respect to such Tax had never been paid.  This paragraph shall not be  construed to require any indemnified party to make available its Tax returns (or any other  

 

  62    information relating to its Taxes that it deems confidential) to the indemnifying party or any other  Person.  (g) For purposes of determining withholding Taxes imposed under FATCA, from  and after the Closing Date, the Borrower and the Administrative Agent shall treat (and the  Lenders hereby authorize the Administrative Agent to treat) the Loans as not qualifying as  “grandfathered obligations” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).  3.02 Illegality.  If any Lender 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 Loans whose interest is determined by reference to the Eurodollar Rate, or to  determine or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has  imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of,  Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower through  the Administrative Agent, (i) any obligation of such Lender to make or continue Eurodollar Rate Loans or  to convert Base Rate Loans to Eurodollar 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 Eurodollar 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 Eurodollar Rate component of the Base Rate, in each case until such  Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such  determination no longer exist.  Upon receipt of such notice, (x) the Borrower shall, upon demand from  such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar  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 Eurodollar 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 Eurodollar Rate Loans to such day, or  immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate Loans and (y) if  such notice asserts the illegality of such Lender determining or charging interest rates based upon the  Eurodollar Rate, the Administrative Agent shall during the period of such suspension compute the Base  Rate applicable to such Lender without reference to the Eurodollar 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 Eurodollar Rate.  Upon any such prepayment or  conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.  3.03 Changed Circumstances.    (a) Subject to clause (b) below, if the Required Lenders determine that for any  reason in connection with any request for a Eurodollar Rate Loan or a conversion to or  continuation thereof that (i) Dollar deposits are not being offered to banks in the London  interbank eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate  Loan, (ii) adequate and reasonable means do not exist for determining the Eurodollar Rate for any  requested Interest Period with respect to a proposed Eurodollar Rate Loan or in connection with  an existing or proposed Base Rate Loan, or (iii) the Eurodollar Rate for any requested Interest  Period with respect to a proposed Eurodollar 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  Borrower and each Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain  Eurodollar Rate Loans shall be suspended, and (y) in the event of a determination described in the  preceding sentence with respect to the Eurodollar Rate component of the Base Rate, the  utilization of the Eurodollar 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  

 

  63    such notice.  Upon receipt of such notice, the Borrower may revoke any pending request for a  Borrowing of, conversion to or continuation of Eurodollar 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.   (b) Benchmark Replacement Setting.    (i) (A)  Benchmark Replacement.  Notwithstanding anything to the contrary herein  or in any other Loan Document (and any Secured Hedge Agreement shall be deemed not to be a  “Loan Document” for purposes of this Section 3.03(b)) if a Benchmark Transition Event, an  Early Opt-in Election or an Other Benchmark Rate Election, as applicable, and its related  Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting  of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance  with clause (a)(i) or (a)(ii) of the definition of “Benchmark Replacement” for such Benchmark  Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes  hereunder and under any Loan Document in respect of such Benchmark setting and subsequent  Benchmark settings without any amendment to, or further action or consent of any other party to,  this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined  in accordance with clause (a)(iii) or clause (c) of the definition of “Benchmark Replacement” for  such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark  for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at  or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of  such Benchmark Replacement is provided to the Lenders without any amendment to, or further  action or consent of any other party to, this Agreement or any other Loan Document so long as  the Administrative Agent has not received, by such time, written notice of objection to such  Benchmark Replacement from Lenders comprising the Required Lenders.  If an Unadjusted  Benchmark Replacement is Daily Simple SOFR, all interest payments will be payable on a  quarterly basis.  (B) Notwithstanding anything to the contrary herein or in any other Loan Document,  if a Term SOFR Transition Event and its related Benchmark Replacement Date have occurred  prior to the Reference Time in respect of any setting of the then-current Benchmark, then the  applicable Benchmark Replacement will replace the then-current Benchmark for all purposes  hereunder or under any Loan Document in respect of such Benchmark setting and subsequent  Benchmark settings, without any amendment to, or further action or consent of any other party to,  this Agreement or any other Loan Document; provided that this clause (B) shall not be effective  unless the Administrative Agent has delivered to the Lenders and the Borrower a Term SOFR  Notice.  For the avoidance of doubt, the Administrative Agent shall not be required to deliver a  Term SOFR Notice after a Term SOFR Transition Event and may elect or not elect to do so in its  sole discretion.  (ii) Benchmark Replacement Conforming Changes.  In connection with the  implementation of a Benchmark Replacement, the Administrative Agent will have the right to  make Benchmark Replacement Conforming Changes from time to time and, notwithstanding  anything to the contrary herein or in any other Loan Document, any amendments implementing  such Benchmark Replacement Conforming Changes will become effective without any further  action or consent of any other party to this Agreement or any other Loan Document.  (iii) Notices; Standards for Decisions and Determinations.  The Administrative Agent  will promptly notify the Borrower and the Lenders of (A) any occurrence of a Benchmark  Transition Event, a Term SOFR Transition Event, an Early Opt-in Election or an Other  

 

  64    Benchmark Rate Election, as applicable, and its related Benchmark Replacement Date, (B) the  implementation of any Benchmark Replacement, (C) the effectiveness of any Benchmark  Replacement Conforming Changes, (D) the removal or reinstatement of any tenor of a  Benchmark pursuant to Section 3.03(b)(iv) below and (E) the commencement or conclusion of  any Benchmark Unavailability Period.  Any determination, decision or election that may be made  by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this  Section 3.03(b), including any determination with respect to a tenor, rate or adjustment or of the  occurrence or non-occurrence of an event, circumstance or date and any decision to take or  refrain from taking any action or any selection, will be conclusive and binding absent manifest  error and may be made in its or their sole discretion and without consent from any other party to  this Agreement or any other Loan Document, except, in each case, as expressly required pursuant  to this Section 3.03(b).  (iv) Unavailability of Tenor of Benchmark.  Notwithstanding anything to the contrary  herein or in any other Loan Document, at any time (including in connection with the  implementation of a Benchmark Replacement), (A) if the then-current Benchmark is a term rate  (including Term SOFR or USD LIBOR) and either (1) any tenor for such Benchmark is not  displayed on a screen or other information service that publishes such rate from time to time as  selected by the Administrative Agent in its reasonable discretion or (2) the regulatory supervisor  for the administrator of such Benchmark has provided a public statement or publication of  information announcing that any tenor for such Benchmark is or will be no longer representative,  then the Administrative Agent may modify the definition of “Interest Period” for any Benchmark  settings at or after such time to remove such unavailable or non-representative tenor and (B) if a  tenor that was removed pursuant to clause (A) above either (1) is subsequently displayed on a  screen or information service for a Benchmark (including a Benchmark Replacement) or (2) is  not, or is no longer, subject to an announcement that it is or will no longer be representative for a  Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify  the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such  previously removed tenor.  (v) Benchmark Unavailability Period.  Upon the Borrower’s receipt of notice of the  commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for  a borrowing of, conversion to or continuation of Eurodollar Rate Loans to be made, converted or  continued during any Benchmark Unavailability Period and, failing that, the Borrower will be  deemed to have converted any such request into a request for a borrowing of or conversion to  Base Rate Loans.  During any Benchmark Unavailability Period or at any time that a tenor for the  then-current Benchmark is not an Available Tenor, the component of the Base Rate based upon  the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in  any determination of the Base Rate.  (vi) London Interbank Offered Rate Benchmark Transition Event.  On March 5,  2021, the IBA, the administrator of the London interbank offered rate, and the FCA, the  regulatory supervisor of the IBA, made the Announcements that the final publication or  representativeness date for Dollars for (A) 1-week and 2-month London interbank offered rate  tenor settings will be December 31, 2021 and (B) overnight, 1-month, 3-month, 6-month and 12- month London interbank offered rate tenor settings will be June 30, 2023.  No successor  administrator for the IBA was identified in such Announcements.  The parties hereto agree and  acknowledge that the Announcements resulted in the occurrence of a Benchmark Transition  Event with respect to the London interbank offered rate pursuant to the terms of this Agreement  and that any obligation of the Administrative Agent to notify any parties of such Benchmark  Transition Event pursuant to clause (iii) of this Section 3.03(b) shall be deemed satisfied.  

 

  65    3.04 Increased Costs; Reserves on Eurodollar Rate Loans.    (a) Increased Costs Generally.  If any Change in Law shall:  (i) impose, modify or deem applicable any reserve, special deposit,  compulsory loan, insurance charge or similar requirement against assets of, deposits with  or for the account of, or credit extended or participated in by, any Lender (except any  reserve requirement contemplated by Section 3.04(e)) or the L/C Issuer;  (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever  with respect to this Agreement, any Letter of Credit, any participation in a Letter of  Credit or any Eurodollar Rate Loan made by it, or change the basis of taxation of  payments to such Lender or the L/C Issuer in respect thereof (except for Indemnified  Taxes or Other Taxes covered by Section 3.01 and the imposition of, or any change in the  rate of, any Excluded Tax payable by such Lender or the L/C Issuer); or  (iii) impose on any Lender or the L/C Issuer or the London interbank market  any other condition, cost or expense affecting this Agreement or Eurodollar Rate Loans  made by such Lender or any Letter of Credit or participation therein;  and the result of any of the foregoing shall be to increase the cost to such Lender of making or  maintaining any Loan the interest on which is determined by reference to the Eurodollar Rate (or of  maintaining its obligation to make any such Loan), or to increase the cost to such Lender or the L/C Issuer  of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to  participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable  by such Lender or the L/C Issuer hereunder (whether of principal, interest or any other amount) then,  upon request of such Lender or the L/C Issuer, the Borrower will pay to such Lender or the L/C Issuer, as  the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer, as  the case may be, for such additional costs incurred or reduction suffered.  (b) Capital Requirements.  If any Lender or the L/C Issuer determines that any  Change in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or  such Lender’s or the L/C Issuer’s holding company, if any, regarding capital or liquidity  requirements has or would have the effect of reducing the rate of return on such Lender’s or the  L/C Issuer’s capital or on the capital of such Lender’s or the L/C Issuer’s holding company, if  any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made  by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by  the L/C Issuer, to a level below that which such Lender or the L/C Issuer or such Lender’s or the  L/C Issuer’s holding company could have achieved but for such Change in Law (taking into  consideration such Lender’s or the L/C Issuer’s policies and the policies of such Lender’s or the  L/C Issuer’s holding company with respect to capital adequacy and liquidity), then from time to  time the Borrower will pay to such Lender or the L/C Issuer, as the case may be, such additional  amount or amounts as will compensate such Lender or the L/C Issuer or such Lender’s or the L/C  Issuer’s holding company for any such reduction suffered.  (c) Certificates for Reimbursement.  A certificate of a Lender or the L/C Issuer  setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its  holding company, as the case may be, as specified in subsection (a) or (b) of this Section and  delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such  Lender or the L/C Issuer, as the case may be, the amount shown as due on any such certificate  within 10 days after receipt thereof.  

 

  66    (d) Delay in Requests.  Failure or delay on the part of any Lender or the L/C Issuer  to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a  waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided that the  Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant to the  foregoing provisions of this Section for any increased costs incurred or reductions suffered more  than nine months prior to the date that such Lender or the L/C Issuer, as the case may be, notifies  the Borrower of the Change in Law giving rise to such increased costs or reductions and of such  Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if the Change  in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period  referred to above shall be extended to include the period of retroactive effect thereof).  (e) Reserves on Eurodollar Rate Loans.  The Borrower shall pay to each Lender, as  long as such Lender shall be required to maintain reserves with respect to liabilities or assets  consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency  liabilities”), additional interest on the unpaid principal amount of each Eurodollar Rate Loan  equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined  by such Lender in good faith, which determination shall be conclusive), which shall be due and  payable on each date on which interest is payable on such Loan, provided the Borrower shall  have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such  additional interest from such Lender.  If a Lender fails to give notice 10 days prior to the relevant  Interest Payment Date, such additional interest shall be due and payable 10 days from receipt of  such notice.  3.05 Compensation for Losses.  Upon demand of any Lender (with a copy to the  Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and  hold such Lender harmless from any loss, cost or expense incurred by it as a result of:  (a) any continuation, conversion, payment or prepayment of any Loan other than a  Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether  voluntary, mandatory, automatic, by reason of acceleration, or otherwise);  (b) any failure by the Borrower (for a reason other than the failure of such Lender to  make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on  the date or in the amount notified by the Borrower; or  (c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the  Interest Period therefor as a result of a request by the Borrower pursuant to Section 10.13;  including any loss of anticipated profits and any loss or expense arising from the liquidation or  reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the  deposits from which such funds were obtained.  The Borrower shall also pay any customary  administrative fees charged by such Lender in connection with the foregoing.  For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each  Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Rate for  such Loan by a matching deposit or other borrowing in the London interbank eurodollar market for a  comparable amount and for a comparable period, whether or not such Eurodollar Rate Loan was in fact so  funded.  3.06 Mitigation Obligations; Replacement of Lenders.    

 

  67    (a) Designation of a Different Lending Office.  If any Lender requests compensation  under Section 3.04, or the Borrower is required to pay any additional amount to any Lender, the  L/C Issuer, or any Governmental Authority for the account of any Lender or the L/C Issuer  pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such  Lender or the L/C Issuer shall, as applicable, use reasonable efforts to designate a different  Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations  hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender or the  L/C Issuer, 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 or the L/C Issuer, as the case may be, to any unreimbursed cost or expense and would not  otherwise be disadvantageous to such Lender or the L/C Issuer, as the case may be.  The  Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender or the  L/C Issuer in connection with any such designation or assignment.  (b) Replacement of Lenders.  If any Lender requests compensation under  Section 3.04, or if the Borrower is required to pay any additional amount to any Lender or any  Governmental Authority for the account of any Lender pursuant to Section 3.01, the Borrower  may replace such Lender in accordance with Section 10.13.  3.07 Survival.  All of the Borrower’s obligations under this Article III shall survive  termination of the Aggregate Commitments, repayment of all other Obligations hereunder, and  resignation of the Administrative Agent.  ARTICLE IV    CONDITIONS PRECEDENT TO CREDIT EXTENSIONS  4.01 Conditions of Initial Credit Extension.  The obligation of the L/C Issuer and each  Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following conditions  precedent:  (a) The Administrative Agent’s receipt of the following, each of which shall be  originals or telecopies (followed promptly by originals) unless otherwise specified, each properly  executed by a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in  the case of certificates of governmental officials, a recent date before the Closing Date) and each  in form and substance satisfactory to the Administrative Agent and each of the Lenders:  (i) executed counterparts of this Agreement, sufficient in number for  distribution to the Administrative Agent, each Lender and the Borrower;  (ii) a Note executed by the Borrower in favor of each Lender requesting a  Note;  (iii) the Guarantee and Collateral Agreement, duly executed by each Loan  Party, together with:  (A) certificates representing the Pledged Stock referred to therein  accompanied by undated stock powers executed in blank and instruments  evidencing the Pledged Debt Securities indorsed in blank;  

 

  68    (B) proper Financing Statements in form appropriate for filing under  the Uniform Commercial Code of all jurisdictions that the Administrative Agent  may deem necessary or desirable in order to perfect the Liens created under the  Guarantee and Collateral Agreement, covering the Collateral described in the  Guarantee and Collateral Agreement;  (C) completed requests for information, dated on or before the date  of the initial Credit Extension, listing all effective financing statements filed in  the jurisdictions referred to in clause (B) above that name any Loan Party as  debtor, together with copies of such other financing statements;  (D) evidence of the completion of all other actions, recordings and  filings of or with respect to the Guarantee and Collateral Agreement that the  Administrative Agent may deem necessary or desirable in order to perfect the  Liens created thereby;  (E) a Perfection Certificate with respect to each Loan Party; and  (F) evidence that all other action that the Administrative Agent may  deem necessary in order to perfect the Liens created under the Guarantee and  Collateral Agreement has been taken (including receipt of duly executed payoff  letters and landlords’ and bailees’ waiver and consent agreements (to the extent  required pursuant to the terms of the Guarantee and Collateral Agreement));  (iv) the IP Security Agreement with respect to each Loan Party’s IP Rights,  duly executed by each Loan Party, together with evidence that all action that the  Administrative Agent may deem necessary in order to perfect the Liens created under the  IP Security Agreement has been taken;  (v) such certificates of resolutions or other action, incumbency certificates  and/or other certificates of Responsible Officers of each Loan Party as the Administrative  Agent may require 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;  (vi) such documents and certifications as the Administrative Agent may  reasonably require to evidence that each Loan Party is duly organized or formed, and that  each Loan Party is validly existing, in good standing and qualified to engage in business  in each jurisdiction where its ownership, lease or operation of properties or the conduct of  its business requires such qualification, except to the extent that failure to do so could not  reasonably be expected to have a Material Adverse Effect;  (vii) a favorable opinion of Morgan, Lewis & Bockius LLP, counsel to the  Loan Parties, addressed to the Administrative Agent and each Lender, covering such  matters relating to the Loan Documents and the Transactions as the Administrative Agent  and the Required Lenders shall reasonably request;  (viii) a certificate of a Responsible Officer of Parent, on behalf of each Loan  Party, either (x) attaching copies of all consents, licenses and approvals required in  connection with the consummation by such Loan Party of the Transactions and the  

 

  69    execution, delivery and performance by such Loan Party and the validity against such  Loan Party of the Loan Documents to which it is a party, and such consents, licenses and  approvals shall be in full force and effect, or (y) stating that no such consents, licenses or  approvals are so required;  (ix) a certificate signed by a Responsible Officer of the Borrower certifying  (A) that the conditions specified in Sections 4.02(a) and (b) have been satisfied, and  (B) that there has been no event or circumstance since the date of the Audited Financial  Statements that has had or could be reasonably expected to have, either individually or in  the aggregate, a Material Adverse Effect and (C) no action, proceeding, investigation,  regulation or legislation shall have been instituted, threatened or proposed before any  Governmental Authority to enjoin, restrain, or prohibit, or to obtain substantial damages  in respect of, or which is related to or arises out of this Agreement or the other Loan  Documents or the consummation of the transactions contemplated hereby or thereby, or  which, in the Administrative Agent’s sole discretion, would make it inadvisable to  consummate the transactions contemplated by this Agreement or the other Loan  Documents or the consummation of the transactions contemplated hereby or thereby;  (x) a business plan and budget of Parent and its Subsidiaries on a  consolidated basis, including forecasts prepared by management of Parent, of  consolidated balance sheets and statements of income or operations and cash flows of  Parent and its Subsidiaries on an annual basis for each fiscal year through the fiscal year  ending December 28, 2022;  (xi) a certificate attesting to the Solvency of each Loan Party before and after  giving effect to the Transactions, from the chief financial officer of Parent;  (xii) evidence that all insurance required to be maintained pursuant to the  Loan Documents has been obtained and is in effect, together with the certificates of  insurance, naming the Administrative Agent, on behalf of the Lenders, as an additional  insured or lenders loss payee, as the case may be, under all insurance policies maintained  with respect to the assets and properties of the Loan Parties that constitute Collateral;  (xiii) documentation and other information from the Borrower and the other  Loan Parties requested by the Administrative Agent in order to comply with requirements  of any Anti-Money Laundering Laws, including, without limitation, the PATRIOT Act  and any applicable “know your customer” rules and regulations;   (xiv) a Beneficial Ownership Certification in relation to it (or a certification  that such Borrower qualifies for an express exclusion from the “legal entity customer”  definition under the Beneficial Ownership Regulations), in each case at least five (5)  Business Days prior to the Closing Date; and  (xv) such other assurances, certificates, documents, consents or opinions as  the Administrative Agent, the L/C Issuer or any Lender reasonably may require.  (b) (i) All fees required to be paid to the Administrative Agent and the Arrangers on  or before the Closing Date shall have been paid and (ii) all fees required to be paid to the Lenders  on or before the Closing Date shall have been paid.  

 

  70    (c) Unless waived by the Administrative Agent, the Borrower shall have paid all  reasonable fees, charges and disbursements of counsel to the Administrative Agent (directly to  such counsel if requested by the Administrative Agent) to the extent invoiced prior to or on the  Closing Date, plus such additional reasonable amounts of such fees, charges and disbursements as  shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be  incurred by it through the closing proceedings (provided that such estimate shall not thereafter  preclude a final settling of accounts between the Borrower and the Administrative Agent).  (d) All of the information made available to the Administrative Agent prior to the  Closing Date shall be complete and correct in all material respects; and no changes or  developments shall have occurred, and no new or additional information shall have been received  or discovered by the Administrative Agent or the Lenders regarding Loan Parties that (A) either  individually or in the aggregate could reasonably be expected to have a Material Adverse Effect  or (B) purports to adversely affect the Revolving Credit Facility or any other aspect of the  Transactions.  Without limiting the generality of the provisions of the last paragraph 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.  4.02 Conditions to all Credit Extensions.  The obligation of each Lender to honor any  Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Loans  to the other Type, or a continuation of Eurodollar Rate Loans) is subject to the following conditions  precedent:  (a) The representations and warranties of the Borrower and each other Loan Party  contained in Article V or any other Loan Document, or which are contained in any document  furnished at any time under or in connection herewith or therewith, shall be true and correct in all  material respects, except for any representation and warranty that is qualified by materiality or  reference to Material Adverse Effect which such representation and warranty shall be true and  correct in all respects, on and as of the date of such Credit Extension, except to the extent that  such representations and warranties specifically refer to an earlier date, in which case they shall  be true and correct in all material respects, except for any representation and warranty that is  qualified by materiality or reference to Material Adverse Effect which such representation and  warranty shall be true and correct in all respects, as of such earlier date, and except that for  purposes of this Section 4.02, the representations and warranties contained in Sections 5.05(a)  and (b) shall be deemed to refer to the most recent statements furnished pursuant to  Sections 6.01(a) and (b), respectively.  (b) No Default shall exist, or would result from such proposed Credit Extension or  from the application of the proceeds thereof.  (c) The Administrative Agent and, if applicable, the L/C Issuer shall have received a  Request for Credit Extension in accordance with the requirements hereof.  Each Request for Credit Extension (other than a Committed Loan Notice requesting only a  conversion of Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted by the  

 

  71    Borrower shall be deemed to be a representation and warranty that the conditions specified in  Sections 4.02(a) and (b) have been satisfied on and as of the date of the applicable Credit Extension.  ARTICLE V    REPRESENTATIONS AND WARRANTIES  Each Loan Party represents and warrants to the Administrative Agent and the Lenders that  (giving effect to the closing of the Transactions contemplated hereby on the Closing Date):  5.01 Existence, Qualification and Power.  Each Loan Party and each of its Subsidiaries (a) is  duly organized or formed, validly existing and, as applicable, in good standing under the Applicable Laws  of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all  requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and  carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to  which it is a party and consummate the Transactions, and (c) is duly qualified and is licensed and, as  applicable, in good standing under the Applicable Laws of each jurisdiction where its ownership, lease or  operation of properties or the conduct of its business requires such qualification or license; except in each  case referred to in clause (b)(i) or (c), to the extent that failure to do so could not reasonably be expected  to have a Material Adverse Effect.  5.02 Authorization; No Contravention.  The execution, delivery and performance by each  Loan Party of each Loan Document to which such Person is or is to be a party have been duly authorized  by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms  of any of such Person’s Organization Documents; (b) conflict with or result in any breach or  contravention of, or the creation of any Lien under, or require any payment to be made under (i) any  material Contractual Obligation to which such Person is a party or affecting such Person or the properties  of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental  Authority or any arbitral award to which such Person or its property is subject; or (c) violate any Law.  5.03 Governmental Authorization; Other Consents.  No approval, consent, exemption,  authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other  Person is necessary or required in connection with (a) the execution, delivery or performance by, or  enforcement against, any Loan Party of this Agreement or any other Loan Document, or for the  consummation of the Transactions, (b) the grant by any Loan Party of the Liens granted by it pursuant to  the Collateral Documents, (c) the perfection or maintenance of the Liens created under the Collateral  Documents (including the first priority nature thereof) or (d) the exercise by the Administrative Agent or  any Lender of its rights under the Loan Documents or the remedies in respect of the Collateral pursuant to  the Collateral Documents, except for the authorizations, approvals, actions, notices and filings listed on  Schedule 5.03 of the Disclosure Schedules, all of which have been duly obtained, taken, given or made  and are in full force and effect.  All applicable waiting periods in connection with the Transactions have  expired without any action having been taken by any Governmental Authority restraining, preventing or  imposing materially adverse conditions upon the Transactions or the rights of the Loan Parties or their  Subsidiaries freely to transfer or otherwise dispose of, or to create any Lien on, any properties now owned  or hereafter acquired by any of them.  5.04 Binding Effect.  This Agreement has been, and each other Loan Document, when  delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.   This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal,  valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto  in accordance with its terms.  

 

  72    5.05 Financial Statements; No Material Adverse Effect.    (a) The Audited Financial Statements (i) were prepared in accordance with GAAP  consistently applied throughout the period covered thereby, except as otherwise expressly noted  therein; (ii) fairly present the financial condition of Parent and its Subsidiaries as of the date  thereof and their results of operations for the period covered thereby in accordance with GAAP  consistently applied throughout the period covered thereby, except as otherwise expressly noted  therein; and (iii) show all material indebtedness and other liabilities, direct or contingent, of  Parent and its Subsidiaries as of the date thereof, including liabilities for taxes, material  commitments and Indebtedness.  Schedule 5.05 of the Disclosure Schedules sets forth, as of  December 30, 2020, all material indebtedness and other liabilities, direct or contingent, of Parent  and its consolidated Subsidiaries as of such date, including liabilities for taxes, material  commitments and Indebtedness.  (b) The most recently delivered unaudited consolidated balance sheet of Parent and  its Subsidiaries, and the related consolidated statements of income or operations, shareholders’  equity and cash flows of Parent and its Subsidiaries delivered pursuant to Section 6.01(b) (i) were  prepared in accordance with GAAP consistently applied throughout the period covered thereby,  except as otherwise expressly noted therein, and (ii) fairly present the financial condition of  Parent and its Subsidiaries as of the date thereof and their results of operations for the period  covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to  normal year-end audit adjustments.  (c) Since the date of the Audited Financial Statements, there has been no event or  circumstance, either individually or in the aggregate, that has had or could reasonably be expected  to have a Material Adverse Effect.  (d) To the best knowledge of the Loan Parties, no Internal Control Event exists or  has occurred since December 30, 2020 that has resulted in or could reasonably be expected to  result in a misstatement in any material respect, in any financial information (not including, for  purposes of this Section 5.05(d), any projected financial information) delivered or to be delivered  to the Administrative Agent or the Lenders, of (i) covenant compliance calculations provided  hereunder or (ii) the assets, liabilities, financial condition or results of operations of Parent and its  Subsidiaries on a consolidated basis.  5.06 Litigation.  There are no actions, suits, proceedings, claims or disputes pending or, to the  knowledge of the Loan Parties after due and diligent investigation, threatened or contemplated, at law, in  equity, in arbitration or before any Governmental Authority, by or against the Loan Parties or any of their  Subsidiaries or against any of their properties or revenues that (i) purport to affect or pertain to this  Agreement, any other Loan Document or the consummation of the Transactions, or (ii) either individually  or in the aggregate, if determined adversely, could reasonably be expected to have a Material Adverse  Effect.  5.07 No Default.  Neither any Loan Party nor any Subsidiary thereof is in default under or  with respect to, or a party to, any Contractual Obligation that could, either individually or in the  aggregate, reasonably be expected to have a Material Adverse Effect.  No Default has occurred and is  continuing or would result from the consummation of the Transactions.  5.08 Ownership of Property; Liens; Investments.    

 

  73    (a) Each Loan Party and each of its Subsidiaries has good record and marketable title  in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary  conduct of its business, except for such defects in title as could not, individually or in the  aggregate, reasonably be expected to have a Material Adverse Effect.  (b) Schedule 5.08(b) of the Disclosure Schedules sets forth a complete and accurate  list of all Liens on the property or assets of each Loan Party and each of its Subsidiaries, showing  as of the date hereof the lienholder thereof, the principal amount of the obligations secured  thereby and the property or assets of such Loan Party or such Subsidiary subject thereto.  The  property of each Loan Party and each of its Subsidiaries is subject to no Liens, other than Liens  set forth on Schedule 5.08(b) of the Disclosure Schedules, and as otherwise permitted by  Section 7.01.  (c) (i) Each lease of real property to which a Loan Party or any Subsidiary of a  Loan Party is a party as lessee is the legal, valid and binding obligation of the lessor thereof,  enforceable in accordance with its terms.  Each Loan Party and each of their respective  Subsidiaries has complied with all material obligations under all material leases to which it is a  party and all such leases are in full force and effect.  Each Loan Party and each of their respective  Subsidiaries enjoys peaceful and undisturbed possession under all such material leases, subject to  the rights of subtenants and assignees, as applicable.  (ii) Each lease of real property to which a Loan Party or any Subsidiary of a  Loan Party is a party as lessor is the legal, valid and binding obligation of the lessee  thereof, enforceable in accordance with its terms.  (d) Schedule 5.08(d) of the Disclosure Schedules sets forth a complete and accurate  list of all Investments held by any Loan Party or any Subsidiary of a Loan Party on the date  hereof, showing as of the date hereof the amount, obligor or issuer and maturity, if any, thereof.  5.09 Environmental Compliance.    (a) The Loan Parties and their respective Subsidiaries conduct in the ordinary course  of business a review of the effect of existing Environmental Laws and claims alleging potential  liability or responsibility for violation of any Environmental Law on their respective businesses,  operations and properties, and as a result thereof the Borrower has reasonably concluded that  such Environmental Laws and claims could not, individually or in the aggregate, reasonably be  expected to have a Material Adverse Effect.  (b) The properties owned or operated by the Loan Parties and their respective  Subsidiaries do not contain any Hazardous Materials in amounts or concentrations which  (i) constitute, or constituted a violation of, (ii) require remedial or response action under, or  (iii) could otherwise give rise to any Environmental Liability under, Environmental Laws, which  violations, remedial or response action and liabilities, in the aggregate, could reasonably be  expected to result in a Material Adverse Effect.  (c) The businesses, operations and properties of the Loan Parties and their respective  Subsidiaries are in compliance, and in the last five years have been in compliance, with all  Environmental Laws, and all necessary Environmental Permits have been obtained and are in  effect, except to the extent that such non-compliance or failure to obtain any necessary permits, in  the aggregate, could not reasonably be expected to result in a Material Adverse Effect.  

 

  74    (d) To the knowledge of the Loan Parties, there has been no release or threat of  release of Hazardous Materials in violation of Environmental Laws at, from, under or proximate  to the properties or otherwise in connection with the Restaurant Businesses of the Loan Parties  and their respective Subsidiaries, which could reasonably be expected to result in a Material  Adverse Effect.  (e) None of the Loan Parties or any of their Subsidiaries has received any notice of a  claim under Environmental Law in connection with the businesses, operations and properties of  the Loan Parties and their respective Subsidiaries or with regard to any Person whose  Environmental Liabilities any Loan Party or any of their Subsidiaries has retained or assumed, in  whole or in part, contractually, by operation of Law or otherwise, which, in the aggregate, could  reasonably be expected to result in a Material Adverse Effect, nor do the Loan Parties or any of  their Subsidiaries have reason to believe that any such claim will be received or is being  threatened.  (f) Hazardous Materials have not been transported from the businesses, operations  and properties of the Loan Parties and their respective Subsidiaries, nor have Hazardous Materials  been generated, treated, stored or disposed of at, on or under any of the businesses, operations and  properties of the Loan Parties and their respective Subsidiaries in a manner that could give rise to  any Environmental Liability, nor have the Loan Parties or their respective Subsidiaries retained or  assumed any Environmental Liability contractually, by operation of law or otherwise, with  respect to the generation, treatment, storage or disposal of Hazardous Materials, which  transportation, generation, treatment, storage or disposal, or retained or assumed liabilities, in the  aggregate, could reasonably be expected to result in a Material Adverse Effect.  5.10 Insurance.  The properties of the Loan Parties and their Subsidiaries are insured with  financially sound and reputable insurance companies not Affiliates of the Loan Parties, in such amounts,  with such deductibles and covering such risks as are customarily carried by companies engaged in similar  businesses and owning similar properties in localities where the Loan Parties or their applicable  Subsidiaries operate.  5.11 Taxes.  The Loan Parties and their Subsidiaries have filed all Federal, state and other  material tax returns and reports required to be filed, and have paid all Federal, state and other material  taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties,  income or assets otherwise due and payable, except those which are being contested in good faith by  appropriate proceedings diligently conducted and for which adequate reserves have been provided in  accordance with GAAP.  There is no proposed tax assessment against any Loan Party or any Subsidiary  that would, if made, have a Material Adverse Effect.  Neither any Loan Party nor any Subsidiary thereof  is party to any tax sharing agreement.  5.12 ERISA Compliance.    (a) Each Plan is in compliance in all material respects with the applicable provisions  of ERISA, the Code and other Federal or state laws.  Each Pension Plan that is intended to be a  qualified plan under Section 401(a) of the Code has received a favorable determination letter  from the Internal Revenue Service, or the subject of an opinion letter on a protype plan document,  to the effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust  related thereto has been determined by the Internal Revenue Service to be exempt from federal  income tax under Section 501(a) of the Code, or an application for such a letter is currently being  processed by the Internal Revenue Service.  To the best knowledge of the Loan Parties, nothing  has occurred that would prevent or cause the loss of such tax-qualified status.  

 

  75    (b) There are no pending or, to the best knowledge of the Loan Parties, threatened  claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan  that could reasonably be expected to have a Material Adverse Effect.  There has been no  prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan  that has resulted or could reasonably be expected to result in a Material Adverse Effect.  (c) (i) No ERISA Event has occurred, and neither the Loan Parties nor any ERISA  Affiliate is aware of any fact, event or circumstance that could reasonably be expected to  constitute or result in an ERISA Event with respect to any Pension Plan; (ii) each Loan Party and  each ERISA Affiliate has met all applicable requirements under the Pension Funding Rules in  respect of each Pension Plan, and no waiver of the minimum funding standards under the Pension  Funding Rules has been applied for or obtained; (iii) as of the most recent valuation date for any  Pension Plan, the funding target attainment percentage (as defined in Section 430(d)(2) of the  Code) is 60% or higher and neither the Loan Parties nor any ERISA Affiliate knows of any facts  or circumstances that could reasonably be expected to cause the funding target attainment  percentage for any such plan to drop below 60% as of the most recent valuation date; (iv) neither  the Loan Parties nor any ERISA Affiliate has incurred any liability to the PBGC other than for  the payment of premiums, and there are no premium payments which have become due that are  unpaid; (v) neither the Loan Parties nor any ERISA Affiliate has engaged in a transaction that  could be subject to Section 4069 or Section 4212(c) of ERISA; and (vi) no Pension Plan has been  terminated by the plan administrator thereof nor by the PBGC, and no event or circumstance has  occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings  under Title IV of ERISA to terminate any Pension Plan.  (d) Neither the Loan Parties or any ERISA Affiliate maintains or contributes to, or  has any unsatisfied obligation to contribute to, or liability under, any active or terminated Pension  Plan other than (A) on the Closing Date, those listed on Schedule 5.12(d) of the Disclosure  Schedules and (B) thereafter, Pension Plans not otherwise prohibited by this Agreement.  (e)  The Borrower represents that, as of the date hereof and throughout the term of  this Agreement, no Loan Party is (1) an employee benefit plan subject to Title I of ERISA, (2) a  plan or account subject to Section 4975 of the Code; (3) an entity deemed to hold “plan assets” of  any such plans or accounts for purposes of ERISA or the Code; or (4) a “governmental plan”  within the meaning of ERISA.  5.13 Subsidiaries; Equity Interests; Loan Parties.  No Loan Party has any Subsidiaries on  the Closing Date other than those specifically disclosed in Part (a) of Schedule 5.13 of the Disclosure  Schedules, and all of the outstanding Equity Interests in such Subsidiaries have been validly issued, are  fully paid and non-assessable and are owned by a Loan Party in the amounts specified on Part (a) of  Schedule 5.13 of the Disclosure Schedules free and clear of all Liens except those created under the  Collateral Documents.  No Loan Party has any equity Investments on the Closing Date in any other  corporation or entity other than those specifically disclosed in Part (b) of Schedule 5.13 of the Disclosure  Schedules.  All of the outstanding Equity Interests in the Borrower has been validly issued, are fully paid  and non-assessable and are owned by Parent free and clear of all Liens except those created under the  Collateral Documents.  Set forth on Part (d) of Schedule 5.13 of the Disclosure Schedules is a complete  and accurate list of all Loan Parties as of the Closing Date, showing as of the Closing Date (as to each  Loan Party) the jurisdiction of its incorporation, the address of its principal place of business and its U.S.  taxpayer identification number or, in the case of any non-U.S.  Loan Party that does not have a U.S.  taxpayer identification number, its unique identification number issued to it by the jurisdiction of its  incorporation.  The copy of the charter of each Loan Party and each amendment thereto provided pursuant  

 

  76    to Section 4.01(a) is a true and correct copy of each such document, each of which is valid and in full  force and effect.  5.14 Margin Regulations; Investment Company Act.    (a) No Loan Party or any Subsidiary is engaged and will not engage, principally or  as one of its important activities, in the business of purchasing or carrying margin stock (within  the meaning of Regulation U issued by the FRB), or extending credit for the purpose of  purchasing or carrying margin stock.  No part of the proceeds of any Loan or any Letter of Credit  will be used, whether directly or indirectly, and whether immediately, incidentally or ultimately,  for any purpose that entails a violation of, or that is inconsistent with, the provisions of the  Regulations of the FRB, including Regulation U or Regulation X.  (b) None of the Loan Parties, any Person Controlling any Loan Party, or any  Subsidiary is or is required to be registered as an “investment company” under the Investment  Company Act of 1940.  5.15 Disclosure.  Each Loan Party has disclosed to the Administrative Agent and the Lenders  all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is  subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be  expected to result in a Material Adverse Effect.  No report, financial statement, certificate or other  information furnished (whether in writing or orally) by or on behalf of any Loan Party to the  Administrative Agent or any Lender in connection with the transactions contemplated hereby and the  negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case as  modified or supplemented by other information so furnished) contains any material misstatement of fact  or omits to state any material fact necessary to make the statements therein, in the light of the  circumstances under which they were made, not misleading; provided that, with respect to projected  financial information, the Borrower represents only that such information was prepared in good faith  based upon assumptions believed to be reasonable at the time.  As of the Closing Date, all of the  information included in the Beneficial Ownership Certification is true and correct.  5.16 Compliance with Laws.  Each Loan Party and each Subsidiary thereof is in compliance  in all material respects with the requirements of all Applicable Laws and all orders, writs, injunctions and  decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law  or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently  conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not  reasonably be expected to have a Material Adverse Effect.  5.17 Intellectual Property; Licenses, Etc.  Each Loan Party and each of its Subsidiaries  owns, or possess the right to use, all of the trademarks, service marks, trade names, copyrights, patents,  patent rights, franchises, licenses and other intellectual property rights (collectively, “IP Rights”) that are  reasonably necessary for the operation of their respective businesses as presently conducted, without  conflict with the rights of any other Person, and Schedule 5.17 of the Disclosure Schedules sets forth a  complete and accurate list of all such IP Rights owned or used by each Loan Party and each of its  Subsidiaries.  To the best knowledge of the Loan Parties, no slogan or other advertising device, product,  process, method, substance, part or other material now employed, or now contemplated to be employed,  by any Loan Party or any of its Subsidiaries infringes in any material respect upon any rights held by any  other Person.  No claim or litigation regarding any of the foregoing is pending or, to the best knowledge  of the Loan Parties, threatened, which, either individually or in the aggregate, could reasonably be  expected to have a Material Adverse Effect.  

 

  77    5.18 Solvency.  Each Loan Party is, individually and together with its Subsidiaries on a  consolidated basis, Solvent.  5.19 Casualty, Etc.  Neither the businesses nor the properties of any Loan Party or any of its  Subsidiaries are affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought,  storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not  covered by insurance) that, either individually or in the aggregate, could reasonably be expected to have a  Material Adverse Effect.  5.20 Labor Matters.  There are no collective bargaining agreements or Multiemployer Plans  covering the employees of any Loan Party or any of its Subsidiaries as of the Closing Date and neither the  Loan Parties nor any Subsidiary of any Loan Party has suffered any strikes, walkouts, work stoppages or  other material labor difficulty within the last five years.  The hours worked by and payments made to  employees of each Loan Party and each Subsidiary of a Loan Party have not been in violation of the Fair  Labor Standards Act or any other applicable Federal, state, local or foreign law dealing with such matters  (except for any violations that, individually or in the aggregate, would not be material).  All payments due  from each Loan Party and each Subsidiary of a Loan Party, or for which any claim may be made against  such Loan Party or such Subsidiary, on account of wages and employee health and welfare insurance and  other benefits (except for any payments or claims that, individually or in the aggregate, if not paid, would  not be material), have been paid or accrued as a liability on the books of such Loan or such Subsidiary, as  applicable.  The consummation of the Transactions will not give rise to any right of termination or right  of renegotiation on the part of any union under any collective bargaining agreement to which any Loan  Party or any Subsidiary of a Loan Party is bound.  5.21 Collateral Documents.  The provisions of the Collateral Documents are effective to  create in favor of the Administrative Agent for the benefit of the Secured Parties a legal, valid and  enforceable first priority Lien (subject to Liens permitted by Section 7.01) on all right, title and interest of  the respective Loan Parties in the Collateral described therein.  Except for filings completed prior to the  Closing Date and as contemplated hereby and by the Collateral Documents, no filing or other action will  be necessary to perfect or protect such Liens.  5.22 Foreign Assets Control Regulations, Etc.    (a) None of the Loan Parties, any of their Subsidiaries or, to the knowledge of the  Borrower, any director, officer, employee, agent or affiliate thereof, is an individual or entity that  is, or is owned or controlled by any individual or entity that is (i) a Sanctioned Person or the  subject of any sanctions administered or enforced by OFAC, the U.S. Department of State, the  United Nations Security Council, the European Union or Her Majesty’s Treasury (collectively,  “Sanctions”), (ii) is controlled by or is acting on behalf of a Sanctioned Person, (iii) has its asset  located in a Sanctioned Country, (iv) is under administrative, civil or criminal investigation for an  alleged violation of, or received notice from or made a voluntary disclosure to any governmental  entity regarding a possible violation of, Anti-Corruption Laws, Anti-Money Laundering Laws or  Sanctions by a governmental authority that enforces Sanctions or any Anti-Corruption Laws or  Anti-Money Laundering Laws, or (v) directly or indirectly derives revenues from investments in,  or transactions with, Sanctioned Persons.  (b) Each Loan Party and its Subsidiaries has implemented and maintains in effect  policies and procedures designed to ensure compliance by the Borrower and its Subsidiaries and  their respective directors, officers, employees, agents and Affiliates with all Anti-Corruption  Laws, Anti-Money Laundering Laws and applicable Sanctions.    

 

  78    (c) Each Loan Party and its Subsidiaries, and to the knowledge of the Borrower,  each director, officer, employee, agent and affiliate of Borrower, is in compliance with all Anti- Corruption Laws, Anti-Money Laundering Laws in all material respects and applicable Sanctions.  (d) No proceeds of any Credit Extension have been used, directly or indirectly, by  the Borrower, any of its Subsidiaries or any of its or their respective directors, officers, employees  and agents in violation of Section 7.08(a).  5.23 Affected Financial Institutions.  No Loan Party is an Affected Financial Institution.  ARTICLE VI    AFFIRMATIVE COVENANTS  So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation  hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, each Loan  Party shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, 6.03 and 6.11)  cause each Subsidiary to:  6.01 Financial Statements.  Deliver to the Administrative Agent and each Lender, in form  and detail satisfactory to the Administrative Agent and the Required Lenders:  (a) as soon as available, but in any event within 90 days (or within 5 days after any  shorter period as the SEC shall specify for the filing of Annual Reports on Form 10-K) after the  end of each fiscal year of Parent, a consolidated balance sheet of Parent and its Subsidiaries as at  the end of such fiscal year, and the related consolidated statements of income or operations,  changes in shareholders’ equity, and cash flows for such fiscal year, setting forth in each case in  comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in  accordance with GAAP, audited and accompanied by a report and opinion of an independent  certified public accountant of nationally recognized standing reasonably acceptable to the  Required Lenders, 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;  (b) as soon as available, but in any event within 45 days (or within 5 days after any  shorter period as the SEC shall specify for the filing of Quarterly Reports on Form 10-Q) after the  end of each of the first three fiscal quarters of each fiscal year of Parent, a consolidated balance  sheet of Parent and its Subsidiaries as at the end of such fiscal quarter, and the related  consolidated statements of income or operations, changes in shareholders’ equity, and cash flows  for such fiscal quarter and for the portion of Parent’s fiscal year then ended, 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, all in reasonable detail, certified by  the chief executive officer, chief financial officer, treasurer or controller of Parent as fairly  presenting the financial condition, results of operations, shareholders’ equity and cash flows of  Parent and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit  adjustments and the absence of footnotes; and  (c) as soon as available, but in any event not later than March 31 of each year, a  business plan and budget of Parent and its Subsidiaries on a consolidated basis, including  projections prepared by the management of Parent of statements concerning selected financial  data (consisting of net sales, earnings before interest and taxes, working capital items, capital  

 

  79    expenditures and depreciation), balance sheets, income statements and cash flow statements, on a  quarterly basis, for such fiscal year.  6.02 Certificates; Other Information.  Deliver to the Administrative Agent and each Lender,  in form and detail satisfactory to the Administrative Agent and the Required Lenders:  (a) concurrently with the delivery of the financial statements referred to in  Sections 6.01(a) and (b) (commencing with the delivery of the financial statements for the fiscal  quarter ended September 29, 2021), a duly completed Compliance Certificate signed by the chief  executive officer, chief financial officer, treasurer or controller of Parent, and in the event of any  change in generally accepted accounting principles used in the preparation of such financial  statements, Parent shall also provide, if necessary for the determination of compliance with  Section 7.10, a statement of reconciliation conforming such financial statements to GAAP (which  delivery may, unless the Administrative Agent, or a Lender requests executed originals, be by  electronic communication including fax or email and shall be deemed to be an original authentic  counterpart thereof for all purposes);  (b) promptly after the same are available, copies of each annual report, proxy or  financial statement or other report or communication sent to the stockholders of Parent, and  copies of all annual, regular, periodic and special reports and registration statements which the  Loan Parties may file or be required to file with the SEC under Section 13 or 15(d) of the  Securities Exchange Act of 1934, or with any national securities exchange, and in any case not  otherwise required to be delivered to the Administrative Agent pursuant hereto;  (c) as soon as available, but in any event within 30 days after the end of each fiscal  year of Parent (or such later date as agreed to by the Administrative Agent), (i) a report  supplementing Schedule 5.17 of the Disclosure Schedules, setting forth (A) a list of registration  numbers for all patents, trademarks, service marks, trade names and copyrights awarded to any  Loan Party or any Subsidiary thereof during such fiscal year and (B) a list of all patent  applications, trademark applications, service mark applications, trade name applications and  copyright applications submitted by any Loan Party or any Subsidiary thereof during such fiscal  year and the status of each such application; and (ii) a report supplementing Schedules 5.08(d)  and 5.13 of the Disclosure Schedules containing a description of all changes in the information  included in such Schedules as may be necessary for such Schedules to be accurate and complete,  each such report to be signed by a Responsible Officer of the Borrower and to be in a form  reasonably satisfactory to the Administrative Agent;   (d) promptly upon request thereof, such other information and documentation  required under applicable “know your customer” rules and regulations, the PATRIOT Act or any  applicable Anti-Money Laundering Laws or Anti-Corruption Laws, in each case, as from time to  time reasonably requested by the Administrative Agent or any Lender; and  (e) promptly, such additional information regarding the business, financial, legal or  corporate affairs of any Loan Party or any Subsidiary thereof, or compliance with the terms of the  Loan Documents, as the Administrative Agent or any Lender may from time to time reasonably  request.  Documents required to be delivered pursuant to Section 6.01(a) or (b) or Section 6.02(b) (to the  extent any such documents are included in materials otherwise filed with the SEC) may be delivered  electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the  Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at  

 

  80    the website address listed on Schedule 10.02 of the Disclosure Schedules; or (ii) on which such  documents are posted on the Borrower’s behalf on an Internet or intranet website, 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 the Borrower shall notify the Administrative  Agent and each Lender (by telecopier or electronic mail) of the posting of any such documents and  provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such  documents.  Except for such Compliance Certificates, the Administrative Agent shall have no obligation  to request the delivery or to maintain copies of the documents referred to above, and in any event shall  have no responsibility to monitor compliance by the Borrower with any such request for delivery, and  each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such  documents.  The Loan Parties hereby acknowledge that (a) the Administrative Agent and/or Wells Fargo  Securities will make available to the Lenders and the L/C Issuer materials and/or information provided by  or on behalf of the Loan Parties hereunder (collectively, “Borrower Materials”) by posting the Borrower  Materials on Debt Domain, Intralinks, Syndtrak or another substantially similar electronic transmission  system (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 with respect to the Loan Parties or their Affiliates,  or the respective securities of any of the foregoing, and who may be engaged in investment and other  market-related activities with respect to such Persons’ securities.  Each Loan Party hereby agree 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 Loan Parties  shall be deemed to have authorized the Administrative Agent, Wells Fargo Securities, the L/C Issuer 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 any Loan Party or its 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 10.07); (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 Wells Fargo Securities shall  be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for  posting on a portion of the Platform not designated “Public Side Information.”  6.03 Notices.  Promptly notify the Administrative Agent and each Lender:  (a) of the occurrence of any Default or Event of Default;  (b) of any matter that has resulted or could reasonably be expected to result in a  Material Adverse Effect, including (i) breach or non-performance of, or any default under, a  Contractual Obligation of any Loan Party or any Subsidiary; (ii) any dispute, litigation,  investigation, proceeding or suspension between any Loan Party or any Subsidiary and any  Governmental Authority; or (iii) the commencement of, or any material development in, any  litigation or proceeding affecting any Loan Party or any Subsidiary, including pursuant to any  applicable Environmental Laws;  (c) notice of any action or proceeding against or of any noncompliance by any Loan  Party or any of its Subsidiaries with any Environmental Law or Environmental Permit that could  reasonably be expected to have a Material Adverse Effect;  (d) of the occurrence of any ERISA Event;  

 

  81    (e) of any material change in accounting policies or financial reporting practices by  any Loan Party or any Subsidiary thereof; and  (f) the determination by KPMG LLP (or other independent public accountants of  recognized national standing providing the opinion required under Section 6.01(a)) (in connection  with its preparation of such opinion) or any Loan Party’s determination at any time of the  occurrence or existence of any Internal Control Event.  Each notice pursuant to Section 6.03 (other than Section 6.03(e) or (f)) shall be accompanied by a  statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to  therein and stating what action the Borrower has taken and proposes to take with respect thereto.  Each  notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions of this  Agreement and any other Loan Document that have been breached.  6.04 Payment of Obligations.  Pay and discharge as the same shall become due and payable,  all its obligations and liabilities, including (a) all tax liabilities, assessments and governmental charges or  levies (other than any tax, assessment or governmental charge or levy in an aggregate amount less than  $250,000, provided that the failure to pay or discharge the same, individually or in the aggregate, could  not reasonably be expected to result in a Material Adverse Effect) upon it or its properties or assets,  unless the same are being contested in good faith by appropriate proceedings diligently conducted and  adequate reserves in accordance with GAAP are being maintained by such Loan Party or such Subsidiary;  (b) all lawful claims (other than claims for an aggregate amount less than $250,000, provided that the  failure to pay or discharge the same, individually or in the aggregate, could not reasonably be expected to  result in a Material Adverse Effect) which, if unpaid, would by law become a Lien upon its property; and  (c) all Indebtedness in excess of the Threshold Amount, as and when due and payable, but subject to any  subordination provisions contained in any instrument or agreement evidencing such Indebtedness.  6.05 Preservation of Existence, Etc.  (a) Preserve, renew and maintain in full force and effect  its legal existence and good standing under the Applicable Laws of the jurisdiction of its organization  except in a transaction permitted by Section 7.04; provided, however, that the Loan Parties may  consummate any merger, consolidation or other transaction permitted under Section 7.04; (b) take all  reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable  in the normal conduct of its business, except to the extent that failure to do so could not reasonably be  expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents,  trademarks, trade names and service marks, the non-preservation of which could reasonably be expected  to have a Material Adverse Effect.  6.06 Maintenance of Properties.  (a) Maintain, preserve and protect all of its material  properties and equipment necessary in the operation of its business in good working order and condition,  ordinary wear and tear excepted; (b) make all necessary repairs thereto and renewals and replacements  thereof except where the failure to do so could not reasonably be expected to have a Material Adverse  Effect; and (c) use the standard of care typical in the industry in the operation and maintenance of its  facilities.  6.07 Maintenance of Insurance.  Maintain with financially sound and reputable insurance  companies (which, for the avoidance of doubt, may include a Captive Insurance Company Subsidiary),  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 as  are customarily carried under similar circumstances by such other Persons and providing for not less than  30 days’ prior notice to the Administrative Agent of termination, lapse or cancellation of such insurance.  

 

  82    6.08 Compliance with Laws.  Comply in all material respects with the requirements of all  Applicable Laws and all orders, writs, injunctions and decrees applicable to it or to its business or  property, except in such instances in which (a) such requirement of Law or order, writ, injunction or  decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure  to comply therewith could not reasonably be expected to have a Material Adverse Effect.  6.09 Books and Records.  Maintain proper books of record and account, in which full, true  and correct entries in conformity with GAAP consistently applied shall be made of all financial  transactions and matters involving the assets and business of such Loan Party or such Subsidiary, as the  case may be.  6.10 Inspection Rights.  Permit representatives and independent contractors of the  Administrative Agent and each Lender to visit and inspect any of its properties, to examine its corporate,  financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs,  finances and accounts with its directors, officers, and independent public accountants, all at the expense  of the Borrower and at such reasonable times during normal business hours and as often as may be  reasonably desired, upon reasonable advance notice to the Loan Parties; provided, however, that when an  Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives  or independent contractors) may do any of the foregoing at the expense of the Borrower at any time  during normal business hours and without advance notice; and provided, further, that the inspection rights  provided herein shall be subject to the terms and provisions of Section 10.07 regarding the treatment of  material, non-public information of the Loan Parties.  6.11 Use of Proceeds.  Use the proceeds of the Loans to (i) repay existing Indebtedness,  (ii) pay costs and expenses incurred in connection with the Transactions and (iii) for ongoing working  capital and other general corporate purposes not in contravention of any Law or of any Loan Document.  6.12 Covenant to Guarantee Obligations and Give Security.    (a) Upon the formation or acquisition of any new direct or indirect Subsidiary (other  than (x) any Excluded Subsidiary, (y) any Captive Insurance Company Subsidiary and  (z) Denny’s Employee Disaster Relief Fund, Inc. (for so long as such entity remains a charitable  entity under Section 501(c)(3) of the Code)) by any Loan Party, then the Borrower shall  promptly, and in any event within three (3) Business Days thereafter, notify the Administrative  Agent of the occurrence of such event and, at the Administrative Agent’s request, the Borrower  shall, at the Borrower’s expense (and within the time periods set forth in this Section 6.12(a) or at  such later date as agreed to by the Administrative Agent):  (i) within 10 days after such formation or acquisition, cause such  Subsidiary, and cause each direct and indirect parent of such Subsidiary (if it has not  already done so), to duly execute and deliver to the Administrative Agent a guaranty or  guaranty supplement, in form and substance satisfactory to the Administrative Agent,  guaranteeing the other Loan Parties’ obligations under the Loan Documents,  (ii) within 10 days after such formation or acquisition, furnish to the  Administrative Agent a description of the personal properties of such Subsidiary, in detail  satisfactory to the Administrative Agent,  (iii) within 15 days after such formation or acquisition, cause such Subsidiary  and each direct and indirect parent of such Subsidiary (if it has not already done so) to  duly execute and deliver to the Administrative Agent Guarantee and Collateral  

 

  83    Agreement Supplements, IP Security Agreement supplements and other security and  pledge agreements, as specified by and in form and substance satisfactory to the  Administrative Agent (including delivery of all Pledged Stock in and of such Subsidiary,  and other instruments of the type specified in Section 4.01(a)(iii)), securing payment of  all the Obligations of such Subsidiary or such parent, as the case may be, under the Loan  Documents and constituting Liens on all personal properties,  (iv) within 30 days after such formation or acquisition, cause such Subsidiary  and each direct and indirect parent of such Subsidiary (if it has not already done so) to  take whatever action (including the filing of Uniform Commercial Code financing  statements and the giving of notices) may be necessary or advisable in the opinion of the  Administrative Agent to vest in the Administrative Agent (or in any representative of the  Administrative Agent designated by it) valid and subsisting Liens on the properties  purported to be subject to Guarantee and Collateral Agreement Supplements, IP Security  Agreement supplements and security and pledge agreements delivered pursuant to this  Section 6.12, enforceable against all third parties in accordance with their terms, and  (v) within 60 days after such formation or acquisition, deliver to the  Administrative Agent, upon the request of the Administrative Agent in its sole discretion,  a signed copy of a favorable opinion, addressed to the Administrative Agent and the other  Secured Parties, of counsel for the Loan Parties acceptable to the Administrative Agent as  to the matters contained in clauses (i), (iii) and (iv) above, and as to such other matters as  the Administrative Agent may reasonably request.  (b) Upon the request of the Administrative Agent following the occurrence and  during the continuance of a Default, the Borrower shall, at the Borrower’s expense (and within  the time periods set forth in this Section 6.12(b) or such later date as agreed to by the  Administrative Agent):  (i) within 10 days after such request, furnish to the Administrative Agent a  description of the personal properties of the Loan Parties and their respective Subsidiaries  in detail satisfactory to the Administrative Agent,  (ii) within 15 days after such request, duly execute and deliver, and cause  each Loan Party and Subsidiary (other than (x) any Excluded Subsidiary, (y) any Captive  Insurance Company Subsidiary and (z) Denny’s Employee Disaster Relief Fund, Inc. (for  so long as such entity remains a charitable entity under Section 501(c)(3) of the Code)) of  each Loan Party (if it has not already done so) to duly execute and deliver, to the  Administrative Agent Guarantee and Collateral Agreement Supplements, IP Security  Agreement supplements and other security and pledge agreements, as specified by and in  form and substance satisfactory to the Administrative Agent (including delivery of all  Pledged Stock and Pledged Debt Securities in and of such Loan Party and such  Subsidiary, as applicable, and other instruments of the type specified in  Section 4.01(a)(iii)), securing payment of all the Obligations of such Loan Party or such  Subsidiary, as the case may be, under the Loan Documents and constituting Liens on all  such properties,  (iii) within 30 days after such request, take, and cause each Loan Party and  Subsidiary (other than (x) any Excluded Subsidiary, (y) any Captive Insurance Company  Subsidiary and (z) Denny’s Employee Disaster Relief Fund, Inc. (for so long as such  entity remains a charitable entity under Section 501(c)(3) of the Code)) of each Loan  

 

  84    Party to take, whatever action (including the filing of Uniform Commercial Code  financing statements and the giving of notices) may be necessary or advisable in the  opinion of the Administrative Agent to vest in the Administrative Agent (or in any  representative of the Administrative Agent designated by it) valid and subsisting Liens on  the properties purported to be subject to Guarantee and Collateral Agreement  Supplements, IP Security Agreement supplements and security and pledge agreements  delivered pursuant to this Section 6.12, enforceable against all third parties in accordance  with their terms, and  (iv) within 60 days after such request, deliver to the Administrative Agent,  upon the request of the Administrative Agent in its sole discretion, a signed copy of a  favorable opinion, addressed to the Administrative Agent and the other Secured Parties,  of counsel for the Loan Parties acceptable to the Administrative Agent as to the matters  contained in clauses (ii) and (iii) above, and as to such other matters as the  Administrative Agent may reasonably request.  (c) At any time upon request of the Administrative Agent, promptly execute and  deliver any and all further instruments and documents and take all such other action as the  Administrative Agent may deem necessary or desirable in obtaining the full benefits of, or (as  applicable) in perfecting and preserving the Liens of, such guaranties, Guarantee and Collateral  Agreement Supplements, IP Security Agreement supplements and other security and pledge  agreements.  6.13 Compliance with Environmental Laws.  Comply, and cause all lessees and other  Persons operating or occupying its properties to comply, in all material respects, with all applicable  Environmental Laws and Environmental Permits; obtain and renew all Environmental Permits necessary  for its operations and properties; and conduct any investigation, study, sampling and testing, and  undertake any cleanup, removal, remedial or other action necessary to remove and clean up all Hazardous  Materials from any of its properties, to the extent required under and in accordance with the requirements  of all Environmental Laws; provided, however, that neither the Loan Parties nor any of their Subsidiaries  shall be required to undertake any such cleanup, removal, remedial or other action to the extent that its  obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves  are being maintained with respect to such circumstances in accordance with GAAP.  6.14 Further Assurances.  Promptly upon request by the Administrative Agent, or any  Lender through the Administrative Agent, (a) correct any material defect or error that may be discovered  in any Loan Document or in the execution, acknowledgment, filing or recordation thereof, and (b) do,  execute, acknowledge, deliver, record, re-record, file, re-file, register and reregister any and all such  further acts, deeds, certificates, assurances and other instruments as the Administrative Agent, or any  Lender through the Administrative Agent, may reasonably require from time to time in order to (i) carry  out more effectively the purposes of the Loan Documents, (ii) to the fullest extent permitted by  Applicable Law, subject any Loan Party’s or any of its Subsidiaries’ properties, assets, rights or interests  to the Liens now or hereafter intended to be covered by any of the Collateral Documents, (iii) perfect and  maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens  intended to be created thereunder and (iv) assure, convey, grant, assign, transfer, preserve, protect and  confirm more effectively unto the Secured Parties the rights granted or now or hereafter intended to be  granted to the Secured Parties under any Loan Document or under any other instrument executed in  connection with any Loan Document to which any Loan Party or any of its Subsidiaries is or is to be a  party, and cause each of its Subsidiaries to do so.  

 

  85    6.15 Material Contracts.  Perform and observe all the terms and provisions of each Material  Contract to be performed or observed by it, maintain each such Material Contract in full force and effect  (except to the extent no longer useful or beneficial to the Loan Parties in the conduct of their business),  enforce each such Material Contract in accordance with its terms, take all such action to such end as may  be from time to time requested by the Administrative Agent and, upon request of the Administrative  Agent, make to each other party to each such Material Contract such demands and requests for  information and reports or for action as any Loan Party or any of its Subsidiaries is entitled to make under  such Material Contract, and cause each of its Subsidiaries to do so.  6.16 Cash Management Arrangements.  As and to the extent provided in the Guarantee and  Collateral Agreement, establish and maintain cash management procedures, including restricted accounts,  reasonably satisfactory to the Administrative Agent.  6.17 Compliance with Anti-Corruption Laws; Beneficial Ownership Regulation, Anti- Money Laundering Laws and Sanctions.  (i) The Loan Parties will maintain in effect and enforce  policies and procedures designed to promote and achieve compliance by the Loan Parties, their  Subsidiaries and their respective directors, officers, employees and agents with all Anti-Corruption Laws,  Anti-Money Laundering Laws and applicable Sanctions, (ii) notify the Administrative Agent and each  Lender that previously received a Beneficial Ownership Certification (or a certification that the Borrower  qualifies for an express exclusion to the “legal entity customer” definition under the Beneficial Ownership  Regulation) of any change in the information provided in the Beneficial Ownership Certification that  would result in a change to the list of beneficial owners identified therein (or, if applicable, the Borrower  ceasing to fall within an express exclusion to the definition of “legal entity customer” under the Beneficial  Ownership Regulation) and (iii) promptly upon the reasonable request of the Administrative Agent or any  Lender, provide the Administrative Agent or directly to such Lender, as the case may be, any information  or documentation requested by it for purposes of complying with the Beneficial Ownership Regulation.    ARTICLE VII    NEGATIVE COVENANTS  So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation  hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the Loan  Parties shall not, nor shall it permit any Subsidiary to, directly or indirectly:  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, or sign or file or suffer to exist under the Uniform  Commercial Code of any jurisdiction a financing statement that names Parent or any of its Subsidiaries as  debtor, or assign any accounts or other right to receive income, other than the following:  (a) Liens on property or assets of the Loan Parties and their Subsidiaries existing on  the Closing Date and set forth on Schedule 5.08(b) of the Disclosure Schedules and extensions,  renewals, refinancings or replacements thereof; provided, however, that (i) no such extensions,  renewals, refinancings or replacements will extend to or cover any property not theretofore  subject to the Lien being extended, renewed, refinanced or replaced (except that the Loan Parties  may substitute for the property subject to any such Lien other property with substantially the  same Fair Market Value and not otherwise subject to the Lien of a Loan Document, so long as the  property for which such substitution is made is fully and effectively released from such Lien),  (ii) the amount secured or benefited thereby is not increased except as contemplated by  Section 7.02(i), (iii) the direct or any contingent obligor with respect thereto is not changed  

 

  86    (except that a Loan Party may become an obligor with respect to any such Lien of another Loan  Party), and (iv) any renewal or extension of the obligations secured or benefited thereby is  permitted by Section 7.02(i);  (b) any Lien created pursuant to any Indebtedness permitted under Section 7.02(c)  and extensions, renewals, refinancings, or replacements thereof to the same extent permitted  under clause (a) above; provided that any such Liens shall be placed on such property (and the  Indebtedness secured by such Liens shall be created) within 180 days following the acquisition of  such property, such Liens do not apply to any other property or assets of any Loan Party or any  Subsidiary of any Loan Party and the Indebtedness secured by such Liens does not exceed 100%  of the lesser of the cost or Fair Market Value of such property at the time of acquisition;  (c) Permitted Liens;  (d) Liens pursuant to any Loan Document;  (e) unperfected Liens on property of a Loan Party in favor another Loan Party  arising in connection with intercompany transactions among the Loan Parties; and  (f) any Lien created pursuant to any Indebtedness permitted under Section 7.02(l);  provided, however, that the aggregate amount of Indebtedness secured by such Liens shall not  exceed $10,000,000 at any one time outstanding.  7.02 Indebtedness.  Create, incur, assume or suffer to exist any Indebtedness, except:  (a) Indebtedness outstanding on the date hereof and listed on Schedule 7.02 of the  Disclosure Schedules;  (b) Indebtedness under the Loan Documents;  (c) Indebtedness incurred by any Loan Party subsequent to the Closing Date secured  by purchase money Liens; provided that the aggregate amount of Indebtedness permitted under  this Section 7.02(c) shall not exceed $15,000,000 at any one time outstanding;  (d) In addition to Indebtedness permitted under Section 7.02(c), Capital Lease  Obligations entered into after the Closing Date;  (e) Indebtedness arising subsequent to the Closing Date under (i) any purchasing  card program established to enable headquarters and field staff of any Loan Party to purchase  goods and supplies from vendors and (ii) any travel and entertainment card program established  to enable headquarters and field staff of any Loan Party to make payments for expenses incurred  related to travel and entertainment, provided that the aggregate amount of such Indebtedness shall  not exceed $10,000,000 at any one time outstanding;  (f) Indebtedness arising from Investments among the Loan Parties that are permitted  hereunder;  (g) Indebtedness owed to any Lender or any of its banking Affiliates in respect of  any Cash Management Agreements of any Loan Party or any Subsidiary of a Loan Party,  provided that the aggregate principal amount of such Indebtedness shall not exceed $30,000,000  at any one time outstanding;  

 

  87    (h) Indebtedness under Swap Contracts permitted by Section 7.16;  (i) in the case of any Loan Party with respect to any Indebtedness of such Loan  Party permitted under this Section 7.02, all principal, interest, fees, reimbursement and  indemnification amounts, and all other accruals and obligations under any renewals, extensions,  modifications or refinancings, from time to time, of such Indebtedness, provided that such  renewals, extensions, modifications and refinancings (i) do not increase the outstanding principal  amount of the Indebtedness being renewed, extended, modified or refinanced, or shorten the  maturity thereof to a date earlier than one year after the Maturity Date, and (ii) are otherwise on  terms consistent with prudent business practice and then prevailing market practices and prices in  the applicable geographic area;  (j) unsecured Indebtedness arising from, and in an aggregate amount not to exceed,  Investments permitted under Section 7.03(h);  (k) Indebtedness of any Person that becomes a Subsidiary of a Loan Party after the  date hereof in accordance with the terms of Section 7.03(i), which Indebtedness is existing at the  time such Person becomes a Subsidiary of such Loan Party (other than Indebtedness incurred  solely in contemplation of such Person’s becoming a Subsidiary of such Loan Party); provided  that the aggregate amount of all such Indebtedness of all such Subsidiaries shall not exceed  $20,000,000 at any one time outstanding; and  (l) additional Indebtedness aggregating not more than $10,000,000 in principal  amount at any one time outstanding.  7.03 Investments.  Make or hold any Investments, except:  (a) Investments by the Loan Parties and their Subsidiaries existing on the Closing  Date in the Equity Interests of their respective Subsidiaries and Investments existing on the  Closing Date and set forth in Schedule 5.08(d) of the Disclosure Schedules;  (b) Permitted Investments;  (c) advances and loans made by Parent or any Subsidiary of Parent to, and  Investments (other than any Restricted Payments) made by Parent or any Subsidiary of Parent in,  the Borrower or other Loan Party in the ordinary course of business;  (d) Investments resulting from any Restricted Payments made pursuant to  Section 7.05(a)(i), Section 7.05(a)(iii) and Section 7.05(a)(iv);  (e) non-cash consideration received from any sale, lease, transfer or other disposition  of assets permitted under Section 7.04;  (f) loans or advances to employees made in the ordinary course of business  consistent with prudent business practice and in an aggregate amount not to exceed $2,000,000 at  any one time outstanding;  (g) additional Investments in an amount not to exceed (x) $25,000,000 (in the  aggregate together with any other additional Investments made pursuant to this clause (g)  outstanding at such time) if at the time such Investment is consummated and after giving effect to  such Investment on a pro forma basis, the Consolidated Leverage Ratio is greater than or equal to  

 

  88    3.50 to 1.0 or (y) $50,000,000 (in the aggregate together with any other additional Investments  made pursuant to this clause (g) outstanding at such time) if at the time such Investment is  consummated and after giving effect to such Investment on a pro forma basis, the Consolidated  Leverage Ratio is less than 3.50 to 1.0; provided that the aggregate amount of Investments made  pursuant to this clause (g) in any single Person (including any franchisee) shall not exceed  $5,000,000 at any one time outstanding;  (h) Investments consisting of Guarantees by any Loan Party of obligations  (including, without limitation, Operating Lease obligations and Capital Lease Obligations) of  franchisees or licensees or the Purchasing Coop (to the extent the Purchasing Coop is acting on  behalf of franchisees or licensees), consistent with past practices and on usual and customary  terms for transactions of this type, in an amount not to exceed, (x) the greater of (I) $30,000,000  and (II) an amount equal to 5.0% of Consolidated Total Assets at the time such Investment is  consummated (in the aggregate together with any other Investments made pursuant to this clause  (h) outstanding at such time), if at the time such Investment is consummated and after giving  effect to such Investment on a pro forma basis, the Consolidated Leverage Ratio is greater than or  equal to 3.50 to 1.0 or (y) the greater of (I) $50,000,000 and (II) an amount equal to 10.0% of  Consolidated Total Assets at the time such Investment is consummated (in the aggregate together  with any other Investments made pursuant to this clause (h) outstanding at such time), if at the  time such Investment is consummated and after giving effect to such Investment on a pro forma  basis, the Consolidated Leverage Ratio is less than 3.50 to 1.0;  (i) Investments consisting of the purchase or other acquisition of all of the Equity  Interests in, or assets that constitute a business unit (which, for the avoidance of doubt, may  consist of a single or multiple restaurant locations) or all or a substantial part of the business or  assets of, any Person that, upon the consummation thereof, such Equity Interests or property, as  applicable, will be wholly-owned directly by a Loan Party or one or more of its wholly-owned  Subsidiaries (including as a result of a merger or consolidation); provided that, with respect to  each purchase or other acquisition made pursuant to this Section 7.03(i):  (i) any such purchase or other acquisition shall be consummated in  accordance with all Applicable Laws and in conformity with all applicable approvals and  consents of any Governmental Authority;  (ii) such acquisition shall be consensual and shall have been approved by the  board of directors of the Person so acquired;  (iii) any newly-created or acquired Subsidiary shall comply with the  requirements of Section 6.12;  (iv) the lines of business of the Person to be (or the property of which is to  be) so purchased or otherwise acquired shall be substantially the same lines of business  as, or complementary to, one or more of the principal businesses of the Loan Parties and  their Subsidiaries in the ordinary course;  (v) such purchase or other acquisition shall not include or result in any  contingent liabilities that could reasonably be expected to be material to the business,  financial condition, operations or prospects of the Loan Parties and their Subsidiaries,  taken as a whole (as determined in good faith by the board of directors (or the persons  performing similar functions) of the Loan Parties or any such Subsidiary if the board of  

 

  89    directors is otherwise approving such transaction and, in each other case, by a  Responsible Officer);  (vi) (A) immediately before and immediately after giving pro forma effect to  any such purchase or other acquisition, no Default shall have occurred and be continuing  and (B) immediately after giving effect to such purchase or other acquisition, (1) Parent  and its Subsidiaries shall be in pro forma compliance with the Incurrence Ratio, such  compliance to be determined on the basis of the financial information most recently  delivered to the Administrative Agent and the Lenders pursuant to Section 6.01(a) or (b)  as though such purchase or other acquisition had been consummated as of the first day of  the fiscal period covered thereby and (2) the amount by which the Revolving Credit  Facility exceeds the Total Revolving Credit Outstandings shall be no less than  $20,000,000; and  (vii) the Borrower shall have delivered to the Administrative Agent and each  Lender, at least five Business Days prior to the date on which any such purchase or other  acquisition is to be consummated, a certificate of a Responsible Officer, in form and  substance reasonably satisfactory to the Administrative Agent and the Required Lenders,  certifying that all of the requirements set forth in clauses (ii), (iv), (v) and (vi) above have  been satisfied or will be satisfied on or prior to the consummation of such purchase or  other acquisition;  (j) any Investments made in a Captive Insurance Company Subsidiary in an amount  not to exceed the minimum amount of capital required under the laws of the jurisdiction in which  the Captive Insurance Company Subsidiary is formed and other Investments in the Captive  Insurance Company Subsidiary to cover reasonable general corporate and overhead expenses of  the Captive Insurance Company Subsidiary;  (k) any Investments made by a Captive Insurance Company Subsidiary in the  ordinary course of business pursuant to the insurance program established by and for the benefit  of Parent and its Subsidiaries in accordance with Applicable Law and activities incidental thereto;  (l) any Investments made in the Purchasing Coop in the ordinary course of business  necessary to cover reasonable general corporate and overhead expenses of the Purchasing Coop;  and  (m) any Loan Party may purchase inventory, fixtures and equipment in the ordinary  course of business consistent with past practices.  7.04 Mergers, Consolidations and Sales of Assets.  Merge into or consolidate with any other  Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise  dispose of (in one transaction or in a series of transactions) all or any substantial part of its assets  (whether now owned or hereafter acquired) or any Equity Interest of any Subsidiary, except that:  (a) any Loan Party may sell inventory, fixtures and equipment in the ordinary course  of business consistent with past practices;  (b) any Loan Party may sell or otherwise dispose of damaged, obsolete or worn out  property, in each case in the ordinary course of business and consistent with past practice,  provided that the aggregate Fair Market Value of all such assets disposed of pursuant to this  clause (b) in any fiscal year shall not exceed $5,000,000;  

 

  90    (c) any Loan Party may exchange real property, fixtures and improvements for other  real property, fixtures and improvements, provided that any consideration (other than real  property, fixtures and improvements) received by any Loan Party in connection with such  exchanges is received by such Loan Party in cash;  (d) subject to Section 7.07, any Subsidiary may sell, transfer or otherwise dispose of  any of its assets to any Loan Party;  (e) any Loan Party may sell, transfer, sell a franchise in or otherwise dispose of  restaurants or property (including real property, improvements, fixtures and equipment) relating  to current or former restaurants of such person (such restaurants and property are collectively  referred to as “Restaurant Businesses”) so long as no Default or Event of Default shall have  occurred and is continuing or would result therefrom and the consideration received for any  Restaurant Businesses sold, transferred or otherwise disposed is equal to the Fair Market Value of  such Restaurant Businesses; provided that, the aggregate Fair Market Value of all assets disposed  of pursuant to this clause shall not exceed $25,000,000 in any fiscal year (other than the  Restaurant Businesses located at (x) 5751 Sunset Blvd., Los Angeles, California 90028, (y) 3600  Biscayne Blvd., Miami, Florida 33137 and (z) 221 NE 36th Street, Miami, Florida 33137, which,  for the avoidance of doubt, may be sold, transferred or otherwise disposed of without the  restrictions set forth in this proviso);  (f) any Loan Party may merge or consolidate with or transfer all or substantially all  of its assets to any other Loan Party;  (g) any Loan Party may enter into a Refranchising Asset Sale; and  (h) (i) any Loan Party may effect any transaction permitted by Section 7.02(i) and  (ii) any Loan Party or any Subsidiary of a Loan Party may enter into sale-leaseback transactions  permitted by Section 7.14;  provided, however, that any sale, transfer, exchange or other disposition of assets (x) permitted by  clause (b), (c), or (e) above shall not be permitted unless such disposition is for Fair Market Value and  (y) shall be for at least 60% cash consideration.  7.05 Dividends and Distributions, Restrictions on Ability of Subsidiaries to Pay  Dividends.    (a) Declare or pay any Restricted Payment or set aside any amount for any such  purpose; provided, however, that  (i) any Subsidiary of Parent may make Restricted Payments to Parent, the  Borrower or to any other Loan Party;  (ii) Parent may declare and distribute to its stockholders a dividend  comprised of rights to purchase preferred stock and/or common stock of Parent;  (iii) the Loan Parties may make any Restricted Payment not otherwise  permitted by this Section 7.05 so long as (A) the aggregate amount of all Restricted  Payments made pursuant to this clause (iii) in any fiscal year shall not exceed the  Stockholder Dividend Amount for such fiscal year, (B) after giving effect to any such  Restricted Payment, Parent shall be in pro forma compliance with each of the financial  

 

  91    covenants set forth in Section 7.10, and (C) at the time of the making of such Restricted  Payment and immediately after giving effect thereto, no Default or Event of Default shall  have occurred and is continuing or would result therefrom; and  (iv) the Loan Parties may make Restricted Payments in any fiscal year not  otherwise permitted by this Section 7.05 in an aggregate amount not to exceed  $50,000,000 if at the time such Restricted Payment is made and after giving effect to any  such Restricted Payment on a pro forma basis, the Consolidated Leverage Ratio is greater  than or equal to 3.50 to 1.00; provided, however, if the Consolidated Leverage Ratio is  less than 3.50 to 1.00 at the time any such Restricted Payment is made and after giving  effect to any such Restricted Payment on a pro forma basis, the Loan Parties may make  unlimited Restricted Payments in any fiscal year; provided, further, however that in each  case, (x) at the time of the making of any such Restricted Payment and immediately after  giving effect thereto, no Default or Event of Default shall have occurred and be  continuing or would result therefrom, (y) after giving effect to any such Restricted  Payment, Parent shall be in pro forma compliance with each of the financial covenants  set forth in Section 7.10, and (z) after giving effect to any such Restricted Payment, there  is at least $20,000,000 in availability under the Revolving Credit Facility.   (b) Permit any Subsidiary of Parent to, directly or indirectly, create or otherwise  cause or suffer to exist or become effective any encumbrance or restriction on the ability of any  such Subsidiary to (i) pay any dividends or make any other distributions on its capital stock or  any other interest or (ii) make or repay any loans or advances to Parent, the Borrower, any  Subsidiary of Parent or the parent of such Subsidiary (subclauses (i) and (ii) above are  collectively referred to as an “Upstream Payment”) except for such encumbrances or restrictions  existing under or by reason of (A) Applicable Law, (B) this Agreement, any other Loan  Document or any other agreement entered into hereunder or thereunder or as contemplated  hereby or thereby, (C) customary provisions restricting (1) subletting or assignment of any lease  governing a leasehold interest of Parent or any of the Subsidiaries of Parent, (2) the transfer of  intellectual property rights held by Parent or any of the Subsidiaries of Parent through license  agreements with the owners of such rights and (3) the assignment of supply contracts, (D) any  instrument governing Indebtedness permitted under Section 7.02 of a Person acquired by any  Loan Party or Subsidiary of a Loan Party after the Closing Date, provided that (1) such  instrument was in existence at the time of such acquisition and was not created in contemplation  of or in connection with such acquisition, (2) the officers of Parent reasonably believe at the time  of such acquisition that the terms of such instrument will not encumber or restrict the ability of  such acquired Person to make an Upstream Payment and (3) such instrument contains no express  encumbrances or restrictions on the ability of such acquired Person to make an Upstream  Payment or (E) Indebtedness and other contractual obligations of Parent or any of the  Subsidiaries existing on the Closing Date and set forth on Schedule 7.05 of the Disclosure  Schedules and, in the case of any of the foregoing, any amendment, modification, renewal,  extension, replacement, refinancing or refunding thereof permitted under the terms of this  Agreement, provided that the encumbrances and restrictions contained in any such amendment,  modification, renewal, extension, replacement, refinancing or refunding are in the aggregate no  less favorable in all material respects to the Lenders.  (c) Directly or indirectly, enter into, incur or permit to exist any agreement or other  arrangement that prohibits, restricts or imposes any condition upon the ability of Parent, the  Borrower or any other Subsidiary of Parent to create, incur or permit to exist any Lien upon any  its property or assets, provided that the foregoing shall not apply to (i) restrictions or conditions  imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such  

 

  92    restrictions or conditions apply only to the property or assets securing such Indebtedness or  (ii) customary provisions in leases and other contracts restricting the assignment thereof.  7.06 Nature of Business.  Engage at any time in any business or business activity other than  the conduct of restaurant operations and other business currently conducted by such Person and business  activities reasonably incidental or complementary thereto or as otherwise contemplated by this  Agreement.  7.07 Transactions with Affiliates.  Sell or transfer any property or assets to, or purchase or  acquire any property or assets from, or otherwise engage in any other transactions with, any of its  Affiliates (other than any Loan Party), except that any Loan Party or any Subsidiary of a Loan Party may  engage in any of the foregoing transactions in the ordinary course of business at prices and on terms and  conditions not less favorable to such Loan Party or such Subsidiary than could be obtained on an  arm’s-length basis from unrelated third parties; provided that (i) Parent may issue and distribute to its  stockholders that are Affiliates rights to purchase preferred stock and/or common stock of Parent to the  extent that such rights are permitted to be issued and distributed to Parent’s stockholders pursuant to  Section 7.05(a)(ii), (ii) any Loan Party and any Subsidiary of a Loan Party may make Investments in, and  payments of premiums to, a Captive Insurance Company Subsidiary in the ordinary course of business to  the extent permitted herein and (iii) any Loan Party and any Subsidiary may make Investments in, and  conduct business with and through, the Purchasing Coop (subject to the restrictions on the activities of the  Purchasing Coop set forth in Section 7.18).  7.08 Sanctions, Etc.  The Loan Parties will not request any Letters of Credit or Loans  hereunder, and the Loan Parties shall not use, and shall ensure that their Subsidiaries and its or their  respective directors, officers, employees and agents shall not use, the proceeds of any Credit Extension,  directly or indirectly, (i) in furtherance of an offer, payment, promise to pay, or authorization of the  payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption  Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or  with any Sanctioned Person, or in any Sanctioned Country, or (iii) in any manner that would result in the  violation of any Sanctions applicable to any party hereto.  7.09 Use of Proceeds.  Use the proceeds of any Credit Extension, whether directly or  indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within  the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or  carrying margin stock or to refund indebtedness originally incurred for such purpose.  7.10 Financial Covenants.    (a) Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of the  last day of each fiscal quarter of the Parent to be greater than 4.00 to 1.00.  (b) Consolidated Fixed Charge Coverage Ratio.  Permit the Consolidated Fixed  Charge Coverage Ratio as of the last day of each fiscal quarter of the Parent to be less than 1.50  to 1.00.  7.11 Amendments of Organization Documents.  Amend, modify or waive any of its rights  under its Organization Documents, provided that any Organization Document may be amended or  modified (other than in any manner to change the legal name or jurisdiction of organization of any Loan  Party without providing at least 30 days prior written notice to the Administrative Agent), and any rights  thereunder may be waived, in any respect that is not materially adverse to the interests of the Lenders.  

 

  93    7.12 Accounting Changes.  Change in any material respect its accounting treatment and  reporting policies (without the consent of the Administrative Agent) except as required by GAAP or  change the end of its fiscal year from the last Wednesday of December to any other date.  7.13 Other Indebtedness and Agreements.  Make any voluntary or optional payments, prepayments or redemptions of principal or premium  or voluntarily repurchase, acquire or retire for value prior to the stated maturity with respect to  Indebtedness (other than Indebtedness arising under the Loan Documents); provided that  (a) any Loan Party shall have the right to prepay Indebtedness permitted under  Section 7.02, after the Closing Date up to an aggregate amount of $15,000,000;  (b) any Loan Party may repay Indebtedness to the extent required under a “due on  sale” clause applicable to any disposition of assets permitted under Section 7.04; and  (c) any Loan Party shall have the right to prepay Indebtedness in connection with  any renewal, extension, or refinancing of Indebtedness permitted by Section 7.02(i).  7.14 Sale and Lease-Back Transactions.  Enter into any arrangement, directly or indirectly,  with any person whereby it shall sell or transfer (other than pursuant to Section 7.04(c)) any property, real  or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or  lease such property or other property which it intends to use for substantially the same purpose or  purposes as the property being sold or transferred; provided, however, that any Loan Party of any  Subsidiary of any Loan Party may enter into such a transaction provided that the Fair Market Value of all  property sold or transferred pursuant to such transactions since the Closing Date shall not exceed in the  aggregate $25,000,000.  7.15 Operating Leases.  Permit the aggregate amount of payments under Operating Leases of  any Loan Party or any Subsidiary of any Loan Party to be in excess of the fair rental value of the  properties subject to such Operating Leases.  7.16 Swap Contracts.  Enter into any Swap Contract, other than Swap Contracts entered into  in the ordinary course of business to hedge or mitigate risks to which the Loan Parties or any of their  respective Subsidiaries are exposed in the conduct of their respective businesses or the management of  their respective liabilities.  7.17 Designated Subsidiary.  In the case of the Designated Subsidiary, engage in any  material business or activity other than (a) maintaining its corporate existence, (b) participating in tax,  accounting and other administrative activities as a Subsidiary of a consolidated group of companies,  including the Loan Parties, and (c) activities incidental to the businesses or activities described in  clauses (a) and (b) of this Section, unless, the Designated Subsidiary shall become a Guarantor hereunder  and shall take all such actions reasonably requested by the Administrative Agent pursuant to Section 6.12.  7.18 Purchasing Coop.  Permit the Purchasing Coop to engage in any material business or  activity other than (a) procuring or arranging the procurement of equipment by, and on behalf of, the  Loan Parties and franchisees and licensees of the Loan Parties for use by the Loan Parties and such  franchisees and licensees at their respective restaurant locations and (b) activities incidental to the  businesses or activities described in clause (a) of this Section.    

 

  94    ARTICLE VIII    EVENTS OF DEFAULT AND REMEDIES  8.01 Events of Default.  Any of the following shall constitute an Event of Default:  (a) Non-Payment.  The Borrower or any other Loan Party fails to (i) pay when and  as required to be paid herein, any amount of principal of any Loan or any L/C Obligation or  deposit any funds as Cash Collateral in respect of L/C Obligations, or (ii) pay within three days  after the same becomes due, any interest on any Loan or on any L/C Obligation, or any fee due  hereunder, or (iii) pay within three days after notice from the Administrative Agent, any other  amount payable hereunder or under any other Loan Document; or  (b) Specific Covenants.  Any Loan Party fails to perform or observe any term,  covenant or agreement contained in any of Section 6.03, 6.05(a) (with respect to legal existence  only), 6.07, 6.11, 6.12, 6.17 or Article VII; 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 30 days; or  (d) Representations and Warranties.  (i) Any representation, warranty, certification  or statement of fact made or deemed made by or on behalf of the Borrower or any other Loan  Party herein, in any other Loan Document, or in connection with any Borrowing or issuance of  any Letters of Credit hereunder shall be incorrect or misleading when made or deemed made or  (ii) any material representation, warranty, certification or material statement of fact made or  deemed made by or on behalf of the Borrower or any other Loan Party in any report, certificate,  financial statement or other instrument furnished in connection with or pursuant to this  Agreement or any other Loan Document, shall be incorrect or misleading when made or deemed  made; or  (e) Cross-Default.  (i) Any Loan Party or any Subsidiary thereof (A) fails to make  any payment when due (whether by scheduled maturity, required prepayment, acceleration,  demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness  hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount  (including undrawn committed or available amounts and including amounts owing to all creditors  under any combined or syndicated credit arrangement) of more than the Threshold Amount, or  (B) fails to observe or perform any other agreement or condition relating to any such  Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing or  relating thereto, or any other event occurs, the effect of which default or other event is to cause,  or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such  Guarantee (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, such Indebtedness to be demanded or  to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise),  or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its  stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be  demanded; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined in  such Swap Contract) resulting from (A) any event of default under such Swap Contract as to  which a Loan Party or any Subsidiary thereof is the Defaulting Party (as defined in such Swap  Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which a  Loan Party or any Subsidiary thereof is an Affected Party (as so defined) and, in either event, the  

 

  95    Swap Termination Value owed by such Loan Party or such Subsidiary as a result thereof is  greater than the Threshold Amount; or  (f) Insolvency Proceedings, Etc.  Any Loan Party or any Subsidiary (other than the  Designated Subsidiary) thereof 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 or similar officer for it or for all or any material part of its property; or any receiver,  trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the  application or consent of such Person and the appointment continues undischarged or unstayed  for 30 calendar days; or any proceeding under any Debtor Relief Law relating to any such Person  or to all or any material part of its property is instituted without the consent of such Person and  continues undismissed or unstayed for 30 calendar days, or an order for relief is entered in any  such proceeding; or  (g) Inability to Pay Debts; Attachment.  (i) Any Loan Party or any Subsidiary (other  than the Designated Subsidiary) thereof becomes unable or admits in writing its inability or fails  generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or  execution or similar process is issued or levied against all or any material part of the property of  any such Person and is not released, vacated or fully bonded within 30 days after its issue or levy;  or  (h) Judgments.  There is entered against any Loan Party or any Subsidiary thereof  (i) one or more final judgments or orders for the payment of money in an aggregate amount (as to  all such judgments and orders) exceeding the Threshold Amount (to the extent not covered by  independent third-party insurance as to which the insurer is rated at least “A” by A.M. Best  Company, has been notified of the potential claim and does not dispute coverage), or (ii) any one  or more non-monetary final judgments that have, or could reasonably be expected to have,  individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement  proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period  of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a  pending appeal or otherwise, is not in effect; or  (i) ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or  Multiemployer Plan which has resulted or could reasonably be expected to result in a payment  obligation of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or  the PBGC in an aggregate amount in excess of the Threshold Amount, or (ii) the Borrower or any  ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any  installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a  Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or  (j) Invalidity of Loan Documents.  (i) any Lien purported to be created by any  Collateral Document shall cease to be, or shall be asserted by any Loan Party not to be, a valid,  perfected, first priority (except as otherwise expressly provided in this Agreement or such  Collateral Document) Lien in the Collateral covered thereby, except to the extent that any such  loss of perfection or priority results from the failure of the Administrative Agent to maintain  possession of certificates representing securities pledged under the Guarantee and Collateral  Agreement or, subject to compliance by the Loan Parties with Sections 6.12 and 6.14 and with  the other Loan Documents, any other action or inaction of the Administrative Agent with respect  to any of its obligations or duties under this Agreement or any other Loan Document and except  to the extent that such loss is covered by a lender’s title insurance policy and the related insurer  

 

  96    promptly after such loss shall have acknowledged in writing that such loss is covered by such title  insurance policy, (ii) any Guarantee purported to be created by any Collateral Document shall  cease to be, or shall be asserted by any Loan Party not to be, a valid and enforceable obligation of  the applicable Loan Party, (iii) 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 or satisfaction in full of all the Obligations, ceases to be in full force and effect, (iv)  any Loan Party or any other person contests in any manner the validity or enforceability of any  provision of any Loan Document or (v) any Loan Party denies that it has any or further liability or  obligation under any provision of any Loan Document, or purports to revoke, terminate or rescind  any provision of any Loan Document; or  (k) Change of Control.  There occurs any Change of Control; or  (l) Subordination.  (i) The subordination provisions of the documents evidencing or  governing any subordinated Indebtedness required to be subordinated hereunder (the  “Subordination Provisions”) shall, in whole or in part, terminate, cease to be effective or cease to  be legally valid, binding and enforceable against any holder of the applicable subordinated  Indebtedness; or (ii) the Borrower or any other Loan Party shall, directly or indirectly, disavow or  contest in any manner (A) the effectiveness, validity or enforceability of any of the Subordination  Provisions, (B) that the Subordination Provisions exist for the benefit of the Administrative  Agent, the Lenders and the L/C Issuer or (C) that all payments of principal of or premium and  interest on the applicable subordinated Indebtedness, or realized from the liquidation of any  property of any Loan Party, shall be subject to any of the Subordination Provisions.  8.02 Remedies upon Event of Default.  If any Event of Default occurs and is continuing, the  Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any  or all of the following actions:  (a) declare the commitment of each Lender to make Loans and any obligation of the  L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such commitments and  obligation shall be terminated;  (b) 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 Borrower;  (c) require that the Borrower Cash Collateralize the L/C Obligations (in an amount  equal to the Minimum Collateral Amount with respect thereto); and  (d) exercise on behalf of itself, the Lenders and the L/C Issuer all rights and  remedies available to it, the Lenders and the L/C Issuer under the Loan Documents;  provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with  respect to the Borrower under the Bankruptcy Code of the United States, the obligation of each Lender to  make Loans and any obligation of the L/C Issuer to make L/C 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 Borrower to Cash  Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without  further act of the Administrative Agent or any Lender.  

 

  97    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 L/C 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 Obligations shall be applied by the Administrative Agent in the  following order:  First, to payment of that portion of the Obligations constituting fees, indemnities,  expenses and other amounts (including fees, charges and disbursements of counsel to the  Administrative Agent and amounts payable under Article III) payable to the Administrative  Agent in its capacity as such;  Second, to payment of that portion of the Obligations constituting fees, indemnities and  other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders and  the L/C Issuer (including fees, charges and disbursements of counsel to the respective Lenders  and the L/C Issuer arising under the Loan Documents and amounts payable under Article III,  ratably among them in proportion to the respective amounts described in this clause Second  payable to them);  Third, to payment of that portion of the Obligations constituting accrued and unpaid  Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations arising  under the Loan Documents, ratably among the Lenders and the L/C Issuer in proportion to the  respective amounts described in this clause Third payable to them;  Fourth, to payment of that portion of the Obligations constituting unpaid principal of the  Loans, L/C Borrowings and Obligations then owing under Secured Hedge Agreements and  Secured Cash Management Agreements, ratably among the Lenders, the L/C Issuer, the Hedge  Banks and the Cash Management Banks in proportion to the respective amounts described in this  clause Fourth held by them;  Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash Collateralize  that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit;  and  Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to  the Borrower or as otherwise required by Law.  Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount of Letters  of Credit pursuant to clause Fifth 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 Obligations, if any, in  the order set forth above.  Excluded Swap Obligations with respect to any Subsidiary Loan Party shall not  be paid with amounts received from such Subsidiary Loan Party or such Subsidiary Loan Party’s assets,  but appropriate adjustments shall be made with respect to payments from other Loan Parties to preserve  the allocation to Obligations otherwise set forth above in this Section.  Notwithstanding the foregoing, Obligations arising under Secured Cash Management Agreements and  Secured Hedge Agreements shall be excluded from the application described above if the Administrative  Agent has not received written notice thereof, together with such supporting documentation as the  Administrative Agent may reasonably request, from the applicable Cash Management Bank or Hedge  Bank, as the case may be.  Each Cash Management Bank or Hedge Bank not a party to the Agreement  that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have  

 

  98    acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of  Article IX for itself and its Affiliates as if a “Lender” party hereto.  8.04 Credit Bidding.  (a) The Administrative Agent, on behalf of itself and the Secured Parties, shall have the  right, exercisable at the discretion of the Required Lenders, to credit bid and purchase for the benefit of  the Administrative Agent and the Secured Parties all or any portion of Collateral at any sale thereof  conducted by the Administrative Agent under the provisions of the UCC, including pursuant to Sections  9-610 or 9-620 of the UCC, at any sale thereof conducted under the provisions of the United States  Bankruptcy Code, including Section 363 thereof, or a sale under a plan of reorganization, or at any other  sale or foreclosure conducted by the Administrative Agent (whether by judicial action or otherwise) in  accordance with Applicable Law.  Such credit bid or purchase may be completed through one or more  acquisition vehicles formed by the Administrative Agent to make such credit bid or purchase and, in  connection therewith, the Administrative Agent is authorized, on behalf of itself and the other Secured  Parties, to adopt documents providing for the governance of the acquisition vehicle or vehicles, and  assign the applicable secured Obligations to any such acquisition vehicle in exchange for Equity Interests  and/or debt issued by the applicable acquisition vehicle (which shall be deemed to be held for the ratable  account of the applicable Secured Parties on the basis of the Obligations so assigned by each Secured  Party); 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 Section 10.01.  (b) Each Lender hereby agrees, on behalf of itself and each of its Affiliates that is a Secured  Party, that, except as otherwise provided in any Loan Document or with the written consent of the  Administrative Agent and the Required Lenders, it will not take any enforcement action, accelerate  obligations under any of the Loan Documents, or exercise any right that it might otherwise have under  Applicable Law to credit bid at foreclosure sales, UCC sales or other similar dispositions of Collateral.    ARTICLE IX    ADMINISTRATIVE AGENT  9.01 Appointment and Authority.    (a) Each of the Lenders and the L/C Issuer hereby irrevocably appoints, designates  and authorizes Wells Fargo 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 are solely for the benefit of the Administrative Agent, the Arrangers, the  Lenders, the L/C Issuer and their respective Related Parties, and neither the Borrower nor any  other Loan Party shall have rights as a third party beneficiary of any of such provisions.  (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 Hedge Bank and a  potential Cash Management Bank) and the L/C Issuer hereby irrevocably appoints and authorizes  the Administrative Agent to act as the agent of such Lender and the L/C Issuer for purposes of  acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan  

 

  99    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 Section 10.04(c), 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.    (c) 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.  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 banking, trust, financial advisory, underwriting, capital markets or other  business with any Loan Party 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 or to provide  notice to or consent of the Lenders with respect thereto.  9.03 Exculpatory Provisions.  The Administrative Agent, the Arrangers and their respective  Related Parties 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, the  Arrangers and their respective Related Parties:  (a) shall not be subject to any agency, trust, 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 expose the Administrative Agent to liability or that is contrary to any Loan Document or  Applicable Law, including for the avoidance of doubt any action that may 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, have any duty to disclose, and shall not be liable for the failure to  disclose to any Lender, the L/C Issuer or any other Person, any credit or other information  relating concerning the business, prospects, operations, properties, assets, financial or other  condition or creditworthiness of any Loan Party or any of their respective Subsidiaries or  

 

  100    Affiliates that is communicated to, obtained by or otherwise in the possession of the Person  serving as the Administrative Agent, the Arrangers or their respective Related Parties in any  capacity, except for notices, reports and other documents that are required to be furnished by the  Administrative Agent to the Lenders pursuant to the express provisions of this Agreement;   (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.  The Administrative Agent shall be deemed not to have  knowledge of any Default or Event of Default unless and until notice describing such Default or  Event of Default and indicating that such notice is a “Notice of Default” is given to the  Administrative Agent by a Loan Party, a Lender or the L/C Issuer; and  (e) shall not be responsible for or have any duty or obligations to any Lender or  Participant or other Person 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 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.  9.04 Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely  upon, shall be fully protected in relying and shall not incur any liability for relying upon, any notice,  request, certificate, consent, communication, 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 be fully protected in relaying and shall not incur any  liability for relying thereon.  In determining compliance with any condition hereunder to the making of a  Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a  Lender or the L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to  such Lender or the L/C Issuer unless the Administrative Agent shall have received notice to the contrary  from such Lender or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of  Credit.  The Administrative Agent may consult with legal counsel (who may be counsel for a Loan Party),  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.  Each Lender  that has signed this Agreement or a signature page to an Assignment and Assumption or any other Loan  Document pursuant to which it is to become a Lender hereunder shall be deemed to have consented to,  approved and accepted and shall deemed satisfied with each document or other matter required thereunder  to be consented to, approved or accepted by such Lender or that is to be acceptable or satisfactory to such  Lender.  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  

 

  101    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 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 non-appealable judgment that the Administrative Agent acted with gross  negligence or willful misconduct in the selection of such sub-agents.  9.06 Resignation of Administrative Agent.  The Administrative Agent may at any time give  notice of its resignation to the Lenders, the L/C Issuer and the Borrower.  Upon receipt of any such notice  of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a  successor, which shall be a bank or financial institution reasonably experienced in serving as  administrative agent on syndicated bank facilities with an office in the United States, or an Affiliate of  any such bank or financial institution with an office in the United States.  If no such successor shall have  been so appointed by the Required Lenders and shall have accepted such appointment within 30 days  after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative  Agent may on behalf of the Lenders and the L/C Issuer, appoint a successor Administrative Agent  meeting the qualifications set forth above; provided that if the Administrative Agent shall notify the  Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation  shall nonetheless become effective in accordance with such notice and (a) the retiring Administrative  Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents  (except that in the case of any collateral security held by the Administrative Agent on behalf of the  Lenders or the L/C Issuer under any of the Loan Documents, the retiring Administrative Agent shall  continue to hold such collateral security until such time as a successor Administrative Agent is appointed)  and (b) all payments, communications and determinations provided to be made by, to or through the  Administrative Agent shall instead be made by or to each Lender and the L/C Issuer directly, until such  time as the Required Lenders appoint a successor Administrative Agent as provided for above in this  Section.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such  successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the  retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from  all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged  therefrom as provided above in this Section).  The fees payable by the Borrower to a successor  Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed  between the Borrower and such successor.  After the retiring Administrative Agent’s resignation  hereunder and under the other Loan Documents, the provisions of this Article and Section 10.04 shall  continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective  Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring  Administrative Agent was acting as Administrative Agent.  Any resignation by Wells Fargo as Administrative Agent pursuant to this Section shall also  constitute its resignation as L/C Issuer.  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 L/C Issuer, (ii) the retiring L/C Issuer shall be  discharged from all of their respective duties and obligations hereunder or under the other Loan  Documents, and (iii) the successor L/C Issuer 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  retiring L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with respect to such  Letters of Credit.  

 

  102    9.07 Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and the L/C  Issuer expressly acknowledges that none of the Administrative Agent, any Arranger or any of their  respective Related Parties has made any representations or warranties to it and that no act taken or failure  to act by the Administrative Agent, any Arranger or any of their respective Related Parties, including any  consent to, and acceptance of any assignment or review of the affairs of the Parent, the Borrower and their  Subsidiaries or Affiliates shall be deemed to constitute a representation or warranty of the Administrative  Agent, any Arranger or any of their respective Related Parties to any Lender, the L/C Issuer or any other  Secured Party as to any matter, including whether the Administrative Agent, any Arranger or any of their  respective Related Parties have disclosed material information in their (or their respective Related  Parties’) possession.  Each Lender and the L/C Issuer expressly acknowledges, represents and warrants to  the Administrative Agent and each Arranger that (a) the Loan Documents set forth the terms of a  commercial lending facility, (b) it is engaged in making, acquiring, purchasing or holding commercial  loans in the ordinary course and is entering into this Agreement and the other Loan Documents to which it  is a party as a Lender for the purpose of making, acquiring, purchasing and/or holding the commercial  loans set forth herein as may be applicable to it, and not for the purpose of making, acquiring, purchasing  or holding any other type of financial instrument, (c) it is sophisticated with respect to decisions to make,  acquire, purchase or hold the commercial loans applicable to it and either it or the Person exercising  discretion in making its decisions to make, acquire, purchase or hold such commercial loans is  experienced in making, acquiring, purchasing or holding commercial loans, (d) it has, independently and  without reliance upon the Administrative Agent, any Arranger, any other Lender or any of their respective  Related Parties and based on such documents and information as it has deemed appropriate, made its own  credit analysis and appraisal of, and investigations into, the business, prospects, operations, property,  assets, liabilities, financial and other condition and creditworthiness of the Parent, the Borrower and their  Subsidiaries, all applicable bank or other regulatory Applicable Laws relating to the transactions  contemplated by this Agreement and the other Loan Documents and (e) it has made its own independent  decision to enter into this Agreement and the other Loan Documents to which it is a party and to extend  credit hereunder and thereunder.  Each Lender and the L/C Issuer also acknowledges that (i) it will,  independently and without reliance upon the Administrative Agent, any Arranger or any other Lender or  any of their respective Related Parties (A) continue to make its own credit analysis, appraisals and  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 based on such documents and  information as it shall from time to time deem appropriate and its own independent investigations and (B)  continue to make such investigations and inquiries as it deems necessary to inform itself as to the Parent,  the Borrower and their Subsidiaries and (ii) it will not assert any claim in contravention of this Section  9.07.  9.08 No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of the Co- Syndication Agents, Bookrunners, Arrangers or Co-Documentation Agents (whether or not 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  L/C Issuer hereunder, but each such Person shall have the benefit of the indemnities and exculpatory  provisions hereof.  9.09 Administrative Agent May File Proofs of Claim.  In case of the pendency of any  proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the  Administrative Agent (irrespective of whether the principal of any Loan or L/C 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 Borrower or any other Loan Party) shall be  entitled and empowered, by intervention in such proceeding or otherwise.  

 

  103    (a) to file and prove a claim for the whole amount of the principal and interest owing  and unpaid in respect of the Loans, L/C 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 L/C Issuer and the Administrative Agent (including any claim for the  reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer  and the Administrative Agent and their respective agents and counsel and all other amounts due  the Lenders, the L/C Issuer and the Administrative Agent under Sections 2.03(h) and (i), 2.08 and  10.04) 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 L/C Issuer 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 L/C Issuer, 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 2.08 and 10.04.  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 L/C Issuer any plan of reorganization,  arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the L/C  Issuer or authorize the Administrative Agent to vote in respect of the claim of any Lender or the L/C  Issuer or in any such proceeding.  9.10 Collateral and Guaranty Matters.  Each of the Lenders (including in its capacities as a  potential Cash Management Bank and a potential Hedge Bank and on behalf of its Affiliates in such  capacities) and the L/C Issuer irrevocably authorize the Administrative Agent, at its option and in its  discretion,  (a) to release any Lien on any property granted to or held by the Administrative  Agent under any Loan Document (i) upon termination of the Aggregate Commitments and  payment in full of all Obligations (other than (A) contingent indemnification obligations and  (B) obligations and liabilities under Secured Cash Management Agreements and Secured Hedge  Agreements; unless the Administrative Agent has received written notice, at least two (2)  Business Days prior to the proposed date of any such release of Liens, stating that arrangements  satisfactory to the applicable Cash Management Bank or Hedge Bank in respect of obligations  and liabilities under Secured Cash Management Agreements or Secured Hedge Agreements have  not been made) and the expiration or termination of all Letters of Credit (other than Letters of  Credit as to which other arrangements satisfactory to the Administrative Agent and the L/C Issuer  shall have been made), (ii) that is sold or to be sold as part of or in connection with any sale  permitted hereunder or under any other Loan Document, as certified by the Borrower or (iii) if  approved, authorized or ratified in writing by the Required Lenders in accordance with  Section 10.01 (provided that any release of all of substantially all of the Collateral shall be subject  to Section 10.01(g)).  (b) (i) to release any Guarantor from its obligations under the Guarantee and  Collateral Agreement if such Person ceases to be a Subsidiary as a result of a transaction  permitted hereunder, as certified by the Borrower, and (ii) to terminate this Agreement and the  other Loan Documents (other than Secured Cash Management Agreements and Secured Hedge  Agreements) upon termination of the Aggregate Commitments and payment in full of all  

 

  104    Obligations (other than (A) contingent indemnification obligations and (B) obligations and  liabilities under Secured Cash Management Agreements and Secured Hedge Agreements; unless  the Administrative Agent has received written notice, at least two (2) Business Days prior to the  proposed date of any such release of Liens, stating that arrangements satisfactory to the  applicable Cash Management Bank or Hedge Bank in respect of obligations and liabilities under  Secured Cash Management Agreements or Secured Hedge Agreements have not been made) and  the expiration or termination of all Letters of Credit (other than Letters of Credit as to which other  arrangements satisfactory to the Administrative Agent and the L/C Issuer shall have been made);  and  (c) to subordinate any Lien on any property granted to or held by the Administrative  Agent under any Loan Document to the holder of any Lien on such property that is permitted by  Section 7.01(b).  Upon request by the Administrative Agent at any time, the Required Lenders will confirm in  writing the Administrative Agent’s authority to release or subordinate its interest in particular types or  items of property, to release any Guarantor from its obligations under the Guarantee and Collateral  Agreement, or to terminate the Loan Documents (other than Secured Cash Management Agreements and  Secured Hedge Agreements), in each case, pursuant to this Section 9.10.  In each case as specified in this  Section 9.10, the Administrative Agent will, at the Borrower’s 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, to release such Guarantor from its obligations under  the Guarantee and Collateral Agreement, or to evidence the termination of the Loan Documents (other  than Secured Cash Management Agreements and Secured Hedge Agreements), 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 any Loan Party 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.  9.11 Secured Cash Management Agreements and Secured Hedge Agreements.  No Cash  Management Bank or Hedge Bank that obtains the benefits of Section 8.03, the Guarantee under the  Guarantee and Collateral Agreement or any Collateral by virtue of the provisions hereof or of 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) or to notice of or to consent to any amendment, waiver or  modification of the provisions hereof or any Loan Document, other than in its capacity as a Lender and, in  such case, only to the extent expressly provided in the Loan Documents (it being understood that  Administrative Agent may take any and all action expressly specified in Section 9.10).  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, Obligations  arising under Secured Cash Management Agreements and Secured Hedge Agreements except to the  extent (x) as expressly specified in Section 9.10 and (y) the Administrative Agent has received written  notice of such Obligations, together with such supporting documentation as the Administrative Agent  may reasonably request, from the applicable Cash Management Bank or Hedge Bank, as the case may be.  9.12 Erroneous Payments.   

 

  105    (a) Each Lender, the L/C Issuer, each other Secured Party and any other party hereto hereby  severally agrees that if (i) the Administrative Agent notifies (which such notice shall be conclusive absent  manifest error) such Lender or the L/C Issuer or any other Secured Party (or the Affiliate of a Secured  Party) or any other Person that has received funds from the Administrative Agent or any of its Affiliates,  either for its own account or on behalf of a Lender, the L/C Issuer or other Secured Party (each such  recipient, a “Payment Recipient”) that the Administrative Agent has determined in its sole discretion that  any funds received by such Payment Recipient were erroneously transmitted to, or otherwise erroneously  or mistakenly received by, such Payment Recipient (whether or not known to such Payment Recipient) or  (ii) any Payment Recipient receives any payment from the Administrative Agent (or any of its Affiliates)  (x) that is in a different amount than, or on a different date from, that specified in a notice of payment,  prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such  payment, prepayment or repayment, as applicable, (y) that was not preceded or accompanied by a notice  of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with  respect to such payment, prepayment or repayment, as applicable, or (z) that such Payment Recipient  otherwise becomes aware was transmitted or received in error or by mistake (in whole or in part) then, in  each case, an error in payment shall be presumed to have been made (any such amounts specified in  clauses (i) or (ii) of this Section 9.12(a), whether received as a payment, prepayment or repayment of  principal, interest, fees, distribution or otherwise; individually and collectively, an “Erroneous Payment”),  then, in each case, such Payment Recipient is deemed to have knowledge of such error at the time of its  receipt of such Erroneous Payment; provided that nothing in this Section shall require the Administrative  Agent to provide any of the notices specified in clauses (i) or (ii) above.  Each Payment Recipient agrees  that it shall not assert any right or claim to any Erroneous Payment, and hereby waives any claim,  counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim  by the Administrative Agent for the return of any Erroneous Payments, including without limitation  waiver of any defense based on “discharge for value” or any similar doctrine.  (b) Without limiting the immediately preceding clause (a), each Payment Recipient agrees  that, in the case of clause (a)(ii) above, it shall promptly notify the Administrative Agent in writing of  such occurrence.  (c) In the case of either clause (a)(i) or (a)(ii) above, such Erroneous Payment shall at all  times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient  and held in trust for the benefit of the Administrative Agent, and upon demand from the Administrative  Agent such Payment Recipient shall (or, shall cause any Person who received any portion of an Erroneous  Payment on its behalf to), promptly, but in all events no later than one Business Day thereafter, return to  the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which  such a demand was made in same day funds and in the currency so received, together with interest  thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof)  was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent at  the overnight rate.  (d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the  Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance  with immediately preceding clause (c), from any Lender that is a Payment Recipient or an Affiliate of a  Payment Recipient (such unrecovered amount as to such Lender, an “Erroneous Payment Return  Deficiency”), then at the sole discretion of the Administrative Agent and upon the Administrative Agent’s  written notice to such Lender (i) such Lender shall be deemed to have made a cashless assignment of the  full face amount of the portion of its Loans (but not its Commitments) to the Administrative Agent or, at  the option of the Administrative Agent, the Administrative Agent’s applicable lending affiliate in an  amount that is equal to the Erroneous Payment Return Deficiency (or such lesser amount as the  Administrative Agent may specify) (such assignment of the Loans (but not Commitments), the  

 

  106    “Erroneous Payment Deficiency Assignment”) plus any accrued and unpaid interest on such assigned  amount, without further consent or approval of any party hereto and without any payment by the  Administrative Agent or its applicable lending affiliate as the assignee of such Erroneous Payment  Deficiency Assignment.  Without limitation of its rights hereunder, the Administrative Agent may cancel  any Erroneous Payment Deficiency Assignment at any time by written notice to the applicable assigning  Lender and upon such revocation all of the Loans assigned pursuant to such Erroneous Payment  Deficiency Assignment shall be reassigned to such Lender without any requirement for payment or other  consideration.  The parties hereto acknowledge and agree that (1) any assignment contemplated in this  clause (d) shall be made without any requirement for any payment or other consideration paid by the  applicable assignee or received by the assignor, (2) the provisions of this clause (d) shall govern in the  event of any conflict with the terms and conditions of Section 10.06 and (3) the Administrative Agent  may reflect such assignments in the Register without further consent or action by any other Person.  (e) Each party hereto hereby agrees that (x) in the event an Erroneous Payment (or portion  thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or  portion thereof) for any reason, the Administrative Agent (1) shall be subrogated to all the rights of such  Payment Recipient with respect to such amount and (2) is authorized to set off, net and apply any and all  amounts at any time owing to such Payment Recipient under any Loan Document, or otherwise payable  or distributable by the Administrative Agent to such Payment Recipient from any source, against any  amount due to the Administrative Agent under this Section 9.12 or under the indemnification provisions  of this Agreement, (y) the receipt of an Erroneous Payment by a Payment Recipient shall not for the  purpose of this Agreement be treated as a payment, prepayment, repayment, discharge or other  satisfaction of any Obligations owed by the Borrower or any other Loan Party, except, in each case, to the  extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that  is, comprised of funds received by the Administrative Agent from the Borrower or any other Loan Party  for the purpose of making for a payment on the Obligations and (z) to the extent that an Erroneous  Payment was in any way or at any time credited as payment or satisfaction of any of the Obligations, the  Obligations or any part thereof that were so credited, and all rights of the Payment Recipient, as the case  may be, shall be reinstated and continue in full force and effect as if such payment or satisfaction had  never been received.  (f) Each party’s obligations under this Section 9.12 shall survive the resignation or  replacement of the Administrative Agent or any transfer of right or obligations by, or the replacement of,  a Lender, the termination of the Commitments or the repayment, satisfaction or discharge of all  Obligations (or any portion thereof) under any Loan Document.  (g) Nothing in this Section 9.12 will constitute a waiver or release of any claim of any party  hereunder arising from any Payment Recipient’s receipt of an Erroneous Payment.    ARTICLE X    MISCELLANEOUS  10.01 Amendments, Etc.  Except as set forth below or as specifically provided in any Loan  Document (including Section 3.03(b)), no amendment or waiver of any provision of this Agreement or  any other Loan Document, and no consent to any departure by the Borrower or any other Loan Party  therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower or the  applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each such  waiver or consent shall be effective only in the specific instance and for the specific purpose for which  given; provided, however, that no such amendment, waiver or consent shall:  

 

  107    (a) waive any condition set forth in Section 4.01 (other than Section 4.01(b)(i) or  (c)), or, in the case of the initial Credit Extension, Section 4.02, without the written consent of  each Lender;  (b) extend or increase the Commitment of any Lender (or reinstate any Commitment  terminated pursuant to Section 8.02) without the written consent of such Lender;  (c) postpone any date fixed by this Agreement or any other Loan Document for  (i) any payment (excluding mandatory prepayments) of principal, interest, fees or other amounts  due to the Lenders (or any of them) hereunder or under such other Loan Document without the  written consent of each Lender entitled to such payment or (ii) any scheduled reduction of the  Revolving Credit Facility hereunder or under any other Loan Document without the written  consent of each Appropriate Lender;  (d) reduce the principal of, or the rate of interest specified herein on, any Loan or  L/C Borrowing, or (subject to clause (iii) of the second proviso to this Section 10.01) any fees or  other amounts payable hereunder or under any other Loan Document without the written consent  of each Lender entitled to such amount; provided, however, that only the consent of the Required  Lenders shall be necessary (i) to amend the definition of “Default Rate” or to waive any  obligation of the Borrower to pay interest or Letter of Credit Fees at the Default Rate or (ii) to  amend any financial covenant hereunder (or any defined term used therein) even if the effect of  such amendment would be to reduce the rate of interest on any Loan or L/C Borrowing or to  reduce any fee payable hereunder;  (e) change the third sentence of Section 2.11(a) (or the definition of Applicable  Percentage as used therein) or Section 8.03 in a manner that would alter the pro rata sharing or  order of payments required thereby without the written consent of each Lender adversely affected  thereby;  (f) change any provision of this Section 10.01 or the definition of “Required  Lenders” or any other provision hereof specifying the number or percentage of Lenders required  to amend, waive or otherwise modify any rights hereunder or make any determination or grant  any consent hereunder without the written consent of each Lender;  (g) release all or substantially all of the Collateral in any transaction or series of  related transactions, without the written consent of each Lender other than in connection with the  enforcement of remedies against the Loan Parties hereunder;  (h) release all or substantially all of the value of the Guarantee made by the  Guarantors under the Guarantee and Collateral Agreement, without the written consent of each  Lender, except (i) in connection with the enforcement of remedies against the Loan Parties  hereunder, and (ii) to the extent the release of any Subsidiary from its obligations under the  Guarantee and Collateral Agreement is permitted pursuant to Section 9.10 (in which case such  release may be made by the Administrative Agent acting alone);   (i) impose any greater restriction on the ability of any Lender to assign any of its  rights or obligations hereunder without the written consent of the Required Lenders; or  (j) (i) subordinate the Obligations owed to the Lenders in right of payment or  otherwise adversely affect the priority of payment of such Obligations or (ii) subordinate any of  

 

  108    the Liens securing the Obligations owed to the Lenders, in each case without the consent of each  of the Lenders;  and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the  L/C Issuer in addition to the Lenders required above, affect the rights or duties of the L/C Issuer under  this Agreement or any Issuer Document relating to any Letter of Credit issued or to be issued by it; (ii) no  amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition  to the Lenders required above, affect the rights or duties of the Administrative Agent under this  Agreement or any other Loan Document; (iii) the Fee Letter may be amended, or rights or privileges  thereunder waived, in a writing executed only by the parties thereto and (iv) the Administrative Agent and  the Borrower may, without the consent of any Lender, enter into amendments or modifications to this  Agreement or any of the other Loan Documents or to enter into additional Loan Documents as the  Administrative Agent reasonably deems appropriate in order to implement any Benchmark Replacement  or any Benchmark Replacement Conforming Changes or otherwise effectuate the terms of Section 3.03(b)  in accordance with the terms of Section 3.03(b).  Notwithstanding anything to the contrary herein, no  Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent  hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders  or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting  Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased or extended  without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent  of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than  other affected Lenders shall require the consent of such Defaulting Lender.  Notwithstanding anything in this Agreement to the contrary, each Lender hereby irrevocably authorizes  the Administrative Agent on its behalf, and without further consent of any Lender (but with the consent of  the Borrower and the Administrative Agent), to (x) amend and restate this Agreement and the other Loan  Documents if, upon giving effect to such amendment and restatement, such Lender shall no longer be a  party to this Agreement (as so amended and restated), the Commitments of such Lender shall have  terminated, such Lender shall have no other commitment or other obligation hereunder and shall have  been paid in full all principal, interest and other amounts owing to it or accrued for its account under this  Agreement and the other Loan Documents and (y) enter into amendments or modifications to this  Agreement (including amendments to this Section 12.2) or any of the other Loan Documents or to enter  into additional Loan Documents as the Administrative Agent reasonably deems appropriate in order to  effectuate the terms of Section 2.13 (including as applicable, (1) to permit such increase in the Revolving  Credit Facility to share ratably in the benefits of this Agreement and the other Loan Documents, (2) to  include the Increasing Lenders in any determination of (i) Required Lenders or (ii) similar required lender  terms applicable thereto); provided that no amendment or modification shall result in any increase in the  amount of any Lender’s Commitment or any increase in any Lender’s Applicable Percentage, in each  case, without the written consent of such affected Lender.  10.02 Notices; Effectiveness; Electronic Communications.  (a) Notices Generally.  Except in the case of notices and other communications  expressly permitted to be given by telephone (and except as provided in subsection (b) below), all  notices and other communications provided for herein shall be in writing and shall be delivered  by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier  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:  

 

  109    (i) if to the Borrower or any other Loan Party, the Administrative Agent or  the L/C Issuer, to the address, telecopier number, electronic mail address or telephone  number specified for such Person on Schedule 10.02 of the Disclosure Schedules; and  (ii) if to any other Lender, to the address, telecopier number, electronic mail  address or telephone number specified in its Administrative Questionnaire (including, as  appropriate, notices delivered solely to the Person designated by a Lender on its  Administrative Questionnaire then in effect for the delivery of notices that may contain  material non-public information relating to the Borrower).  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 telecopier shall be deemed to have been given when sent (except that, if not given during normal  business hours for the recipient, shall be deemed to have been given at the opening of business on the next  business day for the recipient).  Notices and other communications delivered through electronic  communications to the extent provided in subsection (b) below shall be effective as provided in such  subsection (b).  (b) Electronic Communications.  Notices and other communications to the Lenders  and the L/C Issuer hereunder may be delivered or furnished by electronic communication  (including e-mail and Internet or intranet websites) pursuant to procedures approved by the  Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the  L/C Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has notified the  Administrative Agent that it is incapable of receiving notices under such Article by electronic  communication.  The Administrative Agent or the Borrower may, in its or their discretion, agree  to accept notices and other communications to it hereunder by electronic communications  pursuant to procedures approved by it, provided that approval of such procedures may be limited  to particular notices or communications.  Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent  to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the  intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other  written acknowledgement), provided that if such notice or other communication is not sent during the  normal business hours of the recipient, such notice or communication shall be deemed to have been sent  at the opening of business on the next business day for the recipient, and (ii) notices or communications  posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the  intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such  notice or communication is available and identifying the website address therefor.  (c) The Platform.  Each Loan Party, each Lender and the L/C Issuer agrees that the  Administrative Agent may, but shall not be obligated to, make the Borrower Materials available  to the L/C Issuer and the other Lenders by posting the Borrower Materials on 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 BORROWER MATERIALS OR THE PLATFORM.   

 

  110    Although the Platform is secured pursuant to generally-applicable security procedures and  policies implemented or modified by the Administrative Agent and its Related Parties, each of the  Lenders, the L/C Issuer and the Borrower acknowledges and agrees that distribution of  information through an electronic means is not necessarily secure in all respects, the  Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) are not  responsible for approving or vetting the representatives, designees or contacts of any Lender or  the L/C Issuer that are provided access to the Platform and that there may be confidentiality and  other risks associated with such form of distribution.  Each of the Borrower, each Lender and the  L/C Issuer understands and accepts such risks.  In no event shall the Agent Parties have any  liability to any Loan Party, any Lender, the L/C Issuer or any other Person for losses, claims,  damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of  the Loan Parties’ or the Administrative Agent’s transmission of Borrower Materials through the  Internet, except to the extent that such losses, claims, damages, liabilities or expenses are  determined by a court of competent jurisdiction by a final and nonappealable judgment to have  resulted from the gross negligence or willful misconduct of such Agent Party; provided, however,  that in no event shall any Agent Party have any liability to any Loan Party, any Lender, the L/C  Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as  opposed to direct or actual damages).  (d) Change of Address, Etc.  Each of the Loan Parties, the Administrative Agent and  the L/C Issuer may change its address, telecopier or telephone number for notices and other  communications hereunder by notice to the other parties hereto.  Each other Lender may change  its address, telecopier or telephone number for notices and other communications hereunder by  notice to the Borrower, the Administrative Agent and the L/C Issuer.  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, telecopier 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 with respect to the Borrower or its securities for purposes of United States Federal or  state securities laws.  (e) Reliance by Administrative Agent, L/C Issuer and Lenders.  The Administrative  Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including  telephonic Committed Loan Notices) purportedly given by or on behalf of any Loan Party 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 Loan Parties shall  indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each  of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person  on each notice purportedly given by or on behalf of any Loan Party.  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.  10.03 No Waiver; Cumulative Remedies; Enforcement.  No failure by any Lender, the L/C  Issuer or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right,  

 

  111    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 L/C Issuer; 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 L/C Issuer from exercising the rights and remedies that inure to  its benefit (solely in its capacity as L/C Issuer) hereunder and under the other Loan Documents, (c) any  Lender from exercising setoff rights in accordance with Section 10.08 (subject to the terms of  Section 2.12), 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 2.12, any Lender may, with the  consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the  Required Lenders.  10.04 Expenses; Indemnity; Damage Waiver.    (a) Costs and Expenses.  The Borrower and any other Loan Party, jointly and  severally, shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative  Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for  the Administrative Agent), in connection with the syndication of the credit facilities provided for  herein, the preparation, negotiation, execution, delivery and administration of this Agreement and  the other Loan Documents or any amendments, modifications or waivers of the provisions hereof  or thereof (whether or not the transactions contemplated hereby or thereby shall be  consummated), (ii) all reasonable out-of-pocket expenses incurred by the L/C Issuer in  connection with the issuance, amendment, renewal or extension of any Letter of Credit or any  demand for payment thereunder and (iii) all out-of-pocket expenses incurred by the  Administrative Agent, any Lender or the L/C Issuer (including the fees, charges and  disbursements of any counsel for the Administrative Agent, any Lender or the L/C Issuer) in  connection with the enforcement or protection of its rights (A) in connection with this Agreement  and the other Loan Documents, including its rights under this Section, or (B) in connection with  Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses  incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of  Credit.  (b) Indemnification by the Borrower.  The Borrower shall indemnify the  Administrative Agent (and any sub-agent thereof), each Lender and the L/C Issuer, and each  Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)  against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities  and related expenses (including the fees, charges and disbursements of any counsel for any  

 

  112    Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any third party or  by the Borrower or any other Loan Party arising out of, in connection with, or as a result of  (i) any execution or delivery of this Agreement, any other Loan Document or any agreement or  instrument contemplated hereby or thereby, the performance by the parties hereto of their  respective obligations hereunder or thereunder or the consummation of the transactions  contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent  thereof) and its Related Parties only, the administration of this Agreement and the other Loan  Documents (including in respect of any matters addressed in Section 3.01), (ii) any Loan or Letter  of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the L/C  Issuer to honor a demand for payment under a Letter of Credit if the documents presented in  connection with such demand do not strictly comply with the terms of such Letter of Credit),  (iii) any actual or alleged presence or release of Hazardous Materials on or from any property  owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability  related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective  claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on  contract, tort or any other theory, whether brought by a third party or by the Borrower or any  other Loan Party or any of the Borrower’s or such Loan Party’s directors, shareholders or  creditors, and regardless of whether any Indemnitee is a party thereto; provided that such  indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims,  damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by  final and nonappealable judgment to have resulted from the gross negligence or willful  misconduct of such Indemnitee or (y) result from a claim brought by the Borrower or any other  Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations  hereunder or under any other Loan Document, if the Borrower or such Loan Party has obtained a  final and nonappealable judgment in its favor on such claim as determined by a court of  competent jurisdiction.  (c) Reimbursement by Lenders.  To the extent that the Borrower for any reason fails  to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it  to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related Party of any  of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such  sub-agent), the L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable  Percentage (determined as of the time that the applicable unreimbursed expense or indemnity  payment is sought) of such unpaid amount, provided that the unreimbursed expense or  indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by  or asserted against the Administrative Agent (or any such sub-agent) or the L/C Issuer in its  capacity as such, or against any Related Party of any of the foregoing acting for the  Administrative Agent (or any such sub-agent) or L/C Issuer in connection with such capacity.   The obligations of the Lenders under this subsection (c) are subject to the provisions of  Section 2.11(d).  (d) Waiver of Consequential Damages, Etc.  To the fullest extent permitted by  Applicable Law, each Loan Party shall not assert, and hereby waives, any claim against any  Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as  opposed to direct or actual damages) arising out of, in connection with, or as a result of, this  Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the  transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the  proceeds thereof.  No Indemnitee referred to in subsection (b) above shall be liable for any  damages arising from the use by unintended recipients of any information or other materials  distributed to such unintended recipients by such Indemnitee through telecommunications,  electronic or other information transmission systems in connection with this Agreement or the  

 

  113    other Loan Documents or the transactions contemplated hereby or thereby other than for direct or  actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as  determined by a final and nonappealable judgment of a court of competent jurisdiction.  (e) Payments.  All amounts due under this Section shall be payable not later than ten  Business Days after demand therefor.  (f) Survival.  The agreements in this Section shall survive the resignation of the  Administrative Agent and the L/C Issuer, the replacement of any Lender, the termination of the  Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.  10.05 Payments Set Aside.  To the extent that any payment by or on behalf of the Borrower is  made to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent, the L/C  Issuer 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 L/C Issuer 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 L/C Issuer severally agrees to pay to the Administrative Agent upon demand its (or its applicable  Affiliate’s) 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 L/C Issuer under clause (b) of the preceding sentence shall survive the payment in  full of the Obligations and the termination of this Agreement.  10.06 Successors and Assigns.    (a) Successors and Assigns Generally.  The provisions of this Agreement shall be  binding upon and inure to the benefit of the parties hereto and their respective successors and  assigns permitted hereby, except that neither Borrower nor any other Loan Party may assign or  otherwise transfer any of its rights or obligations hereunder without the prior written consent of  the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of  its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of  Section 10.06(b), (ii) by way of participation in accordance with the provisions of  Section 10.06(d), or (iii) by way of pledge or assignment of a security interest subject to the  restrictions of Section 10.06(e) (and any other attempted assignment or transfer by any party  hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be  construed to confer upon any Person (other than the parties hereto, their respective successors and  assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and,  to the extent expressly contemplated hereby, the Related Parties of each of the Administrative  Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy or claim under or by  reason of this Agreement.  (b) Assignments by Lenders.  Any Lender may at any time assign to one or more  assignees all or a portion of its rights and obligations under this Agreement (including all or a  portion of its Commitment(s) and the Loans (including for purposes of this Section 10.06(b),  participations in L/C Obligations) at the time owing to it); provided that any such assignment  shall be subject to the following conditions:  

 

  114    (i) Minimum Amounts.  (A) in the case of an assignment of the entire remaining amount of  the assigning Lender’s Commitment and the Loans at the time owing to it or in  the case of an assignment to a Lender, an Affiliate of a Lender or an Approved  Fund, no minimum amount need be assigned; and  (B) in any case not described in subsection (b)(i)(A) of this Section,  the aggregate amount of the Commitment (which for this purpose includes Loans  outstanding thereunder) or, if the Commitment is not then in effect, the principal  outstanding balance of the Loans of the assigning Lender subject to each such  assignment, determined as of the date the Assignment and Assumption with  respect to such assignment is delivered to the Administrative Agent or, if “Trade  Date” is specified in the Assignment and Assumption, as of the Trade Date, shall  not be less than $3,000,000, unless each of the Administrative Agent and, so long  as no Event of Default has occurred and is continuing, the Borrower otherwise  consents (each such consent not to be unreasonably withheld or delayed);  provided, however, that concurrent assignments to members of an Assignee  Group and concurrent assignments from members of an Assignee Group to a  single Eligible Assignee (or to an Eligible Assignee and members of its Assignee  Group) will be treated as a single assignment for purposes of determining  whether such minimum amount has been met;  (ii) Proportionate Amounts.  Each partial assignment shall be made as an  assignment of a proportionate part of all the assigning Lender’s rights and obligations  under this Agreement with respect to the Loans or the Commitment assigned;  (iii) Required Consents.  No consent shall be required for any assignment  except to the extent required by subsection (b)(i)(B) of this Section and, in addition:  (A) the consent of the Borrower (such consent not to be  unreasonably withheld or delayed) shall be required unless (1) an Event of  Default has occurred and is continuing at the time of such assignment or (2) such  assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;  provided that the Borrower shall be deemed to have consented to any such  assignment unless it shall object thereto by written notice to the Administrative  Agent within five (5) Business Days after having received notice thereof;  (B) the consent of the Administrative Agent (such consent not to be  unreasonably withheld or delayed) shall be required for assignments in respect of  any Commitment if such assignment is to a Person that is not a Lender with a  Commitment in respect of the Revolving Credit Facility, an Affiliate of such  Lender or an Approved Fund with respect to such Lender;  (C) the consent of the L/C Issuer (such consent not to be  unreasonably withheld or delayed) shall be required for any assignment of the  Revolving Credit Facility that increases the obligation of the assignee to  participate in exposure under one or more Letters of Credit (whether or not then  outstanding).  

 

  115    (iv) Assignment and Assumption.  The parties to each assignment shall  execute and deliver to the Administrative Agent an Assignment and Assumption, together  with a processing and recordation fee in the amount of $3,500; provided, however, that  the Administrative Agent may, in its sole discretion, elect to waive such processing and  recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall  deliver to the Administrative Agent an Administrative Questionnaire.  (v) No Assignment to Certain Persons.  No such assignment shall be made  (A) to any Loan Party or any of the Loan Parties’ Affiliates or Subsidiaries, or (B) to any  Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender  hereunder, would constitute any of the foregoing Persons described in this clause (B), or  (C) to a natural person (or a holding company, investment vehicle or trust for, or owned  and operated for the primary benefit of, a natural person).  (vi) Certain Additional Payments.  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 Borrower and the Administrative Agent, the applicable pro rata share of the 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 in  accordance with its Applicable Percentage.  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.  Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this  Section, from and after the effective date specified in each Assignment and Assumption, the 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 of Sections 3.01,  3.04, 3.05 and 10.04 with respect to facts and circumstances occurring prior to the effective date of such  assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no  assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder  arising from that Lender’s having been a Defaulting Lender.  Upon request, the Borrower (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 subsection 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 10.06(d).  

 

  116    (c) Register.  The Administrative Agent, acting solely for this purpose as a non- fiduciary agent of the Borrower (and such agency being solely for tax purposes), 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 of the Loans and L/C Obligations owing to, each Lender pursuant to the  terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive,  and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name  is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of  this Agreement, notwithstanding notice to the contrary.  In addition, the Administrative Agent  shall maintain on the Register information regarding the designation, and revocation of  designation, of any Lender as a Defaulting Lender.  The Register shall be available for inspection  by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable  prior notice.  (d) Participations.  Any Lender may at any time, without the consent of, or notice to,  the Borrower or the Administrative Agent, sell participations to 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), a Defaulting Lender or any Loan Party or any of the Loan  Parties’ Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s  rights and/or obligations under this Agreement (including all or a portion of its Commitment  and/or the Loans (including such Lender’s participations in L/C Obligations) 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 Borrower, the Administrative Agent, the Lenders and the L/C Issuer  shall continue to deal solely and directly with such Lender in connection with such Lender’s  rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a  Lender sells such a participation shall provide that such Lender shall retain the sole right to  enforce this Agreement and to approve any amendment, modification or waiver of any provision  of this Agreement; provided that such agreement or instrument may provide that such Lender will  not, without the consent of the Participant, agree to any amendment, waiver or other modification  described in the first proviso to Section 10.01 that adversely affects such Participant.  The  Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and  3.05 (it being understood that the documentation required under Section 3.01(e) shall be delivered  to the Lender who sells the participation) to the same extent as if it were a Lender and had  acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such  Participant (A) agrees to be subject to the provisions of Sections 3.06 and 10.13 as if it were an  assignee under paragraph (b) of this Section and (B) shall not be entitled to receive any greater  payment under Section 3.01 or 3.04, with respect to any participation, than the Lender from  whom it acquired the applicable participation would have been entitled to receive, except to the  extent such entitlement to receive a greater payment results from a Change in Law that occurs  after the Participant acquired the applicable participation.  Each Lender that sells a participation  agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the  Borrower to effectuate the provisions of Section 3.06 with respect to any Participant.  To the  extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08 as  though it were a Lender; provided that such Participant agrees to be subject to Section 2.12 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 Borrower, maintain a register on which it enters the name  and address of each Participant and the principal amounts (and stated interest) of each  Participant’s interest in the Loans or other obligations under the Loan Documents (the  “Participant Register”); provided that no Lender shall have any obligation to disclose all or any  portion of the Participant Register (including the identity of any Participant or any information  

 

  117    relating to a Participant’s interest in any commitments, loans, letters of credit or its other  obligations under any Loan Document) to any Person except to the extent that such disclosure is  necessary to establish that such commitment, loan, letter of credit or other obligation is in  registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries  in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat  each Person whose name is recorded in the Participant Register as the owner of such participation  for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance  of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no  responsibility for maintaining a Participant Register.  (e) Certain Pledges.  Any Lender may 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, including any pledge or assignment to secure obligations to a Federal  Reserve Bank or any central bank; provided that no such pledge or assignment shall release such  Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such  Lender as a party hereto.  (f) Resignation as L/C Issuer after Assignment.  Notwithstanding anything to the  contrary contained herein, if at any time Wells Fargo assigns all of its Commitment and Loans  pursuant to Section 10.06(b), Wells Fargo may, upon 30 days’ notice to the Borrower and the  Lenders, resign as L/C Issuer.  In the event of any such resignation as L/C Issuer, the Borrower  shall be entitled to appoint from among the Lenders a successor L/C Issuer hereunder; provided,  however, that no failure by the Borrower to appoint any such successor shall affect the  resignation of Wells Fargo as L/C Issuer.  If Wells Fargo resigns as L/C Issuer, it shall retain all  the rights, powers, privileges and duties of the L/C Issuer hereunder with respect to all Letters of  Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations  with respect thereto (including the right to require the Lenders to make Base Rate Loans or fund  risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).  Upon the appointment  of a successor L/C Issuer, (a) such successor shall succeed to and become vested with all of the  rights, powers, privileges and duties of the retiring L/C Issuer, and (b) the successor L/C Issuer  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 Wells Fargo to effectively assume  the obligations of Wells Fargo with respect to such Letters of Credit.  10.07 Treatment of Certain Information; Confidentiality.  Each of the Administrative  Agent, the Lenders and the L/C Issuer agrees to maintain the confidentiality of the Information (as  defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’  respective partners, directors, officers, employees, agents, trustees, advisors and representatives (it being  understood that the Persons to whom such disclosure is made will be informed of the confidential nature  of such Information and instructed to keep such Information confidential), (b) to the extent requested by  any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority,  such as the National Association of Insurance Commissioners) or in connection with any pledge or  assignment permitted under Section 10.06(e), (c) to the extent required by Applicable Laws or regulations  or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the  exercise of any remedies hereunder or under any other Loan Document or any action or proceeding  relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or  thereunder, (f) subject to an agreement containing provisions substantially the same as those of this  Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its  rights or obligations under this Agreement or any Eligible Assignee invited to be a Lender pursuant to  Section 2.13(c) or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative  transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower, (h) to the  

 

  118    extent such Information (i) becomes publicly available other than as a result of a breach of this Section or  (ii) becomes available to the Administrative Agent, any Lender, the L/C Issuer or any of their respective  Affiliates on a nonconfidential basis from a source other than the Borrower, (i) deal terms and other  information customarily reported to Thomson Reuters, other bank market data collectors and similar  service providers to the lending industry and service providers to the Administrative Agent and the  Lenders in connection with the administration of the Loan Documents, (j) to the extent that such  information is independently developed by such Person, or (k) to the extent required by an insurance  company in connection with providing insurance coverage or providing reimbursement pursuant to this  Agreement or (l) for purposes of establishing a “due diligence” defense.    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 or their respective  businesses, other than any such information that is available to the Administrative Agent, any Lender or  the L/C Issuer on a nonconfidential basis prior to disclosure by any Loan Party or any Subsidiary thereof,  provided that, in the case of information received from a Loan Party or any such Subsidiary after the date  hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required  to maintain the confidentiality of Information as provided in this Section shall be considered to have  complied with its obligation to do so if such Person has exercised the same degree of care to maintain the  confidentiality of such Information as such Person would accord to its own confidential information.  Each of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the  Information may include material non-public information concerning a Loan Party or a Subsidiary of a  Loan Party, as the case may be, (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.  10.08 Right of Setoff.  If an Event of Default shall have occurred and be continuing, each  Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time and from  time to time, after obtaining the prior written consent of the Administrative Agent, to the fullest extent  permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or  demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever  currency) at any time owing by such Lender, the L/C Issuer or any such Affiliate to or for the credit or the  account of the Borrower or any other Loan Party against any and all of the obligations of the Borrower or  such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such  Lender or the L/C Issuer, irrespective of whether or not such Lender or the L/C Issuer shall have made  any demand under this Agreement or any other Loan Document and although such obligations of the  Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office of such  Lender or the L/C Issuer different from the branch or office holding such deposit or obligated on such  indebtedness; provided, that in the event that any Defaulting Lender shall exercise any such right of  setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further  application in accordance with the provisions of Section 2.15 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 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.  The rights of each Lender, the L/C Issuer  and their respective Affiliates under this Section are in addition to other rights and remedies (including  other rights of setoff) that such Lender, the L/C Issuer or their respective Affiliates may have.  Each  Lender and the L/C Issuer agrees to notify the Borrower and the Administrative Agent promptly after any  such setoff and application, provided that the failure to give such notice shall not affect the validity of  such setoff and application.  

 

  119    10.09 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 the  Administrative 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 Borrower.  In determining whether the interest contracted for, charged, or received by the  Administrative 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.  10.10 Counterparts; Integration; Effectiveness.  This Agreement may be executed in  counterparts (and by different parties hereto in different counterparts), each of which shall constitute an  original, but all of which when taken together shall constitute a single contract.  This Agreement and the  other Loan Documents constitute the entire contract among the parties relating to the subject matter  hereof and supersede any and all previous agreements and understandings, oral or written, relating to the  subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it  shall have been executed by the Administrative Agent and when the Administrative Agent shall have  received counterparts hereof that, when taken together, bear the signatures of each of the other parties  hereto.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other  electronic imaging means shall be effective as delivery of a manually executed counterpart of this  Agreement.  10.11 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 or any Letter of  Credit shall remain outstanding.  10.12 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.  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 10.12, 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 or the L/C Issuer, as applicable, then such provisions shall be  deemed to be in effect only to the extent not so limited.  10.13 Replacement of Lenders.  If any Lender requests compensation under Section 3.04, or if  the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for  the account of any Lender pursuant to Section 3.01, or if any Lender is a Defaulting Lender or a Non- Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and  the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance  

 

  120    with and subject to the restrictions contained in, and consents required by, Section 10.06), all of its  interests, rights (other than its existing rights to payments pursuant to Sections 3.01 and 3.04) and  obligations under this Agreement and the related Loan Documents to an assignee that shall assume such  obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:  (a) the Borrower shall have paid to the Administrative Agent the assignment fee  specified in Section 10.06(b);  (b) such Lender shall have received payment of an amount equal to the outstanding  principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other  amounts payable to it hereunder and under the other Loan Documents (including any amounts  under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued  interest and fees) or the Borrower (in the case of all other amounts);  (c) 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;  (d) such assignment does not conflict with Applicable Laws; and  (e) in the case of any such assignment resulting from a Non-Consenting Lender’s  failure to consent to a proposed change, waiver, discharge or termination with respect to any  Loan Document, the applicable replacement bank, financial institution or Fund consents to the  proposed change, waiver, discharge or termination; provided that the failure by such Non- Consenting Lender to execute and deliver an Assignment and Assumption shall not impair the  validity of the removal of such Non-Consenting Lender and the mandatory assignment of such  Non-Consenting Lender’s Commitments and outstanding Loans and participations in L/C  Obligations pursuant to this Section 10.13 shall nevertheless be effective without the execution by  such Non-Consenting Lender of an Assignment and Assumption.  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 Borrower to require such  assignment and delegation cease to apply.  10.14 Governing Law; Jurisdiction; Etc.  (a) GOVERNING LAW.  THIS AGREEMENT AND THE OTHER LOAN  DOCUMENTS AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION  (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT  OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT  (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH  THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY  SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF  THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO ANY CHOICE OR  CONFLICT OF LAW PROVISION OR RULE THAT WOULD CAUSE THE APPLICATION  OF THE DOMESTIC SUBSTANTIVE LAWS OF ANY OTHER STATE).  (b) SUBMISSION TO JURISDICTION.  THE BORROWER AND EACH OTHER  LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND  ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE  OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES  

 

  121    DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY  APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING  ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN  DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES  THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE  HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE  FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.   EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH  ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN  OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER  PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN  DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY  LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR  PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT  AGAINST THE BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN  THE COURTS OF ANY JURISDICTION.  (c) WAIVER OF VENUE.  THE BORROWER AND EACH OTHER LOAN  PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST  EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW  OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR  PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY  OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF  THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES,  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN  INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR  PROCEEDING IN ANY SUCH COURT.  (d) SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY  CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN  SECTION 10.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY  PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY  APPLICABLE LAW.  10.15 Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT  MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY  ARISING OUT OF OR RELATING TO THIS 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.  10.16 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), the Borrower and each of the other Loan Parties  

 

  122    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 Arrangers are  arm’s-length commercial transactions between the Borrower, the other Loan Parties and their respective  Affiliates, on the one hand, and the Administrative Agent and the Arrangers on the other hand, (B) the  Borrower and each of the other Loan Parties has consulted its own legal, accounting, regulatory and tax  advisors to the extent it has deemed appropriate, and (C)  the Borrower and each of the other Loan Parties  is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions  contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative Agent and each  Arranger 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 the  Borrower, the other Loan Parties or any of their respective Affiliates, or any other Person and (B) neither  the Administrative Agent nor any Arranger has any obligation to the Borrower, the other 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  and each Arranger and their respective Affiliates may be engaged in a broad range of transactions that  involve interests that differ from those of the Borrower, the other Loan Parties and their respective  Affiliates, and neither the Administrative Agent nor any Arranger has any obligation to disclose any of  such interests to the Borrower, the other Loan Parties or any of their respective Affiliates.  To the fullest  extent permitted by law, the Borrower and each of the other Loan Parties hereby waives and releases any  claims that it may have against the Administrative Agent and each Arranger with respect to any breach or  alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated  hereby.  10.17 Electronic Execution.  The words “execute,” “execution,” “signed,” “signature,”  “delivery” and words of like import in or related to this Agreement, any other Loan Document or any  document, amendment, approval, consent, waiver, modification, information, notice, certificate, report,  statement, disclosure, or authorization to be signed or delivered in connection with this Agreement or any  other Loan Document or the transactions contemplated hereby shall be deemed to include Electronic  Signatures or execution in the form of an Electronic Record, and contract formations on electronic  platforms approved by the Administrative Agent, deliveries or the keeping of records in electronic form,  each of which shall be of the same legal effect, validity or enforceability as a manually executed signature  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.  Each party hereto agrees that any Electronic Signature or  execution in the form of an Electronic Record shall be valid and binding on itself and each of the other  parties hereto to the same extent as a manual, original signature.  For the avoidance of doubt, the  authorization under this paragraph may include, without limitation, use or acceptance by the parties of a  manually signed paper which has been converted into electronic form (such as scanned into PDF format),  or an electronically signed paper converted into another format, for transmission, delivery and/or  retention.  Notwithstanding anything contained herein to the contrary, the Administrative Agent is under  no obligation to accept an Electronic Signature in any form or in any format unless expressly agreed to by  the Administrative Agent pursuant to procedures approved by it; provided that without limiting the  foregoing, (i) to the extent the Administrative Agent has agreed to accept such Electronic Signature from  any party hereto, the Administrative Agent and the other parties hereto shall be entitled to rely on any  such Electronic Signature purportedly given by or on behalf of the executing party without further  verification and (ii) upon the request of the Administrative Agent or any Lender, any Electronic Signature  shall be promptly followed by an original manually executed counterpart thereof.  Without limiting the  generality of the foregoing, each party hereto hereby (A) agrees that, for all purposes, including without  limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy  proceedings or litigation among the Administrative Agent, the Lenders and any of the Loan Parties,  

 

  123    electronic images of this Agreement or any other Loan Document (in each case, including with respect to  any signature pages thereto)  shall have the same legal effect, validity and enforceability as any paper  original, and (B) waives any argument, defense or right to contest the validity or enforceability of the  Loan Documents based solely on the lack of paper original copies of any Loan Documents, including  with respect to any signature pages thereto.  10.18 USA PATRIOT Act.  Each Lender that is subject to the PATRIOT Act (as hereinafter  defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the  Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed  into law October 26, 2001)) (the “PATRIOT Act”) or any other Anti-Money Laundering Laws, it is  required to obtain, verify and record information that identifies each Loan Party, which information  includes the name and address of each Loan Party and other information that will allow such Lender or  the Administrative Agent, as applicable, to identify each Loan Party in accordance with the PATRIOT  Act or such other Anti-Money Laundering Laws.  The Borrower shall, promptly following a request by  the Administrative Agent or any Lender, provide all documentation and other information that the  Administrative Agent or such Lender requests in order to comply with its ongoing obligations under  applicable Anti-Money Laundering Laws, including the PATRIOT Act.  10.19 Release of Collateral.    (a) In connection with any permitted Asset Sale (certified as such by the applicable  Loan Party) and promptly following the reasonable written request of any Loan Party, which  request shall be accompanied by, to the extent necessary, a description of such Asset Sale, signed  by a Responsible Officer of the Borrower and to be in a form reasonably satisfactory to the  Administrative Agent, the Administrative Agent will execute and deliver documents prepared by  such Loan Party and appropriate under local law, to release any filing under the Uniform  Commercial Code of the applicable state or other Lien arising under any Loan Document, as to  any asset to be sold under such permitted Asset Sale.  (b) In furtherance of, and not in limitation of authorizations contained in  Section 9.10, each of the Lenders and the L/C Issuer agrees to the foregoing provisions of this  Section 10.19 and irrevocably authorizes the Administrative Agent, at its option and in its  discretion, to executed and deliver any such releases or subordinations in accordance with the  provisions of this Section 10.19.  10.20 Amendment and Restatement.  On the Closing Date, this Agreement shall amend,  restate and supersede the Existing Credit Agreement in its entirety, except as provided in this  Section 10.20.  On the Closing Date, the rights and obligations of the parties evidenced by the Existing  Credit Agreement shall be evidenced by this Agreement and the other Loan Documents and the giving of  guarantees and the grant of security interests in and Liens on the Collateral by the relevant Loan Parties  under the “Loan Documents” (as defined in the Existing Credit Agreement) shall continue under but as  amended by this Agreement and the other Loan Documents, and shall not in any event be terminated,  extinguished or annulled but shall hereafter be governed by this Agreement and the other Loan  Documents.  All references to the Existing Credit Agreement in any Loan Document or other document  or instrument delivered in connection therewith shall be deemed to refer to this Agreement and the  provisions hereof.  Without limiting the generality of the foregoing and to the extent necessary, the  Existing Lenders and Wells Fargo, in its capacity as the administrative agent and collateral agent  thereunder reserve all of their rights under the Existing Credit Agreement and the other “Loan  Documents” (as defined in the Existing Credit Agreement) which by their express terms survive the  termination of the Existing Credit Agreement and each of the Loan Parties hereby obligates itself again in  respect of all such present and future “Obligations” (as defined in the Existing Credit Agreement) except  

 

  124    as modified hereby.  Nothing contained herein shall be construed as a novation of the “Obligations”  outstanding under and as defined in the Existing Credit Agreement, which shall remain in full force and  effect, except as modified hereby.  10.21 ERISA Lender Representation.   (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender  party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date  such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, each  Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the  Borrower or any other Loan Party, that at least one of the following is and will be true:   (i) such Lender is not using “plan assets” (within the meaning of Section 3(42) of  ERISA or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) of one or  more Plans with respect to such Lender’s entrance into, participation in, administration of and  performance of the Loans, the Letters of Credit or the Commitments or this Agreement;   (ii) the prohibited 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 so as to exempt  from the prohibitions of Section 406 of ERISA and Section 4975 of the Code such Lender’s  entrance into, participation in, administration of and performance of the Loans, the Letters of  Credit, the Commitments and this Agreement;  (iii) (A) such Lender is an investment fund managed by a “Qualified Professional  Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional  Asset Manager made the investment decision on behalf of such Lender to enter into, participate  in, administer and perform the Loans, the Letters of Credit, the Commitments and this  Agreement, (C) the entrance into, participation in, administration of and performance of the  Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of  sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender,  the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such  Lender’s entrance into, participation in, administration of and performance of the Loans, the  Letters of Credit, the Commitments and this Agreement; or   (iv) such other representation, warranty and covenant as may be agreed in writing  between the Administrative Agent, in its sole discretion, and such Lender.  (b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true  with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in  accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x)  represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants,  from the date such Person became a Lender party hereto to the date such Person ceases being a Lender  party hereto, for the benefit of, the Administrative Agent, each Arranger and their respective Affiliates,  and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that  none of the Administrative Agent, any Arranger and their respective Affiliates is a fiduciary with respect  to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of  

 

  125    and performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including in  connection with the reservation or exercise of any rights by the Administrative Agent under this  Agreement, any Loan Document or any documents related hereto or thereto).   10.22 Acknowledgement and Consent to Bail-In of Affected Financial Institutions.  Solely  to the extent any Lender or L/C Issuer that is an Affected Financial Institution is a party to this Agreement  and notwithstanding anything to the contrary in any Loan Document or in any other agreement,  arrangement or understanding among any such parties, each party hereto acknowledges that any liability  of any Lender or L/C Issuer that is an Affected Financial Institution arising under any Loan Document, to  the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the  applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound  by:  (a) the application of any Write-Down and Conversion Powers by the applicable  Resolution Authority to any such liabilities arising hereunder which may be payable to it by any  party hereto that is an Affected Financial Institution; and  (b) the effects of any Bail-In Action on any such liability, including, if applicable:  (i) a reduction in full or in part or cancellation of any such liability;  (ii) a conversion of all, or a portion of, such liability into shares or other  instruments of ownership in such Affected 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  (iii) the variation of the terms of such liability in connection with the exercise  of the Write-Down and Conversion Powers of any Resolution Authority.  10.23 Acknowledgement Regarding Any Supported QFCs.  To the extent that the  Loan Documents provide support, through a guarantee or otherwise, for Secured Hedge  Agreements or any other agreement or instrument that is a QFC (such support, “QFC Credit  Support” and, each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows  with respect to the resolution power of the FDIC 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  

 

  126    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 10.23, 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 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).  [Remainder of Page Left Intentionally Blank]  

 

  DENNY’S, INC.  FOURTH AMENDED AND RESTATED CREDIT AGREEMENT  IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed under  seal by their duly authorized officers, all as of the day and year first written above.  BORROWER: DENNY’S, INC.,   a Florida corporation  By: /s/ Robert P. Verostek ____________________   Name: Robert P. Verostek   Title:  Executive Vice President & Chief Financial  Officer  GUARANTORS: DENNY’S CORPORATION,   a Delaware corporation  By: /s/ Robert P. Verostek ____________________   Name: Robert P. Verostek   Title:  Executive Vice President & Chief Financial  Officer   DENNY’S REALTY, LLC,   a Delaware limited liability company     By: DFO, LLC, its Sole Member  By:   Denny’s Inc., its Sole Member    By: /s/ Robert P. Verostek ____________________   Name: Robert P. Verostek   Title:  Executive Vice President & Chief Financial  Officer      

 

   DENNY’S, INC.  FOURTH AMENDED AND RESTATED CREDIT AGREEMENT  DFO, LLC,  a Delaware limited liability company  By: Denny’s Inc., its Sole Member    By: /s/ Robert P. Verostek ____________________   Name: Robert P. Verostek   Title:  Executive Vice President & Chief Financial  Officer  AGENTS AND LENDERS: WELLS FARGO BANK, NATIONAL  ASSOCIATION, as Administrative Agent, L/C  Issuer and Lender  By:  /s/ Darcy McLaren   Name:  Darcy McLaren  Title:  Director  TRUIST BANK  By:  /s/ Alysa Trakas   Name:  Alysa Trakas  Title:  Director  BANK OF THE WEST  By:  /s/ David Hobert   Name:  David Hobert  Title:  Director  REGIONS BANK  By:  /s/ Alfred J. Bacchi    Name:  Alfred J. Bachhi   Title:  Managing Director      CADENCE BANK, N.A.  By:  /s/ John M. Huss   Name:  John M. Huss  Title:  Managing Director  

 

   DENNY’S, INC.  FOURTH AMENDED AND RESTATED CREDIT AGREEMENT  FIFTH THIRD BANK, NATIONAL  ASSOCIATION  By:  /s/ Greg McGinley  Name:  Greg McGinley  Title:  Executive Director, Corporate Banking  MUFG UNION BANK, N.A.  By:  /s/ Matt Kochan   Name:  Matt Kochan   Title:  Director  SYNOVUS BANK  By:  /s/ Michael Sawicki   Name:  Michael Sawicki   Title:  Director – Corporate Banking  BANK OF AMERICA, N.A.  By:  /s/ Robert J. Beckley   Name:  Robert J. Beckley  Title:  Senior Vice President  FIRST HORIZON BANK  By:  /s/ Tom Stadlbauer   Name:  Tom Stadlbauer  Title:  Authorized Signatory      

 

  A – 1  Form of Committed Loan Notice  EXHIBIT A  FORM OF COMMITTED LOAN NOTICE  Date: ____________, _____  To: Wells Fargo Bank, National Association, as Administrative Agent  Ladies and Gentlemen:  Reference is made to that certain Fourth Amended and Restated Credit Agreement, dated as of  August [_], 2021 (as amended, restated, extended, supplemented or otherwise modified in writing from  time to time, the “Agreement”; the terms defined therein being used herein as therein defined), among  DENNY’S, INC., a Florida corporation (“Borrower”), the Guarantors from time to time party thereto, the  Lenders from time to time party thereto, and Wells Fargo Bank, National Association, as Administrative  Agent and L/C Issuer.  The undersigned hereby requests (select one):   A Borrowing of Loans   A conversion or continuation of Loans  1. On _________________________________ (a Business Day).  2. In the amount of $___________.  3. Comprised of ________________________  [Type of Loan requested]  4. For Eurodollar Rate Loans:  with an Interest Period of ______ months.  The Borrowing requested herein complies with the proviso to the first sentence of Section 2.01 of  the Agreement.  The Borrower hereby represents and warrants that the conditions specified in Sections 4.02(a) and  (b), shall be satisfied on and as of the date of the applicable Credit Extension.  DENNY’S, INC.  By:   Name:  Title:  

 

      B – 1  Form of Note  EXHIBIT B  FORM OF NOTE  FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby unconditionally promises  to pay to ________________________ or registered assigns (the “Lender”), in accordance with the  provisions of the Agreement (as hereinafter defined), the principal amount of each Loan from time to time  made by the Lender to the Borrower under that certain Fourth Amended and Restated Credit Agreement,  dated as of August [_], 2021 (as amended, restated, extended, supplemented or otherwise modified in  writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined),  among the Borrower, the Guarantors from time to time party thereto, the Lenders from time to time party  thereto, and Wells Fargo Bank, National Association, as Administrative Agent and L/C Issuer.  The Borrower promises to pay interest on the unpaid principal amount of each Loan from the date  of such Loan until such principal amount is paid in full, at such interest rates and at such times as provided  in the Agreement.  All payments of principal and interest shall be made to the Administrative Agent for the  account of the Lender in Dollars in immediately available funds at the Administrative Agent’s Office.  If  any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon  demand, from the due date thereof until the date of actual payment (and before as well as after judgment)  computed at the per annum rate set forth in the Agreement.  This Note is one of the Notes referred to in the Agreement, is entitled to the benefits thereof and  may be prepaid in whole or in part subject to the terms and conditions provided therein.  This Note is also  entitled to the benefits of the Guarantee and Collateral Agreement and is secured by the Collateral.  Upon  the occurrence and continuation of one or more of the Events of Default specified in the Agreement, all  amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due and  payable all as provided in the Agreement.  Loans made by the Lender shall be evidenced by one or more  loan accounts or records maintained by the Lender in the ordinary course of business.  The Lender may also  attach schedules to this Note and endorse thereon the date, amount and maturity of its Loans and payments  with respect thereto.  The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment, protest  and demand and notice of protest, demand, dishonor and non-payment of this Note.           

 

      B – 2  Form of Note  THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,  THE LAW OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO ANY CHOICE OR  CONFLICT OF LAW PROVISION OR RULE THAT WOULD CAUSE THE APPLICATION OF THE  DOMESTIC SUBSTANTIVE LAWS OF ANY OTHER STATE).  DENNY’S, INC.  By:   Name:  Title:         

 

      B – 3  Form of Note    LOANS AND PAYMENTS WITH RESPECT THERETO      Date  Type of  Loan Made  Amount of  Loan Made  End of  Interest  Period  Amount of  Principal or  Interest Paid  This Date  Outstanding  Principal  Balance This  Date  Notation  Made By                                                                                                                                                              

 

    C – 1  Form of Compliance Certificate  EXHIBIT C  FORM OF COMPLIANCE CERTIFICATE   Financial Statement Date:  ____________, ______  To: Wells Fargo Bank, National Association, as Administrative Agent  Ladies and Gentlemen:  Reference is made to that certain Fourth Amended and Restated Credit Agreement, dated as of  August [_], 2021 (as amended, restated, extended, supplemented or otherwise modified in writing from  time to time, the “Agreement”; the terms defined therein being used herein as therein defined), among  DENNY’S, INC., a Florida corporation (“Borrower”), DENNY’S CORPORATION, a Delaware  corporation (“Parent” and, together with each other guarantor from time to time party thereto, collectively,  the “Guarantors”), the Lenders from time to time party thereto, and Wells Fargo Bank, National  Association, as Administrative Agent and L/C Issuer.  The undersigned Responsible Officer1 hereby certifies as of the date hereof that he/she is the  _______________________________________ of Parent, and that, as such, he/she is authorized to  execute and deliver this Certificate to the Administrative Agent on the behalf of Parent, the Borrower and  the other Loan Parties, and that:  [Use following paragraph 1 for fiscal year-end financial statements]  1. Parent has delivered the year-end audited financial statements required by Section 6.01(a)  of the Agreement for the fiscal year of Parent ended as of the above date, together with the report and  opinion of an independent certified public accountant required by such section.  [Use following paragraph 1 for fiscal quarter-end financial statements]  1. Parent has delivered the unaudited financial statements required by Section 6.01(b) of the  Agreement for the fiscal quarter of Parent ended as of the above date.  Such financial statements fairly  present the financial condition and results of operations of Parent and its Subsidiaries in accordance with  GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the  absence of footnotes.  2. The undersigned has reviewed and is familiar with the terms of the Agreement and has  made, or has caused to be made under his/her supervision, a detailed review of the transactions and  condition (financial or otherwise) of each of Parent, the Borrower and the other Loan Parties during the  accounting period covered by such financial statements.  3. A review of the activities of Parent, the Borrower and the other Loan Parties during such  fiscal period has been made under the supervision of the undersigned with a view to determining whether  during such fiscal period Parent, the Borrower and the other Loan Parties performed and observed all of  their respective Obligations under the Loan Documents, and  [select one]    1 This certificate must be from the chief executive officer, chief financial officer, treasurer or controller of Parent.  

 

    C – 2  Form of Compliance Certificate  [to the best knowledge of the undersigned, during such fiscal period each of Parent, the Borrower  and the other Loan Parties performed and observed each covenant and condition of the Loan Documents  applicable to such Person, and no Default has occurred and is continuing.]  --or--  [to the best knowledge of the undersigned, the following covenants or conditions have not been  performed or observed and the following is a list of each such Default and its nature and status:]  4. The representations and warranties of Parent, the Borrower and the other Loan Parties  contained in Article V of the Agreement and all representations and warranties of the Loan Parties that are  contained in any document furnished at any time under or in connection with the Loan Documents, are true  and correct on and as of the date hereof, except to the extent that such representations and warranties  specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except  that for purposes of this Compliance Certificate, the representations and warranties contained in  subsections (a) and (b) of Section 5.05 of the Agreement shall be deemed to refer to the most recent  statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Agreement,  including the statements in connection with which this Compliance Certificate is delivered.  5. The financial covenant analyses and information set forth on Schedules 1, 2, 3 and 4  attached hereto are true and accurate on and as of the date of this Certificate.             

 

    C – 3  Form of Compliance Certificate  IN WITNESS WHEREOF, the undersigned has executed this Certificate as of __________,  __________.  DENNY’S CORPORATION, as Parent  By: ___________________________________   Name:  Title:         

 

    C – 4  Form of Compliance Certificate  For the Quarter/Year ended ___________________, _____ (“Statement Date”)    SCHEDULE 1  to the Compliance Certificate  ($ in 000’s)  I. Section 7.10(a) - Consolidated Leverage Ratio.  A. Consolidated Funded Indebtedness (other than Indebtedness   consisting of Guarantees by any Loan Party of Operating   Lease obligations of franchisees and Capital Lease   Obligations of franchisees, in each case, permitted   pursuant to Section 7.02(j)) at Statement Date:   $_____  B. Consolidated EBITDA for Measurement Period ending on above  date (“Subject Period”) (Part A of Schedule II): $_____  C. Consolidated Leverage Ratio (Line I.A ÷ Line I.B):  ___ to 1  Maximum Permitted: 4.00 to 1.00    II. Section 7.10(b) - Consolidated Fixed Charge Coverage Ratio.  A. Consolidated EBITDAR for Subject Period (Part B of Schedule II):  $_____  B. Consolidated Maintenance Capital Expenditures for Subject Period: $_____    C. Consolidated Cash Taxes for Subject Period: $_____  D. Consolidated Cash Interest Expense for Subject Period:   (Part C of Schedule II) $_____  E. Consolidated Scheduled Funded Debt Payments for Subject Period: $_____  F. Consolidated Lease Expense for Subject Period: $_____  G. Consolidated Fixed Charge Coverage Ratio ([Line II.A - Line  II.B – Line II.C] / [Line II.D + Line II.E + Line II.F]):  ___ to 1  Minimum Permitted:  1.50 to 1.0         

 

    C – 5  Form of Compliance Certificate    For the Quarter/Year ended _______________, _____ (“Statement Date”)  SCHEDULE 2  to the Compliance Certificate  ($ in 000’s)  A. Consolidated EBITDA2 for Subject Period:  Consolidated Net Income for Subject Period: $_________  (a) plus, the sum of each of the following for such Subject Period  (to the extent deducted in calculating Consolidated Net Income):  1. Consolidated Interest Expense: $_________  2. Federal, state, local and foreign income taxes: $_________  3. depreciation expense: $_________  4. amortization expense: $_________  5. other non-cash charges (including, without limitation, stock  compensation expenses, deferred compensation adjustments,  impairment charges, restructuring and exit costs,    and other non-operating expenses (income)): $_________  6. cumulative effect of any change in accounting principles: $_________  7. net loss attributable to an Asset Sale: $_________  8. non-recurring expenses related to the Transactions: $_________  9. lease buy-out payments in an amount not to exceed $1,000,000: $_________    (b) minus, the sum of each of the following for such Subject Period (to the extent included in  calculating Consolidated Net Income):  1. cash expended in respect of any non-cash charges included in  item (a)(5) (for current Subject Period or any prior period) in  determining Consolidated EBITDA: $_________  2. any net gain from an Asset Sale: $_________    2 after the occurrence of any acquisition of any person by Parent or any Subsidiary of Parent, Consolidated EBITDA  for each Measurement Period that includes the date of occurrence of such acquisition will, solely for purposes of  determining compliance with Section 7.10, be determined on a pro forma basis, based on the actual historical results  of operations of such Person, as if such acquisition had occurred on the first day of such Measurement Period.  

 

    C – 6  Form of Compliance Certificate  3. Federal, state, local and foreign income tax credits: $_________  4. other non-cash items increasing Consolidated Net Income:        $_________  Total: $_________  B. Consolidated EBITDAR  Consolidated EBITDA for Subject Period            $_________    (a) plus, Consolidated Lease Expense to the extent deducted in determining  Consolidated Net Income for the Measurement Period most recently ended:        $_________    Total: $_________    C. Consolidated Cash Interest Expense for Subject Period:  Consolidated Interest Expense for Subject Period:  (a) plus, the sum, without duplication, of the following for such Subject Period:  1. cash payments with respect to any de-designated Swap Contracts:        $_________  (b) minus, the sum, without duplication, of the following for such Subject Period:  1. interest not paid in cash in connection with the incurrence of  Indebtedness to the extent included in interest expense in  accordance with GAAP: $_________  2. interest expense related to discounted liabilities that is treated  as interest in accordance with GAAP: $_________  3. all cash receipts with respect to any de-designated Swap Contracts $_________  Total: $_________     

 

    C – 7  Form of Compliance Certificate  For the Quarter /Year ended __________________, _____ (“Statement Date”)  SCHEDULE 3  to the Compliance Certificate  ($ in 000’s)  Summary of Asset Sales  [To be Agreed to by Parent and the Administrative Agent, and in Form and Substance  Reasonably Satisfactory to the Administrative Agent]         

 

    C – 8  Form of Compliance Certificate  For the Quarter /Year ended __________________, _____ (“Statement Date”)  SCHEDULE 4  to the Compliance Certificate  ($ in 000’s)  Summary of Equity Issuances and Capital Contributions  [To be Agreed to by Parent and the Administrative Agent, and in Form and Substance  Reasonably Satisfactory to the Administrative Agent]        

 

    EXHIBIT D  ASSIGNMENT AND ASSUMPTION  This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective  Date set forth below, and is entered into by and between [the][each]3 Assignor identified in item 1 below  ([the][each, an] “Assignor”) and [the][each]4 Assignee identified in item 2 below ([the][each, an]  “Assignee”).  [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]5  hereunder are several and not joint.]6 Capitalized terms used but not defined herein shall have the meanings  given to them in the Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of  which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1  attached hereto are hereby agreed to and incorporated herein by reference and made a part of this  Assignment and Assumption as if set forth herein in full.  For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the  Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes  from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and  Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as  contemplated below (i) all of [the Assignor’s][the respective Assignors’] rights and obligations in [its  capacity as a Lender] [their respective capacities as Lenders] under the Credit Agreement and any other  documents or instruments delivered pursuant thereto to the extent related to the amount and percentage  interest identified below of all of such outstanding rights and obligations of [the Assignor] [the respective  Assignors] under the respective facilities identified below (including, without limitation, the Letters of  Credit included in such facilities) and (ii) to the extent permitted to be assigned under Applicable Law, all  claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the  respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or  unknown, arising under or in connection with the Credit Agreement, any other documents or instruments  delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to  any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory  claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant  to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any]  Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as [the][an] “Assigned  Interest”).  Each such sale and assignment is without recourse to [the][any] Assignor and, except as  expressly provided in this Assignment and Assumption, without representation or warranty by [the][any]  Assignor.  1. Assignor[s]:      2. Assignee[s]:      [for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]    3 For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single  Assignor, choose the first bracketed language.  If the assignment is from multiple Assignors, choose the second  bracketed language.  4 For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single  Assignee, choose the first bracketed language.  If the assignment is to multiple Assignees, choose the second bracketed  language.  5 Select as appropriate.  6 Include bracketed language if there are either multiple Assignors or multiple Assignees.  

 

    3. Borrower:  Denny’s, Inc., a Florida corporation  4. Administrative Agent:  Wells Fargo Bank, National Association, as the administrative agent  under the Credit Agreement  5. Credit Agreement:  Fourth Amended and Restated Credit Agreement, dated as of August [_],  2021, among the Borrower, the Guarantors from time to time party thereto, the Lenders from  time to time party thereto, and Wells Fargo Bank, National Association, as Administrative  Agent and L/C Issuer  6. Assigned Interest:  Assignor[s] 7    Assignee[s] 8    Aggregate  Amount of  Commitment/Loan s  for all Lenders9    Amount of  Commitmen t  /Loans  Assigned    Percentage  Assigned of  Commitment /  Loans10    CUSIP  N u m b e r                            [7. Trade Date:  ]11  Effective Date:  ______________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND  WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE  REGISTER THEREFOR.]         7 List each Assignor, as appropriate.  8 List each Assignee, as appropriate.  9 Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into  account any payments or prepayments made between the Trade Date and the Effective Date.  10 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.  11 To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined  as of the Trade Date.  

 

    The terms set forth in this Assignment and Assumption are hereby agreed to:  ASSIGNOR  [NAME OF ASSIGNOR]  By: ______________________________________   Name:  Title:  ASSIGNEE  [NAME OF ASSIGNEE]  By: ______________________________________   Name:  Title:  [Consented to and]12 Accepted:  WELLS FARGO BANK,  NATIONAL ASSOCIATION, as  Administrative Agent  By: __________________________________   Name:  Title:  [Consented to:]13  DENNY’S, INC.  By: __________________________________   Name:  Title:       12 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.  13 To be added only if the consent of the Borrower and/or other parties (e.g. L/C Issuer) is required by the terms of the  Credit Agreement.  

 

    WELLS FARGO BANK,   NATIONAL ASSOCIATION, as L/C Issuer  By:   _________________________________   Name:  Title:         

 

    ANNEX 1 TO ASSIGNMENT AND ASSUMPTION  STANDARD TERMS AND CONDITIONS FOR    ASSIGNMENT AND ASSUMPTION  1. Representations and Warranties.  1.1 Assignor.  [The][Each] Assignor (a) represents and warrants that (i) it is the legal and  beneficial owner of [the][the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear  of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all  action necessary, to execute and deliver this Assignment and Assumption and to consummate the  transactions contemplated hereby and (iv) it is [not] a Defaulting Lender; and (b) assumes no responsibility  with respect to (i) any statements, warranties or representations made in or in connection with the Credit  Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,  sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of any  Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document  or (iv) the performance or observance by any Borrower, any of its Subsidiaries or Affiliates or any other  Person of any of their respective obligations under any Loan Document.  1.2 Assignee.  [The][Each] Assignee (a) represents and warrants that (i) it has full power and  authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to  consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii)  it meets all the requirements to be an assignee under Sections 10.06(b)(iii), (v) and (vi) of the Credit  Agreement (subject to such consents, if any, as may be required under Section 10.06(b)(iii) of the Credit  Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit  Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the  obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the  type represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in making  its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such type, (v) it  has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to  receive copies of the most recent financial statements delivered pursuant to Section 6.01 of the Credit  Agreement, as applicable, and such other documents and information as it deems appropriate to make its  own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such]  Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other  Lender and based on such documents and information as it has deemed appropriate, made its own credit  analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned  Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by  it pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such] Assignee; and  (b) agrees that (i) it will, independently and without reliance upon the Administrative Agent, [the] [any]  Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at  the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents,  and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan  Documents are required to be performed by it as a Lender.  2. Payments.  From and after the Effective Date, the Administrative Agent shall make all  payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other  amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding the Effective Date  and to [the][the relevant] Assignee for amounts which have accrued from and after the Effective Date.   

 

    Notwithstanding the foregoing, the Administrative Agent shall make all payments of interest, fees or other  amounts paid or payable in kind from and after the Effective Date to the Assignee.  3. General Provisions.  This Assignment and Assumption shall be binding upon, and inure to  the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and  Assumption may be executed in any number of counterparts, which together shall constitute one instrument.   Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy  shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This  Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of  New York.

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